SALEM—Today,
Governor Kulongoski signed four bills into law to protect consumers
from predatory financial services, and put an end to payday and title
loans’ triple-digit percent interest rates.
“This
is a great day for Oregon consumers,” said Laura Etherton, Consumer
Advocate with Oregon State Public Interest Research Group (OSPIRG),
“Trapping borrowers in debt and gouging them with 500 percent interest
rates are unacceptable practices in Oregon.”
The bills signed into law Tuesday:
• Predatory Lending Interest Rate Cap, House Bill 2871, caps interest
rates on all consumer loans, such as those made by payday and car title
loan outfits, and makes sure borrowers have at least 31 days to repay a
loan.
• Internet Lending Protection, House Bill 2203, extends state
interest rate caps to loans made via Internet, mail and telephone to
Oregon residents, and establishes a loan database to improve
enforcement.
• Car Title Lending Protection, House Bill 2204, caps the fees and
interest rates for car title loans and closes a loophole car title
lenders have used in other states to evade the law.
• Check Cashing Fairness Act, House Bill 2202, requires check cashing to
be licensed in Oregon, and sets limits on check cashing fees.
Etherton
pointed to passage of House Bill 2871 as especially critical to
protecting consumers because it reinstates caps on consumer loans that
were repealed in the 1980s, a move that contributed to the spread of
high-interest payday loan and title loan outfits across the state.
“Kudos
to champions like Rep. Jackie Dingfelder, Speaker Jeff Merkley, Sen.
Prozanski and Rep. Holvey,” said Etherton, “They stood up for consumer
protection, and stared down unconscionable interest rates.”
