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Ohio · checked October 24, 2026

Payday loans in Ohio: the rules and your way out

Only longer installment-style loans allowed

Since Ohio's Short-Term Loan Act (HB 123, 2018, in force 2019), licensed lenders may make loans of up to $1,000 only as installment loans, usually lasting 91 days to one year, at 28% interest plus a capped monthly fee, with total fees and charges capped at 60% of the amount borrowed.

Law: Ohio Short-Term Loan Act, R.C. 1321.35 to 1321.48 (esp. 1321.36, 1321.39, 1321.40, 1321.401-.403, 1321.41, 1321.411, 1321.44-.47), as amended by HB 123 (132nd G.A.), effective Oct. 29, 2018. Ohio Revised Code on codes.ohio.gov, read 2026-10-24; the key sections show 'Effective October 29, 2018, Latest Legislation: House Bill 123 - 132nd General Assembly'

Ohio's rules, line by line

Largest loan
$1,000 per loan (R.C. 1321.39(A)); total outstanding short-term loan principal from all licensees may not exceed $2,500 at any one time (1321.41(R)).
Shortest term
91 days, unless each monthly payment is no more than 6% of the borrower's verified gross monthly income or 7% of verified net monthly income, whichever is greater (R.C. 1321.39(B)).
Longest term
One year (R.C. 1321.39(B)(1)).
Fee or rate cap
Interest "not exceeding a rate of twenty-eight per cent per annum"; a monthly maintenance fee of no more than the lesser of 10% of the original loan amount or $30 (none for active-duty servicemembers and their dependents); a 2% origination charge on loans of $500 or more; one check collection charge of $20 plus pass-through bank fees; and a check-cashing fee of up to $10 if proceeds are paid by check (R.C. 1321.40). Total fees and charges may not exceed 60% of the originally contracted loan amount, excluding the check collection and check-cashing fees and interest on a qualifying refinance (R.C. 1321.403).
Renewals and rollovers
No rollovers in the payday sense. A lender may refinance only into another short-term loan at no more than 28% interest and with no monthly maintenance fee (R.C. 1321.401). Prepaid or refinanced loans get a prorated refund of interest, maintenance fees and other charges (1321.402).
Waiting period between loans
None found in the statute.
Loans at once
One per lender: no new short-term loan while the borrower has an outstanding loan with the same licensee, its affiliates, or its employees or agents, except a permitted refinance (R.C. 1321.41(E)); total of $2,500 outstanding across all licensees, based on the borrower's signed declaration (1321.41(R)).
Payment plan if you cannot pay
No statutory extended payment plan. Loans must already be precomputed and repayable in substantially equal installments (R.C. 1321.39(D)).
State loan database
No state loan database found in R.C. 1321.35-1321.48; lenders rely on the borrower's signed declaration and a 'concerted effort to verify' eligibility (1321.41(R)).
Limits on collection
One check collection charge per loan, up to $20 plus pass-through bank fees (R.C. 1321.40(D)). After default, damages and costs in a collection suit may not exceed the original loan amount (1321.40(F)). No treble damages for a bounced check (1321.41(D)). No action or complaint against the borrower solely because a check bounced for insufficient funds, absent intentional fraud such as using a closed account (1321.41(F)). No re-presenting a returned check without written approval (1321.41(P)). No further electronic debits after two consecutive failed attempts without new written authorization (1321.411). No vehicle title or other collateral (1321.41(H)). FDCPA-style limits on collectors: no calls before 8 a.m. or after 9 p.m., no third-party disclosure, must stop on written request, no harassment or threats of arrest (1321.45).
Other rights
Right to rescind or cancel by 5 p.m. on the third business day after the loan by returning the originally contracted amount (R.C. 1321.39(C)(7), (E)). Electronic payment is optional and may be revoked at any time (1321.39(C)(8)). No prepayment penalty (1321.41(J)). Lender must verify income (1321.46). Loans by unlicensed lenders, or by phone or mail, are void, with no right to collect principal, interest or fees (1321.36). Violations of 1321.41 are unfair or deceptive acts under the Consumer Sales Practices Act, with the remedies of R.C. 1345.09 (1321.44(A)); borrowers may sue for breach of the lender's statutory duties, recovering at least all compensation paid plus attorney's fees (1321.47).

If you are behind on a payday loan in Ohio

  1. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
  2. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  3. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.

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