Posts Tagged ‘pay day loan consolidation’

Ohio Payday Loan Laws – The Short-Term Loan Act Of 2008

With the introduction of Short-Term Loan Act in 2008, Ohio have now become very strict, especially when it is about upper limit of the rate of interest that lenders may charge in these types of lending programs. Prior to this Act, the interest rate could be as high as 300% per annum or even more. But now, as per the new laws, the rate has got an upper ceiling of only 28%. If you are looking out for these loans in the state of Ohio, make sure you do not pay more than 28% of the principal amount in terms of interest and other fees. A lender who is charging more than that is doing an illegal thing. Following is a brief rundown on some of the other things that you must keep in mind regarding the laws in Ohio about these types of short-term cash advances.

Restrictions On Time, Number And Amount Of Loans

By introducing the 2008 Act, Ohio payday loan laws have actually took a serious step to make sure consumers do not become victims of debt traps. Now, the maximum amount of loan you can borrow is $500. Besides that, you cannot have more than four payday loans in a single year. But it does not mean you can have four loans at a time; you can have only one outstanding loan at one time. In order to make sure a borrower does not get more than one loan at a time, there is also a provision for a cooling off period, as per which, a lender can approve another loan to a borrower at least 90 days after the first loan was approved. It is also important to note that the minimum repayment period cannot be less than 31 days.

No Rollover – Borrowers Can Now Pay In Installments

Ohio payday loan laws have also prohibited the practice of rollover, as per which the loans used to be automatically renewed with a hefty amount of penalty charges in case the borrowers would not make the repayment on the set due date. Earlier, lenders would not accept installment payments. Now that the Short-Term Loan Act is in place, it has become legally mandatory for the lenders to accept payment in installments if the borrower is not able to pay the entire amount at a time.  You can arrange for payday consolidation loans.


It is very important for you to keep in mind that there are some loopholes in the Ohio payday loan laws, which many lenders are taking advantage of. Many unscrupulous lending institutions are still charging a very high rate of interest that can go up to 200% per annum or even more. As per the latest reports from Policy Matters Ohio, lenders these days are issuing loans in the form of checks. When the borrowers cash those checks, the lenders charge them a certain amount of money.

Many other laws, such as Ohio Mortgage Loan Act and Small Loan Act, still allow higher interest rates. Therefore, you have to be very careful while you sign up with these lending programs. The more informed you are about the latest Ohio payday loan laws, the better decision you will be able to make.

Get payday help.

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?