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H. B. No. 554 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Representatives Hackett, Domenick, McGregor, Coley, Slesnick, Derickson
A BILL
To amend section 121.085 and to enact sections
1322.21 to 1322.38 of the Revised Code to
establish the Installment Loan Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 121.085 be amended and sections
1322.21, 1322.22, 1322.23, 1322.24, 1322.25, 1322.26, 1322.27,
1322.28, 1322.29, 1322.30, 1322.31, 1322.32, 1322.33, 1322.34,
1322.35, 1322.36, 1322.37, and 1322.38 of the Revised Code be
enacted to read as follows:
Sec. 121.085. The financial literacy education fund is hereby
created in the state treasury. The fund shall consist of funds
transferred to it from the consumer finance fund pursuant to
section 1321.21 of the Revised Code and the assessments collected
by the superintendent of financial institutions pursuant to
section 1322.37 of the Revised Code. The fund shall be used to
support various adult financial literacy education programs
developed or implemented by the director of commerce. The fund
shall be administered by the director of commerce who shall adopt
rules for the distribution of fund moneys. The director of
commerce shall adopt a rule to require that at least one-half of
the financial literacy education programs developed or implemented
pursuant to this section, and offered to the public, be presented
by or available at public community colleges or state institutions
throughout the state. The director of commerce shall deliver to
the president of the senate, the speaker of the house of
representatives, the minority leader of the senate, the minority
leader of the house of representatives, and the governor an annual
report that includes an outline of each adult financial literacy
education program developed or implemented, the number of
individuals who were educated by each program, and an accounting
for all funds distributed.
Sec. 1322.21. As used in sections 1322.21 to 1322.38 of the
Revised Code:
(A) "Installment loan" means any loan, advance of money, or
extension of credit that meets all of the following criteria:
(1) It has a principal amount of at least one hundred dollars
but not more than five thousand dollars.
(2) It has a repayment term of not less than ninety days.
(3) It is payable in substantially equal and consecutive
installments of principal and interest combined.
(4) It is computed on a pre-computed basis.
(B) "Licensee" means a person to whom the superintendent of
financial institutions has issued one or more licenses under
sections 1322.21 to 1322.38 of the Revised Code.
(C) "Superintendent of financial institutions" includes the
deputy superintendent for consumer finance as provided in section
1181.21 of the Revised Code.
Sec. 1322.22. Sections 1322.21 to 1322.38 of the Revised
Code shall be known as the "installment loan act."
Sec. 1322.23. (A) On and after January 1, 2011, no person
shall engage in the business of making installment loans to a
borrower in this state without first having obtained a license
from the superintendent of financial institutions under sections
1322.21 to 1322.38 of the Revised Code. An installment loan
license shall be required for each location in this state from
which the person will engage in the business of making installment
loans. If the person intends to make installment loans to
borrowers in this state via the telephone, mail, or internet and
does not maintain a physical presence in this state, the person
shall obtain an installment loan license for the out-of-state
location at which the person will maintain the records evidencing
the loans.
(B) Sections 1322.21 to 1322.38 of the Revised Code do not
apply to any of the following:
(1) Any 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;
(2) Any licensee under sections 1321.01 to 1321.19 of the
Revised Code;
(3) Any licensee under sections 1321.35 to 1321.48 of the
Revised Code;
(4) Any registrant under sections 1321.51 to 1321.60 of the
Revised Code.
Sec. 1322.24. (A) Applications for an installment loan
license shall be in writing, under oath, and in the form
prescribed by the superintendent of financial institutions. The
application shall contain the name and address of the applicant;
the location or locations where the business of making installment
loans is to be conducted or, if the person intends to make
installment loans to borrowers in this state via the telephone,
mail, or internet and does not maintain a physical presence in
this state, the out-of-state location at which the person will
maintain the records evidencing the loans; background information
concerning the applicant's officers, directors, or other persons
controlling the applicant's lending operations; and any further
information the superintendent requires.
