OAR 441-735-0275: Conditions Applicable to Loans Made by Title Loan Licensees

(1) Title loan contracts may not provide for the continuation of interest or other charges after repossession. (2) For title loans in default, licensees must send a written notice by first class mail, in a form approved by the director, to the borrower’s last known address 10 days prior to repossession. (a) The notice must be dated the day it is mailed; (b) A dated copy of the notice must be placed in the borrower’s file; and (c) Repossession may not occur until the 11th day from the date of the notice. (3) Unless an auctioneer conducts the sale at a public or dealer auction, the licensee must obtain at least three bids on the vehicle prior to the sale of a vehicle. The bids must be in writing and contain the identity of the vehicle, the amount of the bid, and the name and address of the bidder. (4) Licensees may not sell a vehicle to an agent, affiliate, subsidiary, or employee of the licensee. (5) If a vehicle is sold, the borrower must receive all proceeds, exceeding the debt and reasonable costs associated with the repossession and sale. The licensee must deliver the proceeds no later than three business days after they receive the proceeds of the sale. If the vehicle was paid for by a check, the licensee may deliver the proceeds within three days after the check has cleared. (6) The licensee may not charge the borrower any storage charge, regardless of how long the vehicle is held prior to sale, if the vehicle is stored on property owned, leased, or otherwise controlled by the licensee. (7) If more than one person holds title to a vehicle, the vehicle may not be repossessed unless all such persons have signed the necessary loan documents.