Portland, Oregon – Newly proposed rules on payday loans may close a loophole in Oregon, that is suppose to cap interest rates. The Consumer Financial Protection Bureau just proposed new rules on payday loans. They would take effect in July 2019 IF congress approves, and the payday loan industry doesn’t stop it, like they’re hoping to. One issue is a CAP on interest rates. 36% is the max according to law, but a loophole in Oregon allows lenders to charge MORE FEES, making the rates effectively as high as 154%. The newly proposed rules would put an end to that, by making lenders make sure that borrowers can pay it back first, before doing the loan. It also limits the amount of loans a borrower can take, to try and stop “debt traps.”
KXL’s Jacob Dean talked with Katie Sutton who is from Portland and is now currently the Director of the nonprofit Montana Organizing project.