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<br />ATTACHMENT B <br /> <br />Payday Loans: Current and Proposed Laws and Practices <br /> <br /> <br /> ORS 725.622, ORS City of Portland Proposed Initiative 135 SB 545-A (2005 SB 1105 (2006 Special <br />725.340(1) ordinance(No. 179948, (Our Oregon) Session) Session) <br /> <br />(Current Oregon Law) Section 7.26) Proposed Effective In Committee Upon Effective July 1, 2007 <br />Effective April 17, 2006 Date: January 1, 2007 Adjournment <br />PENDING? <br />Interest Rate Cap <br />Unauthorized <br />-- 36% APR + one-time 15% of original loan 36% APR + one-time <br />loan origination fee of amount, 15% of renewal loan origination fee of no <br />no more than $10.00 loan amount more than $10.00 per <br />per $100.000 (391% APR) $100.000 <br />(36% + 117% APR) (36% + 117% APR) <br />Minimum Loan <br />Unauthorized <br />-- 31 days -- 31 days <br />Length <br />Rollovers/Renewals <br />May not renew more than Only if borrower has May not renew more May not renew more May not renew more <br />3x or make a new loan paid 25% of principal of than 2x or make a new than 3x; may not renew than 2x or make a new <br />until the day after a original loan + interest loan within 7 days of the unless borrower pays loan within 7 days of the <br />previous loan expires day a previous loan 25% of loan and day a previous loan <br />expires interest; must wait until expires <br />day after prev. loan <br />expired to renew <br />Loan Cancellation <br />-- Loan cancelled w/o fee -- Loan cancelled w/o fee -- <br />if prior to close of if prior to close of <br />business following bus. business following bus. <br />day 1) notice in writing day 1) notice in writing <br />to lender and 2) return to lender and 2) return <br />of uncashed check or of uncashed check or <br />proceeds proceeds <br />Payment Plan <br />-- Yes, at any time. In -- Yes, after loan has been -- <br />addition, after loan has renewed 3x; lender may <br />been renewed 3x - Plan charge 1-time fee of not <br />must be at least 60 more than interest on <br />days. No fee. remaining balance <br />Loan Maximum <br />Note: admin rule -- -- $1000 or 25% of the -- <br />mandates than loan may borrower’s mo. income <br />not exceed 25% monthly <br />income <br />Permit/Registration <br />Business license - must Must reg. w/ City, -- Business License w/ -- <br />register with state DCBS $1,500 annual permit DCBS <br />Current fee of $520 fee per storefront. <br />Other <br /> limits all other fees <br />except one $20 per <br />1 <br />returned check or NSF <br /> <br />