News About the Ever-Changing Payday Advance Industry
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Yes — payday loans are legal in Ohio, but the 2018 Fairness in Lending Act (House Bill 123) reined them in. Loans are capped at $1,000, interest at 28% a year plus a limited monthly maintenance fee, with a 91-day minimum term and required installment repayment — replacing a loophole-driven market where APRs ran into the triple digits.
| Status | Legal — reformed under the 2018 Fairness in Lending Act |
|---|---|
| Maximum loan | $1,000 (up to $2,500 outstanding across lenders) |
| Interest cap | 28% per year |
| Monthly fee | Maintenance fee: the lesser of 10% of principal or $30 |
| Other charges | 2% origination on loans of $500+; one $20 check-collection charge |
| Loan term | 91 days minimum, 1 year maximum (installments) |
| Affordability | Shorter term only if the payment is ≤6% of gross (or 7% of net) monthly income |
| Right to cancel | Within 3 business days |
| Regulator | Ohio Department of Commerce, Division of Financial Institutions |
| Law | Ohio Short-Term Loan Act, ORC 1321.35–1321.48 (HB 123, 2018) |
Short-term lenders in Ohio are licensed by the Department of Commerce, Division of Financial Institutions. To report a violation or an illegal lender, use the online complaint form.
Even reformed, the cost adds up — compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller. See our guide to payday loans and alternatives.
A lender can garnish wages in Ohio only after it sues and wins a court judgment, and federal law then caps how much can be taken. Ohio does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Ohio Department of Commerce, Division of Financial Institutions before borrowing. Last reviewed 2026.
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Yes, but they are tightly regulated under the 2018 Fairness in Lending Act (Short-Term Loan Act). Loans are capped at $1,000 with 28% interest and a limited maintenance fee.
Interest up to 28% a year, plus a monthly maintenance fee no greater than the lesser of 10% of the principal or $30, and a 2% origination charge on loans of $500 or more.
At least 91 days, up to one year, in installments. Shorter terms are allowed only if the payment is no more than 6% of your gross monthly income.
No. Loans must be installment loans, and a lender generally cannot issue a new loan while you have one outstanding with them.
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