Personal Loans in Oregon: What Licensed Lenders May Charge

How the Oregon rate limit works

ORS 725.340 sets one ceiling for the whole loan, measured as an annual percentage rate. That matters: because the cap is an APR as defined by the federal Truth in Lending Act, finance charges such as origination fees count toward it. A lender cannot add a large upfront fee on top of a 36% rate.

Each December the director of the Department of Consumer and Business Services sets the discount rate for the next calendar year, and the cap in force when your loan is made applies for its whole term. The 30-point formula would only lift the cap above 36% if the Federal Reserve's discount rate rose above 6%.

Who needs a license and the 2026 bank-rate law

Under ORS 725.045 you may not make, broker or facilitate a consumer finance loan of $50,000 or less without a DFR license. A consumer finance loan is one with periodic payments and a term longer than 60 days. If an unlicensed business makes such a loan, the statute makes it void: the lender may not collect principal, interest or fees on it.

• Banks and credit unions lend under their own charters and federal law, not a chapter 725 license.
• Out-of-state banks and their partners: House Bill 4116 (Oregon Laws 2026, chapter 113) declares that Oregon does not want section 521 of the federal Depository Institutions Deregulation and Monetary Control Act to apply to consumer finance loans made in the state. It covers loans made from its effective date, the 91st day after the 2026 session adjourned. The law does not define where a loan is made, so ask any online lender who the lender of record is and which rate limit it follows.
• Payday and title loans are licensed separately under chapter 725A. Our sister site Lendmira covers them on its Oregon lending laws page.

Late charges, prepayment and other rights

You may prepay any Oregon consumer finance loan, in any amount, at any time. On a precomputed loan repaid early, the lender must rebate unearned interest by the formula in ORS 725.340. On a precomputed loan of up to 62 months, a default charge is allowed only when a payment is more than 10 days late and is capped at the lesser of 5% of the installment or $5, once per installment.

Other fees, such as late fees on simple-interest loans, must be reasonable and bona fide and are subject to DFR oversight. A licensee may not take an assignment of your wages as payment or security, and when you pay the loan in full it must release any lien. Late fees and returned payments explains what to look for in the agreement.

How Oregon compares with its neighbors

On the National Consumer Law Center's comparison of a $2,000 two-year loan, California caps that loan at about 25% APR and Washington at about 29%, below Oregon's 36%. Nevada allows about 40%, and Idaho sets no numeric cap. Your state of residence and the lender's license decide which rules apply. The state rules map shows every state side by side.

Check a lender and file a complaint

1. 1 Look up the license with DFR's license check at dfr.oregon.gov before you apply; consumer finance, payday and title lenders each hold their own license.
2. 2 Keep the loan papers: the Truth in Lending disclosure, the agreement and any messages about fees.
3. 3 Complain to DFR online or through its consumer hotline at (888) 877-4894 if a lender charges more than the law allows or lends without a license.
4. 4 Send a complaint to the CFPB as well if the lender is a bank or a bank partner. How to verify a lender lists what to check.

Questions people ask