HB 209 Summary

• Establishes consumer protections for small loans (up to $5,000) and short-term loans by capping interest rates at 28% annually for loans of $1,000 or less that are either short-term (3 months or less) or single-payment, with higher rates permitted for longer-term installment loans.

• Prohibits lenders from charging check-cashing fees for proceeds checks/money orders used to disburse loans and prevents requiring borrowers to cash such checks at specified locations.

• Restricts out-of-state lenders from making loans to Ohio residents from offices outside Ohio, though permits out-of-state lenders whose customers physically visit their offices.

• Creates enforcement mechanisms allowing borrowers to bring civil actions for violations involving loans of $1,000 or less, with violations classified as unfair/deceptive practices under consumer protection law.

• Adds regulations on debt adjusting services, credit services organizations, and lease-purchase agreements to prevent evasion of lending restrictions through alternative financing schemes.