Are Payday Loans Really as Evil as People Say?

In some cases, you can get better rates on payday loans when you have good credit. Except as otherwise provided in subsection 3, an officer or employee of the Division of Financial Institutions of the Department of Business and Industry shall not:. He called me on a Monday? They are the scm of the earth!!!! When these people call leave case number or phone half time i cant get the information i am looking for or someone answer start yelling at who. Each license issued shall be conspicuously posted in the place of business and is not transferable or assignable. She said she was a process server, and that she had a summons that she was going to serve on me.

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And I think that group of people seems to fundamentally not understand their financial situation. So, given this fact, how should one think about the industry? Is it treacherous enough that it should be eliminated? Or, is it a useful, if relatively expensive, financial product that the majority of customers benefit from? Zinman says that a number of studies have tried to answer the benchmark question of whether payday lending is essentially a benefit to society.

Some studies say yes …. But we have other studies that find that having more access to payday loans leads to a greater incidence of detrimental outcomes. Consider a study that Zinman published a few years back. As an economist might predict, if the financial incentive to sell a product is severely curtailed, people will stop selling the product. We saw a pretty massive exit from payday lending in Oregon, as measured by the number of outlets that were licensed to make payday loans under the prior regime, and then under the new law.

And so we have a setup for a nice natural experiment there. You have two neighboring states, similar in a lot of ways. And this let Zinman compare data from the two states to see what happens, if anything, when payday-loan shops go away. He looked at data on bank overdrafts, and late bill payments and employment; he looked at survey data on whether people considered themselves better or worse off without access to payday loans.

And in that study, in that data, I find evidence that payday borrowers in Oregon actually seemed to be harmed. They seemed to be worse off by having that access to payday loans taken away. But in a different study , Zinman found evidence in the opposite direction. In that paper, which he co-authored with Scott Carrell , Zinman looked at the use of payday loans by U.

This had been the topic of an ongoing debate in Washington, D. The Pentagon in recent years has made it a big policy issue. They have posited that having very ready access to payday loans outside of bases has caused financial distress and distractions that have contributed to declines in military readiness and job performance. And so Scott and I got the idea of actually testing that hypothesis using data from military personnel files.

Zinman and Carrell got hold of personnel data from U. Air Force bases across many states that looked at job performance and military readiness. We found that as payday loan access increases, servicemen job performance evaluations decline. And we see that sanctions for severely poor readiness increase as payday-loan access increases, as the spigot gets turned on.

Congress had been so concerned about the effects of payday loans that in it passed the Military Lending Act , which, among other things, capped the interest rate that payday lenders can charge active personnel and their dependents at 36 percent nationwide. So what happened next?

A lot of the payday loan shops near military bases closed down. But even such a simple question can be hard to answer, especially when so many of the parties involved have incentive to twist the argument, and even the data, in their favor.

I specifically asked Bob DeYoung about that when I was talking to him about his New York Fed blog post that for the most part defended payday lending:. For the record did you or any of your three co-authors on this, did any of the related research on the industry, was any of it funded by anyone close to the industry? But as we kept researching this episode, our producer Christopher Werth learned something interesting about one study cited in that blog post — the study by Columbia law professor Ronald Mann, another co-author on the post, the study where a survey of payday borrowers found that most of them were pretty good at predicting how long it would take to pay off the loan.

What our producer learned was that while Ronald Mann did create the survey, it was actually administered by a survey firm. Now, to be clear, Ronald Mann says that CCRF did not pay him to do the study , and did not attempt to influence his findings; but nor does his paper disclose that the data collection was handled by an industry-funded group. So we went back to Bob DeYoung and asked whether, maybe, it should have.

Had I written that paper, and had I known percent of the facts about where the data came from and who paid for it — yes, I would have disclosed that. CCRF is a non-profit organization, funded by payday lenders, with the mission of funding objective research. CCRF did not exercise any editorial control over this paper. But, as Zinman noted in his paper, as the researcher you draw the line at letting the industry or industry advocates influence the findings.

