Flaw in Oregon;s new PDL laws
Date: Thu, 08/30/2007 - 10:19
Flaw in Oregon;s new PDL laws
Under these new laws, lenders can only charge up to 36% interest. BUT - They can still charge $10 for every $100 loaned as an origination fee! Um, the rest of the law is great, but why do an interest rate cap, but then allow for fees? Before the new law you would pay about $120 for a $100 loan. So now you will only pay about $113?
When most states enact an interest rate cap, the pdl's vanish. While many did close, a lot are still open. And this is why! They can still charge plenty!
I know that a lot of other states are looking at Oregon's laws as a starting point. I hope they take the interest rate cap, and ignore the exclusion for fees . . . . .
Thanks for this information, Goudah. There are plenty of Oregoni
Thanks for this information, Goudah. There are plenty of Oregonians on this site who can use this.
Yeah, Thanks! I remember when talking with Mike, he mentioned
Yeah, Thanks!
I remember when talking with Mike, he mentioned that origination fee. But since my CashNetUSA was a rollover, then they couldn't take the fee. So I guess you only pay that extra $10 when you go in to pay enough for a rollover...
Or that is how I understand it.
Yeah, it's when you first take out the loan that you have to pay
Yeah, it's when you first take out the loan that you have to pay the fee . . . .
I'm with you Goudah! It would be a great starting point for ever
I'm with you Goudah! It would be a great starting point for everyone if they just did the interest rate cap, maybe alot more would shut down. But with them being able to add the fees- it kind of defeats the pupose, I think!..Karen
Exactly my thought! If they can still charge about $113 per $10
Exactly my thought! If they can still charge about $113 per $100, it's not that much of a reduction. Now, yes, they can only charge the fee on origination of the loan, so that wouldn't apply to rollovers, but all the company has to do is not do rollovers at all. Then the customer would have to "reloan". There is a 7 day "cooling" off period, but after that they are free to take out the loan all over again.
They make it sound like it's such a great new deal!! It's like o
They make it sound like it's such a great new deal!! It's like one of my prescriptions without insurance is $130.00, with insurance it's $123.00!! What a deal- the insurance premiums are $900.00 a moth- great savings,huh!!..KAren
Though I think that 7 day will reduce the number of people who d
Though I think that 7 day will reduce the number of people who do that. That or they can just work with two different loan companies, and their 'reloan' they can just take across the street. Or as more likely the case, take out one just to pay off the other, and switch back and forth between the two as they keep getting further into origination fees
Yep . . . . I think the thing that would most help people dealin
Yep . . . . I think the thing that would most help people dealing with storefronts would be to require payments. Not having the whole thing due at once would be a great help.
Yeah, installments are easier to handle, easier to budget in. B
Yeah, installments are easier to handle, easier to budget in. But a whole big lump sum, people push it away and then suddenly remember it when it is due, panic and borrow more money.
I think that is why the illegal automatic debit ones look more promising because they say they are only taking out the fee for 3 roll overs and then they add an extra 50 until it is paid off. So they don't have to think about getting the money right away to pay it off, just let it run itself out. Then we all find out that they just keep taking the fee until you finally figure out that you've been paying them for a year and have way over paid them!