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Auto-title loan providers in Ohio are selling loans under two state financing regulations

Auto-title loan providers in Ohio are selling loans under two state financing regulations

Centered on our research and current studies associated with the CSO payday loan model in other states, we improve the following issues:

  • First, the CSO model will be employed for the express reason for getting across the brief Term Loan Act so that you can charge greater interest and costs to your customer;
  • 2nd, the CSO model is much more high priced and permits bigger loan amounts compared to the storefront pay day loan. The typical cash advance size is $300; the CSO loan optimum quantity is dramatically greater;
  • Third, the CSO statute calls for the arranger and provider of credit become split entities, otherwise the CSO will be breaking their state usury rate cap.
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