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H. B. No. 209 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Representatives Foley, Murray, Hagan, Phillips, Skindell, Stewart, Harris, Fende, Newcomb, Okey, Celeste, Harwood
A BILL
To amend sections 1315.26, 1321.02, 1321.12, 1321.13,
1321.131,
1321.14,
1321.15,
1321.44, 1321.52,
1321.53,
1321.551, 1321.56, 1321.57, 1321.571,
1321.59,
1321.99,
1322.01,
1343.01, 1345.01,
4710.02,
4712.01, and
4712.07
and to enact
sections
1321.011, 1321.542,
1321.591, 1321.61,
and 1351.031 of the
Revised Code
to
establish
various consumer
protections regarding
small and
short-term loans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1315.26, 1321.02, 1321.12, 1321.13,
1321.131,
1321.14,
1321.15,
1321.44, 1321.52, 1321.53, 1321.551,
1321.56,
1321.57, 1321.571, 1321.59, 1321.99,
1322.01, 1343.01,
1345.01,
4710.02,
4712.01, and
4712.07 be amended and
sections
1321.011, 1321.542,
1321.591, 1321.61, and 1351.031 of the
Revised Code be
enacted to
read as
follows:
Sec. 1315.26. (A) No check-cashing business shall charge
check-cashing fees
or other check-cashing charges in an amount
that exceeds three per cent of the
face amount of the check for
cashing checks issued by this state, a state
agency, a political
subdivision of this state, or the United States.
(B) Each check-cashing business shall conspicuously post and
at all times
display in every business location a schedule of its
fees and charges for all
services permitted under sections 1315.21
to 1315.28 of the Revised Code.
(C) No check-cashing business shall charge or receive a fee
for cashing a proceeds check or money order disbursed to fund a
loan made by the licensee or an affiliate of the licensee.
Sec. 1321.011. A violation of section 1321.02, 1321.11,
1321.12, 1321.13, 1321.14, 1321.15, or 1321.17 of
the Revised
Code may be enforced pursuant section 1321.61 of the
Revised
Code when the violation involves a loan of one thousand dollars or
less.
Sec. 1321.02. No person shall engage in the business of
lending money, credit, or choses in action in amounts of five
thousand dollars or less, or and thereby exact, contract for, or
receive,
directly or indirectly, on or in connection with any such
loan,
any interest and charges that in the aggregate are greater
than
the interest and charges that the lender would be permitted
to
charge for a loan of money if the lender were not a licensee,
without first having obtained a license from the division of
financial
institutions under sections 1321.01 to 1321.19 of
the
Revised Code. No person not located in Ohio shall make a loan
under sections 1321.01 to 1321.19 of the Revised Code 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.
Sections 1321.01 to 1321.19 of the Revised Code do not
apply
to any person doing business under and as permitted by any
law of
this state, another state, or the United States relating
to banks,
savings banks, savings societies, trust companies,
credit unions,
savings and loan associations substantially all
the business of
which is confined to loans on real estate
mortgages and evidences
of their own indebtedness; to
registrants
conducting business
pursuant to sections 1321.51 to 1321.60 of
the Revised Code; to
persons making loans that constitute business loans as described
in division (B)(5) of section 1343.01 of the Revised Code, except
as provided in division (B) of section 1321.12 of the Revised
Code; to
licensees conducting business
pursuant to
sections
1321.71 to
1321.83 of the Revised Code; to licensees
doing
business pursuant
to sections 1321.35 to 1321.48 of the Revised
Code; or to any
entity who is licensed pursuant to Title XXXIX of
the Revised
Code, who makes advances or loans to any person who
is
licensed
to sell insurance pursuant to that Title, and who is
authorized
in writing by that entity to sell insurance. No person
engaged in
the business of selling tangible goods or services
related thereto
may receive or retain a license under sections
1321.01 to 1321.19
of the Revised Code for such place of
business.
The first paragraph of this section applies to any person,
who by any device, subterfuge, or pretense, charges, contracts
for, or receives greater interest, consideration, or charges than
that authorized by this section for any such loan or use of money
or for any such loan, use, or sale of credit, or who for a fee or
any manner of compensation arranges or offers to find or arrange
for another person to make any such loan, use, or sale of credit.
This section does not preclude the acquiring, directly or
indirectly, by purchase or discount, of a bona fide obligation
for
goods or services when such obligation is payable directly to
the
person who provided the goods or services.
Any contract of loan in the making or collection of which
an
act is done by the lender that violates this section is void
and
the lender has no right to collect, receive, or retain any
principal, interest, or charges.
Sec. 1321.12. (A) No licensee shall conduct the business of
making loans under
sections 1321.01 to 1321.19 of the Revised
Code, within any office, room, or
place of business in which any
other business is solicited or engaged in, or
in association or
conjunction therewith, if the division of financial
institutions
finds, after hearing, that the other
business is of such nature
that such
conduct tends to conceal evasion of those sections or of
the rules made under those sections and orders
the licensee in
writing to desist from the conduct. For purposes of this division,
"other business" includes any business conducted by a person who
is registered or is required to be registered as a credit services
organization under section
4712.02 of the Revised Code,
licensed
as a check-cashing
business under section 1315.22 of the
Revised
Code, engaged in the practice of debt adjusting pursuant to
Chapter 4710. of the Revised Code, or is a lessor as defined in
section 1351.01 of the Revised Code.
(B) No licensee or affiliate of a licensee shall make any
business loan of five thousand dollars or less at the licensee's
authorized place of business in this state that does not conform
with the interest and fee limitations in sections 1321.13 to
1321.16 of the Revised Code.
(C) No licensee shall conduct the business of making loans
under sections 1321.01
to 1321.19 of the Revised Code, under any
other name, or at any other place of
business within this state
than that named in the license.
(D) 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.
(E) No licensee shall use unfair, deceptive, or
unconscionable means to collect or attempt to collect any claim.
Without limiting the general application of the foregoing, the
conduct described in divisions (A) to (G) of section 1321.591 of
the Revised Code is deemed to violate this section.
Sec. 1321.13. (A) Notwithstanding any other provisions of
the Revised Code other than division (C) of section 1321.15 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 1.44 of the Revised
Code. A month is that
period described in section 1.45 of the
Revised Code.
(C) With respect to interest-bearing loans:
(1) Interest shall be computed on unpaid principal
balances
outstanding from time to time, for the time outstanding.
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.
(2) Interest shall not be compounded. 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:
(1) Loans shall be repayable in substantially equal and
consecutive monthly installments of principal and interest
combined, except that the first installment period may exceed one
month by not more than fifteen days, and the first installment
payment amount may be larger than the remaining payments by the
amount of interest charged for the extra days; and provided
further that monthly installment payment dates may be omitted to
accommodate borrowers with seasonal income.
(2) Payments may be applied to the combined total of
principal and precomputed interest until maturity of the loan. 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.
(3) When any loan contract is paid in full by cash,
renewal,
refinancing, or a new loan, one month or more before the
final
installment due date, the licensee shall refund, or credit
the
borrower with, the total of the applicable charges for all
fully
unexpired installment periods, as originally scheduled or
as
deferred, that follow the day of prepayment. If the
prepayment is
made other than on a scheduled installment
installment due date,
the nearest scheduled 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.
(4) If the parties agree in writing, either in the loan
contract or in a subsequent agreement, to a deferment of wholly
unpaid installments, a licensee may grant a deferment and may
collect a deferment charge as provided in this section. 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 the superintendent. 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,
received, 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:
(1) On loans in the principal amount of five hundred
dollars
of less, the greater of fifteen dollars or one per cent
of the
principal amount of the loan and, on each refinancing made
more
than six months after the original loan and any previous
refinancing, not exceeding fifteen dollars;
(2) On all other loans, the greater of thirty dollars or
one
percent of the principal amount of the loan and, on each
refinancing, not exceeding thirty dollars. 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.
