Payday Loans are Legal in Oregon

Beware of predatory lending

Payday Lenders in Oregon

Payday Loans are short-term loans that can help you meet your financial emergency needs, like unexpected medical costs or automobile repairs. These loans are often used by those with bad credit scores or no previous history, who don’t qualify to receive traditional bank and credit union loans. They are appealing because they’re more accessible than most other types of credit.

However, the rates and fees can be high. Most states have clear regulation on lenders, but some like Oregon have made it near impossible for them to operate in the state as traditional payday lenders due to caps on interest and term restrictions. In 2019, there were only 82 licensed payday lenders in Oregon, down from 346 in 2007. Despite the strict regulations, payday lending still remains a lucrative business in Oregon with lenders issuing more than 147,000 payday loans each year, with an average loan amount of $373.

If you are looking for a payday lender, do your research. You should also consider the lender’s terms and reputation. Oregon has set limits on the interest rates, fees and other charges that lenders must follow. If they do not hold a license, this could mean they don’t adhere to these rules. To avoid scams, it is advisable to use licensed lenders with transparent fees and rates. You should avoid lending companies that advertise aggressively and always check the status of their license with the state regulatory body. You can also read online customer reviews to get an idea of their reputation.

Payday Loan Laws

While payday loans are legal in Oregon, they are highly restricted by law. There are minimum and maximum loan terms and there is a cap on allowable interest rates. While the law allows for $50,000 to be borrowed, most lenders will not lend that high of an amount and there are restrictions based on the income of the borrower.

The State of Oregon has several pieces of legislation that govern payday loans:

Loan Terms and Conditions

Maximum loan amount: $50,000 (or 25% of net income if make less than $60,000)

Maximum Interest Rate: 36%

Minimum loan term: 31 days

Maximum loan term: 60 days

Number of rollovers allowed: 2

Finance Charge: Origination fee of $10-$30 dollars based on loan amount

Legal action: 6 Years

Certified Payday Lenders in Oregon

Company Name	Company score	License Status
Big Picture Loans, LLC	7.8	Valid
CURO Intermediate Holdings	7.3	Valid
BlueChip Financial	7	Valid
Advance America, Cash Advance Centers, Inc.	6.8	Valid
Populus Financial Group, Inc.	6.2	Valid
LCO Financial Services, LLC	5.9	Valid

History of Oregon Payday Loans

Before 2007, payday loan providers in Oregon were free to set their own fees and loan terms, leading to APRs ranging from 391% to 521%. However, in 2007, the Oregon Legislature introduced regulations capping interest rates at 36%, with APRs lowered to 156%, and minimum loan terms extended to 31 days, which forced the majority of payday loan stores to shut down. Following this, in 2015, the SB 278 voided payday loans of $50,000 and less made by unlicensed lenders, and collection activities in such cases were declared illegal, leading to only a handful of licensed lenders being able to operate legally in Oregon. While the maximum APR is still high at approximately 153%, the current regulations have effectively restrained the payday loan industry in Oregon, protecting consumers from exorbitant fees and predatory lending practices.

State Resources

How to file a complaint

Borrowers can file a complaint with the Department of Consumer and Business services using their website. They ask that you do not submit any supporting documents with the initial complaint and instead wait for a representative to contact you to let you know what documents may be needed for your unique situation.

Oregon Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

There are many options available to manage the repayment of payday loans. Contacting the lender to discuss your situation is the first step. The borrower could negotiate with the lender and come up with a plan that reduces the amount owed, extends the period for payment, and lowers the interest rate. Another option that can help you manage your payments better is to refinance the loan at a lower rate. As a final resort, bankruptcy may allow the borrower to discharge the loan. This should be considered only after consulting an attorney.

Support Resources

Types of Quick Loans in Oregon

Cash Advance Apps Cash advance apps have become a popular option for Oregon residents who need fast access to cash. These apps work by connecting borrowers with lenders willing to offer small amounts of money that are paid back within a short time frame. One of the biggest advantages of using a cash advance app is the convenience it offers. Borrowers can apply from anywhere and receive their funds within a matter of hours.

