Oregon Payday Loans Law
In today’s economy, it is really difficult even for hard-working people with a steady monthly income to meet their monthly bills. Even those who make the most out of what they have, cut their spendings, structure their budget in the best possible way by carefully planning and calculating their monthly earning and expenses, even they often struggle to sustain a stable financial state. And life is full of surprises, sometimes an unexpected event can bring unexpected expenses.
If you can barely afford to pay your monthly electricity bill, how are you going to afford to pay for an emergency expense? Seems like the only way to cope with such situation is by seeking financial help. When a person needs a quick money injection, his friends and family may be the answer. However, for some people, taking out a loan from a close person is a not a viable option. This leads us to the tremendous growth that the loan lending industry has had in the last decade.
There are numerous loan options for borrowers to pick from. Different loan types allow you to take out a loan with fewer application requirements, some loans you can take without having to leave your house by simply going online. Among so many loan types out there, probably the most popular type is payday loans. Payday loans are very popular among many borrowers. However, they are not legal in every state in the United States. Some states set really tough restrictions and limitations on payday loan lending due to the risks that they carry. Below we will see if payday loans are available to the residents of the state of Oregon and if so, why it can be a good idea to get one.
Are Oregon payday loans legal?
According to Oregon payday loan laws, payday loan lending in the state is considered legal and is regulated by the 54 Or. Rev. Stat. § 725A.010 et seq law. The loan lending industry in Oregon is growing and therefore there are more than 450 payday loan lending companies that conduct their business in the state. According to Oregon payday loan law regulations, the minimum loan term for a payday loan is 31 days with a maximum term of 60 days.
The maximum payday loan amount that borrowers can take out in Oregon is tremendously higher compared to what payday loan lending companies offer in most other states as borrowers in Oregon are able to take out payday loans up to $50,00 or up to 25% of the borrower’s monthly income. With that being said, however, there is a restriction on 36% annual percentage rate and the annual percentage rate for a $100 payday loan for 31-days cannot surpass 154%.
Oregon residents are not limited to a certain number of possible payday loans they can take, however, there must be a cooling-off period of 7 days between every consecutive payday loan. In Oregon, a payday loan can be rolled over twice. Payday loan lending companies in the state are not allowed to pursue any criminal action against their customers, however, civil trials in Oregon are legal. Payday loan lending companies are allowed to charge an NSF fee of $20 in case of a check return.
Why are payday loans so popular in Oregon?
Despite being quite risky, payday loans can be a go-to option for many borrowers because of the benefits they offer.
Having a bad credit is not fatal
While it is almost impossible to get a standard loan from a traditional loan lending institution, such as a bank, if your credit score is not perfect or even good, taking out a payday loan with a bad credit score is rather common. Payday loan lending companies are more interested in your ability to repay the loan in full on the due date rather than what your credit history is. Think of this as a payday loan without credit check.
Payday loans are fast
Since they are mostly used to deal with an emergency financial situation, payday loans are an extremely fast service. You can go through the whole application process in a matter of minutes after which, if approved, you will receive your money by the end of the following business day. It is the reason why these loans are also called same day payday loans.
Payday loans give you multiple options
While it is most likely that if you live in Oregon, you can probably find a payday loan lender’s physical store near your home or your workplace. Payday loans also give you the option to submit your application online. That way you can go through the whole application process all without having to leave the comfort of your living room.
What you do with the money is entirely up to you
While most conventional loan lending institutions set certain limitations on what the borrower can spend the loan he’s been given, with payday loans, once you get your cash, you are free to use it in any way you like as long as you do not use the money for something illegal.
Cities in the state of Oregon where you can find payday loan lenders
- Milton Freewater
- Central Point
- Coos Bay
- Baker City
- Cottage Grove
- Forest Grove
- Grants Pass
- Myrtle Creek
- Klamath Falls
- Lincoln City
- North Bend
- La Grande
- Oregon City
Even though payday loans in Oregon are quite popular and can be really useful in certain situations, you should be careful when you consider requesting one. You need to be absolutely confident in your ability to repay the loan on time, otherwise, you risk getting yourself into more financial trouble.