(L) With respect to a loan it has made under sections 1321.01
to 1321.19 of the Revised Code, a licensee may not do any of the
following:
(1) Charge or receive a fee for cashing a proceeds check or
money order disbursed to fund the loan;
(2) Require a borrower to cash a proceeds check or money
order disbursed to fund
the loan at the place of business of the
licensee, an affiliate of the licensee, or any specified third
party;
(3) Seek or obtain directly or indirectly compensation from
any affiliate or third party that provides check-cashing services
to cash a proceeds check or money order disbursed to fund the loan
by the licensee.
Sec. 1321.131. As an alternative to the interest permitted
in division (A) of
section 1321.13 and in division (B) of section
1321.16 of the Revised Code, a
licensee may contract for and
receive interest at any rate or rates agreed
upon or consented to
by the parties to the loan contract or open-end loan
agreement,
but not exceeding an annual percentage rate of twenty-five per
cent.
Nothing in this section shall be construed to permit a
licensee to contract for or receive an annual percentage rate that
is greater than what is permitted in division (C) of section
1321.15 of the Revised Code for loans described in that division.
Sec. 1321.14. (A) Licensees under section 1321.01 of the
Revised
Code shall:
(A)(1) 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)(2) 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)(3) 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)(4) 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.
(B) No licensee shall take any note or promise to pay in
which
blanks are left to be filled in after execution.
(C) Any licensee or other person who willfully violates
section
1321.13 or division (C) of section 1321.15 of the Revised
Code shall forfeit to the borrower
twice
the amount of interest
contracted for. The maximum rate of
interest applicable to any
loan transaction that does not comply
with all provisions of
section 1321.13 of the Revised Code shall
be the rate that would
be applicable in the absence of sections
1321.01 to 1321.19 of the
Revised Code.
(D) 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.
(E) 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.
(F) 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 1317.01 of the Revised Code,
in connection with the making of a loan to a customer, patron, or
other person who has done, or is doing, business with the dealer
in tangible goods or services, or the retail seller. This
section
does not prohibit bona fide advertising practices
involving only
the borrowers.
Sec. 1321.15. (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 1321.01 to
1321.19 of the Revised Code.
(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 1321.01 to 1321.19 of the
Revised
Code on any part of an indebtedness for one or more than
one loan
of money if the amount of such indebtedness is in excess
of five
thousand dollars.
(C)(1) No licensee shall make a loan of one thousand dollars
or
less under sections 1321.01 to 1321.19 of the Revised Code
that
will obligate the borrower to pay an annual percentage rate
for
the loan that exceeds twenty-eight per cent, as calculated in
compliance with the "Truth in Lending Act," 82 Stat. 149 (1980),
15 U.S.C. 1606, unless one of the following applies:
(a) The term of the loan is greater than three months.
(b) The loan contract requires the borrower to repay the loan
in three or more monthly installments of substantially equal
amounts.
(2) Any loan made by a licensee that meets the requirements
of division (C)(1)(a) or (b) of this section shall be subject to
section 1321.13 of the Revised Code.
(D) 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.
Sec. 1321.44. (A) A violation of section 1321.41 section
1321.36, 1321.39, 1321.40, 1321.41, or 1321.45 of the
Revised
Code is deemed an unfair or
deceptive act
or practice in
violation of
section 1345.02 of the
Revised Code. A
borrower
injured by
a violation of section
1321.41 of the
Revised Code
shall
have a cause of action and be
entitled to the
same relief
available to a
consumer under
section 1345.09 of the
Revised
Code,
and all powers and remedies
available to the
attorney
general to
enforce sections 1345.01 to
1345.13 of the
Revised
Code are
available to the attorney general
to
enforce
section
1321.41 of
the Revised Code.
(B) The superintendent of financial institutions or a
borrower may bring directly an action to enjoin a violation of
sections 1321.35 to 1321.48 of the Revised Code. The prosecuting
attorney of the county in which the action may be brought may
bring an action to enjoin a violation of sections 1321.35 to
1321.48 of the Revised Code only if the prosecuting attorney first
presents any evidence of the violation to the attorney general
and, within a reasonable period of time, the attorney general has
not agreed to bring the action.
(C) The superintendent may initiate criminal proceedings
under sections 1321.35 to 1321.48 of the Revised Code by
presenting any evidence of criminal violation to the prosecuting
attorney of the county in which the offense may be prosecuted. If
the prosecuting attorney does not prosecute the violations, or at
the request of the prosecuting attorney, the superintendent shall
present any evidence of criminal violations to the attorney
general, who may proceed in the prosecution with all the rights,
privileges, and powers conferred by law on prosecuting attorneys,
including the power to appear before grand juries and to
interrogate witnesses before such grand juries. These powers of
the attorney general are in addition to any other applicable
powers of the attorney general.
(D) The prosecuting attorney of the county in which an
alleged offense may be prosecuted may initiate criminal
proceedings under sections 1321.35 to 1321.48 of the Revised Code.
(E) In order to initiate criminal proceedings under sections
1321.35 to 1321.48 of the Revised Code, the attorney general first
shall present any evidence of criminal violations to the
prosecuting attorney of the county in which the alleged offense
may be prosecuted. If, within a reasonable period of time, the
prosecuting attorney has not agreed to prosecute the violations,
the attorney general may proceed in the prosecution with all the
rights, privileges, and powers described in division (B) of
this
section.
(F) When a judgment under this section becomes final, the
clerk of court shall mail a copy of the judgment, including
supporting opinions, to the superintendent may be enforced
pursuant to section 1321.61 of the Revised Code.
Sec. 1321.52. (A)(1) No person, on that person's own behalf
or
on behalf of any other person, shall do either of the
following
without having first obtained a certificate of registration from
the division
of financial institutions:
(a) Advertise, solicit, or hold out that the person is
engaged in the business of making loans secured by a mortgage on a
borrower's
real estate
which is other than a first lien on the
real estate;
(b) Engage in the business of lending or collecting the
person's own
or another person's money, credit, or choses in
action
for such loans.
(2) Each person issued a certificate is subject to all the
rules prescribed under sections 1321.51 to 1321.60 of the Revised
Code.
(B) All loans made to persons who at the time are
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.
(C) A registrant may make unsecured loans, loans secured
by a
mortgage on a borrower's real estate which is a first lien
or
other than a first lien on the real estate, loans secured by
other
than real estate, and loans secured by any combination of
mortgages and security interests, on terms and conditions
provided
by sections 1321.51 to 1321.60 of the Revised Code.
(D)(1) If a lender that is subject to sections 1321.51
to
1321.60
of the Revised Code makes a loan in violation of division
(A)(1)
of this section, the lender has no right to collect,
receive, or retain
any interest or charges on that loan.
(2) If a registrant applies to the division for a renewal of
the registrant's certificate after the date required by division
(A)(4) of section
1321.53 of the Revised Code, but prior to the
first day of
August of that year, and the division approves the
application, division (D)(1) of this section does not apply with
respect to any loan made by the registrant while the registrant's
certificate was expired.
(E) No person not located in Ohio shall make a loan under
sections 1321.51 to 1321.60 of the Revised Code 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.
Sec. 1321.53. (A)(1) An application for a certificate of
registration under sections 1321.51 to 1321.60 of the Revised
Code
shall contain an undertaking by the applicant to abide by
those
sections. The application shall be in writing, under oath,
and in
the form prescribed by the division of
financial institutions,
shall give the location where the business is to be
conducted and
the names and addresses of the partners, officers,
or trustees of
the applicant, and shall contain any further
relevant information
that the division may require. Applicants
that are foreign
corporations shall obtain and maintain a license
pursuant to
Chapter 1703. of the Revised Code before a
certificate is issued
or renewed.
