SALEM, Ore. – A state judge refused Friday to block enactment of a new 36% cap on consumer loan rates, which went into effect yesterday. The request came from Northwestern Title Co., which operates 17 car title loan stores in Oregon and was seeking a temporary injunction on the new law while it seeks judicial review. The company, which makes small loans using car titles as collateral, often charging more than 300% APR, said it will be forced to stop doing business in Oregon if the interest rate cap is enacted. State lawmakers, with strong support from the credit union lobby, passed the ban last month on triple rates charged by title and payday lenders, asserting such rates amount to usury.
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