Ohio Laws for Payday Lenders Collecting on Bad Checks
Ohio payday lending laws limit the amount of interest and loan origination fees. Ohio House Bill 545 passed in 2008 and Ohio House Bill 486 in 2010. Both restricted the fees and collection policies on two- and four-week lending businesses in the state.
Other People Are Reading
-
Loan Repayment
-
Loan repayment policies vary by lender, but most comply with existing state laws. Ohio laws do not permit arrest for non-payment of loans or debts. Payday lenders or collection agencies working on their behalf can file charges in court to seek relief for the payment you owe. A judge can issue an order to garnish your wages or force the sale of personal or real estate property to repay the debt.
Bounced Checks
-
When a loan comes due, the payday lender will attempt to deposit a check post-dated by you or electronically withdraw funds from your checking account. Typically a lender charges a fee for returned checks. A returned check fee amount should be listed on the loan application.
-
Interest Rates
-
The biggest changes to Ohio payday lending resulted from the passage of House Bills 545 and 486. The laws relate to the amount of interest charged to consumers. The statutes permit only an interest rate of 28 percent for short-term loans.
-
References
- Photo Credit fifty dollars image by gajatz from Fotolia.com