(2) Upon the filing of the application and the payment by the
applicant of two hundred dollars as an investigation fee and an
annual registration fee as determined by the superintendent of
financial institutions pursuant to section
1321.20 of the Revised
Code,
the division shall investigate the relevant facts. If the
application involves investigation outside this state, the
applicant may be required by the division to advance sufficient
funds to pay any of the actual expenses of such investigation,
when it appears that these expenses will exceed two hundred
dollars. An itemized statement of any of these expenses which
the
applicant is required to pay shall be furnished the applicant
by
the division. No certificate shall be issued unless the fees
have
been submitted to the division, and no registration fee or
investigation fee will be returned after a certificate has been
issued.
(3) If an application for a
certificate of registration does
not contain all of the
information required under division
(A)(1)
of this section, and if
such information is not submitted to the
division within ninety
days after the application is filed, the
superintendent may
consider the application withdrawn and may
retain the
investigation fee.
(4) If the division
finds that the financial responsibility,
experience, character, and general fitness of the applicant are
such as to command the confidence of the public and to warrant
the
belief that the business will be operated honestly and fairly
in
compliance with and within the purposes of sections 1321.51 to
1321.60 of the Revised Code, and that the applicant has the
net
worth and assets required by division (B) of this section, the
division shall thereupon issue a certificate to the applicant. The
certificate shall expire on the
first day of July next after its
issue, and on the first day of
July in each succeeding year,
unless renewed by payment of an
annual fee, and any assessment, as
determined by the
superintendent pursuant to
section 1321.20 of
the Revised Code, on or before the last day of
June of each year.
No other fee or assessment shall be required
of a registrant by
the state or any political subdivision of the state.
If the division does not so find, it shall
enter an order
denying the application, and forthwith notify the
applicant of the
denial, the grounds for the denial, and the
applicant's reasonable
opportunity to be heard on the action in
accordance with Chapter
119. of the Revised Code. In the event
of denial, the division
shall return the registration fee but
retain the investigation
fee.
(5) If there is a change of ten per cent or more in the
ownership
of a registrant, the division may make any investigation
necessary to
determine whether any fact or condition exists that,
if it had
existed at the time of the original application for a
certificate of
registration, the fact or condition would have
warranted the
division to deny the application under division
(A)(4) of this
section. If such a fact or condition is found, the
division may, in
accordance with Chapter 119. of the Revised Code,
revoke the registrant's certificate.
(B) Each registrant that engages in lending under
sections
1321.51 to 1321.60 of the Revised Code shall maintain
both of the
following:
(1) A net worth of at least fifty thousand dollars;
(2) For each certificate of registration, assets of at least
fifty
thousand dollars either in use or readily available for use
in the conduct of
the business.
(C) Not more than one place of business shall be
maintained
under the same certificate, but the division may issue
additional
certificates to the same registrant upon compliance
with sections
1321.51 to 1321.60 of the Revised Code, governing
the issuance of
a single certificate. No change in the place of
business of a
registrant to a location outside the original
municipal
corporation shall be permitted under the same
certificate without
the approval of a new application, the
payment of the registration
fee as determined by the
superintendent pursuant to section
1321.20 of the Revised Code
and, if required by the
superintendent, the payment of an
investigation fee of two hundred
dollars. When a registrant
wishes to change its place of business
within the same municipal
corporation, it shall give written
notice of the change in
advance to the division, which shall
provide a certificate for
the new address without cost. If a
registrant changes its name,
prior to making loans under the new
name it shall give written
notice of the change to the division,
which shall provide a
certificate in the new name without cost.
Sections 1321.51 to
1321.60 of the Revised Code do not limit the
loans of any
registrant to residents of the community in which the
registrant's place of business is situated. Each certificate
shall
be kept conspicuously posted in the place of business of
the
registrant and is not transferable or assignable.
(D) Sections 1321.51 to 1321.60 of the Revised Code do not
apply to any of the following:
(1) Persons lawfully doing business under the authority of
any law of this state, another state, or the United States
relating to banks, savings banks, trust companies, savings and
loan associations, or credit unions;
(2) Life, property, or casualty insurance companies
licensed
to do business in this state;
(3) Any person that is a lender making a loan pursuant to
sections 1321.01 to 1321.19 of the Revised Code or a business
loan
as described in division (B)(6)(5) of section 1343.01 of the
Revised Code;
(4) Any governmental agency or instrumentality, or any
entity
included under division (B)(3) of section 1343.01 of the
Revised
Code.
(E) No person engaged in the business of selling tangible
goods or services related to tangible goods may receive or retain
a certificate under sections 1321.51 to 1321.60 of the Revised
Code for such place of business.
Sec. 1321.542. A violation of section 1321.52, 1321.551,
1321.56, 1321.57, 1321.571, 1321.59, 1321.591, or 1321.60 of the
Revised Code may be enforced pursuant to section 1321.61 of the
Revised Code when the violation involves a loan of one thousand
dollars or less.
Sec. 1321.551. No registrant shall conduct the business of
making loans
under sections 1321.51 to 1321.60 of the Revised Code
in any office, room, or
place of business in which any other
business is solicited or engaged in, or
in association or
conjunction with any other such business, if the
superintendent of
financial institutions finds,
pursuant to a hearing conducted in
accordance with
Chapter 119. of the Revised Code, that the other
business is of such a nature
that the conduct tends to conceal
evasion of sections 1321.51 to 1321.60 of
the Revised Code or of
the rules adopted under those sections, and orders the
registrant
in writing to desist from the conduct. For purposes of this
section, "other business" includes any business conducted by a
person who is registered or is required to be registered as a
credit services organization under
section 4712.02 of the Revised
Code, licensed as a check-cashing
business under section
1315.22
of the Revised Code, engaged in the practice of debt adjusting
pursuant to Chapter 4710. of the Revised Code, or is a lessor as
defined in section 1351.01 of the Revised Code.
Sec. 1321.56. Any person who willfully violates section
1321.57 or division (E) of section 1321.59 of the
Revised Code
shall forfeit to the borrower the amount of interest
paid by the
borrower. The maximum rate of interest
applicable to any loan
transaction that does not comply
with section 1321.57 of the
Revised Code shall be the rate that would be
applicable in the
absence of sections 1321.51 to 1321.60 of
the Revised Code.
Sec. 1321.57. (A) Notwithstanding any other provisions of
the Revised Code other than division (E) of section 1321.59 of the
Revised Code, a registrant may contract for and receive
interest,
calculated according to the actuarial method, at a rate
or rates
not exceeding twenty-one per cent per year on the unpaid
principal
balances of the loan. 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 1.44 of the Revised
Code. A month is that
period described in section 1.45 of the
Revised Code.
Alternatively, a registrant may consider a day as one three
hundred sixtieth of a year and each month as having thirty days.
(C) With respect to interest-bearing loans:
(1)(a) Interest shall be computed on unpaid principal
balances outstanding from time to time, for the time outstanding.
(b) As an alternative to the method of computing interest
set
forth in division (C)(1)(a) of this section, a registrant may
charge and
collect interest
for the first installment period based
on elapsed time from the
date of the loan to the first scheduled
payment due date, and for
each succeeding installment period from
the scheduled payment due
date to the next scheduled payment due
date, regardless of the
date or dates the payments are actually
made.
(c) Whether a registrant computes interest pursuant to
division (C)(1)(a) or (b) of this section, each payment shall be
applied first to unpaid charges, 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.
(2) Interest shall not be compounded, collected, or
paid in
advance. However, both of the following apply:
(a) Interest may be charged to extend the first monthly
installment period by not more than fifteen days, and the interest
charged for the extension may be added to the principal amount of
the
loan.
(b) If part or all of the consideration for a new loan
contract is the unpaid
principal balance of a prior loan, 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:
(1) Loans shall be repayable in monthly installments of
principal and interest combined, except that the first
installment
period may exceed one month by not more than fifteen
days, and the
first installment payment amount may be larger than
the remaining
payments by the amount of interest charged for the
extra days; and
provided further that monthly installment payment
dates may be
omitted to accommodate borrowers with seasonal
income.
