Ohio Payday Loan Laws and Regulations

Ohio Payday Loan Laws and Regulations

Are Payday Loans Legal in Ohio? 

Short-term Payday Loans are legal in the state of and are mostly regulated through  Ohio Rev. Code Ann. 1321.35 et seq..

Payday Lending in Ohio.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


The main Payday Loan requirements in Ohio are:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address

Ohio doesn’t limit maximum loan amounts. It should be repaid within 91 day(s). Earlier payments don’t contemplate any additional penalty fees. The maximum APR is 28.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Ohio Payday Loan Terms and Amounts 

Ohio residents who are eligible for a Payday Loan can apply for$1000. The repayment term is capped at maximum 91 day(s).

The purpose of loan usage is not limited either. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Ohio.

If a Payday cash advance is not enough, there are always other options to receive the necessary funds in Ohio: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Ohio Payday Loans online laws 

Payday loans from both storefront and online lenders are legal in the state of Ohio. But the companies should operate according to the Ohio Division of Financial Institutions, 77 South High Street, 21st Floor Columbus, OH 43215, (614) 728-8400 regulations.

Still the precise Payday loan amount in total, as well as fees and any surcharges, with APR rate indicated, must be revealed within the contract you’re signing. 
The lending agency is obliged to supply you with a fee schedule listing all the fees it’s getting to make. All the amounts must be indicated with APR rates and exact fees amounts. Lending agencies must indicate a telephone number within the contract you’ll use to file any complaints or clarify any questions.

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information, and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

Ohio Payday Loans interest rates, fees, and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Ohio is 28.00%. On average the interest rate is 261%.

Besides, the total cost of a Payday Loan includes some additional fees. Ohio lending rules allow to charge 10% of the loan maintenance fee or a $30 maintenance fee.

The law obligates Ohio Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Ohio Payday Loans direct lenders regulations 

According to Ohio payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loan direct lenders and lenders in a store near you.

Based on a 2016 count by the Pew Charitable Trusts, the number of storefront locations offering payday loans, and thus potentially subject to licensure under the Short-Term Loan Law, was approximately 650. Based on the Division of Financial Institutions’ eLicense Center, as of January 27, 2020, there were 210 active Short-Term Loan Law licensees in Ohio.

The State of Payday Lending in Ohio.pdf

But Ohio Payday Loan lenders are prohibited to threaten you for late payments or loan default and conduct any criminal actions against you.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Ohio state law.

Ohio Payday Loans consumer information 

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Ohio. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions A repayment plan
Cooling-off period 90 days
NSF fee Bank charges (if disclosed); $20 collection charge; Court Costs after default
Criminal actions Prohibited

Look for more detailed information on the official Ohio state regulator website – Ohio Division of Financial Institutions, 77 South High Street, 21st Floor Columbus, OH 43215, (614) 728-8400.

Legitimate Payday Loans Online with NO credit check in Ohio 

Looking for a legal Payday Loan with No credit check in Ohio? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.

If you don’t want to damage your credit history, Ohio law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Ohio Payday loans online no credit check is one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Ohio law allow Payday Loans for bad credit borrowers?

The average credit score in Ohio is 678, placing it in the good range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in Ohio. 

  • First of all, there’re a lot of legit direct lenders in Ohio providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Ohio collection practices 

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Ohio direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are nonsufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Ohio it’s Bank charges (if disclosed); $20 collection charge; Court Costs after default.

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Ohio. The laws limit the collection actions lenders can take – When a borrower has failed to repay a Utah payday loan, the laws dictate that lenders are not allowed to take any legal action against that borrower unless the individual has closed his or her checking account prior to repaying the debt in full. This essentially means that borrowers who maintain their checking accounts and who are unable to repay payday loans will be protected from payday loan lenders’ attempts to sue them or garnish their wages.

If you think that your payday lender violates the Ohio Payday Loans law, you may file a written complaint with Ohio Division of Financial Institutions, 77 South High Street, 21st Floor Columbus, OH 43215, (614) 728-8400. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Ohio Payday Loans news  – latest changes 

Before 2008, Ohio had one of the least consumer-friendly payday lending laws. The $800 loan limit was 3rd highest in the country, a typical APR of 391%, and very little reporting or enforcement provisions. A campaign was launched in 2007 by the Ohio Coalition for Responsible Lending to place an interest rate cap and similar provisions to the Talent-Nelson military bill.
A bipartisan bill passed in 2008 in both the Ohio House and Senate, followed by a prompt signature from the Governor. The long fight was led by COHHIO, Coalition for Responsible Lending, Policy Matters Ohio, and dozens of community groups. Immediately after the Ohio Short Term Loan Act passed, with a 28% APR and loan cap, the payday lending industry began a process to repeal the new law through a ballot initiative. Despite spending millions of dollars, Ohio voters, more than 65%, shot down the proposal keeping the newly passed payday loan reform.
Despite the overwhelming support of the new payday law by Ohioans and policymakers, lenders are now using two arcane lending laws to operate and make loans at similar or larger rates.

Ohio Payday Loans historical background 

Before 1990s Payday Loans were banned.
1995 The Pay Day Loan Act legalised Payday Lending in Ohio.
1997 Banks started providing “deposit advance” loans against the next paychecks.
2000 All criminal actions against Payday Loan customers were prohibited.
2002 – 2004 Bank-Payday partnership was stopped.
2004 It became populat to offer Payday Loans online.
2008 The interest on Payday Loans was capped at 28%. The amount was limited to $500.
June 2, 2016 A Payday Loan Rule was proposed.
October 29, 2018 Ohio enacted the Fairness in Lending Act. It requires all nonbank lenders to obtain a Short-Term Loan Law license, caps APR at 28% and sets a maximum loan amount of $1,000.

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