So, first off, tell us a little bit more about them, and what their incentives might be. Its mission is to expose corporate and political misconduct, primarily by using open-records requests, like the Freedom of Information Act , or FOIA requests, to produce evidence. What do we know about their funding? So should we assume that CFA, the watchdog, has some kind of horse in the payday race? Or do we just not know? But whatever their incentive might be, their FOIA requests have produced what look like some pretty damning e-mails between CCRF — which, again, receives funding from payday lenders — and academic researchers who have written about payday lending.

OK, so that would seem to be good news for the payday industry, yes? So, what Fusaro did was he set up a randomized control trial where he gave one group of borrowers a traditional high-interest-rate payday loan and then he gave another group of borrowers no interest rate on their loans and then he compared the two and he found out that both groups were just as likely to roll over their loans again.

And we should say, again, the research was funded by CCRF. So far, so good. But I think we should mention two things here: And what they show is they certainly look like editorial interference. That does sound pretty damning — that the head of a research group funded by payday lenders is essentially ghostwriting parts of an academic paper that happens to reach pro-payday lending conclusions. Were you able to speak with Marc Fusaro, the author of the paper?

I was, and what he told me was that even though Hilary Miller was making substantial changes to the paper, CCRF did not exercise editorial control. The Consumer Credit Research Foundation and I had an interest in the paper being as clear as possible.

I mean the results of the paper have never been called into question. Nobody had suggested I changed any other results or anything like that based on any comments from anybody. Frankly, I think this is much ado about nothing. Well, Christopher, that defense sounds, at least to me, like pretty weak sauce. Fusaro does maintain though, that CFA, this watchdog group, has really taken his e-mails out of context and just made false accusations about him.

And they are opposed to payday loans. If you want to go way deeper into this rabbit hole, check out this article written by Christopher Werth about payday industry connections to academic research. So we are left with at least two questions, I guess. There is a long and often twisted history of industries co-opting scientists and other academic researchers to produce findings that make their industries look safer or more reliable or otherwise better than they really are.

Whenever we talk about academic research on this show — which is pretty much every week — we do try to show the provenance of that research and establish how legitimate it is. The best first step in figuring that out is to ask what kind of incentives are at play. But even that is only one step. The military offers highly competitive pay and benefits packages. Active duty is a full-time job with guaranteed pay, cost of living adjustments, allowances, unparalleled opportunities and bonuses. The Reserves, though part-time, offer most of the same benefits.

The longer you serve and continue to grow in rank, the more you earn. The first cash award opportunity for enlisting is an enlistment bonus. Enlistment bonuses vary by branch and change to meet the needs of the service, so be sure to ask your recruiter about the availability of bonuses. Advanced Enlistment Rank Pay Opportunities. In addition to enlistment bonuses, recruiters can offer opportunities to enter the service at higher pay grades Advanced Enlistment Rank.

Most recruits start out at E-1 Enlisted Pay grade 1 of 9 pay grades , however qualified enlistees may enter at E-2 or E-3 resulting in higher base pay. Depending on your job and service, you may receive Special Pay on top of your base salary.

Examples of Special Pay are enlisted flyer incentive pay, submarine duty pay, and hazardous duty pay. Going into the military right out of high school does not deprive you of a college education. The military can help pay for college or pay off college loans. Most enlistees are eligible for up to percent of college tuition through the Tuition Assistance Program TAP while on active duty. The military considers the health and welfare of servicemembers and their families to be one of its most important priorities.

In addition to all other means provided for the enforcement of a restraining order or injunction, the court in which such action is brought may impound and appoint a receiver for the property and business of the defendants including books, papers, documents, and records pertaining thereto or so much thereof as the court finds reasonably necessary to prevent further violations of sections Such receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up, and liquidation of the property and business as may be conferred upon the receiver by the court.

C Upon application of any person, the division may certify, under the seal of the superintendent, a statement relative to any matter that is the subject of public examination and disclosure.

The division may likewise furnish under the seal of the superintendent a certified copy of any order issued by the division, and in any court such certified statements and such certified copies are prima-facie evidence of the facts disclosed therein or of the making of such order.