(2) Payments may be applied to the combined total of
principal and precomputed interest until maturity of the loan. A
registrant may charge interest after the original or deferred
maturity of a precomputed loan at the rate specified in division
(A) of this section on all unpaid principal balances for the time
outstanding.
(3) When any loan contract is paid in full by cash,
renewal,
refinancing, or a new loan, one month or more before the
final
installment due date, the registrant shall refund, or
credit the
borrower with, the total of the applicable charges for
all fully
unexpired installment periods, as originally scheduled
or as
deferred, that follow the day of prepayment. If the
prepayment is
made other than on a scheduled 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 registrant 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
registrant shall credit the borrower with
the same refund as if
prepayment in full had been made on the date
the judgment is
entered.
(4) If the parties agree in writing, either in the loan
contract or in a subsequent agreement, to a deferment of wholly
unpaid installments, a registrant may grant a deferment and may
collect a deferment charge as provided in this section. 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 pro rata 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 registrant 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 registrant, 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 the
superintendent. If a
registrant 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 registrant written notice
of this choice and shall return all
of the policies or
certificates of insurance or notices of
proposed insurance to the
registrant during such period, and the
full premium or
identifiable charge for the insurance shall be
refunded to the
borrower by the registrant. 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
registrant shall
credit the amount of the refund plus the amount
of interest
applicable to the refund to the loan balance.
If the registrant obtains the insurance at the request of the
borrower, the registrant shall not charge or collect interest on
any
insured amount that remains unpaid after the insured
borrower's date of
death.
(F) A registrant 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
registrant or an agent or
broker designated by the registrant
shall not be a condition
precedent to the granting of the loan. If the
borrower purchases
the insurance from or through the
registrant or from another
source, the premium may be included in
the principal amount of the
loan.
(G) On loans secured by an interest in real estate, all of
the
following apply:
(1) A registrant may charge and receive up to two points, and
a
prepayment penalty not in excess of one per cent of the original
principal amount of the loan. Points may be paid by the borrower
at the time of the loan or may be included in the principal
amount
of the loan. On a refinancing, a registrant may not
charge under
division (G)(1) of this section
either of the following:
(a) Points on the portion of the principal amount that is
applied
to the unpaid principal amount of the refinanced loan, if
the refinancing
occurs within one year after the
date of the
refinanced loan on which points were charged;
(b) A prepayment penalty.
(2) As an alternative to the prepayment penalty described in
division (G)(1) of this section, a registrant may contract for,
charge, and receive the prepayment penalty described in division
(G)(2) of this section for the prepayment of a
loan prior to two
years after the date the loan contract
is executed. This
prepayment
penalty shall not exceed two per cent of
the original
principal amount of the loan if the loan is paid in full
prior to
one year after the date the loan contract is executed. The
penalty
shall not exceed one per cent of the original principal amount
of
the loan if the loan is paid in full at any time from one year,
but prior to two years, after the date the loan contract is
executed. A registrant shall not charge or receive a prepayment
penalty
under division (G)(2) of this section if any of the
following
applies:
(a) The loan is a refinancing by the same registrant or a
registrant to whom the loan has been assigned;
(b) The loan is paid in full as a result of the sale of
the
real
estate that secures the loan;
(c) The loan is paid in full with the proceeds of an
insurance
claim against an insurance policy that insures the life
of the borrower or an
insurance policy that
covers loss, damage,
or destruction of the real estate that secures
the loan.
(3) Division (G) of this section
is not a limitation on
discount points or
other charges for purposes of section 501(b)(4)
of the
"Depository Institutions Deregulation and Monetary Control
Act of
1980," 94 Stat. 161, 12 U.S.C.A. 1735f-7 note.
(H)(1) In addition to the interest and charges provided
for
by this section, no further or other amount, whether in the
form
of broker fees, placement fees, or any other fees whatsoever,
shall be charged or, received, or required by the registrant,
except costs and
disbursements in connection with any suit to
collect a loan or
any
lawful activity to realize on a security
interest or mortgage
after default, including reasonable attorney
fees incurred by
the
registrant as a result of the suit or
activity and to which the
registrant
becomes entitled by law, and
except the
following
additional charges
which may be included in
the principal amount
of the loan or collected at
any time after
the loan is made:
(a) The amounts of fees authorized by law to record, file,
or
release security interests and mortgages on a loan;
(b) With respect to a loan secured by an interest in real
estate, the following closing costs, if they are bona fide,
reasonable in amount, and not for the purpose of circumvention or
evasion of this section:
(i) Fees or premiums for title examination, abstract of
title, title insurance, surveys,
title endorsements, title
binders, title commitments, home inspections, or
pest inspections;
settlement or
closing costs; courier fees; and any federally
mandated flood
plain certification fee;
(ii) If not paid to the registrant, an employee of the
registrant, or a person related to the registrant, fees for
preparation of a mortgage, settlement statement, or other
documents, fees for notarizing mortgages and other documents,
appraisal fees, and fees for any federally mandated inspection of
home improvement work financed by a second mortgage loan;
(c) Fees for credit investigations not exceeding ten dollars.
(2) Division (H)(1) of this section does not limit the
rights
of registrants to engage in other transactions with
borrowers,
provided the transactions are not a condition of the
loan.
(I) If the loan contract or security instrument contains
covenants by the borrower to perform certain duties pertaining to
insuring or preserving security and the registrant pursuant to
the
loan contract or security instrument pays for performance of
the
duties on behalf of the borrower, the registrant 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 registrant 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.
(J)(1) In addition to points authorized under division
(G) of
this section, a registrant may charge and receive the
following:
(a) With respect to secured loans: if the principal amount of
the loan is
less than five hundred dollars, loan
origination
charges not exceeding fifteen dollars; if the
principal amount of
the loan is at least five hundred dollars but less
than one
thousand
dollars, loan origination charges not exceeding thirty
dollars; if
the principal amount of the loan is at least one
thousand dollars but
less than two
thousand dollars, loan
origination charges not exceeding
one hundred dollars;
if the
principal amount of the loan is at
least two thousand dollars but
less than five thousand dollars, loan
origination charges not
exceeding two hundred
dollars; and if the
principal amount of the
loan is at least five thousand dollars, loan
origination charges
not exceeding the greater of two hundred fifty dollars or
one per
cent of the principal amount of the loan.
(b) With respect to unsecured loans: if the principal amount
of
the loan is less than five hundred dollars, loan origination
charges not exceeding fifteen dollars; if the principal amount of
the
loan is at least five hundred dollars but less than one
thousand
dollars, loan origination charges not exceeding thirty
dollars; if
the principal amount of the loan is at least one
thousand dollars
but less than five thousand dollars, loan
origination
charges not
exceeding one hundred dollars; and if the
principal amount of the loan is at least five thousand dollars,
loan
origination charges not exceeding the greater of two hundred
fifty dollars or
one per cent of the principal amount of the loan.
(2) If a refinancing occurs within ninety days after the date
of
the refinanced loan, a registrant
may not impose loan
origination
charges on the portion of the principal amount that is
applied to the
unpaid principal amount of the refinanced loan.
(3) 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.
(K) A registrant 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.
(L) If the loan contract so provides, a registrant 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 fifteen dollars.
(M) With respect to a loan it has made under sections 1321.51
to 1321.60 of the Revised Code, a registrant may not do any of the
following:
(1) Charge or receive a fee for cashing a proceeds check or
money order disbursed to fund the loan;
(2) Require a borrower to cash a proceeds check or money
order disbursed to fund
the loan at the place of business of the
registrant, an affiliate of the registrant, or any specified third
party;
(3) Seek or obtain directly or indirectly compensation from
any affiliate or third party that provides check-cashing services
to cash a proceeds check or money order disbursed to fund the loan
by the registrant.
