Oregon House Passes Bill to Cap Interest Rates on Consumer Loans
SALEM, Ore. (KATU) — In a crucial step to safeguard consumers against exploitative lending practices, the Oregon House of Representatives passed HB2561 on February 27. This bill aims to impose a cap on interest rates charged by lenders, addressing the troubling trend of out-of-state banks offering online loans to Oregonians with staggering interest rates between 73% and 200%.
Oregon has maintained a 36% interest rate cap on short-term consumer loans for nearly two decades. However, recent maneuvers by certain lenders have bypassed this cap, prompting the need for legislative intervention. HB2561 seeks to protect consumers by opting Oregon out of the federal Depository Institutions Deregulation and Monetary Control Act, effectively closing loopholes that allow these lenders to exploit state laws.
"We need to put a stop to predatory practices by closing the loophole that has allowed these out-of-state lenders to violate the spirit, if not the letter, of our law," stated Rep. Nathan Sosa, a Democrat representing Greater Hillsboro. He emphasized the urgency of the bill by highlighting the vulnerable position of Oregonians who may seek financial assistance in times of need.
The passage of HB2561 reflects a growing commitment among state lawmakers to combat predatory lending and ensure fair borrowing practices. The bill now moves to the Senate for further consideration, where its fate will be decided. Advocates for consumer protection are hopeful that this legislation will provide necessary relief to those who have fallen victim to exorbitant lending fees and interest rates in the past.
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