(B) An application for an original installment loan license
shall be accompanied by a nonrefundable application fee of five
hundred dollars per location where the business of making
installment loans is to be conducted or out-of-state location
where records evidencing the loans will be maintained, as
applicable.
Sec. 1322.25. (A) Upon the filing of an application for an
original installment loan license, and payment of the application
fee required under section 1322.24 of the Revised Code, the
superintendent of financial institutions shall investigate the
facts concerning the applicant. The superintendent may gather such
evidence, including criminal background checks and testimony given
under oath, as the superintendent determines necessary to make the
findings required by this section.
(B) Upon conclusion of the investigation, the superintendent
shall issue an installment loan license if the superintendent
finds that the financial responsibility, character, and general
fitness of the applicant are such as to warrant the belief that
the business of making installment loans will be conducted
honestly and fairly in compliance with sections 1322.21 to 1322.38
of the Revised Code.
(C) The superintendent shall either approve or deny an
application within sixty days after the date the superintendent
deems the application complete. An application shall be deemed
approved if it is not denied within that sixty-day period. If the
superintendent finds that the applicant does not meet the
requirements of division (B) of this section, the superintendent
shall issue an order denying the application and giving the
applicant an opportunity for a hearing on the denial in accordance
with Chapter 119. of the Revised Code.
Sec. 1322.26. (A) An installment loan license issued under
section 1322.25 of the Revised Code may be renewed on or before
the thirty-first day of December of the calendar year in which the
original license was issued, and on or before the thirty-first day
of December of each calendar year thereafter, if the
superintendent of financial institutions finds that both of the
following conditions are met:
(1) The renewal application is accompanied by a nonrefundable
application fee of two hundred fifty dollars per location where
the business of making installment loans is to be conducted or
out-of-state location where records evidencing the loans will be
maintained, as applicable.
(2) The applicant meets the requirements of division (B) of
section 1322.25 of the Revised Code.
(B) The superintendent shall either approve or deny a renewal
application within sixty days after the date the superintendent
deems the application complete. An application shall be deemed
approved if it is not denied within that sixty-day period. If the
superintendent finds that the applicant does not meet the
requirements of division (A) of this section, the superintendent
shall issue an order denying the application and giving the
applicant an opportunity for a hearing on the denial in accordance
with Chapter 119. of the Revised Code.
Sec. 1322.27. (A) Each installment loan license shall be
kept conspicuously posted in the place of business of the licensee
and is not transferable or assignable.
(B) No change in the place of business of a licensee shall be
permitted under the same license. When a licensee wishes to change
the licensee's place of business, the licensee shall give at least
thirty days' advance notice thereof to the division of financial
institutions. Within thirty days after receipt of that notice, the
superintendent of financial institutions shall issue a license for
the new location, unless the superintendent finds the licensee no
longer meets the necessary requirements.
(C) No change in the control of a licensee shall be permitted
under the same license. As used in this division, "change in the
control" means the sale or transfer of more than twenty-five per
cent of the licensee's ownership interest.
Sec. 1322.28. A licensee shall disclose in any printed,
televised, broadcast, electronically transmitted, or published
advertising relating to the licensee's services, including on any
electronic site accessible through the internet, the number
designated on the installment loan license issued to the licensee.
Sec. 1322.29. (A) In connection with an installment loan, a
licensee may charge, collect, and receive interest or finance
charges at any rate or rates agreed upon or consented to by the
parties to the loan contract but not exceeding twenty-five per
cent per year on the unpaid principal balances of the loan.
(B) In addition to the interest and charges authorized under
division (A) of this section, a licensee may charge, collect, and
receive, as interest, a loan origination fee and credit report fee
or, if the installment loan is a refinancing of a previous
installment loan made by the licensee, a renewal fee. Such fees
shall not, however, exceed the maximum fee amounts established by
the superintendent of financial institutions under section 1322.38
of the Revised Code or be included in the computation of the
twenty-five per cent limitation set forth in division (A) of this
section.
(C)(1) A licensee may accept as security for an installment
loan any of the following types of insurance:
(a) Insurance on tangible property against substantial risks
or loss;
(b) Insurance on the life and health of the borrower;
(c) Insurance against an accident of the borrower.
