Chapter 725A — Chapter 725A
39 sections in this chapter.
ORS 725A.010 Definitions. As used in ORS 725A.010 to 725A.092 and 725A.990
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(1)(a) “Broker or facilitator” means a person that conducts a business in which, for a fee or consideration, the person: (A) Processes, receives or accepts for delivery to a lender an application for a loan, individually or in conjunction or cooperation with another person; (B) A…
ORS 725A.012 Application. (1) ORS 725A.010 to 725A.092 and 725A.990 do not limit a person’s rights, powers or privileges under a law of this state or of the United States that regulates the person’s lending money or extending credit, provided that the person complies with the provisions of the law
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(2) Except as otherwise provided in subsection (3) of this section, ORS 725A.010 to 725A.092 and 725A.990 do not affect a loan made or payable in another jurisdiction and lawful where made or payable. (3)(a) A person is subject to ORS 725A.010 to 725A.092 and 725A.990 if in the p…
ORS 725A.020 Licensing requirement. (1)(a) Except as provided in ORS 82.010, 82.020 and 82.025 and subject to subsection (2) of this section, a person may not conduct business as a payday loan lender or a title loan lender unless the person obtains a license under ORS 725A.024
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(b) A person may not act as an agent, broker or facilitator for making a payday loan or title loan unless the person obtains a license under ORS 725A.024, regardless of whether the principal that makes the payday loan or title loan must obtain a license under paragraph (a) of thi…
ORS 725A.022 License application; contents; fee; rules. (1) An applicant for a license as a payday loan lender or a title loan lender shall apply to the Director of the Department of Consumer and Business Services in writing on a form and in a manner that the director prescribes by rule. An application for a license as a payday loan lender or a title loan lender must
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(a) List the applicant’s name, residence address and business address; (b) Name and list the residence address and business address for the applicant’s officers and directors, if the applicant is a corporation, or for the applicant’s members, if the applicant is a partnership, li…
ORS 725A.024 License application approval; license issuance; applicant qualifications; license denial; term of license; rules. (1)(a) Within 90 days after receiving an application under ORS 725A.022, the Director of the Department of Consumer and Business Services shall issue and deliver to the applicant a license to conduct business in accordance with ORS 725A.010 to 725A.092 at the location identified in the application if the director finds that
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(A) The applicant and the applicant’s members, if the applicant is a partnership, limited liability company or other association, or the applicant’s officers and directors, if the applicant is a corporation, have the financial responsibility, experience, character and general fit…
ORS 725A.026 Grounds for disapproving license application. (1) The Director of the Department of Consumer and Business Services may disapprove an application submitted under ORS 725A.022 and deny a license to the applicant if a person named in the application
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(a) Cannot meet financial obligations as the obligations mature, has liabilities that exceed assets or is in a financial condition that prevents the person from conducting business with safety to consumers; (b) Engaged in dishonest, fraudulent or illegal practices or conduct in a…
ORS 725A.028 License fee; other fees; rules. (1) A licensee each year shall pay to the Director of the Department of Consumer and Business Services a license fee in an amount the director specifies by rule. The licensee shall pay the fee not later than the date the director sets in the rule
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(2) The director shall specify the amount of the fee described in subsection (1) of this section after considering: (a) The amount of other moneys available for the director to use in performing the director’s duties; (b) The costs the director will incur in performing the direct…
ORS 725A.030 Annual report; contents; penalty; rules. (1) On or before February 15 of each year, or on a date the Director of the Department of Consumer and Business Services establishes by rule, a licensee shall file a report with the director in a form and with the content the director prescribes by rule. The report must contain information the director requires concerning the licensee’s business and the operations at each place of business in which the licensee conducts business in this state during the preceding calendar year under the terms of a license issued under ORS 725A.024
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(2) The director may assess against a licensee a penalty of $10 for each day after February 15, or after the date the director specifies in subsection (1) of this section, during which the licensee fails to file a report required under this section. [2010 c.23 §8]
