(1) A lender in the business of making title loans may not:
(a) Make or renew a title loan at a rate of interest that exceeds 36 percent per annum, excluding a one-time origination fee for a new loan;
(b) Charge during the term of a new 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;
(c) Make or renew a title loan for a term of less than 31 days;
(d) Charge a consumer any fee or interest other than a fee or interest described in paragraph (a), (b) or (e) of this subsection or in subsection (2) of this section;
(e) Charge the consumer more than the actual amount that the vendor or service provider charges the lender for access to or use of the system described in ORS 725.630;
(f) Include any of the following provisions in a title loan contract:
(A) A hold-harmless clause;
(B) A confession of judgment or other waiver of the right to notice and the opportunity to be heard in an action;
(C) An agreement by the consumer not to assert any claim or defense arising out of the contract against the lender or any holder in due course;
(D) An executory waiver or a limitation of exemption from attachment, execution or other process on real or personal property held by, owned by or due to the consumer, unless the waiver or limitation applies only to property subject to a security interest executed in connection with the loan; or
(E) A clause permitting the continuation of interest after repossession of the consumer’s motor vehicle, recreational vehicle, boat or mobile home;
(g) Conduct a title loan business where liquor or lottery tickets are sold or where gambling devices are located;
(h) Require or accept from a consumer a set of keys to the motor vehicle, recreational vehicle, boat or mobile home whose title secures the title loan;
(i) Make more than one outstanding loan that is secured by one title;
(j) Renew an existing loan that is secured by one title more than two times after the loan is first made; or
(k) Make a new title loan to a consumer within seven days of the date on which a previous title loan expires.
(2)(a) A lender in the business of making title loans may not charge the consumer more than one fee per loan transaction for dishonored checks or insufficient funds, regardless of how many checks or debit agreements the lender obtains from the consumer for the transaction. The fee may not exceed $20.
(b) A lender in the business of making title loans may not collect a fee for a dishonored check under ORS 30.701 or seek or recover statutory damages and attorney fees from a consumer for a dishonored check under ORS 30.701. The lender may recover from the consumer any fee charged to the lender by an unaffiliated financial institution for each dishonored check. For a dishonored check or insufficient funds, the fees described in this subsection are the only remedy a lender may pursue and the only fees a lender may charge.
(3) The provisions of ORS 725.600 to 725.630 do not prevent a lender from recovering amounts associated with the collection of a defaulted loan that are authorized by statute or awarded by a court of law. [2001 c.445 §199; 2007 c.472 §2a; 2007 c.473 §2; 2007 c.603 §8c]
Section: Previous 725.410 725.505 725.510 725.600 725.602 725.605 725.610 725.615 725.620 725.622 725.624 725.625 725.626 725.630 725.910 NextLast modified: August 7, 2008