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Oregon committee hears rent‑a‑bank concerns and considers opt‑out to enforce 36% cap
Summary
State regulators and advocates told a House committee that out‑of‑state bank partnerships let high‑cost lenders evade Oregon’s 36% APR cap, citing roughly 22,000 noncompliant loans since 2020 and a recent consent order; presenters urged the Legislature to opt out of a federal preemption mechanism to restore state control.
Chair Sosa convened an informational hearing of the House Interim Committee on Commerce and Consumer Protection on Jan. 14, where state regulators and consumer advocates laid out how "rent‑a‑bank" arrangements enable high‑cost lenders to evade Oregon’s 36% APR cap and urged state action.
Kirsten Anderson, deputy administrator for the Division of Financial Regulation, told the committee the cap was adopted in 2007 to protect borrowers and that the Division has documented widespread evasion: "As part of our examinations, we have found, since 2020, evidence of nearly 22,000 loans that exceed the interest rate cap," she said, and described a case in which a consent order required the company to pay $900,000 in…
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