Ohio House Bill 123, signed by the Governor on July 30, 2018, specifically addresses Small Loans (§§ 1321.01-1321.19), Short-term Loans (§§ 1321.35-1321.48), and Second Mortgage Loans (§§ 1321.51-1321.60).
Under the Act, a Small Loans Licensee shall not make a loan where either (1) the loan is $1,000 or less, or (2) the loan has a duration of one year or less.
A Short-term Loan Licensee must meet the following conditions:
The following additional or revised fees are allowed:
A Short-term Loan Licensee is prohibited from:
The Act also includes provisions regarding: fees included or excluded in the interest or APR calculations, statements that must be given to the borrower, refinancing, refunding for prepayment, restrictions on contacting the borrower, and verifying the borrower’s income.
Under the Act, Second Mortgage Loans may not (1) be in the amount of $1,000 or less, or (2) have a duration of one year or less.
Effective October 28, 2018, but only applicable to loans made after April 26, 2019.