February 3rd, 2010
Clearwire | For a communications company, it doesn’t listen too well.8 comments
January 27th, 2010
Oregon School Activities Association | Stop spelling “T-E-A-M” With an “I.” 0 comments
January 13th, 2010
Schubert Flint Public Affairs | Prop. 8’s fear mongers return to Oregon for Measures 66 and 67.3 comments
January 6th, 2010
Associated Oregon Industries | Claiming free speech to stomp unions.3 comments
December 16th, 2009
Lewis & Clark | Trafficking in B.S.18 comments
December 9th, 2009
Port Of Portland | What’s a public agency got against peaceful dissent?1 comment
November 18th, 2009
Bureau Of Transportation | One more mouth to feed.12 comments
November 11th, 2009
Washington Co. DA’s Office | Abusing a domestic violence law.28 comments
November 4th, 2009
University Of Oregon | Who’s killing Rudolph?7 comments
October 28th, 2009
Metro | A blowhard answer to global warming? 6 comments
 |
[May 17th, 2006] Oregon's payday lenders are reaching even lower depths of roguery in their attempts to evade regulations approved last month by the Legislature.
Cory Streisinger, director of the state Department of Consumer and Business Services, says payday lenders are "redefining" their services to escape the interest-rate cap and fair lending practices imposed by the new payday-loan reforms.
Streisinger last week told the Senate Interim Committee on Consumer Protection that a number of payday lenders are interested in switching their lending licenses.
Here's how that would allow them to dodge the reforms taking effect in July 2007.
Oregon law allows two categories of lending licenses. Payday loans require a short-term lending license, which will have a 36 percent annual interest-rate cap—instead of no cap—under the just-passed reforms. A regular consumer-financing license has no interest-rate max.
Unlike short-term payday loans, consumer-finance loans are required to have a term of at least 61 days. Traditionally, borrowers repay part of the principal each month along with interest payments that tend to be below the 17-percent annual cap for federally licensed lenders. But payday lenders are charging up to 372 percent interest for the longer-term loans.
Story continues below
advertisement
Angela Martin, director of the economic-fairness campaign at the progressive group Our Oregon, says 17 lenders have applied for the regular license since the Legislature passed the payday-loan reforms.
Streisinger told the Senate committee that her department has seen "troubling instances" of these loans being structured so borrowers make a big interest payment each month but still have the entire principal to repay at the end of the loan term. She wants a 36 percent annual interest-rate cap on all small consumer loans.
One of the payday lenders applying for a license change says he's just trying to stay afloat.
"I have to switch to longer-term loans or I'll go out of business," says Kenneth Chapman, owner of Main Street Loan Company in Astoria.
No tears shed here.
RECENT COMMENTS ON “Oregon's Payday Lenders”
Oregon's Payday LendersRe: Mike you said that some payday lenders have already instituted the caps. Name one I dare you.., What I don't understand is if the people who say the interest rate is ...
Oregon's Payday LendersWas that a PR grad who started his comment "You people"?I spoke with the devil and she thinks payday,and other usurarious loans, are A-OK. Hell is full of those who are ...
Is the reply by crystal a bonafide one or is it one that was influenced by the payday loan people?
Payday loans offer budget-conscious people access to cash at times when it is most needed. For people living from paycheck to paycheck, this type of loan is important. A payday loan is a short-term lo...