(2) The premium the borrower pays, or agrees to pay, for any
such insurance shall not constitute interest for purposes of
division (A) of this section. An insurance company may pay to the
party writing the insurance policy a commission that is reasonable
in relation to the commission the insurance company pays for a
comparable transaction not involving credit.
(D) A licensee may charge, collect, and receive an amount
equal to the attorney's fees the licensee incurs in the process of
collecting on an installment loan after default, provided the
amount does not exceed ten per cent of the original principal
amount of the loan.
(E) A licensee may place a lien on the borrower's personal
property as security for a loan but shall not place a lien on the
borrower's real property except when the lien is created upon the
filing or recording of a certificate of judgment.
Sec. 1322.30. (A) An installment loan made under sections
1322.21 to 1322.38 of the Revised Code shall be made pursuant to a
written loan contract that sets forth the terms and conditions of
the loan. The loan contract shall disclose in a clear and concise
manner all of the following:
(1) The date and amount of the loan;
(2) The cost of credit, as required by the "Truth in Lending
Act," 82 Stat. 146 (1974), 15 U.S.C. 1601, et seq.;
(4) The type of security required for the loan;
(5) The licensee's name and address;
(6) The amount of each type of insurance carried and the
premiums paid for each type;
(7) The amount of interest, fees, and other charges,
including any default penalties;
(8) A statement immediately above the borrower's signature,
printed in boldface type of the minimum size of twelve points, as
follows: "WARNING: THE COST OF THIS INSTALLMENT LOAN MAY BE HIGHER
THAN THE COST OF CREDIT YOU MAY BE ABLE TO OBTAIN FROM ANOTHER
LENDER, SUCH AS A BANK OR CREDIT UNION, OR FROM FRIENDS, FAMILY
MEMBERS, OR NON-PROFIT ORGANIZATIONS. BE SURE TO CONSIDER ALL YOUR
BORROWING OPTIONS BEFORE SIGNING THIS AGREEMENT."
(9) A statement, printed in boldface type of the minimum size
of twelve points, that informs the borrower of the phone number or
the mail or web site address at which the borrower may submit
complaints regarding the loan or the licensee to the
superintendent of financial institutions. If the borrower submits
such a complaint, the licensee shall promptly and fully cooperate
with the superintendent's investigation and resolution of the
complaint.
(B) A borrower, at the borrower's election, may pay an
installment loan with any one or more of the following payment
methods:
(1) Cash or a cash equivalent;
(3) Automated clearinghouse (ACH) entry, provided the
licensee does not condition its extension of credit on the
borrower's agreement to pay the loan with recurring ACH entries;
(4) Debit card, provided that the licensee maintains the
equipment necessary to accept such payments and does not condition
its extension of credit on the borrower's agreement to pay the
loan with recurring debit card payments.
(C) A borrower may rescind an installment loan for any reason
by returning the loan proceeds to the licensee in the form of cash
not later than the close-of-business on the business day
immediately following the date the borrower obtained the loan. A
licensee shall not collect any interest, fees, or other charges on
a rescinded loan.
Sec. 1322.31. Prior to consummating an installment loan, a
licensee shall deliver to the prospective borrower a document in
substantially the following form:
"BORROWER'S BILL OF RIGHTS
1. RIGHT TO INTEREST RATE LIMIT. The lender may not collect
interest at a rate greater than permitted by law.
2. RIGHT TO RESPONSIBLE LENDING PRACTICES. This loan is an
installment loan that you must pay according to the payment
schedule outlined in the loan contract, which schedule must be at
least 90 days in duration under state law. Additionally, to ensure
that you have the ability to pay this loan in full without default
or refinancing, the monthly payment you owe on the loan may not
exceed twenty-five per cent of your monthly gross income. Finally,
the lender may not allow you to refinance or rollover this loan,
and may not make a new installment loan to you on the same day
that you pay this loan.
