Oregon Statutes - Chapter 725 - Consumer Finance; Title and Payday Loans - Section 725.626 - Effect of failure to obtain license; exceptions.

(1) Except as provided in subsection (2) of this section, a lender may not deposit a consumer’s check, withdraw funds electronically from a consumer’s account, or otherwise collect the principal of, interest on, or any fees or charges for a loan subject to ORS 725.600 to 725.630 if at the time the lender makes the loan the lender does not have a current and valid license to make loans in this state.

(2) A lender subject to ORS 725.600 to 725.630 may process a payment for or collect a loan if:

(a) The terms and conditions of the loan substantially comply with the provisions of ORS 725.600 to 725.630;

(b) The lender proves to the Director of the Department of Consumer and Business Services by clear and convincing evidence that the lender did not know that the lender was required to be licensed to make the loan; and

(c) The lender obtains a license under ORS 725.600 to 725.630 within 90 days after becoming aware of or receiving actual notice of the requirement for a license. [2007 c.472 §6]

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Last modified: August 7, 2008