Learning About Finance and Money

Oregon Cash Advance Laws

23 February 2016

Jordy De Pijper

If you need to get some money quick, then you might have thought about getting a cash advance, also known as a payday loan. However, you might not be sure exactly where to start. One of the most important things that you need to know is exactly what laws your state has regarding cash advances. By understanding these laws, you can make sure that you get the best deal possible and that no one takes advantage of you. Read more to find about cash advance laws in Oregon.

Maximum Lending Amount

First of all, you should know that you cannot get more than $50,000 in a single payday loan. Depending on your perspective, this may seem rather low, but it is much more than any other state allows. In fact, it dwarfs most other states by several orders of magnitude, since many states will cap payday loans below $1000.

However, you shouldn't necessarily pursue a payday loan that is anywhere near $50,000, since the interest rates can potentially be pretty damaging. If you need more than a few thousand dollars, then a payday loan might not be your best bet.

Maximum Loan Duration

When it comes to the duration of the loan, Oregon orders that payday loans must last somewhere between 31 and 60 days, which really means that your payday loan must be repaid in as short as one month or as long as two months.

In other words, you will need to figure out a way to pay back your loan in the next 2-4 payment periods, assuming you are paid twice per month.

Maximum Interest

Oregon also pretty strictly limits the maximum amount of interest that can be paid to 36% per year. However, this may not help you very much, since it's hard to imagine exactly what that means for a loan that is a month or two long.

For reference, 36% per year comes out to around 6% for a 2-month loan, which is actually much lower than you might find in other states.

Maximum Origination Fee

Finally, you can be charged a fee for taking out a payday loan, but that fee is capped at $10 per $100 that you take out. This effectively means that you will need to pay 10% of the loan in order to get the loan.

However, there is another rule that comes into play if your loan is larger than $300. If that's the case, then the maximum origination fee is a flat $30, which means that you will only need to pay $30, even if you take out a loan for $1000.

For more information about available payday loan services, visit websites like http://www.paydayexpresscashadvance.com.

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