What a payday loan costs — before Oregon’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Oregon
- Rate cap
- 36% interest cap plus a one-time origination fee (max $10 per $100 or $30), yielding a maximum all-in APR of about 154%.
- Key law
- Oregon payday/consumer-finance rate-limiting law (enacted 2007), via the Division of Financial Regulation.
- Enforcement
- The Oregon DFR licenses all payday and title lenders (in-store and online) and requires a license to lend to residents. No marquee tribal AG case verified.
Oregon’s 2007 reform cut the maximum payday APR from 400%+ to roughly 154% all-in.
What it means for a Oregon borrower
Payday lending is legal but tightly capped, so the classic 400%+ payday loan is gone. Every lender must be Oregon-licensed, making unlicensed tribal loans challengeable.
If you already have a payday loan in Oregon
A loan that violates Oregon’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Verify licensing and complain via the Oregon Division of Financial Regulation.
- An unlicensed or over-cap loan may be unenforceable.
Cheaper first — try these before a payday loan in Oregon
Payday Loans and tribal lenders in Oregon
Many online lenders that market payday loans to Oregon residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Oregon residents and how state law applies to them, see the Oregon tribal-lending page.
Tribal loans in Oregon →Frequently asked questions
Are payday loans legal in Oregon?
In Oregon, payday loans are legal but tightly limited. The state caps loan size, fees or rollovers, so a legal payday loan looks different — and costs less — than the ~400% APR norm, and any lender exceeding those limits is out of compliance.
What is the maximum payday loan rate in Oregon?
36% interest cap plus a one-time origination fee (max $10 per $100 or $30), yielding a maximum all-in APR of about 154%.
What can I do about a payday loan I already have in Oregon?
Because Oregon restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible. Verify licensing and complain via the Oregon Division of Financial Regulation. This is general information, not legal advice.