Installment Loans Installment loans provide another viable solution for Oregonians seeking to borrow money. Repaid over an agreed-upon period ranging from months to years, installment loans offer flexibility when borrowing and may come with lower interest rates than payday loans or cash advance apps. It is important that borrowers carefully read and understand the terms and conditions before agreeing to any installment loans in order to avoid falling into an endless cycle of debt.

Lines of Credit Personal lines of credit are a flexible option for those in Oregon who need access to funds on an ongoing basis. A line of credit works like a credit card in that you have a set amount of credit available to you, and you only pay interest on the amount you use. This makes it a great option for unexpected expenses or emergencies. Personal lines of credit often have lower interest rates than credit cards, making them a more affordable option for many borrowers. However, it's important to remember that lines of credit require responsible borrowing, as they can easily become a source of debt if not managed properly.

Alternatives to Payday Loans in Oregon

Personal Loans

Personal loans can be a useful tool for those in need of quick access to funds. While interest rates on personal loans may be higher than some other types of loans, they often have more flexible repayment terms. Many credit unions and banks in Oregon offer personal loans to residents, including fixed-rate and variable-rate options. In addition, online lenders and peer-to-peer lending platforms may also provide personal loan options. To qualify for a personal loan in Oregon, applicants typically need to have a good credit score and a stable income.

Construction Loans

Construction loans are designed specifically for those looking to build a new home or complete a major renovation project. These loans are typically short-term and provide funding to cover the costs of building materials, labor, and other expenses. Construction loans may come with higher interest rates and stricter requirements than other types of loans, as lenders want to ensure that the project is completed on time and within budget. Many banks and credit unions in Oregon offer construction loans, but it's important to shop around and compare rates and terms before choosing a lender.

Home Equity Loans

Home equity loans in Oregon allow homeowners to borrow against the equity in their home. This type of loan can be useful for those looking to consolidate debt, make home improvements, or cover other expenses. Home equity loans typically come with lower interest rates than personal loans or credit cards, but they do require the borrower to use their home as collateral. Many banks and credit unions in Oregon offer home equity loans, and some may even offer home equity lines of credit, which allow borrowers to draw funds as needed up to a certain limit.

Bad Credit Loans in Oregon

For those with bad credit in Oregon, getting a loan can be challenging. However, there are options available such as bad credit loans. These loans are designed for individuals with poor credit scores and may come with higher interest rates and stricter terms. Many online lenders and alternative financing companies in Oregon offer bad credit loans. It's important to read the fine print and understand the terms and fees associated with any loan before signing on.

Oregon Small Business Loans

Small business loan options in Oregon:

SBA loans: The SBA offers several loan programs for small businesses, including 7(a) loans, microloans, and disaster loans.
Community Development Financial Institutions (CDFIs): These organizations provide loans and other financial services to small businesses in underserved communities.
Credit union loans: Credit unions may offer small business loans with lower interest rates and more flexible repayment terms.
Business Oregon Finance Programs: Business Oregon is a state agency that provides financing programs to help small businesses access capital. These include the Small Business Expansion Program, Entrepreneurial Development Loan Fund, and Rural Opportunities Initiative.
Oregon Capital Access Program (CAP): CAP is a loan loss reserve program that provides lenders with a way to make loans to small businesses that might not otherwise be able to qualify for financing.

VA loans in Oregon

VA loans are a type of mortgage loan designed for military veterans and active-duty service members. These loans are backed by the U.S. Department of Veterans Affairs and often come with more favorable terms and lower interest rates than traditional mortgages. VA loans can be used to purchase a home, refinance an existing mortgage, or make home improvements. To qualify for a VA loan in Oregon, applicants must meet certain eligibility requirements, including having served a certain length of time in the military and having a valid Certificate of Eligibility. Many banks and credit unions in Oregon offer VA loans, and there are also online lenders that specialize in VA loans for military members and veterans.

