Like many of the laws in the United States, there are state provisions that make industry different for every state. Ohio payday loan laws are unique to that region and we are going to try to use the following article to help you understand the very basic aspects. If you understand the loan laws in Ohio then you might be able to avoid unnecessary problems or you will know your rights so that you can avoid certain situations that might be uncomfortable for you.
Payments and Ohio Payday Loan Laws
Most of the states try to set their minimum and maximum payday loan amounts to around $500, but this is not the case with the great state of Ohio. They have taken a different route entirely, perhaps due to the already poor state of the economy and difficulty that many people are having when searching for work. Either way, the Ohio payday loan laws stipulate that $800 is the minimum and maximum amount of money that can be given to borrowers in the state.
Furthermore, the rules on the fees and finance charges for Ohio payday loan laws can get very tricky. People are charged 5% per month on the balance of unpaid loans plus a $5 fee. In addition, debtors can be charged an additional $3.75 for each $50 above $500 that is owed. Unlike other states that simply choose a specific fee or percentage, the Ohio ordinance is quite different.
Payday Loan Lenders in Ohio
Like many other states, there are only a few certain websites that are allowed to lend to people in the state of Ohio. The websites “Check n Go” and “Pay Day One” are two of the more popular ways for people to borrow money in order to pay their bills. These are the only two legal lenders in the state, so do not feel threatened if some other companies try to get money extracted from you.
Interestingly, the Ohio payday loan laws allow these online companies and other storefront lenders to offer a 390% APR on a 14-day loan of $100. As far as some payday lenders are concerned, this is actually not that high, however many other people argue that it is. Either way, these are some of the laws in Ohio that anyone who needs a payday loan should be aware of. Without knowledge of these facts it is easy to get into financial trouble. Its always prudent to take great care in taking out these loans as getting into a payday loan trap is too easy to do.
