Ohio Tightens Small Buck Financing Legislation

Ohio Tightens Small Buck Financing Legislation

On July 24, 2018, Ohio Governor Kasich finalized HB 123 into legislation, amending and streamlining the Ohio consumer financing regulations and creating significant adjustment to the Ohio Short-Term Loan legislation. The modifications found in HB 123 incorporate:

  • Needing a nonbank loan provider to have a Short-Term Loan Law license to originate any consumer loan having a maximum number of $1,000 or repayable in a season or less;
  • Revising the Credit service Organizations work to prohibit registered Credit service businesses from assisting when you look at the origination of short-term loans, loans of not as much as $5,000, and loans having a percentage that is annual higher than 28%;
  • Eliminating Ohio’s loan database;
  • Requiring that most loans that are short-term precomputed;
  • Requiring that licensed lenders that are short-term and report a borrower’s money;
  • Applying an ability-to-repay standard for loans of specific terms;
  • Capping interest, costs, and charges;
  • Requiring that licensed lenders that are short-term a right to cancel;
  • Prohibiting connection with borrowers and repayment that is certain; and

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