1. What if a Borrower is unable or unwilling to Buydown 25% of the loan at the time of renewal?
If the borrower is unable or unwilling to pay the 25% buydown at renewal, the borrower will either need to pay the entire loan or may request a payment plan (which you are not under any legal obligation to provide at this stage). If you are not willing to enter into a payment plan, then you may begin collection procedures as allowed by state law.
2. Under what circumstance may a Borrower enter into a payment plan?
The Borrower and Lender can enter a payment plan at any time if BOTH mutually agree to one. However, the Borrower may unilaterally demand a payment plan after 3 renewals.
3. At what time during the loan period may a Borrower enter into a payment plan?
See answer #2 above.
4. As part of the Payday Lender conforming with the laws and regulations for the State of Oregon, how would a Borrower enter into a payment plan prior to deposit without extending the 60 day loan period mandated by the State?
A payment plan that does not charge anyinterest or fee is not a loan, but a payment arrangement. The 60 day loan provision applies to the original term of the loan and not to subsequent collection efforts or arrangements.
5. The Payday Lender is to enter into a payment plan with a minimum 60 days and 3 payments… What is the maximum days that a payment plan may be extended?
There is no maximum number of days or payments that can be agreed to as a part of the payment plan. The payday lender may (but is not required to) offer more than the minimum. However, the payday lender MUST offer the minimum.
6. If the Borrower enters into the payment plan and we sever the loan to meet the required 60 day law for a new loan, can the payday lender require the Borrower to finish the payment plan prior to engaging in a New Loan?
Yes, a payday lender can always require the borrower to pay off a payment plan prior to issuing a new loan.
7. What is the result if the Borrower defaults on their payment plan?
The payday lender may pursue its regular collection procedures as allowed by state law.
8. How does the Portland ordinance affect loans in current status?
It affects loan contracts made on or after 12:01 am on April 22, 2006.