New Ohio Payday Loan Law Goes into Effect in May 2019

A new short-term loan law goes into effect in Ohio to save Ohioans from getting trapped into a debt cycle. The new law follows standards already established in many other states, but there are a few differences. 

Payday Loans Ohio

What Will Change Under This New Payday Loan Law?  

Under this new law, Ohio is putting certain requirements on loans:

  • Loans cannot be higher than $1,000 (this is already standard)
  • Fees and interest cannot exceed 60% of the loan’s principal. If a consumer borrows $500, they will pay a maximum of $300 in fees and interest
  • The interest rate is capped at 28% per year
  • Payday loans must be for at least 91 days (this is different)
  • Loan duration cannot be more than 1 year
  • Borrowers cannot have more than $2,500 in total loans

How the New Payday Loan Law Will Affect the Borrowers

The following provisions were made into the law to help borrowers: 

  • Borrowers get up to 3 business days to change their minds about a loan and can return the money without paying any fees (this is an unusual provision as it does not state how this would be done). 
  • The borrower must get a copy of the loan’s terms and conditions. Total fees and charges need to be disclosed in “a clear and concise manner.” The total amount of each payment and the number of payments must be explained clearly. The “3 days” provision is different from most states, but the other conditions are fairly standard.
  • Finally, a lender must disclose if borrowers have complaints. Borrowers may submit complaints to the Ohio Department of Commerce’s Division of Financial Institutions. The address and phone number must be provided to borrowers.

That’s it. There may be some other fine points not noted in the information provided by the state of Ohio, but this covers the most important provisions of this new law.

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Kimmy Burgess

Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field. Kimmy has a number of pets including cats, birds, and a Chinese water dragon.

Category: Online Payday Loan

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