Oregon Statutes 725.045 – Prohibition on making certain consumer finance loans without license; application of license requirement
(1)(a) Except as provided in ORS § 82.010, 82.020 and 82.025 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.
Terms Used In Oregon Statutes 725.045
- Broker or facilitator: means a person that conducts a business in which, for a fee or consideration, the person:
(A) Processes, receives or accepts for delivery to a lender an application for a consumer finance loan, individually or in conjunction or cooperation with another person;
(B) Accepts and delivers to a lender all or most of the proceeds of a payment made in connection with a consumer finance loan; or
(C) Assists in making a consumer finance loan in a material capacity other than as a lender. See Oregon Statutes 725.010
- Consumer finance loan: means a loan or line of credit that is unsecured or secured by personal or real property and that has periodic payments and terms longer than 60 days. See Oregon Statutes 725.010
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
(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]