3. RIGHT TO FREE FINANCIAL LITERACY EDUCATION PROGRAMS. State
law requires the lender to contribute part of its revenue from
this loan to the state's Financial Literacy Education Fund. The
lender may be periodically required by the state to provide
point-of-sale notice of the location, date, and time of financial
literacy education programs that are supported by this state fund.
4. RIGHT TO FREE RESCISSION PERIOD. You may rescind this loan
for any reason by returning the loan proceeds to the lender in the
form of cash not later than the close-of-business on the business
day immediately following the date you obtained the loan. The
lender may not collect any interest, fees, or other charges on a
rescinded loan.
5. RIGHT TO FAIR COLLECTION PRACTICES. If you default on this
loan, the lender must act fairly and professionally when
collecting the loan.
6. RIGHT TO FULL DISCLOSURE OF LOAN TERMS. The loan contract
must provide full disclosure of all important loan terms,
including the finance charges and interest rate. Additionally, the
loan contract must contain a written warning, immediately above
your signature, advising you that the cost of this loan may be
higher than the cost of credit you may be able to obtain
elsewhere.
7. RIGHT TO TRUTHFUL ADVERTISING. The lender may not make any
false or misleading statement regarding the rates, terms, or
conditions of an installment loan in its advertisements.
Additionally, the lender must list, in all of its advertisements,
the number designated on the installment loan license issued to
the lender.
8. RIGHT TO PREPAYMENT REBATE. You may prepay this loan at
any time without a penalty. If you choose to prepay this loan, the
lender may charge interest only for the time that the loan
principal was actually outstanding.
9. RIGHT TO COMPLAINT RESOLUTION. The loan contract must
provide the phone number or mail or website address at which the
borrower may submit complaints regarding the loan or the lender to
the state Superintendent of Financial Institutions. If you submit
such a complaint, the lender must promptly and fully cooperate
with the Superintendent's investigation and resolution of the
complaint.
10. RIGHT TO CONVENIENT PAYMENT METHODS. You may choose to
pay this loan in a manner that is convenient to you, including by
cash, check, or electronic funds transfer."
Sec. 1322.32. No licensee shall do any of the following:
(A) Make an installment loan if, at the time the loan was
consummated, the borrower's total monthly payment owed on the loan
exceeds twenty-five per cent of the borrower's monthly gross
income;
(B) Make an installment loan to a borrower if an installment
loan between that borrower and the licensee was terminated on the
same business day;
(C) Divide a borrower's loan request into separate loans,
each consummated within a seven-day period, if the purpose or
effect of that practice would be to charge, collect, or receive
more interest, fees, or other charges than the licensee would have
been permitted to charge, collect, or receive if the licensee had
made a single installment loan to the borrower;
(D) Charge, collect, or receive any interest, fees, or
charges in connection with an installment loan other than as
authorized under sections 1322.21 to 1322.38 of the Revised Code,
except for the following:
(1) The amount of lawful premiums actually paid for insurance
against the risk of nonrecording or releasing any instrument
securing the loan;
(2) The actual and reasonable expenses of repossessing,
storing, and selling any collateral pledged as security for a loan
in default;
(3) The court costs awarded by a court in connection with the
licensee's collection of a loan in default.
(E) Charge 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;
(F) Impose a prepayment penalty. If a borrower prepays an
installment loan, the licensee shall refund or credit the borrower
with the aggregate of all applicable charges for all fully
unexpired installment periods, as originally scheduled, that
follow the date of prepayment. If the prepayment is made other
than on a scheduled installment due date, the nearest scheduled
installment due date shall be used for purposes of that
computation.
(G) Advertise, display, distribute, or broadcast any false,
misleading, or deceptive statement or representation regarding the
rates, terms, or conditions of an installment loan;
(H) Report the repayment performance of an installment loan
to any consumer reporting agency, as that term is defined in
section 1322.33 of the Revised Code, unless the agency that
receives the information records it as a tier 1 credit event.
