Payday Loans and Cash Advance in Oregon

Legal, 36% rate cap plus origination fee. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Oregon.

Is a Cash Advance Legal in Oregon?

Payday loans are legal in Oregon but tightly limited. Since reforms that took effect in 2007, ORS chapter 725A caps the interest on a payday loan at 36% a year, allows only one origination fee of $10 per $100 borrowed up to a maximum of $30, and requires every loan to run at least 31 days, which killed the classic two-week loan. A payday loan can be renewed no more than twice, the lender must wait seven days after you pay one off before making you another, and no fees beyond those in the statute are allowed. The result is that a $300 loan costs at most $39.17 over 31 days, which the Division of Financial Regulation calculates as a maximum APR of 153.77%. That is still expensive credit, but it is a fraction of the 400% and higher rates common in states without a cap. Every payday lender, storefront or online, must be licensed by the Division, and the Division publishes the list. If a lender is charging you more than the numbers on this page, it is either unlicensed or breaking the law, and the Division's consumer advocates will take the complaint.

The governing law is Oregon Revised Statutes chapter 725A, Title and Payday Loans (ORS 725A.010 (definitions); ORS 725A.060 and 725A.064 (prohibited conduct and fee limits)).

Loan Limits and Terms in Oregon

Oregon limits cost rather than size. The lender may charge 36% simple interest on the amount borrowed for the actual days the loan is open, plus a single origination fee of $10 for every $100 advanced, but the fee cannot exceed $30 no matter how much you borrow, and it can be charged only once even if the loan is renewed. Loans must last at least 31 days and no more than 60. A borrower who cannot repay may renew up to two times, paying interest but no new origination fee, and after that the balance is due. Once you pay off a loan the lender must wait seven days before lending to you again. The statute also bars hold-harmless clauses, confessions of judgment, and waivers of your rights in the contract, and caps the dishonored check fee at $20.

What a $300 Loan Costs in Oregon

ORS 725A.064 allows one origination fee of $10 per $100 borrowed up to $30, so on $300 the fee is $30. Interest is capped at 36% a year: 300 x 0.36 x 31 / 365 = $9.17 for the 31-day minimum term. Total finance charge is 30 + 9.17 = $39.17 and you repay $339.17. APR = 39.17 / 300 x 365 / 31 = 1.537, or about 154%, which matches the 153.77% maximum published by the Division of Financial Regulation.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Oregon

• Every payday lender, including one that lends only over the internet, must hold a license from the Division of Financial Regulation, and the Division publishes the list of licensed payday and title lenders so you can check before you borrow.
• Interest is capped at 36% a year and the only other charge allowed is a single origination fee of $10 per $100 borrowed, never more than $30 in total, even if the loan is renewed.
• Loans must run at least 31 days and no more than 60, which means your first payment cannot be due on your next paycheck and you get at least a month to repay.
• A payday loan can be renewed no more than two times, and once you pay a loan off in full the lender must wait seven days before making you a new one.
• The contract cannot contain a hold-harmless clause, a confession of judgment, or a waiver of your rights, and the lender cannot take a power of attorney, a promissory note, or an assignment of your wages.
• If your check or debit is dishonored the lender may charge no more than $20, and the loan agreement must spell out in writing the fees, rate, due date, and what happens if you pay late.
• Active duty service members and their dependents are further protected by the federal Military Lending Act, which caps the total cost of consumer credit at 36% APR including fees.

Complaints and licence checks go to the Oregon Division of Financial Regulation: 888-877-4894, dfr.oregon.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Oregon

Oregon draws no distinction between storefront and online payday lenders: both must be licensed by the Division of Financial Regulation and both must follow the 36% cap, the $30 fee limit, and the 31-day minimum term. The Division keeps a public list that separates store locations from online licensees, and it says plainly that consumers should not borrow from a lender not licensed in Oregon. Banks and credit unions are exempt from the payday license because they are already regulated. The Division notes that no Oregon tribe currently operates a payday lending business, but tribal lenders based in other states do market to Oregonians online and may claim sovereign immunity from state rules. Because the Division may not be able to enforce Oregon law against them, it directs complaints about tribal lenders to the Federal Trade Commission and the Consumer Financial Protection Bureau. For everyone else, the Division's consumer advocates at 888-877-4894 handle complaints about payday lenders, and the online complaint form is available in English and Spanish. An unlicensed online lender charging more than the statutory fees is the most common problem the Division sees.

Alternatives If a Payday Loan Is Not the Right Fit

With the 36% cap, an Oregon payday loan is already closer in price to other regulated credit, but there are still cheaper routes. Oregon consumer finance lenders licensed under ORS chapter 725 make installment loans repaid over months, and the Division's license lookup shows who holds that license. Federal credit unions can offer payday alternative loans of $200 to $2,000 at no more than 28% APR under National Credit Union Administration rules, and several Oregon credit unions also run small emergency loan programs for members. Many employers offer earned wage access or a payroll advance without a finance charge. For rent, utility, or food emergencies, 211info connects Oregonians with assistance programs statewide, and community action agencies administer energy assistance that does not have to be repaid. Asking the creditor you owe for a short extension, or using an existing credit card, will usually cost less than $39.17 on $300 for a month. The Division's own payday loan page lists these alternatives and warning signs before you sign.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Nearby States

• WashingtonThe fee cap, a worked example and the regulator to call in Washington.
• IdahoThe fee cap, a worked example and the regulator to call in Idaho.
• NevadaThe fee cap, a worked example and the regulator to call in Nevada.
• CaliforniaThe fee cap, a worked example and the regulator to call in California.