Sec. 1321.571. As an alternative to the interest permitted
in division (A) of
section 1321.57 and in division (B) of section
1321.58 of the Revised Code, a
registrant may contract for and
receive interest at any rate or rates agreed
upon or consented to
by the parties to the loan contract or open-end loan
agreement,
but not exceeding an annual percentage rate of twenty-five per
cent.
Nothing in this section shall be construed to permit a
licensee to contract for or receive an annual percentage rate that
is greater than what is permitted in division (E) of section
1321.59 of the Revised Code for loans described in that division.
Sec. 1321.59. (A) No registrant under sections 1321.51 to
1321.60 of the Revised Code shall permit any borrower to be
indebted for a loan made under sections 1321.51 to 1321.60 of the
Revised Code at any time while the borrower is also indebted to
an
affiliate or agent of the registrant for a loan made under
sections 1321.01 to 1321.19 of the Revised Code for the purpose
or
with the result of obtaining greater charges than otherwise
would
be permitted by sections 1321.51 to 1321.60 of the Revised Code.
(B) No registrant shall induce or permit any person to
become
obligated to the registrant under sections 1321.51 to
1321.60 of
the Revised Code, 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 greater charges than
would otherwise be
permitted by sections 1321.51 to 1321.60 of
the Revised Code.
(C) No registrant shall refuse to provide information
regarding the amount required to pay in full a loan under
sections
1321.51 to 1321.60 of the Revised Code when requested by
the
borrower or by another person designated in writing by the
borrower.
(D) On any loan or application for a loan under sections
1321.51 to
1321.60 of the Revised Code secured by a
mortgage on a
borrower's real estate which is other than a first
lien on the
real estate, no person shall pay or
receive, directly or
indirectly, fees or any other type of
compensation for services of
a broker that, in
the aggregate, exceed the lesser of one thousand
dollars or one per cent of the principal amount of the loan.
(E)(1) No registrant shall make a loan of one thousand
dollars or
less under sections 1321.51 to 1321.60 of the Revised
Code that
will obligate the borrower to pay an annual percentage
rate for
the loan that exceeds twenty-eight per cent, as
calculated in
compliance with the "Truth in Lending Act," 82
Stat. 149 (1980),
15 U.S.C. 1606, unless one of the following
applies:
(a) The term of loan is greater than three months.
(b) The loan contract requires the borrower to repay the loan
in three or more monthly installments of substantially equal
amounts.
(2) Any loan made by a registrant that meets the requirements
of division (E)(1)(a) or (b) of this section shall be subject to
section 1321.57 of the Revised Code.
Sec. 1321.591. No registrant or licensee shall use unfair,
deceptive, or unconscionable means to collect or attempt to
collect any claim. Without limiting the general application of the
foregoing, the following conduct is deemed to violate this
section:
(A) The collection of or the attempt to collect any interest
or other charge, fee, or expense incidental to the principal
obligation unless such interest or incidental fee, charge, or
expense is expressly authorized by the agreement creating the
obligation and by law.
(B) Any communication with a consumer whenever it is known
that the consumer is represented by an attorney and the attorney's
name and address are known, or could be easily ascertained, unless
the attorney fails to answer correspondence, return telephone
calls or discuss the obligation in question, or unless the
attorney consents to direct communication with the consumer.
(C) Placing a telephone call or otherwise communicating by
telephone with a consumer or third party, at any place, including
a place of employment, falsely stating that the call is urgent or
an emergency.
(D) Using profane or obscene language or language that is
intended to unreasonably abuse the listener or reader.
(E) Placing telephone calls without disclosure of the
caller's identity and with the intent to annoy, harass, or
threaten any person at the number called.
(F) Causing expense to any person in the form of long
distance telephone tolls, text messaging fees, or other charges
incurred by a form of communication, by concealment of the true
purpose of the communication.
(G) Causing a telephone to ring or engaging any person in
telephone conversation repeatedly or continuously, or at unusual
times, or at times known to be inconvenient, with the intent to
annoy, abuse, oppress, or threaten any person at the called
number.
Sec. 1321.61. (A) As used in this section, "violation" means
either of the following:
(1) A violation of section 1321.02, 1321.11, 1321.12,
1321.13,
1321.14, 1321.15, 1321.17, 1321.52, 1321.551, 1321.56,
1321.57,
1321.571, 1321.59,
1321.591, or 1321.60 of the Revised
Code when
the violation involves a loan of one thousand dollars
or less;
(2) A violation of section 1321.36, 1321.39, 1321.40,
1321.41, or 1321.45 of the Revised Code.
(B) A violation is deemed an unfair or deceptive act or
practice that violates section 1345.02 of the Revised Code. A
borrower injured by a violation shall have a cause of action and
be entitled to the same relief available to a consumer under
section 1345.09 of the Revised Code, and all powers and remedies
available to the attorney general to enforce sections 1345.01 to
1345.13 of the Revised Code are available to the attorney general
to take enforcement action regarding a violation.
(C) The superintendent of financial institutions or a
borrower may bring directly an action to enjoin a violation. The
prosecuting attorney of the county in which the action may be
brought may bring an action to enjoin a violation only if the
prosecuting attorney first presents any evidence of the violation
to the attorney general and, within a reasonable period of time,
the attorney general has not agreed to bring the action.
(D) The superintendent may initiate criminal proceedings for
a violation by presenting any evidence of a criminal offense to
the prosecuting attorney of the county in which the offense may be
prosecuted. If the prosecuting attorney does not prosecute the
violation, or at the request of the prosecuting attorney, the
superintendent shall present any evidence of criminal offenses to
the attorney general, who may proceed in the prosecution with all
the rights, privileges, and powers conferred by law on prosecuting
attorneys, including the power to appear before grand juries and
to interrogate witnesses before such grand juries. These powers of
the attorney general are in addition to any other applicable
powers of the attorney general.
(E) The prosecuting attorney of the county in which an
alleged offense may be prosecuted may initiate criminal
proceedings for a violation.
(F) In order to initiate criminal proceedings for a
violation, the attorney general first shall present any evidence
of a criminal offense to the prosecuting attorney of the county in
which the alleged offense may be prosecuted. If, within a
reasonable period of time, the prosecuting attorney has not agreed
to prosecute the violation, the attorney general may proceed in
the prosecution with all the rights, privileges, and powers
described in division (C) of this section.
(G) When a judgment under this section becomes final, the
clerk of court shall mail a copy of the judgment, including
supporting opinions, to the superintendent.
Sec. 1321.99. (A) Whoever violates section 1321.02 of the
Revised Code is guilty of a felony of the fifth degree.
(B) Whoever violates section 1321.13 of the Revised Code
shall be fined not less than one hundred nor more than five
hundred dollars or imprisoned not more than six months, or both.
(C) Whoever violates section 1321.14 of the Revised Code
shall be fined not less than fifty nor more than two hundred
dollars for a first offense; for a second offense such person
shall be fined not less than two hundred nor more than five
hundred dollars and imprisoned for not more than six months.
(D) Whoever willfully violates division (C) of section
1321.15 or section 1321.57,
1321.58,
1321.59, or 1321.60 of the
Revised Code shall be fined
not less
than one five hundred nor
more than five hundred one
thousand dollars.
(E) Whoever violates section 1321.52 of the Revised Code
is
guilty of a felony of the fifth degree.
(F) Whoever violates division (A) of section 1321.73 of
the
Revised Code shall be fined not more than five hundred
dollars or
imprisoned not more than six months, or both.
(G) Whoever violates section 1321.41 of the Revised Code is
guilty of a misdemeanor of the first degree.
Sec. 1322.01. As used in sections 1322.01 to 1322.12 of the
Revised Code:
(A) "Buyer" means an individual who is solicited to
purchase
or who purchases the services of a mortgage broker for
purposes
other than obtaining a business loan as described in
division
(B)(6)(5) of section 1343.01 of the Revised Code.