Oregon Student Loans

Many options are available to Oregon students to help finance their college education. These options include:

Federal Student Loans: The U.S. Department of Education offers several federal student loan programs, including Direct Subsidized and Unsubsidized Loans, Parent PLUS Loans, and Graduate PLUS Loans.
Oregon State Credit Union: IOffers undergraduate, graduate, and parent loans with competitive rates and flexible repayment terms.
Oregon Opportunity Grant: This is a need-based grant that is awarded to Oregon residents pursuing undergraduate or vocational education at eligible institutions in the state.
Oregon Promise Grant: This grant is available to recent high school graduates and GED recipients who are Oregon residents and plan to attend community college.
Private Student Loans: Private lenders, such as banks and online lenders, offer student loans with varying interest rates and repayment terms.

Oregon Income Information

The recently released 2021 U.S. Census reports show Oregon having a median household income of $70,084, almost even with the national median of $69,021. Oregon’s economy is largely driven by the high-tech industry, with companies such as Intel, HP, and Tektronix having a significant presence in the state. The state also has a strong agricultural sector, with products like wine, berries, and nursery products being major exports. Oregon’s median household income varies widely by county, with Washington County being the highest at $86,626, and Gilliam County is the lowest at $41,838. The state’s poverty rate was 12.2% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 30, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Oregon. Accessed on April 30, 2023.

Oregon Payday Lender Complaints

Below are trends associated with some payday lenders in Oregon, as reported to the Consumer Financial Protection Bureau.

Company Name	Count
Big Picture Loans, LLC	14
CURO Intermediate Holdings	12
BlueChip Financial	9
Advance America, Cash Advance Centers, Inc.	7
Populus Financial Group, Inc. (F/K/A Ace Cash Express)	8
LCO Financial Services, LLC	5
Total Complaints	107

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 30, 2023.

Most Common Issues

Complaint type	Count
Unexpected fees or interest	50
Can’t stop withdrawal from bank account	15
Struggling to pay loan	12
Can’t contact lender	11
Received a loan did not apply for	5

What are the main reasons residents of Oregon apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason	Share
Regular Expenses (Utilities, car payment)	53%
Unexpected emergency/expense	16%
Rent/Mortgage	10%
Something Special	8%
Other	5%
Did not answer	2%

Payday Lenders by City

Portland
Salem
Eugene
Gresham
Hillsboro
Beaverton
Bend
Medford
Springfield
Corvallis

Albany
Tigard
Aloha
Lake Oswego
Keizer
Grants Pass
Oregon City
McMinnville
Redmond
Bethany

Tualatin
West Linn
Wilsonville
Woodburn
Forest Grove
Newberg
Roseburg
Happy Valley
Hayesville
Klamath Falls

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Oregon, you will need to provide proof of income, contact and banking information, and a valid government-issued ID.

Can I cancel my payday loan?

According to the Oregon Department of Consumer and Business Services, you have until the end of the business day following the day you received the loan to cancel it without any additional fees or interest. To cancel the loan, you need to inform the lender in writing and return the full amount borrowed to the lender.

Can a payday loan lender garnish my wages?

Payday lenders can garnish your wages in the state of Oregon if they win a lawsuit against you and get a court judgment to do so.

Can spouses have separate loans?

In Oregon, spouses are not allowed to apply for separate payday loans.

When will I receive my funds if I am approved for a payday loan?

If you are approved for a payday loan in Oregon, you can expect to receive the funds within one business day. Some lenders may even offer same-day funding options, but it’s important to check with your lender for specific information about their funding timeline.

What happens if I can’t repay my payday loan on time?

If you can’t repay your payday loan in Oregon, the lender will likely charge you additional fees and interest. The lender may also turn over your debt to a collection agency or take legal action against you.

When could I apply for another payday loan?

In Oregon, you can apply for another payday loan 7 days after you pay off your previous loan.