Oregon Caps Car Loans

Governor Kulongoski has already said that he will sign a new bill that is putting caps on car loans. It has become somewhat of a wide spread problem across the United States that those without good credit, or those with any sort of money problems can get taken advantage of by some companies that are looking to profit from someone else’s problems.

The bill would put a cap on the interest rates at 36% and bring the lenders under state regulations that the House has already approved for payday loan stores. Some companies were offering as high as 500% interest rates, which is just setting a person up for failure. For every $100 they borrow, they have to pay $500 back!

The bill had already passed the House, but with the new amendment it will have to go back to vote again, but many think it is just a formality. The overall bill would put a maximum charge of $10 per $100 loaned, and on renewals and extensions, no more than 36% interest can be charged.

Those that run the businesses say that they won’t be able to survive like this and that they will have to close their doors. Some of those that have the loans already say that doors will be closed to them now that they are taking away their means of paying back creditors or getting a little cash when needed.

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