HB 4116
Declares that this state does not want the amendments set forth in section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 to apply to consumer finance loans made in this state.
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Sign in to take actionPublic sentiment
Support
51%
Oppose
49%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill establishes a task force to study short-term financial products in Oregon and explore alternatives to address consumer credit needs. It aims to understand the role of these loans, particularly for Oregonians with limited access to traditional credit, and to assess potential consequences of restricting or removing them. The task force will include diverse members representing various stakeholders and is tasked with recommending policy options and safeguards to ensure equitable access to credit while mitigating potential harms.
Sponsors
Official sponsors from legislative records.
Primary sponsors
Arguments in favor
Reasons to support this legislation.
Oregonians strongly support House Bill 4116, which aims to prevent predatory 'rent-a-bank' lenders from evading the state's interest rate limits by opting out of a federal law that allows high-rate lending. The bill would close loopholes allowing out-of-state lenders and banks to make loans with annual percentage rates exceeding Oregon's 36% cap, protecting consumers from unmanageable debt and financial instability. Proponents argue that this legislation modernizes Oregon's consumer finance statutes, strengthens licensing and oversight requirements for lenders, and reaffirms the state's authority to regulate consumer finance loans, ensuring stronger safeguards against abusive lending practices and promoting financial stability for families already struggling with rising costs.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of House Bill 4116 argue that the opt-out provision would create legal uncertainty, undermine state-chartered banks' access to capital, and favor larger national banks. They claim that this approach would restrict consumer access to low-cost credit, stifle responsible innovation, and hinder collaboration between financial technology companies and banks. Additionally, concerns about the potential impact on payment processors, small businesses, and vulnerable Oregonians who rely on short-term credit products. Many emphasize the need for equal footing for state-chartered banks and national banks under the DIDMCA, highlighting the risk of reduced competition and consumer access to affordable financial services if the bill is enacted.
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