No licensee or other person subject to sections The division of financial institutions shall require that charges or rates of charge, whenever stated by a licensee, be stated fully and clearly in such manner as may be deemed necessary to prevent misunderstanding thereof by prospective borrowers. No licensee shall conduct the business of making loans under sections No licensee shall take a lien upon real estate as security for any loan made under those sections except such lien as is created upon the filing or recording of a certificate of judgment.

A Notwithstanding any other provisions of the Revised Code, a licensee may contract for and receive interest, calculated according to the actuarial method, at a rate or rates not exceeding twenty-eight per cent per year on that portion of the unpaid principal balance of the loan not exceeding one thousand dollars and twenty-two per cent per year on any part of the unpaid principal balance exceeding one thousand dollars.

A licensee may contract for and receive interest at the single annual rate that would earn the same total interest at maturity of the loan, when the loan is paid according to its agreed terms, as would be earned by the application of the graduated rates set forth in this division.

Loans may be interest-bearing or precomputed. B For purposes of computation of time on interest-bearing and precomputed loans, including, but not limited to, the calculation of interest, a month is considered one-twelfth of a year, and a day is considered one three hundred sixty-fifth of a year when calculation is made for a fraction of a month.

A year is as defined in section 1. A month is that period described in section 1. C With respect to interest-bearing loans: Each payment shall be applied first to unpaid charges and fees, then to interest, and the remainder to the unpaid principal balance.

However, if the amount of the payment is insufficient to pay the accumulated interest, the unpaid interest continues to accumulate to be paid from the proceeds of subsequent payments and is not added to the principal balance.

If the maturity of the loan is accelerated for any reason and judgment is entered, the licensee may thereafter charge the same rate or rates of interest as provided in the loan contract. However, if part or all of the consideration for a new loan contract is the unpaid principal balance of a prior loan, then the principal amount payable under the new loan contract may include any unpaid interest that has accrued. The resulting loan contract shall be deemed a new and separate loan transaction for purposes of this section.

The unpaid principal balance of a precomputed loan is the balance due after refund or credit of unearned interest as provided in division D 3 of this section. D With respect to precomputed loans: A licensee may charge interest after the original or deferred maturity of a precomputed loan at the rate or rates provided in division A of this section on all unpaid principal balances for the time outstanding.

If the prepayment is made other than on a scheduled installment installment due date, the nearest scheduled installment due date shall be used in such computation. If the prepayment occurs prior to the first installment due date, the licensee may retain one-thirtieth of the applicable charge for a first installment period of one month for each day from date of loan to date of prepayment, and shall refund, or credit the borrower with, the balance of the total interest contracted for.

If the maturity of the loan is accelerated for any reason and judgment is entered, the licensee shall credit the borrower with the same refund as if prepayment in full had been made on the date the judgment is entered and may thereafter convert the loan to an interest-bearing loan at the same rate or rates of interest as provided in the loan contract.

If the maturity of the loan is accelerated for any reason, the licensee may convert the loan to an interest-bearing loan at the same rate or rates of interest as provided in the loan contract, provided the licensee credits the borrower with the same refund on the precomputed loan as if prepayment in full had been made on the date of the conversion.

A deferment postpones the scheduled due date of the earliest unpaid installment and all subsequent installments as originally scheduled, or as previously deferred, for a period equal to the deferment period. The deferment period is that period during which no installment is scheduled to be paid by reason of the deferment.

The deferment charge for a one-month period may not exceed the applicable charge for the installment period immediately following the due date of the last undeferred installment.

A proportionate charge may be made for deferment for periods of more or less than one month. A deferment charge is earned prorata during the deferment period and is fully earned on the last day of the deferment period.

If a loan is prepaid in full during a deferment period, the licensee shall make, or credit to the borrower, a refund of the unearned deferment charge in addition to any other refund or credit made for prepayment of the loan in full. E A licensee, at the request of the borrower, may obtain, on one or more borrowers, credit life insurance, credit accident and health insurance, and unemployment insurance. The premium or identifiable charge for the insurance may be included in the principal amount of the loan and may not exceed the premium rate filed by the insurer with the superintendent of insurance and not disapproved by him.

