What a title loan costs — before Ohio’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Ohio
- Rate cap
- Short-Term Loan Act caps at 28% APR and forbids car-title collateral (R.C. 1321.35-1321.48); title lenders instead charge triple-digit rates via the Credit Services Organization Act (R.C. Chapter 4712) and Mortgage/Small Loan acts.
- Key law
- Ohio Short-Term Loan Act, R.C. 1321.35-1321.48 (prohibits title collateral); Ohio Credit Services Organization Act, R.C. Chapter 4712 (the loophole used by title lenders).
- Enforcement
- Regulated by the Ohio Division of Financial Institutions. Consumer advocates and legislators have repeatedly sought to close the CSO/broker loophole that lets auto-title lenders operate despite the 2018 short-term loan reforms.
Ohio's Short-Term Loan Act (R.C. 1321.36) forbids taking a car title as collateral and caps rates at 28%, yet title lenders use the Credit Services Organization Act (R.C. 4712) to charge far higher rates.
What it means for a Ohio borrower
Ohio's short-term loan law bans title-secured loans and caps interest at 28%, but title lenders sidestep it by registering as credit-services organizations and adding broker fees. As a result, high-cost title loans are still available in Ohio at effective triple-digit rates through this loophole.
Before you borrow in Ohio
- Check whether the lender is licensed in Ohio — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Ohio attorney general and the CFPB.
- Ask whether the balance is even collectable under Ohio law before you pay a collector.
Cheaper first — try these before a title loan in Ohio
Title Loans and tribal lenders in Ohio
Many online lenders that market title loans to Ohio residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Ohio residents and how state law applies to them, see the Ohio tribal-lending page.
Tribal loans in Ohio →Frequently asked questions
Are title loans legal in Ohio?
In Ohio, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Ohio?
Short-Term Loan Act caps at 28% APR and forbids car-title collateral (R.C. 1321.35-1321.48); title lenders instead charge triple-digit rates via the Credit Services Organization Act (R.C. Chapter 4712) and Mortgage/Small Loan acts.
What can I do about a title loan I already have in Ohio?
Ohio allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Ohio attorney general or the CFPB if the lender breaks the rules.