(B) "Consumer reporting agency" has the same meaning as in
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A.
1681a,
as amended.
(C)
"Employee" means an individual for whom a mortgage
broker, in addition to providing a wage or salary, pays social
security and unemployment taxes, provides workers' compensation
coverage, and withholds local, state, and federal income taxes.
"Employee" also includes any shareholder, member, or partner of a
registrant who acts as a loan officer or operations manager of the
registrant, but for whom the registrant is prevented by law from
making income tax withholdings.
(D) "Licensee" means any person that has been issued a loan
officer license under sections 1322.01 to 1322.12 of the Revised
Code.
(E) "Loan officer" means an employee who originates
mortgage
loans in consideration of direct or indirect gain,
profit, fees,
or charges. "Loan officer" also includes an
employee who solicits
financial and mortgage information from the
public for sale to
another mortgage broker.
(F) "Mortgage" means any indebtedness secured by a deed of
trust, security deed, or other lien on real property.
(G) "Mortgage broker" means
any of the following:
(1) A person that holds
that
person out
as being able to
assist a buyer in obtaining a
mortgage and charges or
receives
from either the buyer or lender
money or
other valuable
consideration readily convertible into
money for
providing this
assistance;
(2) A
person that solicits
financial and mortgage
information
from the public, provides that
information to a
mortgage broker,
and charges or receives from the
mortgage broker
money or
other
valuable consideration readily
convertible into
money for
providing the information;
(3) A
person engaged in table-funding or warehouse-lending
mortgage loans that are first lien mortgage loans.
(H) "Operations manager" means the individual responsible
for
the everyday operations, compliance requirements, and
management
of a mortgage broker business.
(I) "Originate" means to do any of the following:
(1) Negotiate or arrange, or offer to negotiate or arrange,
a
mortgage loan between a person that makes or funds mortgage
loans
and a buyer;
(2) Issue a commitment for a mortgage loan to a buyer;
(3) Place, assist in placement, or find a mortgage loan for
a
buyer.
(J)
"Registrant" means any person that
has been issued a
mortgage broker certificate of registration under sections 1322.01
to 1322.12 of
the Revised Code.
(K) "Superintendent of financial institutions" includes
the
deputy superintendent for consumer finance as provided in
section
1181.21
of the Revised Code.
(L) "Table-funding mortgage loan" means a mortgage loan
transaction in which the mortgage is initially payable to the
mortgage broker, the mortgage broker does not use the mortgage
broker's own funds to fund the transaction, and, by the terms of
the mortgage or other agreement, the mortgage is simultaneously
assigned to another person.
(M) "Warehouse-lending mortgage loan" means a mortgage loan
transaction in which the mortgage is initially payable to the
mortgage broker, the mortgage broker uses the mortgage broker's
own funds to fund the transaction, and the mortgage is sold or
assigned before the mortgage broker receives a scheduled
payment
on
the mortgage.
Sec. 1343.01. (A) The parties to a bond, bill, promissory
note, or other instrument of writing for the forbearance or
payment of money at any future time, may stipulate therein for
the
payment of interest upon the amount thereof at any rate not
exceeding eight per cent per annum payable annually, except as
authorized in division (B) of this section.
(B) Any party may agree to pay a rate of interest in
excess
of the maximum rate provided in division (A) of this
section when:
(1) The original amount of the principal indebtedness
stipulated in the bond, bill, promissory note, or other
instrument
of writing exceeds one hundred thousand dollars;
(2) The payment is to a broker or dealer registered under
the
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.
78A, as
amended, for carrying a debit balance in an account for a
customer
if such debit balance is payable on demand and secured
by stocks,
bonds or other securities;
(3) The instrument evidences a loan secured by a mortgage
or
deed of trust on real estate where the loan has been approved,
insured, guaranteed, purchased, or for which an offer or
commitment to insure, guarantee, or purchase has been received,
in
whole or in part, by the federal government or any agency or
instrumentality thereof, the federal national mortgage
association, the federal home loan mortgage corporation, or the
farmers home administration, all of which is authorized pursuant
to the "National Housing Act," 12. U.S.C. 1701; the "Serviceman's
Readjustment Act," 38 U.S.C. 1801; the "Federal Home Loan Bank
Act," 12 U.S.C. 1421; and the "Rural Housing Act," 42 U.S.C.
1471,
amendments thereto, reenactments thereof, enactments
parallel
thereto, or in substitution therefor, or regulations
issued
thereunder; or by the state or any agency or
instrumentality
thereof authorized pursuant to Chapter 122. of
the Revised Code,
or rules issued thereunder.
(4) The instrument evidences a loan secured by a mortgage,
deed of trust, or land installment contract on real estate which
does not otherwise qualify for exemption from the provisions of
this section, except that such rate of interest shall not exceed
eight per cent in excess of the discount rate on ninety-day
commercial paper in effect at the federal reserve bank in the
fourth federal reserve district at the time the mortgage, deed of
trust, or land installment contract is executed.
(5) The instrument is payable on demand or in one
installment
and is not secured by household furnishings or other
goods used
for personal, family, or household purposes.
(6)(a) The loan is a business loan to a business
association
or partnership, a person owning and operating a
business as a sole
proprietor; any persons owning and operating a
business as joint
venturers, joint tenants, or tenants in common;
any limited
partnership; or any trustee owning or operating a
business or
whose beneficiaries own or operate a business, except
that:
(i) Any loan which is secured by an assignment of an
individual obligor's salary, wages, commissions, or other
compensation for services or by his the individual obligor's
household furniture or other goods used for his the individual
obligor's personal, family, or household purposes shall
be deemed
not a loan within the meaning of division (B)(6)(5) of
this
section;
(ii) Any loan which otherwise qualifies as a business loan
within the meaning of division (B)(6)(5) of this section shall not
be
deemed disqualified because of the inclusion, with other
security
consisting of business assets of any such obligor, of
real estate
occupied by an individual obligor solely as his the
individual
obligor's residence.
(b) As used in division (B)(6)(5)(a) of this section,
"business"
means a commercial, agricultural, or industrial
enterprise which
is carried on for the purpose of investment or
profit. "Business"
does not mean the ownership or maintenance of
real estate occupied
by an individual obligor solely as his the
individual obligor's
residence.
Sec. 1345.01. As used in sections 1345.01 to 1345.13 of
the
Revised Code:
(A) "Consumer transaction" means a sale, lease,
assignment,
award by chance, or other transfer of an item of
goods, a service,
a franchise, or an intangible, to an individual
for purposes that
are primarily personal, family, or household,
or solicitation to
supply any of these things. "Consumer
transaction" does not
include transactions between persons, defined in sections 4905.03
and 5725.01 of the Revised Code, and
their customers, except for
transactions involving a loan made pursuant to sections 1321.35 to
1321.48 of the Revised Code, transactions involving a loan of one
thousand dollars or less made pursuant to sections 1321.01 to
1321.19 or 1321.51 to 1321.60 of the Revised Code, and
transactions in connection with
residential mortgages between
loan officers, mortgage brokers, or
nonbank mortgage lenders and
their customers;. "Consumer transaction" does not include
transactions between
certified public
accountants or public
accountants and their
clients; transactions
between attorneys,
physicians, or dentists
and their clients or
patients; and
transactions between
veterinarians and their
patients that
pertain to medical treatment
but not ancillary
services.
(B) "Person" includes an individual, corporation,
government,
governmental subdivision or agency, business trust,
estate, trust,
partnership, association, cooperative, or other
legal entity.
(C) "Supplier" means a seller, lessor, assignor,
franchisor,
or other person engaged in the business of effecting
or soliciting
consumer transactions, whether or not the
person deals directly
with the consumer. If the consumer transaction is in connection
with a residential mortgage, "supplier" does not include an
assignee or purchaser of the loan for value, except as otherwise
provided in section 1345.091 of the Revised Code. For purposes of
this division, in a consumer transaction in connection with a
residential mortgage, "seller" means a loan officer, mortgage
broker, or nonbank mortgage lender.