If a licensee obtains the insurance at the request of the borrower, the borrower shall have the right to cancel the insurance for a period of twenty-five days after the loan is made. If the borrower chooses to cancel the insurance, the borrower shall give the licensee written notice of this choice and shall return all of the policies or certificates of insurance or notices of proposed insurance to the licensee during such period, and the full premium or identifiable charge for the insurance shall be refunded to the borrower by the licensee.

If the borrower requests, in the notice to cancel the insurance, that this refund be applied to reduce the balance of a precomputed loan, the licensee shall credit the amount of the refund plus the amount of interest applicable to the refund to the loan balance. F A licensee may require the borrower to provide insurance or a loss payable endorsement covering reasonable risks of loss, damage, and destruction of property used as security for the loan and with the consent of the borrower such insurance may cover property other than that which is security for the loan.

The amount and term of required property insurance shall be reasonable in relation to the amount and term of the loan contract and the type and value of the security, and the insurance shall be procured in accordance with the insurance laws of this state. The purchase of this insurance through the licensee or an agent or broker designated by the licensee shall not be a condition precedent to the granting of the loan. If the borrower purchases the insurance from or through the licensee or from another source, the premium may be included in the principal amount of the loan.

G In addition to the interest and charges provided for by this section, no further or other amount shall be charged or required by the licensee, except the amounts of fees authorized by law to record, file, or release security interests on a loan and fees for credit reports, which amounts may be included in the principal amount of the loan or collected at any time after the loan is made, and except costs and disbursements to which the licensee may become entitled by law in connection with any suit to collect a loan or any lawful activity to realize on a security interest after default.

H If the loan contract or security instrument contains covenants by the borrower to perform certain duties pertaining to insuring or preserving security and the licensee pursuant to the loan contract or security instrument pays for performance of the duties on behalf of the borrower, the licensee may add the amounts paid to the unpaid principal balance of the loan or collect them separately.

A charge for interest may be made for sums advanced not exceeding the rate of interest permitted by division A of this section. Within a reasonable time after advancing a sum, the licensee shall notify the borrower in writing of the amount advanced, any interest charged with respect to the amount advanced, any revised payment schedule, and shall include a brief description of the reason for the advance. I A licensee may charge and receive loan origination charges not exceeding the following: Loan origination charges may be paid by the borrower at the time of the loan or may be included in the principal amount of the loan.

J A licensee may charge and receive check collection charges not greater than twenty dollars plus any amount passed on from other financial institutions for each check, negotiable order of withdrawal, share draft, or other negotiable instrument returned or dishonored for any reason.

K If the loan contract so provides, a licensee may collect a default charge on any installment not paid in full within ten days after its due date. For this purpose, all installments are considered paid in the order in which they become due. Any amounts applied to an outstanding loan balance as a result of voluntary release of a security interest, sale of security on the loan, or cancellation of insurance shall be considered payments on the loan, unless the parties otherwise agree in writing at the time the amounts are applied.

The amount of the default charge shall not exceed the greater of five per cent of the scheduled installment or five dollars. As an alternative to the interest permitted in division A of section Licensees under section A At the time any interest-bearing or precomputed loan is made, deliver to the borrower or, if there are two or more borrowers, to one of them, a statement in the English language disclosing in clear and distinct terms the amount and date of the loan, a schedule of payments or a description thereof, the type of the security, if any, for the loan, the name and address of the licensed office and of each borrower, and the agreed rate of interest, or in lieu thereof, a copy of the instrument evidencing the debt signed by the borrower;.

B For each payment made on account of any such interest-bearing or precomputed loan, give to the person making it a receipt if requested;.

C Permit payment to be made in advance in any amount on any contract of loan at any time, but the licensee may apply the payment first to all interest and charges due up to the date of the payment;.

D Upon repayment of the loan in full, mark plainly every obligation signed by any obligor, or a copy of the signed obligation, "paid" or "canceled" and return it and any pledge to the borrower or, if there are two or more borrowers, to one of them; provided that a continuing obligation in whole or in part is not repayment in full thereof.