Sec. 1322.33. (A) As used in this section:
(1) "Debt collector" means a licensee, officer, employee, or
agent of a licensee, or any person acting as a debt collector for
a licensee, or any person while serving or attempting to serve
legal process on any other person in connection with the judicial
enforcement of any debt resulting from an installment loan made by
a licensee. "Debt collector" does not include an employee of the
licensee when making courtesy calls to remind borrowers of
upcoming installment due dates.
(2) "Borrower" means a person who has an outstanding or
delinquent installment loan. For the purpose of this section, the
term "borrower" includes the borrower's spouse, parent, if the
borrower is a minor, guardian, executor, or administrator.
(3) "Communication" means the conveying of information
regarding a debt directly or indirectly to any person through any
medium.
(4) "Consumer reporting agency" means any person that, for
monetary fees, dues, or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer
reports to third parties and that uses any means or facility for
the purpose of preparing or furnishing consumer reports.
(5) "Location information" means a consumer's residence,
telephone number, or place of employment.
(B) When communicating with any person other than the
borrower for the purpose of acquiring location information about
the borrower, the debt collector shall identify self, state that
the purpose for the communication is to confirm or correct
location information concerning a person, and, only if expressly
requested, identify the debt collector's employer. The debt
collector shall not do any of the following:
(1) State that the person for whom location information is
being sought is a borrower or owes any debt;
(2) Communicate by post card;
(3) Use any language or symbol on any envelope or in the
contents of any communication effected by the mails or telegram
that indicates that the communication relates to the collection of
a debt;
(4) After the debt collector knows the borrower is
represented by an attorney with regard to the subject debt and has
knowledge of, or can readily ascertain, such attorney's name and
address, not communicate with any person other than that attorney,
unless the attorney fails to respond within a reasonable period of
time to communication from the debt collector.
(C) A debt collector, without the prior consent of the
borrower given directly to the debt collector or without the
express permission of a court of competent jurisdiction, may not
communicate with a borrower in connection with the collection of
any debt:
(1) At any unusual time or place or a time or place known or
which should be known to be inconvenient to the borrower. In the
absence of knowledge of circumstances to the contrary, a debt
collector shall assume that the convenient time for communicating
with a borrower is after eight a.m. eastern standard time and
before nine p.m. eastern standard time at the borrower's location.
(2) If the debt collector knows the borrower is represented
by an attorney with respect to such debt and has knowledge of, or
can readily ascertain, such attorney's name and address, unless
the attorney fails to respond within a reasonable period of time
to a communication from the debt collector or unless the attorney
consents to direct communication with the borrower;
(3) At the borrower's place of employment if the debt
collector knows or has reason to know that the borrower's employer
prohibits the borrower from receiving such communication.
(D) A debt collector, when communicating with a third party
without the prior consent of the borrower given directly to the
debt collector, or without the express permission of a court of
competent jurisdiction, or as reasonably necessary to effectuate a
postjudgment judicial remedy, may not communicate, in connection
with the collection of any debt, with any person other than the
borrower, the borrower's attorney, a consumer reporting agency if
otherwise permitted by law, the attorney of the debt collector, or
a person from whom the debt collector seeks to acquire location
information about the borrower.
(E) A debt collector may not engage in any conduct the
natural consequence of which is to harass, oppress, or abuse any
person in connection with the collection of a debt, including, but
not limited to, any of the following:
(1) Using or threatening to use violence or other criminal
means to harm the physical person, reputation, or property of any
person;
(2) Using obscene or profane language or language the natural
consequence of which is to abuse the hearer or reader;
(3) Publication of a list of borrowers who allegedly refuse
to pay debts, except to a consumer-reporting agency;
(4) Causing a telephone to ring or engaging any person in
telephone conversation repeatedly or continuously with intent to
annoy, abuse, or harass any person at the called number.