(D) "Consumer" means a person who engages in a consumer
transaction with a supplier.
(E) "Knowledge" means actual awareness, but such actual
awareness may be inferred where objective manifestations indicate
that the individual involved acted with such awareness.
(F) "Natural gas service" means the sale of natural gas,
exclusive of any distribution or ancillary service.
(G) "Public telecommunications service" means the
transmission by electromagnetic or other means,
other than by a
telephone company as defined in section 4927.01 of the Revised
Code,
of
signs, signals, writings, images, sounds, messages, or
data originating
in this state regardless of actual
call routing.
"Public telecommunications service" excludes a
system, including
its construction, maintenance, or operation, for
the provision of
telecommunications service, or any portion of
such service, by any
entity for the sole and exclusive use of that
entity, its parent,
a subsidiary, or an affiliated entity, and not
for resale,
directly or indirectly; the provision of terminal
equipment used
to originate telecommunications
service; broadcast transmission by
radio, television, or satellite
broadcast stations regulated by
the federal government; or cable
television service.
(H) "Loan officer" has the same meaning as in section 1322.01
of the Revised Code, except that it does not include an employee
of a bank, savings bank, savings and loan association, credit
union, or credit union service organization organized under the
laws of this state, another state, or the United States; an
employee of a subsidiary of such a bank, savings bank, savings and
loan association, or credit union; or an employee of an affiliate
that (1) controls, is controlled by, or is under common control
with, such a bank, savings bank, savings and loan association, or
credit union and (2) is subject to examination, supervision, and
regulation, including with respect to the affiliate's compliance
with applicable consumer protection requirements, by the board of
governors of the federal reserve system, the comptroller of the
currency, the office of thrift supervision, the federal deposit
insurance corporation, or the national credit union
administration.
(I) "Residential mortgage" or "mortgage" means an obligation
to pay a
sum of money evidenced by a note and secured by a lien
upon real
property located within this state containing two or
fewer
residential units or on which two or fewer residential units
are
to be constructed and includes such an obligation on a
residential condominium or cooperative unit.
(J) "Mortgage broker" has the same meaning as in section
1322.01 of the Revised Code, except that it does not include a
bank, savings bank, savings and loan association, credit union, or
credit union service organization organized under the laws of this
state, another state, or the United States; a subsidiary of such a
bank, savings bank, savings and loan association, or credit union;
an affiliate that (1) controls, is controlled by, or is under
common control with, such a bank, savings bank, savings and loan
association, or credit union and (2) is subject to examination,
supervision, and regulation, including with respect to the
affiliate's compliance with applicable consumer protection
requirements, by the board of governors of the federal reserve
system, the comptroller of the currency, the office of thrift
supervision, the federal deposit insurance corporation, or the
national credit union administration; or an employee of any such
entity.
(K) "Nonbank mortgage lender" means any person that engages
in a consumer transaction in connection with a residential
mortgage, except for a bank, savings bank, savings and loan
association, credit union, or credit union service organization
organized under the laws of this state, another state, or the
United States; a subsidiary of such a bank, savings bank, savings
and loan association, or credit union; or an affiliate that (1)
controls, is controlled by, or is under common control with, such
a bank, savings bank, savings and loan association, or credit
union and (2) is subject to examination, supervision, and
regulation, including with respect to the affiliate's compliance
with applicable consumer protection requirements, by the board of
governors of the federal reserve system, the comptroller of the
currency, the office of thrift supervision, the federal deposit
insurance corporation, or the national credit union
administration.
(L) For purposes of divisions (H), (J), and (K) of this
section:
(1) "Control" of another entity means ownership, control, or
power to vote twenty-five per cent or more of the outstanding
shares of any class of voting securities of the other entity,
directly or indirectly or acting through one or more other
persons.
(2) "Credit union service organization" means a CUSO as
defined in 12 C.F.R. 702.2.
Sec. 1351.031. No lessor shall engage, directly or
indirectly, in any fraudulent or deceptive act, practice, or
course of business in connection with a lease-purchase agreement,
including knowingly acting in or abetting a scheme to create an
evasion of restrictions on fees or charges as set forth in Chapter
1321. of the Revised Code.
Sec. 4710.02. (A) Subject to division (C) of this section, a
person engaged in debt adjusting shall do all of the following:
(1) Unless specifically instructed otherwise by a debtor,
disburse to the appropriate creditors all funds received from the
debtor, less any contributions not prohibited by division (B) of
this section, within thirty days of receipt of the funds from the
debtor;
(2) Maintain a separate trust account for the receipt of any
funds from debtors and the disbursement of the funds to creditors
on behalf of the debtors;
(3) Charge or accept only reasonable fees or contributions in
accordance with division (B) of this section;
(4) Establish and implement a policy that allows for the
waiver or discontinuation of fees or contributions not prohibited
by division (B) of this section if the debtor is unable to pay
such fees or contributions.
(B) If fees or contributions for providing debt adjusting
services are charged or accepted, directly or indirectly, no
person providing or engaged in debt adjusting shall do any of the
following:
(1) Charge or accept a fee or contribution exceeding
seventy-five dollars from a debtor residing in this state for an
initial consultation or initial set up of a debt management plan
or similar plan;
(2) Charge or accept consultation fees or contributions
exceeding one hundred dollars per calendar year from a debtor
residing in this state;
(3) Charge or accept a periodic fee or
contribution from a
debtor residing in this state for administering a debt management
plan or similar plan, which fee or contribution exceeds eight and
one-half per cent of the amount paid by the debtor each month for
distribution to the debtor's creditors or thirty dollars,
whichever is greater.
(4) Engage, directly or indirectly, in any fraudulent or
deceptive act, practice, or course of business in connection with
the offer, sale or provision of debt adjusting services,
including, but not limited to, knowingly acting in or abetting a
scheme to create an evasion of restrictions on fees or charges as
set forth in Chapter 1321. of the Revised Code.
(C) Division (A) or (B) of this section does not prohibit a
person engaged in debt adjusting for a debtor who is residing in
this state from charging the debtor a reasonable fee for
insufficient funds transactions that is in addition to fees or
contributions not prohibited by division (B) of this section.
(D) Any person that engages in debt adjusting, annually,
shall arrange for and undergo an audit conducted by an
independent, third party, certified public accountant of the
person's business, including any trust funds deposited and
distributed to creditors on behalf of debtors. Both of the
following apply to an audit described in this division:
(1) The person shall file the results of the audit and the
auditor's opinion with the consumer protection division of the
attorney general.
(2) The attorney general shall make available a summary of
the results of the audit and the auditor's opinion upon written
request of a person and payment of a fee not exceeding the cost of
copying the summary and opinion.
(E) A person engaged in debt adjusting shall obtain and
maintain at all times insurance coverage for employee dishonesty,
depositor's forgery, and computer fraud in the amount of ten per
cent of the monthly average for the immediate preceding six months
of the aggregate amount of all deposits made with the person by
all debtors. The insurance coverage shall comply with all of the
following:
(1) The insurance coverage is not less than one hundred
thousand dollars.
(2) The insurance coverage includes a deductible that does
not exceed ten per cent of the face amount of the policy coverage.
(3) The insurance coverage is issued by an insurer rated at
least A- or its equivalent by a nationally recognized rating
organization.
(4) The insurance coverage provides that thirty days advance
written notice be given to the consumer protection division of the
attorney general before coverage is terminated.
(F)(1) No person engaged in debt adjusting shall fail to
comply with division (A) of this section or shall violate division
(B) of this section.
(2) No person engaged in debt adjusting shall fail to comply
with divisions (D) and (E) of this section.
