Oregon Bulletin

November 1, 2013

Department of Consumer and Business Services, Division of Finance and Corporate Securities, Chapter 441

Rule Caption: Clarifies first time loans of $500 or less are subject to a grace period.

Adm. Order No.: FCS 4-2013(Temp)

Filed with Sec. of State: 9-17-2013

Certified to be Effective: 9-17-13 thru 3-16-14

Notice Publication Date:

Rules Adopted: 441-740-0017

Subject: This temporary rule clarifies that pawnbrokers shall offer a grace period on all first time pledge loans, specifically those in the amount of $500 or less. At present, pawnbrokers provide a grace period by statute for first time pledge loans in excess of $500. Industry has a long-standing practice of offering a 30-day grace period on all pledge loans, regardless of the amount. An ambiguity exists as to whether the 30-day grace period exists on first time pledge loans in the amount of $500 or below. As consumers may be harmed by the ambiguity, and industry does not have clear guidance as to how to apply grace periods, the division has opted to adopt this rule. A temporary rule is necessary because there is an immediate harm to consumers if the ambiguity is used to omit a grace period on loans of $500 or less.

Rules Coordinator: Shelley Greiner—(503) 947-7484


Grace Period on Certain Pledge Loans

A pledgor of a loan of $500 or less has a grace period of 30 days after the expiration of the 60-day loan in which to redeem the pledge or to renew the loan by paying any renewal fee and all the accrued interest and fees to date. There is no grace period after a renewal expires.

Stat. Auth.: ORS 726.260 Stats.

Implemented: ORS 726.400

Hist.; FCS 4-2013(Temp), f. & cert. ef. 9-17-13 thru 3-16-14

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