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Explanation on Ohio payday loan laws

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Can someone please step by step explain the Ohio PDL LAws?

Read the link below for information about the payday loan regulations in Ohio. Check the lenders first if they are licensed in your state. The interest rates on the principal amount should also within the permissible lines. b/Library/Index/1090000/1090001/index_html

Some discussions about the laws have taken place on this board also. Go through them as well. l html 4.html

Sub: #1 posted on Thu, 07/13/2006 - 01:18

PassionHunting PassionHunting

(Posts: 512 | Credits: 38.19)

Amanda are you dealing with internet lenders or storefront lenders,because the laws for each are different?

Sub: #2 posted on Thu, 07/13/2006 - 03:36

polly polly

(Posts: 1709 | Credits: 253.2)

If you are dealing with internet lenders, here is the law.

?? 1321.02. License; exceptions.

No person shall engage in the business of lending money, credit, or choses in action in amounts of five thousand dollars or less, or exact, contract for, or receive, directly or indirectly, on or in connection with any such loan, any interest and charges that in the aggregate are greater than the interest and charges that the lender would be permitted to charge for a loan of money if the lender were not a licensee, without first having obtained a license from the division of financial institutions under sections 1321.01 to 1321.19 of the Revised Code.

Sections 1321.01 to 1321.19 of the Revised Code do not apply to any person doing business under and as permitted by any law of this state, another state, or the United States relating to banks, savings banks, savings societies, trust companies, credit unions, savings and loan associations substantially all the business of which is confined to loans on real estate mortgages and evidences of their own indebtedness; to registrants conducting business pursuant to sections 1321.51 to 1321.60 of the Revised Code; to licensees conducting business pursuant to sections 1321.71 to 1321.83 of the Revised Code; or to licensees doing business pursuant to sections 1315.35 to 1315.44 of the Revised Code. No person engaged in the business of selling tangible goods or services related thereto may receive or retain a license under sections 1321.01 to 1321.19 of the Revised Code for such place of business.

The first paragraph of this section applies to any person, who by any device, subterfuge, or pretense, charges, contracts for, or receives greater interest, consideration, or charges than that authorized by this section for any such loan or use of money or for any such loan, use, or sale of credit, or who for a fee or any manner of compensation arranges or offers to find or arrange for another person to make any such loan, use, or sale of credit. This section does not preclude the acquiring, directly or indirectly, by purchase or discount, of a bona fide obligation for goods or services when such obligation is payable directly to the person who provided the goods or services.

Any contract of loan in the making or collection of which an act is done by the lender that violates this section is void and the lender has no right to collect, receive, or retain any principal, interest, or charges.

Sub: #3 posted on Thu, 07/13/2006 - 04:06

polly polly

(Posts: 1709 | Credits: 253.2)

thank you for that information, but i don't quite understand it all.

Sub: #4 posted on Thu, 07/13/2006 - 18:14

AmandaB AmandaB

(Posts: 120 | Credits: 77.74)

It means that your lenders are probably not licensed in your state, and they are charging excessive interest rates.
Please visit my blog and use the template letter for settling with them.
http://pollyandsay.yesdebtfree .org

Sub: #5 posted on Thu, 07/13/2006 - 22:07

polly polly

(Posts: 1709 | Credits: 253.2)

Amanda - I'm right there with you. You know... I have about as many as you do with some of the same companies and I'm QUITE sure that I have more than over paid my loans. But as bad as it sounds, I probably couldn't even tell you how much because I've had them for a while and just kept letting them take out. It would take some research, but I'm sure that I could figure it out eventually. You're not alone... and I am so relieve to have found this website. It has had so much helpful information and and it is just nice to know that you're not alone. I'm currently signed up with my bank credit counselor to get all of these accounts paid off. It's going to be a big payment every month and will hurt, but it's better than those monkeys taking any more from my account. I too would love a further explaination of Ohio laws. I'm not the best interpretor in the world. Especially with legal talk. So anyone that could break down even more, I would be very grateful! Good luck to you Amanda! Just remember I'm there too!

Sub: #6 posted on Fri, 07/14/2006 - 20:49


I am a West Virginia Resident and I am in deep trouble with payday loan centers in Ohio. I got roped in to that vicious circle....Any advice? E-mail me at email address removed as per forum rules - Mike

Sub: #7 posted on Tue, 01/22/2008 - 20:24


Robin, Please explain further. You live in WV but went to Ohio to get loans?

Sub: #8 posted on Tue, 01/22/2008 - 21:19

kashzan kashzan

(Posts: 5401 | Credits: 408.31)

store front loans.. I have 5 of them and a closed bank account, what are the laws some are threating to sue for 3x the amount can they do this? how do i get help? I make good money.. just need to stop the cycle.. how long before they take me to court? do I have time to pay for them?

Sub: #9 posted on Wed, 07/30/2008 - 10:24


I am assuming you are in Ohio? You say that you have already closed your account, but the problem I foresee are checks involved. They can only sue you for the amount you borrowed plus $15.00 on every $100.00 borrowed (if you're in Ohio), plus court costs. If you have already defaulted, you need to contact these pdl's asap and make arrangements to pay them off. If you haven't defaulted, you might be entitled to the EPP (extended payment plan), but you are only eligible BEFORE your payment is due and IF they are members of the CFSA. However, I am assuming from your post you are already in default. Please try to make some type of payment arrangements with them. :)

Sub: #10 posted on Wed, 07/30/2008 - 17:25

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.83)

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