F.A.Q.

The maximum number of payday loans you can have in Ohio is 6. This limit applies to the total amount of outstanding principal balances on all payday loans you have with all lenders, regardless of whether the loans are from the same lender or from different lenders.

For example, if you have a $500 payday loan from one lender and a $500 payday loan from another lender, you would have a total of $1000 in outstanding principal balances and would be over the limit. You would not be able to take out another payday loan until you had paid down one of your existing loans to below $500.

There are a few exceptions to the 6-loan limit. For example, you can have more than 6 loans if:

The loans are from a credit union or a bank that is regulated by the federal government.
The loans are for less than $500.
The loans have a repayment term of less than 31 days.
If you are considering taking out a payday loan, it is important to be aware of the 6-loan limit and other restrictions. Payday loans can be expensive and can lead to debt problems if you are not able to repay them on time.

Here are some other things to keep in mind about payday loans in Ohio:

The maximum interest rate on a payday loan is 28% APR.
The loan term cannot be less than 31 days.
The borrower must sign a declaration that they do not have more than $2,500 in outstanding payday loan principal balances.

If you cannot repay a payday loan in Ohio, the lender may take the following actions:

Charge late fees. The lender can charge you a late fee of up to $30 for each payment that is late.
Require you to pay a higher interest rate. The lender can increase the interest rate on your loan if you are late on a payment.
Send your loan to collections. If you do not repay the loan, the lender may send it to a debt collection agency. Debt collectors can contact you by phone, mail, and even in person to collect the debt. They may also sue you in court.
** garnish your wages.** If you are sued and the lender wins, the court may order you to pay the debt by garnishing your wages. This means that the lender can take a portion of your paycheck each month until the debt is repaid.
Put a lien on your property. The lender can put a lien on your property, such as your car or home. This means that if you do not repay the loan, the lender can take your property to satisfy the debt.

It is important to note that you cannot be arrested for not repaying a payday loan in Ohio. However, you may face other financial consequences, such as late fees, higher interest rates, and wage garnishment.

The statute of limitations in Ohio for payday loans is 6 years. This means that a lender can only sue you to collect a payday loan debt if the loan was made within 6 years. If the loan was made more than 6 years ago, the lender cannot sue you.

The statute of limitations for payday loans begins to run on the date the loan is due. If you make a payment on the loan, the statute of limitations is reset. So, if you make a payment on a payday loan that is 5 years old, the statute of limitations will start over and the lender will have another 6 years to sue you.

Yes, payday loans are legal in Ohio, but they are heavily regulated. The maximum interest rate on a payday loan in Ohio is 28% APR. The loan term cannot be less than 31 days. The borrower must sign a declaration that they do not have more than $2,500 in outstanding payday loan principal balances.

There are also limits on the number of payday loans a borrower can take out. A borrower can only have a maximum of 6 payday loans in a year. The loans must be for at least $500.

Payday lenders in Ohio must be licensed by the Ohio Department of Commerce. The department has the authority to investigate and take action against payday lenders who violate the law.