Explanation on Ohio payday loan laws

Read the link below for information about the payday loan regulations in Ohio. Check the lenders first if they are licensed in your state. The interest rates on the principal amount should also within the permissible lines.

http://www.ohiolegalservices.org/OSLSA/PublicWeb/Library/Index/1090000/1090001/index_html

Some discussions about the laws have taken place on this board also. Go through them as well.

http://www.debtconsolidationcare.com/forums/about9140.html

http://www.debtconsolidationcare.com/forums/ohio-pdllaws.html

http://www.debtconsolidationcare.com/settlement/about12514.html

Amanda are you dealing with internet lenders or storefront lenders,because the laws for each are different?

If you are dealing with internet lenders, here is the law.

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thank you for that information, but i don't quite understand it all.

It means that your lenders are probably not licensed in your state, and they are charging excessive interest rates.
Please visit my blog and use the template letter for settling with them.

Amanda - I'm right there with you. You know... I have about as many as you do with some of the same companies and I'm QUITE sure that I have more than over paid my loans. But as bad as it sounds, I probably couldn't even tell you how much because I've had them for a while and just kept letting them take out. It would take some research, but I'm sure that I could figure it out eventually. You're not alone... and I am so relieve to have found this website. It has had so much helpful information and and it is just nice to know that you're not alone. I'm currently signed up with my bank credit counselor to get all of these accounts paid off. It's going to be a big payment every month and will hurt, but it's better than those monkeys taking any more from my account. I too would love a further explaination of Ohio laws. I'm not the best interpretor in the world. Especially with legal talk. So anyone that could break down even more, I would be very grateful! Good luck to you Amanda! Just remember I'm there too!

I am a West Virginia Resident and I am in deep trouble with payday loan centers in Ohio. I got roped in to that vicious circle....Any advice? E-mail me at email address removed as per forum rules - Mike

Robin, Please explain further. You live in WV but went to Ohio to get loans?

store front loans.. I have 5 of them and a closed bank account, what are the laws some are threating to sue for 3x the amount can they do this? how do i get help? I make good money.. just need to stop the cycle.. how long before they take me to court? do I have time to pay for them?

I am assuming you are in Ohio? You say that you have already closed your account, but the problem I foresee are checks involved. They can only sue you for the amount you borrowed plus $15.00 on every $100.00 borrowed (if you're in Ohio), plus court costs. If you have already defaulted, you need to contact these pdl's asap and make arrangements to pay them off. If you haven't defaulted, you might be entitled to the EPP (extended payment plan), but you are only eligible BEFORE your payment is due and IF they are members of the CFSA. However, I am assuming from your post you are already in default. Please try to make some type of payment arrangements with them. :)

the first time you went to a payday loan place wasn`t it great you got the money needed to help you in a time of trouble the problem is people always take more than they can afford to pay back .i`ve been to these companies and it was explained to me that i had to pay back on my next paydaywhich i did that left me now short but i wrote for less the next time and struggled but made it . i kept doing this until it was paid off and now im out unlike what im reading i didn`t go to a 2nd or 3rd company which mean if your stuck its your own fault ,sometime you have to tighten your money .stop blaming the companies for your mistakes and think if you had paid off and walked away you wouldn`t be complaning right now

People who criticize payday loans are usually people who have either never had to get one or people who got a loan for the wrong reasons, like to go out or go shopping. Everyone who takes out a payday loan isn't necessarily trapped into a cycle of debt because they borrow more than they need. A lot of payday loan customers are on fixed incomes and these loans are helpful to small business owners, who use these loans to cover pressing expenses until they are paid, like my mechanic, who takes out a loan to purchase parts for my car and then pays it back the same day I pay him. I live from paycheck to paycheck and this new payday loan law is going to hurt me big time. If my car breaks down or if I need to pay my rent or buy food, this is one option that will no longer be available to me. I won't be able to pay for my classes or my books now. Just because you pay off and walk away doesn't mean you won't be back another day. I paid off four loans--I bought a washer and dryer--and walked away and had to come back six months later to pay for my son's glasses and medicine, none of which is covered by my insurance. Since I earn too much to be eligible for government assistance, where does that leave me now? Not everyone is irresponsible with payday loans, but it seems to be the only people everyone focuses on. Keep in mind that in states like Texas, the annual interest rate on payday loans is more than 791%; in other words, on a $300 loan, you would pay back about $420. 391% doesn't seem too bad when you look at it like that, does it? What lawmakers should have done is force payday lenders to offer payment plans or the option to pay the interest, like they do in Texas. If people were allowed the option of Stretch Pay or PayDown, which allows them to be able to pay back a loan over a period of time, then maybe it wouldn't be so bad. People on fixed and low incomes and people with bad credit are going to be hurt the most, not to mention the thousands of people who are going to be out of work and dragging even more on the unemployment fund because there are few jobs to be had. Businesses are shutting down and going out of business left and right. Banks are tightening up on credit. With no revenue, even from a loan, no one will be spending to make the economy flow and the recession will blossom into a depression, if it hasn't already.

