Cash Advances in Ohio

Posted on Wednesday, June 23rd, 2010 at 2:20 am in Cash Advances, State Loan Info

Ohio is one of the states within the union which have laws specifically regulating payday loans. Like most of the other states which enforce said laws, Ohio requires that all payday lenders located within the state are fully licensed and certified. Ohio payday lenders must also prove their credibility, as well as financial stability, reputation, experience and must show a net worth of over $100,000. Payday lenders within the state of Ohio may also be subjected to a $500 application fee, as well as a $200 investigation fee. These laws were created in order to regulate payday lenders and hold each lender in Ohio to certain standards. These regulations create an environment in which borrowers can feel comfortable to take an instant cash advance, and know that they will not be treated unfairly in the process.

Lenders within Ohio are permitted to charge a 5% interest fee, which is not compounded. The limit of each loan term can not exceed $800. A higher than average amount, considering most states do not allow more than $500.

Payday loans within the state of Ohio must provide each borrower with a written agreement, explaining the the loan. This means the total amount, the term of the loan and any extra fees or interest charged to the borrower. The written agreement must also explicitely state that the purpose of an instant cash advance is for an immediate cash need, and should not be used as a long term cash solution.

Related posts:

1. Payday Loan Legislation
2. State Cash Advance Laws
3. Retirement Cash Advances