Ohio Consumer Installment Loan Act (SB 24) Summary

• Creates new licensing framework for consumer installment lenders under sections 1321.62-1321.702, requiring licensees to obtain licenses from the Superintendent of Financial Institutions with $200 investigation fee and $300 annual registration fee.

• Establishes interest rate cap of 25% annually on closed-end loans and 28% on open-end loans, with detailed provisions for loan origination charges based on principal amount ($15-$250+ depending on loan size).

• Imposes strict operational requirements including prohibition on refinancing within 120 days, limits on loan origination fees (maximum 3 times per 12 months), restrictions on holding dated instruments as security, and mandatory borrower disclosures.

• Requires comprehensive record-keeping including electronic spreadsheets with loan details, payment histories, litigation records, repossession/foreclosure documentation, and maintenance of records for two years after final loan entry.

• Establishes enforcement mechanisms allowing the Superintendent to suspend, revoke, or refuse license renewal for violations, with civil penalties up to $25,000 per violation and criminal penalties ranging from misdemeanor to felony charges depending on offense severity.