Legislation will protect consumers from high interest rates and will extend protections to internet loans.
(SALEM, Ore.) - The Oregon Senate passed House Bill 2203 Monday, legislation that extends consumer protection laws to companies offering loans to Oregon consumers through the mail, the internet or over the telephone.
Passage of the bill follows Senate passage on Friday of House Bill 2204, legislation that limits the interest rate on title loans to 36 percent per annum. Both bills are priorities of Governor Ted Kulongoski.
“HB 2203 marks another step to protect Oregon consumers from unfair lending practices,” said Senator Brad Avakian (D-Portland/Beaverton), carrier of House Bill 2203. “This levels the playing field so that out-of-state companies will join Oregon-based companies in complying with Oregon fair lending practices.”
House Bill 2203 also creates a database to track title and payday loans and prohibits debt collection by a lender unless they are licensed by the Department of Consumer and Business Services. House Bill 2204 limits the interest rate on title loans and establishes a maximum fee of $20 for dishonored checks.
“People should not have to be subject to outrageous interest rates for title loans,” said Senator Floyd Prozanski (D-Eugene), carrier of House Bill 2204. “Businesses will still be able to do business, but consumers will get the protection they need and deserve.”
House Bill 2203 and 2204, both amended in the Senate, will now move to the House for a concurrence vote and then to the Governor’s desk for his signature.
Senate Passes Bills to Set Limits on Title and Payday LoansSalem-News.com