Sec. 4712.01. As used in sections 4712.01 to 4712.14 of
the
Revised Code:
(A)
"Buyer" means an individual who is solicited to
purchase
or who purchases the services of a credit services
organization
for purposes other than obtaining a business loan as
described in
division (B)(6)(5) of section 1343.01 of the Revised
Code.
(B)
"Consumer reporting agency" has the same meaning as in
the
"Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A.
1681a,
as amended.
(C)(1)
"Credit services organization" means any person
that,
in return for the
payment of money or other
valuable consideration
readily convertible into money for the following
services,
sells,
provides, or performs, or represents that the person can
or will
sell, provide, or perform, one or more of the
following services:
(a) Improving a buyer's credit record, history, or rating;
(b) Obtaining an extension of credit by others for a buyer;
(c) Providing advice or assistance to a buyer in
connection
with division (C)(1)(a) or (b) of this section;
(d) Removing adverse credit information that is accurate
and
not obsolete from the buyer's credit record, history, or
rating;
(e) Altering the buyer's identification to prevent the
display of the buyer's credit record, history, or rating.
(2)
"Credit services organization" does not include any of
the following:
(a) A person that makes or collects loans, to the extent
these activities are subject to licensure or registration by this
state;
(b) A mortgage broker, as defined in
section
1322.01 of the
Revised Code, that holds a valid
certificate of
registration under
sections 1322.01 to 1322.12 of
the Revised
Code;
(c) A lender approved by the United States secretary of
housing and urban development for participation in a mortgage
insurance program under the
"National Housing Act," 48 Stat. 1246
(1934), 12 U.S.C.A. 1701, as amended;
(d) A bank, savings bank, or savings and loan association,
or
a subsidiary or an affiliate of a bank, savings bank, or
savings
and loan association. For purposes of division (C)(2)(d)
of this
section,
"affiliate" has the same meaning as in division
(A) of
section 1101.01 of the Revised Code and
"bank," as used in
division (A) of section 1101.01 of the Revised Code, is deemed to
include a savings bank or savings and loan association.
(e) A credit union organized and qualified under Chapter
1733. of the Revised Code or the
"Federal Credit Union Act," 84
Stat. 994 (1970), 12 U.S.C.A. 1751, as amended;
(f) A budget and debt counseling service, as defined
in
division (D) of section 2716.03 of the Revised Code, provided
that
the service is a nonprofit organization exempt from taxation
under
section 501(c)(3) of the
"Internal Revenue Code of 1986,"
100
Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service
is
in compliance with Chapter 4710. of the Revised Code;
(g) A consumer reporting agency that is in substantial
compliance with the
"Fair Credit Reporting Act," 84 Stat. 1128,
15
U.S.C.A. 1681a, as amended.
(i) Any political subdivision, or any governmental or
other
public entity, corporation, or agency, in or of the United
States
or any state of the United States;
(j) A college or university, or controlled entity of a
college or university, as defined in section 1713.05 of the
Revised Code;
(k) A motor vehicle dealer licensed pursuant to Chapter
4517.
of the Revised Code acting within the scope and authority of
that
license or a motor
vehicle auction owner licensed pursuant to
Chapters 4517. and 4707. of the Revised Code acting within the
scope and authority
of that license.
(D)
"Extension of credit" means the right to defer payment
of
debt, or to incur debt and defer its payment, offered or
granted
primarily for personal, family, or household purposes.
"Extension
of credit" does not include a mortgage.
(E)
"Mortgage" means any indebtedness secured by a deed of
trust, security deed, or other lien on real property.
(F)
"Mortgage banker" means any person that makes,
services,
or buys and sells mortgage loans and is approved by the
United
States department of housing and urban development, the
United
States department of veterans affairs, the federal
national
mortgage association, or the federal home loan mortgage
corporation.
(G)
"Superintendent of financial institutions" includes
the
deputy superintendent for consumer finance as provided in section
1181.21
of the Revised Code.
Sec. 4712.07. No credit services organization,
salesperson,
agent, or representative of a credit services
organization, or
independent contractor that sells or attempts to
sell the services
of a credit services organization shall do any
of the following:
(A) Charge or receive directly or indirectly from a buyer
money or other consideration readily convertible into money until
all services the organization has agreed to perform for the buyer
are completed within the time periods described in division
(A)(3)
of section 4712.05 of the Revised Code.
(B) Charge or receive directly or indirectly from a buyer
money or other consideration readily convertible into money for
the referral of the buyer to a person that makes an extension of
credit or to a consumer reporting agency, except when credit has
actually been extended as a result of that referral;
(C) Make or use a false or misleading representation in
the
offer or sale of the services of the organization, including
either of the following:
(1) Guarantying or otherwise stating that the organization
is
able to delete an adverse credit history, unless the
representation clearly discloses that this can be done only if
the
credit history is inaccurate or obsolete;
(2) Guarantying or otherwise stating that the organization
is
able to obtain an extension of credit regardless of the
buyer's
previous credit problems or credit history, unless the
representation clearly discloses the eligibility requirements for
obtaining an extension of credit.
(D) Engage, directly or indirectly, in an unconscionable,
unfair, or deceptive act or practice, as those terms are used and
defined in Chapter 1345. of the Revised Code, in connection with
the offer or sale of the services of a credit services
organization;
(E)(1) Make or advise a buyer to make a false or
misleading
statement concerning the buyer's creditworthiness,
identification,
credit standing, or credit capacity to any of the
following:
(a) A consumer reporting agency;
(b) A person that has made an extension of credit to the
buyer;
(c) A person to which the buyer is applying for an
extension
of credit.
(2) Division (E)(1) of this section applies to any
statement
that the organization, salesperson, agent,
representative, or
independent contractor knows or should know to
be false or
misleading through the exercise of reasonable care.
(F) Advertise or cause to be advertised, in any manner,
the
services of a credit services organization without being
registered with the division of financial
institutions;
(G) Fail to maintain a statutory agent as required under
division (E) of section 4712.02 of the Revised Code;
(H) Transfer or assign a certificate of registration
issued
by the division pursuant to section
4712.02 of the Revised Code;
(I) Submit the buyer's disputes to a consumer reporting
agency without the buyer's knowledge as evidenced by positive
identification, including the buyer's correct current residence
address, and written authorization personally signed by the
buyer;
(J) Fail to maintain, for a period of time as determined
by
the superintendent of financial
institutions, all of the
following:
(1) A log of all contracts;
(2) Copies of each contract;
(3) Documentation that substantiates the validity of the
representation made pursuant to division (A)(5) of section
4712.05
of the Revised Code;
(4) Any other record specified by the superintendent.
(K) Contact a consumer reporting agency, by telephone or
otherwise, for the purpose of submitting or obtaining information
relative to any buyer, and state or imply that he or she is the
buyer
or the buyer's attorney, guardian, or other legal
representative;
(L) Engage, directly or indirectly, in any fraudulent or
deceptive act, practice, or course of business in connection with
the offer or sale of the services of a credit services
organization, including knowingly acting in or abetting a scheme
to create an evasion of restrictions on fees or charges as
set
forth in Chapter 1321. of
the Revised Code.
Section 2. That existing sections 1315.26, 1321.02, 1321.12,
1321.13, 1321.131,
1321.14, 1321.15, 1321.44, 1321.52, 1321.53,
1321.551,
1321.56, 1321.57, 1321.571, 1321.59,
1321.99, 1322.01,
1343.01,
1345.01,
4710.02, 4712.01,
and 4712.07 of the
Revised
Code are
hereby
repealed.
Section 3. Section 1321.14 of the Revised Code is presented
in this act
as a composite of the section as amended by both
Am.
Sub. S.B. 293 and Sub. H.B. 495 of the 121st General Assembly.
The General Assembly, applying the
principle stated in division
(B) of section 1.52 of the Revised
Code that amendments are to be
harmonized if reasonably capable of
simultaneous operation, finds
that the composite is the resulting
version of the section in
effect prior to the effective date of
the section as presented in
this act.
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