Ohio Dealer Finance Laws
Ohio law requires all retail installment contracts to be
in writing, period. 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.