Government Official Urges for Immediate Oregon Payday Law Reform
By J.J. CameronPayday Loan Writer
According to one Keizer City Councilor, Eugene has the right idea when it comes to payday loans.
Charles Lee wants his city to adopt various payday loan reforms immediately - long before a statewide law goes into effect in July 2007 regarding these cash advances.
He points to similar ordinances already are in effect across other cities, such as Bend, Oregon City, Silverton, Troutdale, Gresham and Portland. These complement the statewide law passed during the April special session.
"I heard that other cities were taking a lead on this," Lee said. "That's what piqued my interest."
The ordinance would provide borrowers with the right to a payment plan; end interest-only payments by requiring payment on principle before each new quick payday loan; and allow borrowers to cancel the loan within 24 hours without penalty
"The payday loan industry seems like a huge problem for working families," Lee said.
Next spring, the state law will cap interest rates that lenders may charge for short-term payday cash advances. It will be an important initiative, but does no good for current borrowers suffering from debt.
That's why other areas took action. Silverton city leaders were acted promptly, discussing a payday loan ordinance.
"We had members of the community who said that people in need were struggling," Silverton City Councilor Randal Thomas said.
The Silverton City Council, therefore, adopted its law in May. Several large, faith-based charities and other groups such as Oregon Food Bank, Our Oregon, the Oregon Hunger Relief Task Force and the Oregon Catholic Conference are supporting city cash advance payday loan ordinances, as well.
