Ohio

Getting a license: Ohio is one of 24 states that have laws permitting payday loan lending. Therefore, it’s a requirement that all payday loan businesses get a license before they operate in Ohio. Some of the fees that apply to get licensed include a $200 investigative fee and a $500 application fee. In general, for a lender to get approved in Ohio they must show financial responsibility, experience, reputation, general fitness, and have a net worth over $100,000.

Fees: Payday loan lenders in Ohio are permitted by law to charge a monthly Interest fee of 5% per month. The interest is computed and not compounded. If the loan is paid in full within the first month, a customer in Ohio has the right to get a refund on unearned interest. In addition to interest, payday lenders in Ohio can also charge origination fees (not exceeding $5 per $50) and a check collection charge (not exceeding $20).

Requirements: Any payday loan business that operates in Ohio must post their license conspicuously in the place of business. The loan contract must be written and disclose the total amount of fees in dollar amounts and in an annual percentage rate (APR). Also, the payday loan contracts in Ohio should have in bold face the following statement: “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.”

Term limits: Ohio payday loan laws allow lenders to defer their loans up to 6 months.

Loan amount: Under Ohio law the most amount of money a consumer can borrow at any one time is $500.

Multiple loans: Ohio law prohibits payday loan stores from lending their customers loans in excess of $500 or with terms longer than 6 months.