Ohio falls among the 24 states that have enacted laws authorizing cash advance loans. The Ohio Check Cashing Loan Act regulates the state's payday cash advance businesses and extending protection to both creditors and borrowers. All cash advance companies operating in the state must be licensed. Their license must be clearly displayed in the place of business. Ohio law requires the loan agreement to be in writing and to state the total amount of charges in an annual percentage rate and dollar amounts. Borrowers can have a maximum of one outstanding payday loan at a time. Check cash advance lenders are entitled to a private right of action against defaulting borrowers.
A borrower can request up to $800 in payday loan funds.
The loan term is 6 months.
A borrower cannot extend or rollover a cash advance loan.
A check cash advance business may charge a maximum origination fee of $10 per $100 borrowed, in addition to 5% monthly interest. It can also charge a check collection fee not greater than $20. The finance charge for a two-week payday loan in the amount of $100 is $15.
The APR for a two-week loan valued at $100 is 390%.