Short-Term Loans and Student Loan Servicing

ORS 725A.026
Grounds for disapproving license application

(1)

The Director of the Department of Consumer and Business Services may disapprove an application submitted under ORS 725A.022 (License application) and deny a license to the applicant if a person named in the application:

(a)

Cannot meet financial obligations as the obligations mature, has liabilities that exceed assets or is in a financial condition that prevents the person from conducting business with safety to consumers;

(b)

Engaged in dishonest, fraudulent or illegal practices or conduct in a business or profession;

(c)

Failed to comply with or knowingly or repeatedly violated a provision of or a rule adopted under the Bank Act, ORS chapter 723, 725 or 726 or ORS 725A.010 (Definitions) to 725A.092 (Rules) and 725A.990 (Penalties);

(d)

Was convicted of a crime, an essential element of which is fraud;

(e)

Is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing a practice or conduct in connection with making payday loans, title loans or consumer loans; or

(f)

Is subject to an order in which:

(A)

The director imposed a fine or other civil penalty on the person under the Bank Act, ORS chapter 723, 725 or 726 or ORS 725A.010 (Definitions) to 725A.092 (Rules) and 725A.990 (Penalties);

(B)

The director removed the person from an office in an entity regulated under the Bank Act, ORS chapter 723 or 725 or ORS 725A.010 (Definitions) to 725A.092 (Rules) and 725A.990 (Penalties); or

(C)

A state or federal agency with authority over banking institutions, savings associations, credit unions or consumer finance companies, within a five-year period before the applicant submitted an application under ORS 725A.022 (License application):

(i)

Imposed a fine or other civil penalty on the person; or

(ii)

Removed the person from an office in a state banking institution, a national bank, a state or federal savings association, a state or federal credit union or a consumer finance company.

(2)

If the director denies a license to an applicant under this section, the director shall provide the applicant with a reasonable opportunity for a hearing under ORS chapter 183. [2010 c.23 §6]
Source

Last accessed
Mar. 11, 2023

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