Compliance Alerts

Compliance Alert

Ohio - 6/28/2017

The following information is presented by the Carleton Research Department. In order to keep our customers abreast of what is happening in the consumer credit and credit insurance industries, the following law changes have been compiled for your review.  Please check to see if any of the listed changes will impact your operations.

*This alert is intended to convey general information only and not to provide legal advice or opinions.
 

State Law Changes

Ohio

Senate Bill 24 is effective July 1, 2017 and creates the Ohio Consumer Installment Loan Act (CILA). For many years, consumer installment lenders operated under the Ohio Mortgage Loan Act (OMLA). SB 24 modernizes consumer lending laws with new code sections modeled after many provisions found in the OMLA.

Key points of the Ohio Consumer Installment Loan Act:

  • Maximum interest rate 25%.
  • Loans may be precomputed or interest bearing.
  • Tiered origination fee of:
    • Less than $500 - $15
    • $1,000 to $1,999.99 - $100
    • $2,000 to $4,999.99 - $200
    • $5,000 and larger - Greater of $250 or 1% of principal amount
  • Delinquency charge of the greater of 5% of installment or $15.