ORS 725A.032 Business name and location. (1) A licensee may not conduct a business that is subject to ORS 725A.010 to 725A.092 and 725A.990 except under the name and at the place of business named in the license. The licensee at all times shall display the license conspicuously in the licensee’s place of business
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(2) A licensee that changes the location at which the licensee conducts business as a payday loan lender or title loan lender shall notify the Director of the Department of Consumer and Business Services in writing and return the licensee’s license. The director shall amend the l…
ORS 725A.034 License revocation and suspension. (1) The Director of the Department of Consumer and Business Services may revoke a license issued under ORS 725A.024 if the director
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(a) Gives the licensee 10 days’ written notice in which the director specifies the action the director will take and the general grounds for the action; (b) Provides the licensee with reasonable opportunity for a hearing under ORS chapter 183 in connection with the action; and (c…
ORS 725A.036 License reinstatement; fee. The Director of the Department of Consumer and Business Services may reinstate a license the director revoked if the licensee
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(1) Complies with applicable provisions of law; (2) Complies with a demand, ruling or requirement the director issues or imposes; and (3) Pays a fee of $25. [2010 c.23 §11]
ORS 725A.038 License surrender. (1) A licensee may deliver a written notice to the Director of the Department of Consumer and Business Services to surrender a license the director issued to the licensee under ORS 725A.024
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(2)(a) A licensee shall surrender a license under which no material loan activity has occurred for a period of 12 consecutive months. (b) For purposes of this subsection, “material loan activity” includes a new loan, a loan that refinances an existing loan or a formal extension o…
ORS 725A.040 Effect of license revocation, suspension or surrender. Revocation, suspension or surrender of a license issued under ORS 725A.024 does not impair or affect the rights or obligations specified in a lawful contract between the licensee and a borrower that existed before the revocation, suspension or surrender. [2010 c.23 §13]
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(Regulation)
ORS 725A.050 Director’s power to examine or investigate; costs. (1) The Director of the Department of Consumer and Business Services, to secure information the director requires and to ensure compliance with ORS 725A.010 to 725A.092 and 725A.990 and rules the director adopts under ORS 725A.010 to 725A.092 and 725A.990
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(a) May at any time investigate a licensee or a person required under ORS 725A.020 to obtain a license. (b) Shall examine a licensee not less than once every two years and may inspect and examine the licensee at other times that the director determines are necessary. (2) For purp…
ORS 725A.052 Record keeping requirements. The Director of the Department of Consumer and Business Services may specify the form and content of the books and records the licensee must keep in accordance with the provisions of ORS 725A.010 to 725A.092 and 725A.990. The licensee shall preserve and make available the books and records for a period of at least two years after the licensee makes the final entry in connection with a loan or account recorded in the book or record. [2010 c.23 §15]
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[Repealed or reserved.]
ORS 725A.054 Duty to report defalcation; audit. (1) A director or officer of a licensee who has reason to believe that a defalcation has occurred at an office of the licensee shall report the defalcation to the local, state or federal law enforcement officer with jurisdiction
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(2) A licensee, within five days after the discovery of a defalcation that occurs at an office of the licensee, shall notify the Director of the Department of Consumer and Business Services. If the director instructs the licensee to do so, the licensee shall cause an audit to be …
ORS 725A.056 Loan disclosure requirements; receipt; procedure after full loan repayment. A licensee shall
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(1) Deliver to the borrower at the time the licensee makes a loan a statement in the English language that shows in clear and distinct terms: (a) The borrower’s and the licensee’s names and addresses. (b) The amount of the loan, the date on which the licensee made the loan and th…
ORS 725A.058 Dissemination of false, misleading or deceptive statement. A licensee or other person may not advertise, print, display, publish, distribute or broadcast or cause or permit to be advertised, printed, displayed, published, distributed or broadcast in any manner whatsoever a statement or representation that is false, misleading or deceptive with respect to a rate, term or condition for a payday loan or title loan. [2010 c.23 §18]
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[Repealed or reserved.]
