Eugene City Council Passes Immediate Payday Loan Laws
By J.J. CameronPayday Loan Writer
While some citizens in Oregon may be concerned about loopholes in certain ordinances regarding payday loans, the Eugene City Council didn't waste any time in enacting new legislation.
Councilors heard five supporters of a proposed local law regulating payday loan businesses during an open form this week. The respondents talked about the 16 payday advance lenders in Eugene, those that typically charge a fee of $15 to $20 for each $100 borrowed.
If borrowers can't repay the bad credit payday loan after two weeks, payday lenders allow them to renew the loan up to three times, paying another fee each time. But councilors took the rare step of approving the new ordinance after the public hearing.
They said the changes are needed immediately to protect low-income residents who use no faxing payday loans. Among other changes, the law will allow borrowers to make payments to reduce their balances before the payday loan is due. Moreover, borrowers whose loans have been renewed three times but are not in default could pay off the cash advances in installments over 60 days.
