Ohio Payday Loans

Ohio Rev. Code Ann. 1321.35 et seq.
Status: Legal (Low Cost)

Payday loans are legal in the state of Ohio, pursuant to Ohio Rev. Code Ann. 1321.35 et seq. The number of companies in Ohio offering these loans currently stands at approximately 895. All a consumer needs to get a cash advance in Ohio is an open bank account in relatively good standing, a steady source of income, and identification. Loan applications can be processed both in-store and online. Lenders do not conduct a full credit check during the application process. Payday loans are secured by access to a borrower’s bank account via a post-dated check or electronic Automated Clearing House authorization.

State Regulations

As they are less than $1,000 and do not involve collateral, payday loans in Ohio are classified as signature loans by the Ohio Department of Commerce, Division of Financial Institutions. The minimum loan term is 31 days, and the maximum amount of fees and charges for a payday loan tops out at 28 percent annual interest. In comparison to the other states that allow cash advances, this is not the highest annual interest rate, but it’s far from the lowest. A borrower can only have one outstanding payday loan at one time, or four for the year, and rollovers on the debt amount cannot be rolled over. There is also a two-loan limit within a 90-day period, and repayment plans can be made available to borrowers.

The payday loan industry has been subject to much investigation in the last decade, primarily by citizens concerns about potential borrowers falling into a debt cycle by taking out too many loans and being unable to repay them. It is therefore imperative for any potential borrower to research the lender and the state rules before committing to a loan.

Process

To apply for a cash advance in the state of Ohio, a potential borrower must meet these requirements:

  • Be 18 years of age or older
  • Be a US citizen or Permanent Resident
  • Be an Ohio resident
  • Have an active bank account
  • Have a regular source of income
  • Have a valid contact number and an active email address

Lending Rules*

Lenders in the state of Ohio are legally required to comply by the following limitations according to Ohio Rev. Code Ann. 1321.35 et seq.:

Maximum Loan Amount:
$500
Minimum Length of Loan:
31 days
Maximum Finance Rate & Fees:
28% annual interest
Finance Charge for 14-day $100 Loan:
$1.08
APR for 14-day $100 Loan:
28%
Max # Outstanding Loans at One Time:
One, four per year
Rollovers Permitted:
None
Repayment Plan:
Yes, 60 days, no fees
Collection Fees:
Bank charges (if disclosed); $20 collection charge; Court Costs after default; damages
Criminal Action:
Prohibited
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/43.

Regulatory Information

If you have a complaint against a Ohio Cash Advance location you can contact your state regulator below:

Regulator:
Ohio Division of Financial Institutions
Address:
77 South High Street, 21st Floor Columbus OH 43215
Phone:
(614) 728-8400
Fax:
(614) 728-0380
Website:

According to the Ohio Department of Commerce, a creditor can use reasonable means to collect a debt, including reporting nonpayment on a credit record, turning the debt over to a collection agency, taking possession or repossession of collateral, obtaining a judgment, or a court decision directing payment. Each of these actions can be reported on a credit record. Collectors cannot lawfully use or threaten violence or other criminal means to harm a delinquent borrower, their property, or their reputation; use obscene or profane language; publicize the debt; place repetitive, or make harassing/anonymous telephone calls.

Ohio Lenders

Below you can find Ohio payday loan lenders in the following cities:

Ohio Statistics**

The following information is key demographic data for the state of Ohio from the Census bureau.

Total Population:
11,614,373
Median Household Income:
$49,429
Poverty Rate:
14.8%
Median Gross Rent:
$730
High School Graduate or Higher:
89.1%
Bachelor's Degree or Higher:
26.1%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Safely, Borrow Responsibly

It is in the borrower’s best interest to understand all terms and conditions on the loan according to the regulations. Payday loans are, by design, supposed to be short term loans to meet the borrower’s financial obligations until the next paycheck. To avoid high interest payments, paying off the loan in full within the set time frame is highly recommended.

As the responsibility of a cash advance loan rests with the borrower, education and research are greatly encouraged prior to agreeing to take out the loan. The borrower should consider the amount of funds needed, the ability to pay the loan back quickly, the time frame presented by a lender, and if other financial options are available.  

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