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Label:
Ordinance
The City of Portland ordains.
Section 1. The Council finds:
- The purpose of the Payday Lenders program is to minimize the detrimental effects that certain payday lending practices have on individuals and families.
- There are currently 5 open Payday Lender accounts.
- The Payday Lender program accounted for 7% of Regulatory Program revenue in the 2024-2025 fiscal year.
- The Payday Lender permit fee has not increased since the program's inception in 2006
- The Consumer Price Index has increased 55% since that time.
NOW, THEREFORE, the Council directs:
- Amend City Code Section 7.26.030 as shown in Exhibit A.
- This Ordinance shall be in full force and effect January 1, 2027.
Exhibits and attachments
Impact Statement
Purpose of proposed legislation and background information
The proposed legislation updates the application fee for inflation and adds an annual inflation indexing factor.
Financial and budgetary impacts
This ordinance is submitted as part of an overall package of ordinances to update the regulatory programs administered by the Office of the Chief Financial Officer, Revenue Division, and ensure adequate funding for the current position performing the regulatory work. The package adjusts applicable fees and charges, adding an inflationary adjustment to support the programs that continue.
Economic and real estate development impacts
Notices were sent to the addresses and emails listed for each permit holder with information about the proposed changes, the public comment period, and a link to the website where they could learn more and provide comment. The public comment period was open for one month with limited feedback received. The feedback received opposed the changes on the basis of the fee increase.
The 60% increase to the annual permit is close to the CPI increase of 55% since the last fee change. We do not expect that the increase will have any substantial impact on the ability of Payday Lenders to operate in Portland. While a more significant increase to the fee and how that might act as a deterrent to these businesses was contemplated during the development of this legislation, it was determined that access to the services provided by payday lenders is occasionally necessary in emergency situations, especially by lower income populations with less access to friends and family with excess capital or other institutional lenders. Active permit holders are located in Districts 1 and 2. We do not expect a disproportionate impact on any particular District due to these changes.
Fee increases were intentionally connected to CPI increases in an effort to offset the cost of administering the regulatory program as a whole. However, full cost recovery would have required additional increases across the programs. Fees in other jurisdictions are varied. Only 35 states allow payday lending. The City of Eugene assesses $500 fee in addition to the State of Oregon fee of $750, whereas Corvallis does not assess any additional fees. Looking broader, fees vary between just state mandated fees ranging from $300 to $1000 to additional jurisdictional fees.
Community impacts and community involvement
This legislation will increase the annual permit application fee for persons conducting payday lender activities to account for inflation, which has not been updated for a significant period of time.
100% renewable goal
Not applicable.
Economic and real estate development analysis
Analysis provided by Prosper Portland
Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.
Document history
Document number: 2026-325
President's referral: Finance and Governance Committee of the Whole