DFR Fines LoanMart $660,000 For Charging Excessive Interest In Consumer Loans; Company To Repay $900,000 To Oregon Borrowers (Photo) - 01/29/26
Salem – The Oregon Division of Financial Regulation (DFR) issued a cease-and-desist order against Wheels Financial Group LLC, doing business as LoanMart, for facilitating consumer finance loans that exceed the 36 percent interest rate cap under Oregon law. The company agreed to remedy all illegal loans and repay $900,000 in excessive interest charges to Oregon consumers. The order also included fines totaling $660,000 that will be suspended and waived after three years as long as the company complies with the terms of the final order.
From 2019 to 2023, LoanMart solicited and brokered consumer finance loans as part of an arrangement with an out-of-state bank. In what is commonly referred to as a “rent-a-bank” arrangement, LoanMart collected finance charges that ranged from 126 percent to 178 percent interest. In addition, the loan agreements provided for attorney fee provisions that exceeded the permissible scope for consumer finance loans and, under certain circumstances, would have required each borrower to pay attorney fees associated with attorneys who were salaried employees of LoanMart. Finally, the loan agreements contained impermissible hold harmless clauses.
The requirements of the order applied equally to LoanMart’s affiliate, WFG Purchaser LLC. WFG purchased a substantial majority economic interest in the loans at issue and did not hold a consumer finance license, prohibiting them from collecting, receiving, or retaining any interest, fee, or charge related to, or in connection with, the loans.
“Consumer finance companies cannot hide behind out-of-state banks to bypass Oregon’s consumer protection laws,” DFR Administrator TK Keen said. “We will continue to take steps to police our market to ensure that Oregonians get a fair shake when it comes to borrowing money.”
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About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon’s largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.
