HB486 Summary - Small Loan Consumer Protection Act

• Establishes the "Small Loan Consumer Protection Act" creating consumer protections for loans made by small loan licensees and registrants under Ohio law.

• Limits check-cashing fees to 3% of face value for government-issued checks and prohibits fees for cashing loan proceeds checks or money orders used to fund loans.

• Restricts loan origination charges to once per 90-day period on loans of $1,000 or less and prohibits borrowers from being required to obtain membership or pay membership fees.

• Increases penalties for violations from $1-$500 to $500-$1,000 fines for willful violations of small loan statutes, and adds criminal penalties for fraud-related offenses.

• Requires credit services organizations to maintain records for four years pertaining to small loan business transactions and expands prohibitions on fraudulent schemes to evade fee restrictions.