(F) A debt collector may not use any false, deceptive, or
misleading representation or means in connection with the
collection of any debt, including, but not limited to, any of the
following:
(1) Falsely representing or implying that the debt collector
is vouched for, bonded by, or affiliated with the United States or
any state, including the use of any badge, uniform, or facsimile
thereof;
(2) Falsely representing the character, amount, or legal
status of any debt, or any services rendered, or compensation
which may be lawfully received by any debt collector for the
collection of a debt;
(3) Falsely representing or implying that any individual is
an attorney or that any communication is from an attorney;
(4) Representing or implying that nonpayment of any debt will
result in the arrest or imprisonment of any person or the seizure,
garnishment, attachment, or sale of any property or wages of any
person unless such action is lawful and the debt collector intends
to take such action;
(5) Threatening to take any action that cannot legally be
taken or that is not intended to be taken;
(6) Falsely representing or implying that a sale, referral,
or other transfer of any interest in a debt shall cause the
borrower to lose any claim or defense to payment of the debt;
(7) Falsely representing or implying that the borrower
committed any crime or other conduct in order to disgrace the
borrower;
(8) Communicating or threatening to communicate to any person
credit information that is known or that should be known to be
false, including the failure to communicate that a disputed debt
is disputed;
(9) Using or distributing any written communication that
simulates or is falsely represented to be a document authorized,
issued, or approved by any court, official, or agency of the
United States or any state, or that creates a false impression as
to its source, authorization, or approval;
(10) Using any false representation or deceptive means to
collect or attempt to collect any debt or to obtain information
concerning a borrower;
(11) Failing to disclose in the initial written communication
with the borrower that the debt collector is attempting to collect
a debt and that any information obtained will be used for that
purpose, and the failure to disclose in subsequent written
communications that the communication is from a debt collector,
except that division (F)(11) of this section shall not apply to a
formal pleading made in connection with a legal action;
(12) Falsely representing or implying that accounts have been
turned over to third parties for value;
(13) Falsely representing or implying that documents are
legal process;
(14) Using any business, company, or organization name other
than the true name of the debt collector's business, company, or
organization. Nothing in division (F)(14) of this section
prohibits the use of trade names or acronyms the business,
company, or organization is known by.
(15) Falsely representing or implying that documents are not
legal process forms or do not require action by the consumer;
(16) Falsely representing or implying that a debt collector
operates or is employed by a consumer reporting agency.
(G) A debt collector may not use unfair or unconscionable
means to collect or attempt to collect any debt, including, but
not limited to, any of the following:
(1) Collecting any amount, including any interest, fee,
charge, or expense incidental to the principal obligation, unless
the amount is expressly authorized by the agreement creating the
debt or permitted by law;
(2) Soliciting any postdated check or other postdated payment
instrument for the purpose of threatening or instituting criminal
prosecution;
(3) Depositing or threatening to deposit any postdated check
or other postdated payment instrument prior to the date on the
check or instrument;
(4) Causing charges to be made to any person for
communications by concealment of the true purpose of the
communication. The charges include, but are not limited to,
collect telephone calls and telegram fees. Division (G)(4) of this
section does not apply to any form of communication that is
authorized by the borrower for the express purpose of contacting
the borrower about the loan.
(5) Taking or threatening to take any nonjudicial action to
effect dispossession or disablement of property if there is no
present right to possession of the property claimed as collateral
through an enforceable security interest, there is no present
intention to take possession of the property, or the property is
exempt by law from dispossession or disablement;
(6) Communicating with a borrower regarding a debt by post
card;
(7) Using any language or symbol, other than the debt
collector's address, on any envelope when communicating with a
borrower by use of the mails or by telegram, except that a debt
collector may use the collector's business name if the name does
not indicate that the collector is in the debt collection
business. Nothing in division (G)(7) of this section prohibits the
use of trade names or acronyms the business is known by.
(8) Designing, compiling, and furnishing any form knowing
that the form would be used to create the false belief in a
borrower that a person other than the licensee is participating in
the collection of or in an attempt to collect a debt the borrower
allegedly owes the creditor, when in fact the person is not so
participating.
Sec. 1322.34. (A) Each licensee shall keep and use in the
licensee's business such books, accounts, and records as will
enable the superintendent of financial institutions to determine
whether the licensee is complying with sections 1322.21 to 1322.38
of the Revised Code. Each licensee shall preserve those books,
accounts, and records for at least four years after making the
final entry on any installment loan recorded therein.
