Posts Tagged ‘Ohio payday loan laws’

Ohio Payday Loan Laws

Though payday lending is legal as per Ohio payday loan laws, lenders are strictly prohibited from charging extremely high rate of interest on short-term cash advances. If a payday loan company is charging you 3-digit annual percentage rate (which is quite common in majority of other states), you can file a complaint against them with the Ohio Division of Financial Institutions. You can call them at (614) 728-8400 and visit their office at 77 South High Street, 21st Floor Columbus OH 43215.

No Criminal Actions On Non-Payment Of Debt

The non-payment of payday debt in the state of Ohio is not a criminal offence. Though the borrower has the legal obligation to make the repayment on the cash advance borrowed, lenders do not have an option to file a criminal lawsuit against the borrower for this. However, Ohio payday loan laws allow them to file civil suits against the borrowers who are not repaying their debts.

Collection Fees

When a loan account goes into collection status, lenders can charge different types of collection fees that include court costs after default, collection charge of $20, and any other bank charges that have been disclosed in the loan contract.

Repayment Plan YES; Rollovers NO

No rollovers are permitted in Ohio, which is definitely a great relief for the borrowers. Unfortunately, there are many lenders in this state (or the ones that operate their business from Internet) are still engaged in such practices, where they renew the loans when the borrowers fail to make the repayment on the set due date. If you are also being harassed in such a manner, you must use your legal right and file a complaint against those lenders. It is important to note that even if you have borrowed from Internet-based lenders that have no offices based in Ohio, your state laws are still applicable because you are residing in this state. The rollovers or renewals or refinance or any attempt to extend the loan term (such as by issuing a new larger loan so that the borrower can repay the previous loan) are strictly prohibited. If the borrowers fail to meet the due date, the only option available for the lenders is to offer an affordable repayment plan to them. Ohio payday loan laws have made it mandatory for lenders to allow those borrowers (who are having difficulty in making the repayment) an option to repay the outstanding loan in small installments within a period of sixty days. The important point to note is that no extra charges or interest can be charged for this 60-day period.

Number Of Outstanding Loans

A borrower cannot have more than one outstanding payday loan in his/her name at one time. However, the state laws allow them to have a maximum of four loans per year. It means you must pay off the first loan in full in order to be able to borrow a second cash advance. Besides that, Ohio payday loan laws also restrict the maximum number of outstanding loans in an individual’s name to two within a period of ninety days. Even if you have repaid both the loans in time, you will have to wait till your quota of ninety days passes. It is also the responsibility of the lenders to do a thorough verification whether a borrower qualifies for another loan or not.

Interest Rates And Finance Charges

As per the laws applicable in the state of Ohio, payday loan companies cannot charge more than 28% per annum as interest on short-term cash advances. Even the maximum limit on finance charges is also very low. Lenders can charges up to $1.08 as finance charges on every $100 of loan issued for a 14-day period. It means if you borrow $200 for fourteen days, you will have to pay up to $203.3 only, which includes $2.15 and finance charges of $1.08.

Maximum Limit On Repayment Period And Loan Amount

As per Ohio payday loan laws, the repayment period offered to the borrowers must not exceed thirty-one days. The maximum amount of loan can be up to $500.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?