Sub. H.B. No. 598 Summary

• Creates the Ohio Consumer Installment Loan Act (sections 1321.62-1321.702) establishing licensing, regulation, and consumer protections for consumer installment lenders

• Requires lenders to obtain licenses from the Superintendent of Financial Institutions, maintain minimum net worth of $50,000, and comply with detailed record-keeping, advertising, and lending practice requirements

• Caps interest rates at 25% per year for closed-end loans and 28% per year for open-end loans, with specific restrictions on origination fees, default charges, and insurance charges

• Establishes enforcement mechanisms including examination authority, suspension/revocation of licenses, civil penalties up to $25,000, and criminal penalties for willful violations

• Takes effect July 1, 2017, replacing existing consumer finance regulations under sections 1321.01-1321.19 and 1321.51-1321.60