ORS 725.045
Prohibition on making certain consumer finance loans without license

  • application of license requirement

(1)

Intentionally left blank —Ed.

(a)

Except as provided in ORS 82.010 (Legal rate of interest), 82.020 (Computation of interest) and 82.025 (Exemptions from application of ORS 82.010 (3) and (4) and 82.020) and subject to paragraph (b) of this subsection, a person may not conduct a business in which the person makes a consumer finance loan of $50,000 or less or acts as an agent, broker or facilitator for a person that makes a consumer finance loan of $50,000 or less unless the person first obtains a license under this chapter.

(b)

If at the time a person made a consumer finance loan of $50,000 or less the person did not have a license that the Director of the Department of Consumer and Business Services issued under this chapter, the consumer finance loan is void, and the person, or a successor, assignee or affiliate of the person, may not deposit a borrower’s or consumer’s check, withdraw moneys from a borrower’s or consumer’s account or otherwise collect, receive or retain principal, interest, a fee or a charge related to or in connection with the consumer finance loan.

(2)

This section does not apply to a person that does not collect a fee or consideration in connection with a consumer finance loan or an application for a consumer finance loan and that:

(a)

Does not interact directly with a borrower or consumer;

(b)

Acts solely as an intermediary between the borrower or consumer and a lender or a person that conducts business as a broker or facilitator for a consumer finance loan;

(c)

Transmits information, electronically or otherwise, concerning the borrower or consumer to a lender or a person that conducts business as a broker or facilitator for a consumer finance loan; or

(d)

Prepares, issues or delivers a negotiable instrument to a lender or a person that conducts business as a broker or facilitator for a consumer finance loan for subsequent delivery to a borrower or consumer.

(3)

A person may collect principal, interest, a fee or a charge related to or in connection with a consumer finance loan if the license the director issued under this chapter lapsed inadvertently or by mistake. [1989 c.424 §2; 2007 c.603 §2; 2010 c.23 §31; 2015 c.490 §1]

Source: Section 725.045 — Prohibition on making certain consumer finance loans without license; application of license requirement, https://www.­oregonlegislature.­gov/bills_laws/ors/ors725.­html.

See also annotations under ORS 725.030 in permanent edition.

Attorney General Opinions

Under former similar statute (ORS 725.030)

Solicitation and loans by out-of-state finance company without compliance with state licensing requirements, (1980) Vol 41, p 212

725.010
Definitions
725.015
Construction of chapter
725.020
Short title
725.045
Prohibition on making certain consumer finance loans without license
725.050
Prohibited transactions
725.060
False advertising prohibited
725.110
Requirement that licensee be qualified to conduct business in this state
725.120
Application for license
725.140
Issuance of license
725.145
Disapproval of application for license
725.150
Notice of disapproval of application
725.160
Form of license
725.185
License fees
725.190
Report of licensee
725.210
Additional licenses to same applicant
725.220
Change of place of business
725.230
Revocation and suspension of licenses
725.235
Procedure for license denial, revocation or suspension
725.250
Surrender of license
725.260
Effect of revocation, suspension or surrender of license
725.270
Reinstatement of revoked license
725.310
Investigation and examination by director
725.312
Inspection and examination of licensees
725.315
Removal or suspension of officer of licensee
725.317
Removal of officer of licensee for reasons stated in ORS 725.145
725.319
False information in course of investigation or examination prohibited
725.320
Rulings of director
725.330
Books and records of licensee
725.340
Interest and other charges
725.345
Open-end loan plan
725.347
Open-end credit card plan authorized
725.349
Application of ORS 725.210 to certain loans and advances
725.355
Prohibition against assignment of earnings for loan security
725.360
Licensee duty toward borrowers
725.370
Lawful loans in other jurisdictions not affected by this chapter
725.385
Duty to give notice of defalcation to law enforcement officer, director
725.395
Director to give notice of suspected defalcation to law enforcement agency
725.400
Cease and desist order
725.410
Enforcement actions
725.505
Rulemaking authority
725.510
Person not liable for good faith acts or omissions
725.910
Civil penalties
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