Signed by Governor Ted Strickland

Vote Smart's Synopsis:

Vote to pass a bill that creates and expands regulations relating to payday loans.

Highlights:

-Prohibits payday lenders from offering loans with annual percentage rates of more than 28 percent (Sec. 1). -Mandates that loans offered by payday lenders shall not be permitted to have a duration of less than 31 days (Sec. 1). -Prohibits payday lenders from offering loans to borrowers who have received 4 or more of such loans in the calendar year (Sec. 1). -Prohibits payday lenders from offering loans which would obligate the buyer to pay back more than $500 or that would put the buyer in debt by more than 25 percent of his or her gross monthly income (Sec. 1). -Prohibits the offering of loans via telephone, via mail, or via the Internet (Sec. 1). -Requires that each loan offered by a payday lender be accompanied by a loan contract, which includes total amounts of fees and charges, the amount and due date of each payment, a warning stating that the loan will have a higher cost than that charged by the average financial institution, and a provision offering the borrower an extended payment plan (Sec. 1). -Creates a consumer finance education board, which is charged with working towards improving the financial literacy of Ohioans (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that creates and expands regulations relating to payday loans.

Highlights:

-Prohibits payday lenders from offering loans with annual percentage rates of more than 28 percent (Sec. 1). -Mandates that loans offered by payday lenders shall not be permitted to have a duration of less than 31 days (Sec. 1). -Prohibits payday lenders from offering loans to borrowers who have received 4 or more of such loans in the calendar year (Sec. 1). -Prohibits payday lenders from offering loans which would obligate the buyer to pay back more than $500 or that would put the buyer in debt by more than 25 percent of his or her gross monthly income (Sec. 1). -Prohibits the offering of loans via telephone, via mail, or via the Internet (Sec. 1). -Requires that each loan offered by a payday lender be accompanied by a loan contract, which includes total amounts of fees and charges, the amount and due date of each payment, a warning stating that the loan will have a higher cost than that charged by the average financial institution, and a provision offering the borrower an extended payment plan (Sec. 1). -Creates a consumer finance education board, which is charged with working towards improving the financial literacy of Ohioans (Sec. 1).

Full Bill Text