Ohio

As used in sections 1315.35 to 1315.44 of the Revised Code or this chapter of the Administrative Code:

(A) "Licensee" means a check-cashing business licensed pursuant to sections 1315.35 to 1315.44 of the Revised Code.





(B) "Cash" means united states currency, and does not include a check, draft, traveler's check, money order or other instrument for the transmission of money.




(C) "Amount of the loan," "principal," and "proceeds of the loan" mean the amount of money paid to, or payable for, the account of the borrower but does not include interest, loan origination fees, check collection charges or any additional costs to which the licensee becomes entitled to as a result of a judgment.




(D) "Unpaid balance" as used in section 1315.39 of the Revised Code means the outstanding principal minus that portion of any payment made which is deducted from the principal.




(E) "Month" means the time from any day of any of the months in the calendar to the corresponding day, or if there is not a corresponding day, to the last day, of the next month.




(F) "Loan" means the unsecured lending of money or extension of credit to a borrower, or on behalf of the borrower, by a person engaged in the business of check cashing, in exchange for money. A loan includes, but is not limited to, an arrangement between a check-cashing business and its customer, whereby the check-cashing business agrees to withhold depositing a check with a financial institution for any duration from the day the customer presented such check for cash to the check-cashing business.




HISTORY: Eff 11-13-97




Rule promulgated under: RC 119.03





Rule authorized by: RC 1321.10(A)





Rule amplifies: RC 1315.35, 1315.36, 1315.38, 1315.39, 1315.40

119.032 Review Date: 11-15-99; 11-15-04

A) Prior to making any loans, a check-cashing business shall obtain a license pursuant to section 1315.35 to 1315.44 of the Revised Code for its main office. An application shall also be submitted to the division of financial institutions for each additional business location where loans related to the business of check cashing are made. Each application for a main office or additional business location shall be accompanied by investigation fees and license fees as prescribed by the superintendent of financial institutions. Upon approval of a license for a main office or an additional business location, the division shall issue a certificate authorizing such location under the license of the check-cashing business. The certificate shall disclose the address of, and be conspicuously displayed at each approved business location. No check cashing business shall transact business pursuant to sections 1315.35 to 1315.44 of the Revised Code at any address not approved by the division of financial institutions.

(B) In the event books, records, data, and documents of a licensee are located outside of Ohio. The licensee shall be required, upon the request of the superintendent, to pay in advance the estimated costs of the examination of the licensee outside of Ohio. The estimated costs of such examination, as determined by the superintendent, shall be deposited with the division upon demand. After the actual costs of the out-of-state examination have been determined, any funds in excess of costs as itemized by the division shall be returned to the licensee.




(C) Every licensee shall notify the division of financial institutions in writing thirty days prior to the date of a change in the address shown on the licensee's license. If a licensee intends to move its place of business, a new license must be obtained prior to conducting business at the new location. The division of financial institutions will issue a new license to a main office or business location which is relocated for a fee of ten dollars.




(D) Licensees which obtain licenses after July first, but before December thirty-first of any calendar year, shall pay pro-rated license fees equal to one-half of the yearly license fee currently in effect.




HISTORY: Eff 11-13-97




Rule promulgated under: RC 119.03





Rule authorized by: RC 1321.10(A)





Rule amplifies: RC 1315.38

119.032 Review Date: 11-15-99; 11-15-04

(A) The following advertising requirements shall be observed by every person licensed pursuant to sections 1315.35 to 1315.44 of the Revised Code:

(1) No licensee shall advertise or transact business pursuant to sections 1315.35 to 1315.44 of the Revised Code under any other name than the name set forth on its license. All advertising must include the license number assigned by the division of financial institutions to the licensee.




(2) Every advertisement shall clearly identify the licensee and shall do so in a manner that prevents confusion with the name of any other unrelated check-cashing business.




