On March 5, the Oregon Senate passed a bill previously passed by the Oregon House (House Bill 4116), sending it to the governor for final approval. The bill directly addresses Section 521 of DIDMCA by declaring that Oregon “does not want” the amendments in that section to apply to consumer finance loans made in the state. Section 521 of DIDMCA extends insured state banks the same rate exportation authority as national banks, enabling state-chartered banks to export rates of their home state across state borders. This bill rejects such federal preemption for consumer finance loans made in Oregon, thereby subjecting such loans to Oregon’s own licensing and regulatory framework, including Oregon’s cap on the annual percentage rate of consumer loans of 36 percent or 30 percent above the primary credit rate.

HB 4116 applies to individuals or entities making, brokering or facilitating consumer finance loans of $50,000 or less in person, by mail, by phone, or online to Oregon residents or where loan payments are made from accounts held at Oregon banks or trust companies. Under the bill’s provisions, lenders making consumer finance loans of $50,000 or less must comply with Oregon law even if operating under federal authority that would otherwise permit different rules under DIDMCA Section 521. It also expands licensing requirements, mandating applicants provide identifying information, fingerprints for background checks, credit reports, and disclosures of legal proceedings. The bill provides that loans “lawful where made or payable” in other jurisdictions remain unaffected. If signed into law, the legislation would take effect on the 91st day after adjournment of the legislature’s 2026 regular session.