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A bill restricting short-term lending rates to 36% was passed by the Oregon House of Representatives and will now go to the Senate for rubber stamping.
Short-Term Interest Rates Will Be Pegged at 36%
House Bill 2561 will protect Oregonians from out-of-state predatory loan interest rates, pegging the short-term interest payment at 36%. The bill requires lenders to comply with the interest rate limit set by the state.
The bill is supported by the Oregon Department of Consumer and Business Services, which revealed that two lenders generated more than $37 million in loans above the cap rate. The department uncovered the information during regulatory examinations in 2022 and 2023.
House Bill Has the Backing of Oregon Governor
The bill is also supported by Oregon Governor Tina Kotek, the Oregon Department of Justice, and the nonprofit Oregon Consumer Justice.
Opposing the bill is the American Fintech Council, which represents banks and financial technology companies. The council believes the bill will limit consumer options and make it difficult for Oregon-chartered banks to operate in other states.
The House passed the bill 33-23. One Democrat and no Republicans gave it the nod.
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