Beaverton Looks to Extend Payday Loan Ordinance
By J.J. CameronPayday Loan Writer
Finally, the Beaverton City Council will get together and discuss the issue of payday loans. A work session is schedules on the topic for tonight.
Other cities in the state, such as Orgeon, have already placed restrictions on payday advances. A proposed ordinance affecting the short-term, high-interest payday loans would be similar here as it is in those area. In the case of Portland, the payday loan industry challenged the ordinance in court but lost the case and has not appealed.
In April, The Oregon Legislature adopted regulations during a special session that would cap interest rates at 35 percent annually, limit fees to $10 for each $100 borrowed on cash loans and give customers at least 31 days to pay off loans. The law is scheduled to take effect July 1, 2007.
These local ordinances extend the regulations by allowing customers to rescind their same day payday loans within 24 hours, requiring repayment of at least 25 percent of a loan before it is renewed and allowing cash loan repayment in installments if the loan is rolled over more than three times.
The city of Beaverton has six businesses that specialize in short-term and high-interest payday cash loans. The council has scheduled a public hearing on the subject for June 19.
