LIC-12.02 - Loan Renewals

Administrative Rules Adopted by Bureaus Pursuant to Rule Making Authority (ARB)
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Policy number


Administrative Rule Adopted by Revenue Division Pursuant to Rule-Making Authority



"Renewal" of a loan means granting a borrower the right to postpone repayment of a Short-Term Personal Loan for a fee. Renewals are subject to the buydown provisions found in section 7.26.050.

"Roll-over" has the same meaning as "renewal." Roll-overs are likewise subject to the buydown provisions found in section 7.26.050.

"Same day transaction" means a Short-Term Personal Loan made on the same day that a previous Short-Term Personal loan is paid-off. Same day transactions will be considered “renewal” loans.

Payday loans may be renewed only after the borrower pays 25% of the loan at the time of renewal. If the borrower is unwilling or unable to pay the 25% buydown at the time of renewal, the borrower will either need to pay the entire loan or may request a payment plan. Lenders are under no legal obligation to provide the borrower with a payment plan unless the borrower has renewed the loan three times. If the payday lender is not willing to enter into a payment plan, then they may begin collection procedures as allowed by state law.

The new regulations do not change current contracts between Payday Lenders and Borrowers. A Borrower renewing an existing contract is not required to pay an amount equal to 25% of the original Payday Loan, plus interest on the remaining balance of the loan. All applications for new loans are subject to the new Code and requirements determined by loan origination date and presiding jurisdiction.

New Loan Origination Dates:

Portland: On or after April 22, 2006 at 12:01 a.m.


Adopted by Director of Revenue Bureau as administrative rule #PL-2 on September 13, 2006.

Amended by Director of Revenue Bureau on December 7, 2006.

Renumbered by Auditor's Office and filed for inclusion in PPD September 9, 2015.

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