The Oregon Senate passed House Bill 4116, which stops online lenders from exploiting a loophole in federal law to charge consumer loan interest rates above Oregon’s 36% cap through “rent-a-bank” schemes. The bill now moves to Governor Tina Kotek’s desk to be signed into law. “Predatory ‘rent-a-bank’ loans have high rates of interest, defaults, and repeat borrowing. The business model of these lenders is built on saddling borrowers with debt for as long as possible, creating prolonged financial distress,” said Ellen Harnick, Director of State Policy at the Center for Responsible Lending. “We commend Oregon lawmakers for reinforcing their ability to protect Oregonians from these financial predators.”
