Payday Loan in Ohio
Legal Status: Legal (Applies to check cashers only)
Citation:
Ohio Rev. Code Ann. §§ 1315.35 et seq.
Loan Terms:
Maximum Loan Amount: $800
Loan Term: Max: 6 months
Maximum Finance Rate and Fees: $10/$100 + 5% per month
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot refinance)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Bank charges (if disclosed); $20 collection charge; Court Costs; damages
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Ohio Division of Financial Institutions
Address: 77 South High Street, 21st Floor Columbus OH 43215
Phone: (614) 728-8400
Applicability: To check cashers. Otherwise, small loan law applies. Ohio Rev. Code Ann. § 1321.01 et seq. (28% per year on loans up to $1000).
Licensing requirements: Superintendent of Financial Institutions enforces. Must apply and pay $200 investigative fee and $500 application fee. Applicant must show financial responsibility and net worth of not less than $100,000, experience, reputation, and general fitness.
Permitted charges: Interest at 5% per month. Unearned interest shall not be deducted from the proceeds of the loan or paid in advance. Interest must be computed on the unpaid balance and shall not be compounded. Must refund unearned interest if loan is paid in full after the first month. No rebate formula listed. May charge loan origination fees not exceeding $5 per $50 of the amount of the loan; check collection charges not exceeding $20 plus any amount passed on by the financial institution.
Disclosures: Must post license conspicuously in the place of business. Loan contract must be in writing and disclose the total amount of fees and charges; the rate of interest calculated as an APR based on the sum of the principal of the loan and the loan origination fee, check collection charge, and all other fees or charges contracted for; the total amount of each payment; when each is due and the total number of payments that the borrower will be required to make under the contract; a statement in boldface type of at least 10 point size stating: WARNING: The rate of interest charged on this loan is higher than the average rate of interest charged by financial institutions on substantially similar loans; and that the loan is not being made to a borrower for the purposes of retiring an existing loan between the check cashing business and that borrower made under this act.
Loan terms: Total amount of loan cannot exceed $500 and duration cannot exceed 6 months. Loan contract must be in writing and disclose in a clear and conspicuous manner the total amount of fees and charges; the APR, the payment schedule, and a warning that the rate of interest on the loan is higher than the average rate of interest charged by financial institutions on substantially similar loans.
Prohibited acts: Refinancing loans made under this act with another such loan. Making loans in excess of $500 or 6 months. Cannot charge check collection fee unless contracted for in the written agreement. Cannot make a loan if there exists an outstanding loan between the check cashing business and the borrower made under this act.
Enforcement: May suspend or revoke a license for certain reasons.
Private right of actions: A violation of this act constitutes an unfair or deceptive act or practice. A borrower injured by the violation shall have a cause of action and may obtain the same relief as under the UDAP statute.
