SMALL
LOAN COMPANIES
2007
Annual Report
The Division of Financial
Institutions regulates small loan companies in Ohio pursuant to Sections
1321.01 to 1321.20 and 1321.99 of the Ohio Revised Code.
LICENSING
A person wishing to become a small loan company must submit an application,
a fingerprint card, a license fee and a nonrefundable investigation
fee. The Division must investigate the financial condition, responsibility,
experience, reputation and general fitness of the applicant, including
requesting a criminal background check. The applicant must have at least
twenty-five thousand dollars in cash or readily available money available
for the operation of the business.
Licenses may be renewed annually by filing a renewal application, a
licensing fee and, if the Division determines it is necessary, an annual
assessment based on the amount of interest and other finance charges
collected by the licensee. Each small loan company location must be
individually licensed. If an office is to be relocated, the licensee
must obtain a new license from the Division prior to conducting business
at the new location.
COMPLIANCE
Licensees must comply with specific recordkeeping, advertising and business
practices as outlined by statute or rule. For example, all small loan
company offices must be licensed, the small loan licenses must be conspicuously
displayed, the interest rates and fees that may be charged on small
loans are limited, no loans may be made in amounts of more than five
thousand dollars, no loans may be secured by liens against real property,
and certain records must be maintained for two years.
The Division can investigate licensees and anyone who appears to be
making small loans without a license, and has the power to issue subpoenas
as part of the investigative process. The Division may also issue cease
and desist orders, or revoke or suspend a license, subject to the Administrative
Procedures Act.
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