Short-Term Loans and Student Loan Servicing

ORS 725A.062
Prohibited conduct for title loan lender

A title loan lender may not:


Make or renew a title loan at a rate of interest that exceeds 36 percent per annum, excluding a one-time origination fee that the title loan lender may charge for the loan.


Charge during the term of a title loan, including all renewals of the loan, more than one origination fee of $10 per $100 of the loan amount or $30, whichever is less.


Make or renew a title loan for a term of less than 31 days.


Make or renew a title loan to a consumer without forming a good faith belief that the consumer has the ability to repay the title loan. In forming a good faith belief, the title loan lender shall consider factors that the Director of the Department of Consumer and Business Services specifies by rule. A title loan lender complies with this subsection if the title loan lender meets the conditions the director specifies.


Charge a consumer a fee or interest other than a fee or interest described in subsection (1) or (2) of this section or in ORS 725A.060 (Prohibited conduct generally) (1)(c) or (d).


Include in a title loan contract:


A hold-harmless clause;


A confession of judgment or other waiver of the right to notice and the opportunity to be heard in an action;


A provision in which the consumer agrees not to assert against the lender or a holder in due course a claim or defense arising out of the contract;


An executory waiver or a limitation of exemption from attachment, execution or other process on real or personal property the consumer holds, owns or is due, unless the waiver or limitation applies only to property that is subject to a security interest executed in connection with the loan; or


A clause that permits interest to continue after the consumer’s motor vehicle, recreational vehicle, boat or mobile home has been repossessed.


Require or accept from a consumer a set of keys to the motor vehicle, recreational vehicle, boat or mobile home the title to which secures the title loan.


Make more than one outstanding title loan that is secured by one title.


Renew an existing title loan that is secured by one title more than two times after the loan is first made.


Make a new title loan to a consumer within seven days after the date on which the consumer fully repays a previous title loan. [2010 c.23 §20; 2019 c.188 §2]


Last accessed
Mar. 11, 2023