Hunt & Associates P.C.

What happens if you are late on a payday loan in Oregon?

Payday loans have legal status in Oregon, and residents have more privileges than they may know of. The reason is that not all borrowers know their rights. Michael J Roberts of Portland, Oregon, wasn't aware of what would happen if he didn't pay back his debt on time. And that's what happens when you don't double-check with your lender the details on your cash advance interest, fees, and potential consequences. Lenders include all the information in the loan agreement. However, not all borrowers carefully read it, in the haste of getting their money faster. Michael rushed through the agreement, paying attention the loan amount was correct, signed the contract, and got his money. He couldn't afford to pay back the debt on the due date, using his paycheck for unforeseen medical expenses. Michael feared the consequences, took a title loan for his emergencies and ended up with more debt.

What consumers need to realize is that payday lenders don't want you to have any extra payments. In an ideal scenario, every customer would repay them on time. What Oregon residents must note about payday lending is that state laws allow for two rollovers. Notify your lender immediately if you can't afford to make the due payment on the date stipulated in your contract. They will offer you additional information and notify you if there are any fees. If the lender is not aware of your situation, a $20 NSF fee is added to other bank charges. What Michael should have done was contact his lender. The latter would have extended the maximum loan term. Consequently, Michael wouldn't have had to borrow more.

The moral of this case is simple: as a customer, carefully read any loan agreements before signing a contract. Pay attention to the origination fee, additional costs, terms, and warnings. It's essential to know how much you will owe the lender. That way, you will manage your income better and know exactly how much money will be deducted from your bank account. Contact the Consumer Financial Protection Bureau if you encounter difficulties or aren't sure how to solve a dispute with your lender. And, most importantly, keep in mind that cash advance loans are for short-term financial emergencies. Keep the option for real emergencies only.