The Ohio Fairness in Lending Act
Effective in 2019, this law restructured short-term consumer lending in Ohio. Instead of a single lump-sum repayment on your next payday, short-term loans must now be structured as installment loans with a minimum term — generally 91 days, unless the monthly payment is a small enough share of your income to qualify for a shorter term.
Rate and Fee Caps
Ohio caps the interest rate on these loans at 28% APR, with an additional monthly maintenance fee also capped by statute. Combined, the total cost of the loan is capped so it can't exceed a set percentage of the original loan amount — a significant departure from the uncapped fees allowed in many other states.
What This Means in Practice
Because the law requires an installment structure rather than a single balloon payment, Ohio borrowers typically see a lower total cost and a more predictable repayment schedule than the traditional payday model — but the tradeoff is a longer minimum commitment than a typical two-week loan elsewhere.
| Factor | Ohio Rule |
|---|---|
| Loan structure | Installment, not single lump-sum repayment |
| Minimum term | ~91 days, with exceptions for smaller payment-to-income ratios |
| APR cap | 28% |
| Total cost cap | Capped as a percentage of the loan amount, in addition to the APR cap |
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