No licensee shall take any note or promise to pay in which blanks are left to be filled in after execution. Any licensee or other person who willfully violates section The maximum rate of interest applicable to any loan transaction that does not comply with all provisions of section No licensee shall pledge or hypothecate any note or security given by any borrower except with a person residing or maintaining a place of business in this state or with a bank authorized to transact business in this state, under an agreement permitting the division of financial institutions to examine the papers so hypothecated.

The tender by the borrower, or at the borrower's request, of an amount equal to the unpaid balance less the required rebate on a precomputed loan shall be accepted by the licensee in full payment of the loan obligation.

A licensee shall not, directly or indirectly, make any payment, or cause to be made any payment, whether in cash or otherwise, to a dealer in tangible goods or services, or to a retail seller as defined in section This section does not prohibit bona fide advertising practices involving only the borrowers. A A licensee shall not make a loan under sections B A licensee shall not engage in any act or practice to evade the requirement of division A of this section, including by assisting a borrower to obtain a loan on terms that would be prohibited by that division.

C No licensee shall fail to comply with this section. A No licensee shall knowingly induce or permit any person, jointly or severally, to be obligated, directly or contingently or both, under more than one contract of loan at the same time for the purpose or with the result of obtaining a higher rate of interest or greater charges than would otherwise be permitted upon a single loan made under sections B No licensee shall charge, contract for, or receive, directly or indirectly, interest and charges greater than such licensee would be permitted to charge, contract for, or receive without a license under sections C For the purpose of the limitations set forth in this section, the amount of any such indebtedness shall be determined by including the entire obligation of any person to the licensee for principal, direct or contingent or both, as borrower, indorser, guarantor, surety for, or otherwise, whether incurred or subsisting under one or more than one contract of loan, except that any contract of indorsement, guaranty, or suretyship that does not obligate the indorser, guarantor, or surety for any charges in excess of eight per cent per annum, is not included in such entire obligation.

If a licensee acquires, directly or indirectly, by purchase or discount, bona fide obligations for goods or services owed by the person who received such goods or services to the person who provided such goods or services, then the amount of such purchased or discounted indebtedness to the licensee shall not be included in computing the aggregate indebtedness of such borrower to the licensee for the purpose of the prohibitions set forth in this section.

A A licensee may make open-end loans pursuant to an agreement between the licensee and the borrower whereby: For open-end loans, "billing cycle" means the time interval between periodic billing dates. A billing cycle shall be considered monthly if the closing date of the cycle is the same date each month or does not vary by more than four days from such date.

B Notwithstanding any other provisions of the Revised Code, a licensee may contract for and receive interest for open-end loans at a rate or rates not exceeding those provided in division A of section The monthly rates are determined by dividing the annual rates by twelve. The billing cycle shall be monthly and the unpaid balance on any day shall be determined by adding to any balance unpaid as of the beginning of that day all advances and permitted interest, charges, and costs and deducting all payments and other credits made or received that day.

C In addition to the interest permitted in division B of this section, a licensee may charge and receive or add to the unpaid balance any or all of the following: For this purpose, all required minimum payments are considered paid in the order in which they become due.

The amount of the default charge shall not exceed the greater of five per cent of the required minimum payment or five dollars. D The borrower at any time may pay all or any part of the unpaid balance on the account or, if the account is not in default, the borrower may pay the unpaid balance in installments subject to minimum payment requirements as determined by the licensee and set forth in the open-end loan agreement.

E If credit life insurance or credit accident and health insurance is obtained by the licensee and if the insured dies or becomes disabled when there is an outstanding open-end loan indebtedness, the insurance shall be sufficient to pay the unpaid balance on the loan due on the date of the borrower's death in the case of credit life insurance or all minimum payments that become due on the loan during the covered period of disability in the case of credit accident and health insurance.

The additional charge for credit life insurance, credit accident and health insurance, or unemployment insurance shall be calculated each billing cycle by applying the current monthly premium rate for the insurance, filed by the insurer with the superintendent of insurance and not disapproved by the superintendent, to the unpaid balances in the borrower's account, using one of the methods specified in division B of this section for the calculation of interest.

