Portland Puts Restrictions on Payday Loans
Portland City Commissioners passed the first ordinance in the state this week to protect consumers from some of the lending practices of payday loan businesses. This comes on the heels of recent state legislature criticism on the matter.
A no faxing payday loan can allow people with bad credit to deal with unexpected bills. But a lack of regulation means interest rates on some loans can be astronomical.
Mayor Tom Potter says that, while Portland City cannot cap interest rates, the new ordinance gives consumers 24 hours to cancel a loan, as well as the right to pay down principle and make installment payments.
"I think when you charge 912.5 percent interest annually, that's unconscionable," Potter said. "And I think that our society has to wake up and realize that there are some things that are just unacceptable. And this is one of those things."
Gresham, Troutdale and Eugene are considering similar ordinances - but Oregon remains one of only seven states with no interest rate limit on instant payday loans.