Hey shannon what companys do you deal with now. and you live in Texas are these store fronts you deal with. or online pay day lenders let us know maybe we can help list what lenders you deal with now

Thanks to the new law in Ohio being passed, the EPP option is longer an option because the payday lenders are going to short term loans. I have 4 out and have no choice but to default and end the cycle so I can pay them off as quickly as possible.

If the loans were taken before the new law then you can indeed get an EPP if they are a member of CSFA. I got one from Checksmart but you have to get them before you default.

I have a online payday loan company that I had a payment plan on. I canceled my bank account and opened a separate one, but they won't let me transfer my payment plan to my new bank account. They say I must either allow a NSF (non-sufficient funds) go through with the original account or pay in full with my new one. Is this legal? If it helps any, the company is Integrity Advance from Delaware and I live in Ohio.

When did you take the original loan out? How much was the loan for?

When you say payment plan do you mean to settle the debt or was it payments from the original contract?

please help. im desperate. im trapped in payday loans. please help

please help. im desperate. im trapped in payday loans. please help

I have five pay day loans and its killing my payday. What would happen if I stop payment on the 4 checks out and let them go to collections, then make payments on them? The 5th one doesn't have a check and they can collect electronically. I don't want to close my account, I've had it many years. I'm not trying to get out of paying, I just can't keep going like this--it's taking almost my whole paycheck.

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I have defaulted on a loan with checksmart in cincinnati ohio. I know I owe the money and I understand that but they are trying to say I owe an additional 5% daily interest on the principal amount and I cannot find this verbage ANYWHERE in my contract. the first part that says interest actually says "You agree that interest will be charged from the date of that you receive the Loan proceeds from us until the princpal together with interest, at the rate of 25% per year, is paid."

so where is this 5% coming from? I know when I can pay it back and at that interst rate I'll owe an additional $940!!!

I am in the same boat with the same people! They are charging me daily interest also. But I do not see anywhere that says that I will be charged. I only borrowed 500 and now I owe almost 700. And they are very nasty about collecting!

pay them as much as you can afford when you get payed. they will take the money. tell them do what you need to do. they will not do nothung. go in there with i don't care attitude. thats what i did.

Why do they let people take these loans out if they are illegal in Ohio? What happens when you default?

I have been using an online lender for payday loan. The fees are rediculously high and I can't get out of this mees! Once I oay them, I'm keft short yet again. I don't quite understand the laws in the state of Ohio or what my rights are. I want to pay what I owe, but need more time and also do not want any legal actions taken against me by the lender or my bank. What can I do? Any help???

I see a post on here that states internet lenders are illegal. This is what I am dealing with now, what can I do to get out of this situation? I know I owe what I was given, but all the fees?

I have several payday loans in default in Ohio. I can only pay back a small amount at a time. My bank closed my account due to them making several attempts to withdraw the moey and thtat resultedi in overdrawn fees for every attempt. I now owe the bank for these fees.

Can you help me?

Hey guest (tired of paying fees)... you won't be liable for paying off the fees and charges in the states where internet lenders are illegal. You will have to only pay off the principal balance.

Hey anonymous... Payday loans are legal in Ohio. In such a situation, you will be liable to pay them off in full. You can go for a payday loan consolidation in order to get rid of the dues. As far as overdrawn fees for concerned, you should have a word with your bank authorities and check out if you may get a payment plan to pay it off. This will make it affordable for you to pay off the fees.

Just to clarify, in 2008 Ohio passed a reform law on payday lenders (House Bill 486), which limited the amount of interest they were able to charge, they are now referred to as low cost loans. Each lender is required to be licensed in the state of Ohio, so you need to check the Ohio licensee data base to be sure you are dealing with a legal lender. Ohio Rev. Code Ann. 1321.35 et seq.

I have 3 online pdls and they are taking out half of my pacheck every two weeks. They have all been paid in full plus the finance charge but because I didnt call them and tell them the amounts they are telling me I was only paying the finance fee each time. So they are saying I have paid 500.00 in finance fees and nothing on my loan. my loan was only 400.00 and they continue to take the money out, how do I stop this without closing my account? They are putting me in more debt then i was to start out with, i am a single mother and feel I have been robbed. Please help.