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community building | economic justice

Portland City Council To Consider Regulation of Payday Loans

Portland City Council meets tonight at 6 p.m. at the Mt. Scott Community Center, 5530 SE 72nd Ave., to consider new regulations on high-interest payday loans.
Portland City Council meets tonight at 6 p.m. at the Mt. Scott Community Center, 5530 SE 72nd Ave., to consider new regulations on high-interest payday loans.

Proposed legislation includes a requirement that 25 percent of the principal of a loan be paid before it can be rolled over, a 24-hour window for a borrower to cancel the loan, requirements for payment plans to be set up, and a $1,500 annual fee for payday loan outlets.

The state legislature rolled over last session for the payday lenders, with even Northeast Portland's Margaret Carter claiming that payday lenders were good for the community because they enabled people with no or poor credit to borrow money. Portland, Gresham, and Troutdale are considering strict regulations of lenders in response, and there is a ballot initiative being circulated to cap interest rates at 36 percent, among other regulations.
get out! 22.Feb.2006 10:09

meanie greenie

Since the legislature (which appears to have had its own "payday" if you look at who gave them lotsa money) wouldn't do anything maybe we can at least boot these slimy predators outside the city limits. There are four of them in my neighborhood and my brick-throwing hand gets itchy every time I pass by one.

I won't be able to attend 22.Feb.2006 17:14

portlander

I have a prior commitment but I would very much appreciate a report back.

"GOOD"... for the poor??? NOT EVEN! 22.Feb.2006 19:02

Stuck in the trap!

Ford Of Ocala sold me a bio hazard (mold/moisture bacteria) car that devastated my health, caused me to lose my national wholesale business and in months, I was below poverty. It put eight people I supported out of work too.
I had bills, I had no income for many months while ill.
When I was well enough to attempt a part time job, to survive, I tried for the first time in my life... A PAY DAY LOAN.
This is the ugliest, most horrendous entrapment.
People go, under duress, they need help... They do not sit down and think about how they will end up paying 10 - 100 times more than the loan because they often cannot afford to get out of them.
I tell everyone I know, do NOT ever get a PAY DAY LOAN.
If those who claim it is a good thing really, really investigate the client business records, they would find the higher percentage of the "clients" are people who have been paying, long term, like me.
This is liken to selling your soul. If you are poor, you will never to get out of this debt...
There needs to be more protection for the borrowers.
There needs to be mediation/options for people like me, who cannot get out and have paid over a $1000.00 in fees on one $300.00 loan.
There needs to be a cap on how much they can make when people can not ever pay it off.
Things happen, people get sick, injured, laid off, hours cut back and they get entrapped and pay endlessly.

State legislature fails again 22.Feb.2006 22:39

Madam Hatter

Once again, thank goodness the Portland City Council is stepping in where the legislature has not. Too bad for those of us not living within Portland city (or Multnomah Cnty) limits.

The legislators (like all State employees) can get advances on their pay from the State. Wonder why they don't care about this problem?