No credit life insurance, credit accident and health insurance, or unemployment insurance written in connection with an open-end loan shall be canceled by the licensee because of delinquency of the borrower in making the required minimum payments on the loan unless one or more such payments is past due for a period of thirty days or more.

The licensee shall advance to the insurer the amounts required to keep the insurance in force during such period, which amounts may be debited to the borrower's account. F Whenever there is no unpaid balance in an open-end loan account, the account may be terminated by written notice, by the borrower or the licensee, to the other party. If a licensee has taken a security interest in personal property to secure the open-end loan, the licensee shall release the security interest and terminate any financing statement in accordance with section No loan made outside this state for which a greater rate of interest, consideration, or charges than is authorized by sections All loan contracts made with residents of this state are considered as made within this state and subject to the laws of this state, regardless of any statement in the contract or note to the contrary, except as to licensing if the lender is licensed under and in accordance with a regulatory loan law similar in principle to such sections.

A loan in an amount of five thousand dollars or less made to a borrower residing in this state at the time the loan is made by a lender whose office is located outside this state and whose primary business consists of making loans by mail is not enforceable in this state for a greater rate of interest, consideration, or charges than is authorized by sections In addition to any other remedy that may be available, any licensee and any person alleging to be aggrieved by an order or action of the division of financial institutions, within thirty days from the entry of the order complained of, or within sixty days of the action complained of if there is no order, may file a complaint against the superintendent of financial institutions in the court of common pleas of Franklin county.

Such complaint may pray for reversal, rescission, or modification of the order or action complained of, and for such other relief as may be appropriate, and it shall allege the facts relied upon to obtain any such relief. When the complaint has been filed, summons forthwith shall be issued and shall be served upon the superintendent, either by personal service or by certified mail addressed to the superintendent's office in the department of commerce.

The summons is returnable within five days from its date and in all other respects it is made as in civil actions. All allegations of the complaint shall be deemed denied without further pleading, and the court, upon application by either party, shall advance the cause and hear it without delay. Mere technical irregularities in the procedure had before the division shall be disregarded, and the burden of proof is on the complainant to show that the division, in issuing the order or in taking the action complained of, exceeded or abused its discretion.

Any party to the action may summon witnesses and compel their attendance as in any criminal action, and may introduce evidence in addition to that relied upon by the division.

An action under this section is a special proceeding and may be appealed by either party pursuant to the Rules of Appellate Procedure and, to the extent not in conflict with those rules, Chapter A Every person licensed or registered under this chapter shall pay to the superintendent of financial institutions, prior to the last day of June, an annual license or certificate of registration fee.

On or about the fifteenth day of April of each year, the superintendent shall determine the license or certificate fees to be charged, pursuant to sections Such determination shall be made by dividing the appropriation for the consumer finance section of the division of financial institutions for the current fiscal year by the number of licenses and certificates issued as of the date of the computation. In no event shall the amount of the fee exceed three hundred dollars, except that the maximum fee which may be charged insurance premium finance companies licensed under section Prior to the first day of June of each year, the superintendent shall inform each person licensed or registered under this chapter of the amount of the license or certificate fee for the succeeding fiscal year as determined by this section.

B 1 Each person licensed under Chapter However, in no event shall the amount of the fee exceed three hundred dollars. However, in no event shall the amount of the fee exceed six hundred dollars. C The fee for a license or certificate issued pursuant to Chapter D If the renewal fees billed by the superintendent pursuant to divisions A and B of this section are less than the estimated expenditures of the consumer finance section of the division of financial institutions, as determined by the superintendent, for the following fiscal year, the superintendent may assess each person licensed pursuant to section Each person shall pay the assessed amount to the superintendent prior to the last day of June.

In no case shall the assessment exceed ten cents per each one hundred dollars of interest excluding charge-off recoveries , points, loan origination charges, and credit line charges collected by that person during the previous calendar year.