(B) As required by the superintendent, each licensee shall
file an annual report with the division of financial institutions
detailing the licensee's origination and collection of installment
loans during the preceding year.
Sec. 1322.35. (A) As often as the superintendent of
financial institutions considers it necessary, the superintendent,
or the superintendent's designee, may examine the records of any
of the following:
(2) Any person who advertises, solicits, or makes installment
loans in this state;
(3) Any person whom the superintendent has reason to believe
is violating or is about to violate any provision of sections
1322.21 to 1322.38 of the Revised Code.
(B) In conducting examinations pursuant to this section, the
superintendent may subpoena witnesses, books, accounts, papers,
and records; administer oaths; hold hearings; and take testimony
under oath.
(C) The cost of any examination, investigation, or hearing
authorized under sections 1322.21 to 1322.38 of the Revised Code
may, in the superintendent's discretion, be charged to the
licensee or other person examined or investigated. Examinations,
investigations, or hearings may be conducted at the department of
commerce or, in the discretion of the superintendent, in the
county in which the business of the licensee is located or in
which the person required to have an installment loan license is
engaging in the business of making installment loans.
Sec. 1322.36. (A) If the superintendent of financial
institutions determines that a person is engaged in or is believed
to be engaged in activities that may constitute a violation of or
failure to comply with any provision of sections 1322.21 to
1322.38 of the Revised Code or any rule adopted thereunder, the
superintendent, after notice and a hearing conducted in accordance
with Chapter 119. of the Revised Code, may issue a cease and
desist order. Such an order shall be enforceable in the court of
common pleas. The remedy provided for in this division does not
preclude the superintendent from pursuing any other remedy
available by law.
(B) After notice and opportunity for a hearing conducted in
accordance with Chapter 119. of the Revised Code, the
superintendent may suspend, revoke, or refuse to issue or renew an
installment loan license if the superintendent finds a violation
of or failure to comply with any provision of sections 1322.21 to
1322.38 of the Revised Code or the rules adopted thereunder or
with any terms of a cease and desist order issued by the
superintendent. Upon the appeal of an order suspending or revoking
a license, the court may tax court costs to the losing party.
(C) A suspension, revocation, relinquishment, or expiration
of an installment loan license shall not affect the legality of
any pre-existing installment loan contract or prevent the
enforcement of those contracts.
Sec. 1322.37. (A) The superintendent of financial
institutions shall assess each licensee, at least once every three
months, an amount equal to one per cent of the installment loan
revenue the licensee generated during that period. The
superintendent shall deposit those assessments into the state
treasury to the credit of the financial literacy education fund
created in section 121.085 of the Revised Code.
(B) The superintendent may require each licensee to make
available to its customers, in a form prescribed by the
superintendent, information as to the location, date, and time of
any financial literacy education programs that are supported by
the financial literacy education fund.
Sec. 1322.38. (A) The superintendent of financial
institutions shall, in accordance with Chapter 119. of the Revised
Code, adopt rules that the superintendent considers necessary for
the implementation of sections 1322.21 to 1322.38 of the Revised
Code, including rules that establish the maximum loan origination
fee, credit report fee, and renewal fee that may be charged by
licensees under division (B) of section 1322.29 of the Revised
Code. The maximum fee amounts so established shall permit a
licensee to both defray its reasonable operating costs and earn a
profit that is commensurate with the profit margins earned by
other financial institutions making consumer loans to residents of
this state. To determine the maximum fee amounts, the
superintendent shall appoint and consult with a five-member
advisory committee consisting of persons with banking-related
experience. The committee shall be appointed not later than
January 1, 2011.
(B) In addition to imposing the assessment required by
section 1322.37 of the Revised Code, the superintendent may
advertise, sponsor, or promote activities or events designed to
support the financial literacy education of consumers who obtain
installment loans made under sections 1322.21 to 1322.38 of the
Revised Code.
Section 2. That existing section 121.085 of the Revised Code
is hereby repealed.
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