(B) Every licensee shall maintain in a location approved by the superintendent of financial institutions, a file of all newspaper, magazine, direct mailing, roadside advertising, and scripts of radio and television commercials, for a period of one year from the dates these advertisements were disseminated. Upon reasonable notice, the file shall be readily available for inspection by the division of financial institutions during regular business hours.




(C) The words "advertise," "advertisement" and "advertising" as used in this rule shall mean the publication or announcement in any material printed, published, displayed, distributed, or broadcast for the purpose of soliciting loans related to the business of check-cashing.




HISTORY: Eff 11-13-97




Rule promulgated under: RC 119.03





Rule authorized by: RC 1321.10(A)





Rule amplifies: RC 1315.38, 1315.43

119.032 Review Date: 11-15-99; 11-15-04


(A) Each person licensed under sections 1315.35 to 1315.44 of the Revised Code shall maintain at each business location the following records and information for that approved location. These records shall be kept legibly in the english language in ink or typewritten, or may be maintained by electronic or computerized methods, provided the licensee has obtained prior written approval from the division of financial institutions. The following records shall be preserved for at least two years after the date of final entry, and kept readily available for inspection by the division of financial institutions:

(1) Copies of the written loan contracts required by section 1315.39 of the Revised Code, maintained in one file in chronological order, which disclose the following:




(a) Account number;




(b) Borrower's name and residence address;




(c) Date of loan;




(d) Federal annual percentage rate;




(e) State annual percentage rate;




(f) Loan origination fee;




(g) Original principal amount;




(h) Scheduled interest;




(i) Finance charge;




(j) Terms of repayment, including the number of payments, the amount of each payment, the total of payments and the maturity date of the loan;




(k) Check collection charge, if any may be levied;




(l) If any part of the principal is not given to the borrower in cash or by check made payable solely to the borrower, an itemization identifying the goods or services purchased and the amount or amounts charged or allotted for each item.




(2) Evidence, prepared by the financial institution which indicates the amount of the check collection charge it has assessed the licensee for each check, negotiable order of withdrawal, share draft, or other negotiable instrument returned or dishonored which was presented to the licensee by a customer for cash.




(3) A ledger record for each loan with a borrower showing a chronological entry of all debits, credits, payments and charges received, assessed or disbursed on the account of the borrower recorded thereon in an identifiable manner in order to show the actual date of receipt, assessment or disbursement and the balance due on the account.




(4) Copies of litigation records and documents, including judgment orders and documentation of all costs or disbursements to which the licensee becomes entitled to by law in connection with any suit to collect a loan after default.




(B) A licensee shall segregate loan records, and keep them separated from the records of any other business, including, but not limited to, records of its check cashing business conducted under sections 1315.21 to 1315.30 of the Revised Code.





(C) A file for each individual borrower which contains a record of every check cashing loan transaction between the borrower and the licensee. This file shall indicate the date of every loan to the borrower, the date each loan was repaid, and all charges the licensee has charged or collected from the borrower in connection with each loan.




HISTORY: Eff 11-13-97




Rule promulgated under: RC 119.03





Rule authorized by: RC 1321.10(A)





Rule amplifies: RC 1315.39, 1315.40, 1315.43

119.032 Review Date: 11-15-99; 11-15-04


A) For purposes of determining the amount of a principal reduction, payments shall be applied first to unpaid costs or disbursements which a licensee has become entitled to by law in connection with any suit to collect a loan after default, then to any check collection charges incurred, then to the loan origination fee, then to interest accrued to the end of the month in which payment is made, and the remainder to the unpaid principal.

(B) No licensee shall:




(1) Make a loan to a borrower during the same business day on which another loan to the borrower is paid off, made or remains outstanding. For purposes of this rule, borrowers include co-borrowers and co-signers.




(2) Charge, collect, or receive, directly or indirectly, any check cashing fee or other fee to cash or hold a check issued by the licensee or an affiliated licensee in connection with a loan.




HISTORY: Eff 11-13-97




Rule promulgated under: RC 119.03





Rule authorized by: RC 1321.10(A)