If an assessment is imposed under this division, it shall not be less than two hundred fifty dollars per licensee or registrant and shall not exceed thirty thousand dollars less the total renewal fees paid pursuant to division A of this section by each licensee or registrant.

Amended by th General AssemblyFile No. All fees, charges, penalties, and forfeitures collected under Chapters The fund may be expended or obligated by the superintendent for the defrayment of the costs of administration of Chapters All actual and necessary expenses incurred by the superintendent, including any services rendered by the department of commerce for the division's administration of Chapters The fund shall be assessed a proportionate share of the administrative costs of the department and the division.

The proportionate share of the administrative costs of the division of financial institutions shall be determined in accordance with procedures prescribed by the superintendent and approved by the director of budget and management. Such assessment shall be paid from the consumer finance fund to the division of administration fund or the financial institutions fund. Periodically, in accordance with a schedule the director establishes by rule, but at least once every three months, the director of budget and management shall transfer five per cent of all charges, penalties, and forfeitures received into the consumer finance fund to the financial literacy education fund created under section No assignment of, or order for, wages or salary is valid unless made in writing by the person by whom the said wages or salary are earned and no assignment of, or order for, wages or salary made by a married person is valid unless the written consent of the husband or wife of the person making such assignment or order is attached to such assignment or order.

No assignment of or order for, wages or salary of a minor is valid unless the written consent of a parent or the guardian of such minor is attached to such order or assignment.

No assignment of, or order for, wages or salary is valid for more than twenty-five per cent of the earnings, wages, or salary of any married person. No such assignment is valid for more than fifty per cent of the earnings, wages, or salary of any unmarried person. Assignments of wages have priority as to each other from the time they are filed with the employer of the assignor, and the balance due any married person after twenty-five per cent has been so assigned, or due any unmarried person after fifty per cent has been so assigned is not subject to further assignment.

This section does not affect or invalidate any contract or agreement between employers and their employees, or as between employers, employees, and any labor union as to any checkoff on the wages of such employees as may be agreed upon. This section and section The limitations and regulations of sections The employee may assign whatever portion of his earnings that may be required to comply with the court order for support.

As used in sections A "Short-term loan" means a loan made pursuant to sections B "Superintendent of financial institutions" includes the deputy superintendent for consumer finance as provided in section C "Interest" means all charges payable directly or indirectly by a borrower to a licensee as a condition to a loan, including fees, loan origination charges, service charges, renewal charges, credit insurance premiums, and any ancillary product sold in connection with a loan made pursuant to sections All fees and charges shall be included in the computation of the annual percentage rate.

Fees and charges for single premium credit insurance and other ancillary products sold in connection with the credit transaction shall be included in the calculation of the annual percentage rate.

C "Interest" means all charges payable directly or indirectly by a borrower to a licensee as a condition to a loan, including fees, service charges, renewal charges, and any ancillary product sold in connection with a short-term loan , but does not include the monthly maintenance fees, the loan origination charge, the check collection charge, or the check cashing fee authorized under section All fees and charges, including interest and the loan origination charge and monthly maintenance fees authorized under section E "Licensee" means a person licensed to make short-term loans under sections A No person shall engage in the business of making short-term loans to a borrower in Ohio, or, in whole or in part, make, offer, or broker a loan, or assist a borrower in Ohio to obtain such a loan, without first having obtained a license from the superintendent of financial institutions under sections No licensee shall make, offer, or broker a loan, or assist a borrower to obtain such a loan, when the borrower is not physically present in the licensee's business location.

B No person not located in Ohio shall make a short-term loan to a borrower in Ohio from an office not located in Ohio. Nothing in this section prohibits a business not located or licensed in Ohio from lending funds to Ohio borrowers who physically visit the out-of-state office of the business and obtain the disbursement of loan funds at that location.

No person shall make, offer, or broker a loan, or assist a borrower to obtain a loan, via the telephone, mail, or internet. B No person shall make, offer, or broker a loan, or assist a borrower to obtain a loan, via the telephone or mail. C Any loan made in violation of this section is void, and the lender has no right to collect, receive, or retain any principal, interest, fees, or other charges in connection with the loan.