ORS 725A.060 Prohibited conduct generally. (1) A licensee or a person required under ORS 725A.020 to obtain a license may not
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(a) Take from a consumer: (A) A power of attorney, except a power of attorney to transfer ownership of a motor vehicle at the time the licensee or the person makes a loan secured by a motor vehicle. (B) A note or promise to pay that does not accurately disclose the actual amount …
ORS 725A.062 Prohibited conduct for title loan lender. A title loan lender may not
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(1) Make or renew a title loan at a rate of interest that exceeds 36 percent per annum, excluding a one-time origination fee that the title loan lender may charge for the loan. (2) Charge during the term of a title loan, including all renewals of the loan, more than one originati…
ORS 725A.064 Prohibited conduct for payday loan lender. A payday loan lender may not
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(1) Make or renew a payday loan at a rate of interest that exceeds 36 percent per annum, excluding a one-time origination fee that the payday loan lender may charge for the loan. (2) Charge during the term of a payday loan, including all renewals of the loan, more than one origin…
ORS 725A.080 Complaint and administrative remedy. (1) A person who claims to be aggrieved by a practice that violates a provision of ORS 725A.020, 725A.060, 725A.062 or 725A.064 or a rule adopted under ORS 725A.092 that regulates a licensee or a person required under ORS 725A.020 to obtain a license may, not later than one year after the date of the alleged violation, file with the Director of the Department of Consumer and Business Services a verified written complaint. The complaint must state the name and address of the licensee or the person alleged to have committed the unlawful practice and the particulars of the alleged unlawful practice. The director may require the complaint to set forth other information that the director considers pertinent
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(2) A title loan lender shall state in every contract for a title loan, in a type size equal to at least 12-point type, that the consumer or the consumer’s attorney may file a complaint with the director as provided in this section. (3) After receiving a complaint under this sect…
ORS 725A.082 Cease and desist order. (1) If the Director of the Department of Consumer and Business Services has reasonable cause to believe that a person violated, is violating or is about to violate a provision of ORS 725A.010 to 725A.092 and 725A.990 or a rule the director adopted or an order the director issued under ORS 725A.010 to 725A.092 and 725A.990, the director may order the person to cease and desist from the violation
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(2) The director, in an order the director issues under subsection (1) of this section, shall: (a) State the facts constituting the violation; (b) Require the person named in the order to cease and desist from the violation or to meet specific conditions; (c) State the effective …
ORS 725A.084 Suspension or removal of officer or director of licensee. (1) If the Director of the Department of Consumer and Business Services finds that an officer or director of a licensee is dishonest, reckless or incompetent or refuses to comply with the law, with a rule the Department of Consumer and Business Services adopted or with a written requirement or instruction the department imposed or issued, the Director of the Department of Consumer and Business Services may order the licensee to suspend the licensee’s officer or director from the officer or director’s office or position
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(2) The Director of the Department of Consumer and Business Services, for any of the reasons set forth in ORS 725A.026, may order a licensee to remove an officer or director of the licensee from office. [2010 c.23 §24]
ORS 725A.086 Limitation of personal liability. A person is not personally liable for an act the person does or fails to do in good faith and in compliance with a rule or order the Director of the Department of Consumer and Business Services adopted or issued under ORS 725A.010 to 725A.092 and 725A.990, even if the director amends or rescinds the rule or order or a judicial or other authority determines that the rule or order is invalid. [2010 c.23 §25]
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(Miscellaneous)
ORS 725A.090 Loan tracking and counseling system; rules; fees. (1)(a) The Director of the Department of Consumer and Business Services, by contract with a vendor or service provider or otherwise, may develop and implement a system by means of which a licensee may
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(A) Determine whether a consumer has an outstanding loan; (B) Determine the number of loans the consumer has outstanding; (C) Determine the dates on which the consumer entered into or renewed a loan contract subject to ORS 725A.010 to 725A.092 and 725A.990; (D) Provide loan couns…
ORS 725A.092 Rules. (1) The Director of the Department of Consumer and Business Services, in accordance with ORS chapter 183, may adopt rules for the purposes of protecting borrowers and consumers, providing clarity to licensees and otherwise carrying out and enforcing the provisions of ORS 725A.010 to 725A.092 and 725A.990. The rules may include, but are not limited to, provisions that establish loan forms, terms, charges and fees
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(2) Before the director adopts a rule under subsection (1) of this section, the director shall submit a copy of the rule to each licensee. (3) The director may institute an action or proceeding and make a specific ruling, demand or finding that the director considers necessary to…
ORS 725A.500 Definitions. As used in ORS 725A.500 to 725A.530
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(1) “Affiliate” means a person that controls, is controlled by or is under common control with another person. (2) “Applicant” means a person that applies for a license to engage in business as a student loan servicer in this state. (3) “Borrower” means a resident of this state w…
ORS 725A.503 Prohibition on servicing student loan without license; exceptions; powers of Director of Department of Consumer and Business Services; rules. (1) A person may not directly or indirectly service a student loan in this state unless the person obtains or renews a license under ORS 725A.506
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(2) Subsection (1) of this section does not apply to: (a) A financial institution, as defined in ORS 706.008. (b) A financial holding company or bank holding company, both as defined in ORS 706.008, if the financial holding company or bank holding company does no more than contro…
