Oregon fines online payday lender $ 90,000 for breaking state laws, charging over 357% interest

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Oregon regulators ordered Global Payday Loan to stop lending in the state and fined the online lender $ 90,000 for violating state payday loan laws.

The Oregon Department of Consumer and Business Services announced the action today, although its order was filed on July 1. Salt Lake City-based Global Payday Loan also operates under the names of Payday-Loan-Yes, Fastcash Advance, CashNet, CashNet500, First National Services and others, state officials said.

The State alleges

that Global Payday negotiated short-term loans with seven anonymous Oregon borrowers for $ 100 to $ 500 via

. Global borrower checking accounts have been debited for set-up fees of at least $ 30 and finance charges of $ 30 to $ 250 every two weeks. He also debited the accounts for loans that customers did not want or did not attempt to cancel, state officials said.

The efficient

for loans ranged from

, alleged the ministry in its complaint. A consumer took out a $ 350 loan and was taken $ 175 in finance charges, which equates to an annual interest rate of 588%, state officials said.

State law prohibits payday loans with interest rates greater than 36% per annum and origination fees greater than $ 30. Global also broke the laws by renewing a payday loan for less than 31 days and renewing an existing loan more than twice.

Global Payday did not respond to the state’s request in April 2009 for information on loans following complaints from borrowers.

A man who introduced himself as an office manager at Global Payday Loan in Salt Lake City today called the allegations absurd.

“It is what it is,” said the man, Jim Bachman. “We give out our loans. These people take out the loans and then they want to ask us about whether we have a license, which is nonsense.”

Consumers can check if their lender is ministry approved

. The division also maintains a list of

.


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