A Application for an original or renewal license to make short-term loans shall be in writing, under oath, and in the form prescribed by the superintendent of financial institutions, and shall contain the name and address of the applicant, the location where the business of making loans is to be conducted, and any further information as the superintendent requires. At the time of making an application for an original license, the applicant shall pay to the superintendent a nonrefundable investigation fee of two hundred dollars.

No investigation fee or any portion thereof shall be refunded after an original license has been issued. The application for an original or renewal license shall be accompanied by an original or renewal license fee, for each business location of one thousand dollars, except that applications for original licenses issued on or after the first day of July for any year shall be accompanied by an original license fee of five hundred dollars, and except that an application for an original or renewal license, for a nonprofit corporation that is incorporated under Chapter All fees paid to the superintendent pursuant to this division shall be deposited into the state treasury to the credit of the consumer finance fund.

B Upon the filing of an application for an original license and, with respect to an application filed for a renewal license, on a schedule determined by the superintendent by rule adopted pursuant to section The superintendent shall request the superintendent of the bureau of criminal identification and investigation, or a vendor approved by the bureau, to conduct a criminal records check based on the applicant's fingerprints in accordance with section Notwithstanding division K of section The superintendent of financial institutions shall conduct a civil records check.

The superintendent shall approve an application and issue an original or renewal license to the applicant if the superintendent finds all of the following: The applicant's net worth shall be computed according to generally accepted accounting principles.

However, if the applicant or any of those other persons has pleaded guilty to or been convicted of any such offense other than theft, the superintendent shall not consider the offense if the applicant has proven to the superintendent, by a preponderance of the evidence, that the applicant's or other person's activities and employment record since the conviction show that the applicant or other person is honest, truthful, and of good reputation, and there is no basis in fact for believing that the applicant or other person will commit such an offense again.

C If the superintendent finds that the applicant does not meet the requirements of division B of this section, or the superintendent finds that the applicant knowingly or repeatedly contracts with or employs persons to directly engage in lending activities who have been convicted of a felony crime listed in division B 5 of this section, the superintendent shall issue an order denying the application for an original or renewal license and giving the applicant an opportunity for a hearing on the denial in accordance with Chapter The superintendent shall notify the applicant of the denial, the grounds for the denial, and the applicant's opportunity for a hearing.

If the application is denied, the superintendent shall return the annual license fee but shall retain the investigation fee. D No person licensed under sections The bond shall be in favor of the superintendent and in the penal sum of at least one hundred thousand dollars, or in the case of a nonprofit corporation that is incorporated under Chapter The term of the bond shall coincide with the term of the license.

The licensee shall file a copy of the bond with the superintendent. The bond shall be for the exclusive benefit of any borrower injured by a violation by a licensee or any employee of a licensee, of any provision of sections A A license issued by the superintendent of financial institutions pursuant to sections Each license issued shall be conspicuously posted in the place of business and is not transferable or assignable.

B 1 Not more than one place of business shall be maintained under the same license issued under sections When a licensee wishes to change its place of business within the same municipal corporation, written notice thereof shall be given in advance to the superintendent who shall provide without cost a license pursuant to sections A licensee under sections A The total amount of the loan does not exceed five hundred dollars.

B The duration of the loan, as specified in the loan contract required under division C of this section, is not less than thirty-one days. C The loan is made pursuant to a written loan contract that sets forth the terms and conditions of the loan.

A copy of the loan contract shall be provided to the borrower. The loan contract shall disclose in a clear and concise manner all of the following: The cost of this loan is higher than the average cost charged by financial institutions on substantially similar loans. D The loan contract includes a provision that offers the borrower an optional extended payment plan that may be invoked by the borrower at any time before the maturity date of the loan.

To invoke the extended payment plan, the borrower shall return to the office where the loan was made and sign an amendment to the original loan agreement reflecting the extended terms of the loan.

The extended payment plan shall allow the borrower to repay the balance by not less than sixty days from the original maturity date. No additional fees or charges may be applied to the loan upon the borrower entering the extended payment plan.