The Consumer Financial Protection Bureau is a federal agency that issues regulations and guidelines for financial institutions, including payday lenders. But they’re not the only ones calling the shots when it comes to how payday loans are handled.
States also provide extra input and requirements on how payday loans may be used. Read on to find out how Ohio laws and regulations could affect how you borrow via payday loans.
Ohio payday loan companies are required to be licensed with the DFI as short term lenders. However, some lenders also register as mortgage lenders and credit service organizations in order to be able to charge extra fees not otherwise allowed by payday lenders.
For example, a lender may add a prepaid finance charge for helping the consumer find the loan, which does not have a maximum amount associated with it. Before agreeing to a payday loan, make sure you are aware of any additional fees that may come with it.
Ohio is considered one of the best states for borrowers wanting to take out payday loans. The consumer-friendly laws help you can feel safe knowing that there are limits in place for your protection.
As long as you clarify your fees in advance, the entire process should be very transparent.