Oregon Governor Offers Payday Loan Protections
By J.J. CameronPayday Loan Writer
We recently discussed ways in which some in Mississippi are trying to divert consumers from the use of cash advances.
Now, Oregon Governor Ted Kulongoski is proposing new ways to protect those in his state from such high-cost regular and no faxing payday loans.
Even after he signed a payday loan protection law in April, the governor joined the Oregon Department of Consumer and Business Services to announce the additional steps they recommend to citizens. The consumer department regulates instant cash loans and other lenders and is considering rule changes to tighten down on the definition of a lender.
The governor also wants legislation extending the interest rate cap on payday advance lending to apply to title lenders whose short-term loans are secured by the title of the borrower's car. In Oregon, the number of payday loan stores nearly doubled in the past five years, with interest rates that often exceed 500%.
The governor says such interest rates hurt the working poor the most. He'd like to see more steps taken to protect these people from occasionally dangerous payday advance loans.
