Ohio Dealer Finance Laws

Ohio law requires all retail installment contracts to be in writing. If you are using a third party lender, be sure the paper work that is being printed during the loan application is compliant with all Ohio laws in addition to all Federal laws. If you are operating a buy here pay here dealership be sure the documents completed by your attorney for you to use on every transaction are compliant with all Ohio and Federal finance laws
Ohio laws require the customer is given copies of all finance documents and will normally be asked to sign a document stating they have received copies of the documents. So once again, be sure to make 2 copies of every document one goes to the customer and one goes into your records
Ohio law also requires certain details must be included in the written contract such as:

• The price
• The down payment
• The cost of insurance (if any)
• All finance charges
• Balance due under the contract
• Details of payments
Dealers are strictly prohibited from giving out customer’s social security numbers, credit card account numbers, expiration dates, and other personal financial information. Ohio state laws also prohibit any business from printing credit card expiration dates or more than five digits of consumers’ credit card numbers on receipts

Ohio law requires all retail installment contracts to be in writing. If you are using a third party lender, be sure the paper work that is being printed during the loan application is compliant with all Ohio laws in addition to all Federal laws. If you are operating a buy here pay here dealership be sure the documents completed by your attorney for you to use on every transaction are compliant with all Ohio and Federal finance laws.

Ohio laws require the customer is given copies of all finance documents and will normally be asked to sign a document stating they have received copies of the documents.

When helping your customers gain financing you also must follow the Federal Equal Credit Opportunity Act. The Equal Credit Opportunity Act ensures that all consumers are given an equal chance to obtain credit. Factors such as income, expenses, debt, and credit history are still taken into consideration when approving or disapproving credit. Anyone involved in granting credit, such as automobile dealers who arrange financing through third party lenders, automobile dealers offering buy here pay here
financing, and motor vehicle dealers acting as the lien holder of financed motor vehicles must follow the Equal Credit Opportunity Act.

Federal Dealer Finance Laws

Strict federal dealer finance laws must be followed at at all times or you could face up to $500,000 in fines.

If you offer some type of financing in your Ohio dealership, you will be required to follow several State and Federal financing guidelines. When you leave class you will be aware of these laws so you can stay compliant.

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Dealer finance laws are covered in dealer training!