ORS 725.045
Prohibition on making certain consumer finance loans without license

  • application of license requirement

(1)

Intentionally left blank —Ed.

(a)

Except as provided in ORS 82.010 (Legal rate of interest), 82.020 (Computation of interest) and 82.025 (Exemptions from application of ORS 82.010 (3) and (4) and 82.020) and subject to paragraph (b) of this subsection, a person may not conduct a business in which the person makes a consumer finance loan of $50,000 or less or acts as an agent, broker or facilitator for a person that makes a consumer finance loan of $50,000 or less unless the person first obtains a license under this chapter.

(b)

If at the time a person made a consumer finance loan of $50,000 or less the person did not have a license that the Director of the Department of Consumer and Business Services issued under this chapter, the consumer finance loan is void, and the person, or a successor, assignee or affiliate of the person, may not deposit a borrower’s or consumer’s check, withdraw moneys from a borrower’s or consumer’s account or otherwise collect, receive or retain principal, interest, a fee or a charge related to or in connection with the consumer finance loan.

(2)

This section does not apply to a person that does not collect a fee or consideration in connection with a consumer finance loan or an application for a consumer finance loan and that:

(a)

Does not interact directly with a borrower or consumer;

(b)

Acts solely as an intermediary between the borrower or consumer and a lender or a person that conducts business as a broker or facilitator for a consumer finance loan;

(c)

Transmits information, electronically or otherwise, concerning the borrower or consumer to a lender or a person that conducts business as a broker or facilitator for a consumer finance loan; or

(d)

Prepares, issues or delivers a negotiable instrument to a lender or a person that conducts business as a broker or facilitator for a consumer finance loan for subsequent delivery to a borrower or consumer.

(3)

A person may collect principal, interest, a fee or a charge related to or in connection with a consumer finance loan if the license the director issued under this chapter lapsed inadvertently or by mistake. [1989 c.424 §2; 2007 c.603 §2; 2010 c.23 §31; 2015 c.490 §1]

Source: Section 725.045 — Prohibition on making certain consumer finance loans without license; application of license requirement, https://www.­oregonlegislature.­gov/bills_laws/ors/ors725.­html.

See also annotations under ORS 725.030 in permanent edition.

Attorney General Opinions

Under former similar statute (ORS 725.030)

Solicitation and loans by out-of-state finance company without compliance with state licensing requirements, (1980) Vol 41, p 212

725.010
Definitions 725.015
Construction of chapter 725.020
Short title 725.045
Prohibition on making certain consumer finance loans without license 725.050
Prohibited transactions 725.060
False advertising prohibited 725.110
Requirement that licensee be qualified to conduct business in this state 725.120
Application for license 725.140
Issuance of license 725.145
Disapproval of application for license 725.150
Notice of disapproval of application 725.160
Form of license 725.185
License fees 725.190
Report of licensee 725.210
Additional licenses to same applicant 725.220
Change of place of business 725.230
Revocation and suspension of licenses 725.235
Procedure for license denial, revocation or suspension 725.250
Surrender of license 725.260
Effect of revocation, suspension or surrender of license 725.270
Reinstatement of revoked license 725.310
Investigation and examination by director 725.312
Inspection and examination of licensees 725.315
Removal or suspension of officer of licensee 725.317
Removal of officer of licensee for reasons stated in ORS 725.145 725.319
False information in course of investigation or examination prohibited 725.320
Rulings of director 725.330
Books and records of licensee 725.340
Interest and other charges 725.345
Open-end loan plan 725.347
Open-end credit card plan authorized 725.349
Application of ORS 725.210 to certain loans and advances 725.355
Prohibition against assignment of earnings for loan security 725.360
Licensee duty toward borrowers 725.370
Lawful loans in other jurisdictions not affected by this chapter 725.385
Duty to give notice of defalcation to law enforcement officer, director 725.395
Director to give notice of suspected defalcation to law enforcement agency 725.400
Cease and desist order 725.410
Enforcement actions 725.505
Rulemaking authority 725.510
Person not liable for good faith acts or omissions 725.910
Civil penalties
Green check means up to date. Up to date

Current through early 2024

§ 725.045’s source at oregon​.gov