ORS 725A.506 Application for licensing; required contents; fee; bonding; power of director to issue, deny, revoke or refuse to renew license; date of expiration; rules. (1)(a) A person that is subject to the requirement to obtain or renew a license under ORS 725A.503 shall submit an application to the Director of the Department of Consumer and Business Services in the manner, on a form and with the contents that the director specifies by rule
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(b) The director by rule may require an applicant to submit the application described in paragraph (a) of this subsection to the Nationwide Multistate Licensing System instead of, or in addition to, submitting the application to the director. (2)(a) An applicant shall submit with…
ORS 725A.509 Duties of licensee; assumed business name. (1) A licensee shall designate and maintain a principal place of business at or from which the licensee services student loans in this state and shall designate a registered agent in this state
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(2)(a) If a licensee does not maintain a principal place of business in this state, the licensee shall nevertheless designate a registered agent in this state. The registered agent must be available to receive on the licensee’s behalf any notice, demand or service of process perm…
ORS 725A.512 Requirement to maintain liquidity, operating reserves and tangible net worth; taking possession of licensee’s property for failure to meet requirement; appointment of receiver. (1) A licensee shall maintain in accordance with generally accepted accounting principles sufficient liquidity, operating reserves and tangible net worth to permit the licensee to adequately meet all costs, expenses and other financial requirements related to servicing student loans in this state. The Director of the Department of Consumer and Business Services may specify by rule the standards a licensee must meet to comply with the requirements set forth in this subsection
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(2)(a) If a licensee fails to meet the applicable standards for liquidity, operating reserves and tangible net worth set forth in subsection (1) of this section, the director may take and retain possession of the licensee’s property, business and assets located in this state unti…
ORS 725A.515 Required notifications from licensee to director. (1)(a) A licensee shall notify the Director of the Department of Consumer and Business Services in writing at least 30 days before the licensee
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(A) Relocates or closes the licensee’s principal place of business or a branch office in this state; or (B) Opens a branch office that the licensee did not list in an application under ORS 725A.506. (b) In a notice under paragraph (a) of this subsection, the licensee shall list, …
ORS 725A.518 Supervisory powers of director; examination of licensee; charge for costs of examination; multistate cooperation; rules. (1) The Director of the Department of Consumer and Business Services has general supervisory authority over
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(a) Each licensee in this state; (b) Any person that services a student loan in this state, if the person is subject to ORS 725A.500 to 725A.530 or if the director required the person to obtain a license under ORS 725A.503 (3); and (c) Any person that had a license that the direc…
ORS 725A.521 Required practices under federal student loan agreement; prohibitions; exemptions. (1) Except as otherwise required under federal law, in a federal student loan agreement or in a contract between the federal government and a person that services a student loan, a person that services a student loan shall
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(a) Assess any fee that the person may assess against a borrower within 45 days after the borrower incurs the fee. (b) Accept and credit, or treat as credited, to the borrower’s account all amounts the person receives at the address to which the borrower has been instructed to se…
ORS 725A.524 Investigation of complaints; confidentiality of materials obtained in investigation; exceptions; charge for costs of investigation. (1) If the Director of the Department of Consumer and Business Services receives a complaint concerning a person that services a student loan, the director
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(a) Shall notify the person of the complaint, provide a copy of the complaint in the notice and require the person to respond to the complaint and to the director within 30 days after the date of the notice; (b) May investigate the complaint and require the person to provide book…
ORS 725A.527 Violations; orders of director; remedies; civil penalties; charge for costs of proceeding. (1) If, after conducting an investigation, the Director of the Department of Consumer and Business Services determines that a person that services a student loan has violated ORS 725A.500 to 725A.530, violated a rule the director adopted or an order the director issued under ORS 725A.500 to 725A.530 or violated another applicable law, the director may order the person to
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(a) Cease and desist from any act that constitutes a violation of ORS 725A.500 to 725A.530. (b) Resolve any complaint the director received under ORS 725A.524 and pay the borrower that submitted the complaint any damages to which the borrower would be entitled under law. (c) Pay …
ORS 725A.530 Ombudsman; duties; report to Legislative Assembly. (1) The Director of the Department of Consumer and Business Services shall appoint or designate an ombudsman within the Department of Consumer and Business Services for the purposes set forth in subsection (2) of this section
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(2) The ombudsman that the director appoints or designates under subsection (1) of this section shall, in consultation with the director or with other individuals the director designates: (a) Receive, review and attempt to resolve complaints from borrowers. The ombudsman may cons…
ORS 725A.990 Penalties. (1) The Director of the Department of Consumer and Business Services may assess a civil penalty of not more than $2,500 against a person who violates a provision of ORS 725A.010 to 725A.092 and 725A.990 or a rule the director adopted or final order the director issued under ORS 725A.010 to 725A.092 and 725A.990. The director, in addition to imposing a penalty under this subsection for the violation, may revoke the licensee’s license
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(2) A civil penalty under this section must be imposed as provided in ORS 183.745. (3) Except as provided in subsection (4) of this section, moneys collected under this section must be paid to the State Treasurer and credited as provided in ORS 705.145. (4) In addition to any oth…