Car Title Loans in Ohio
Legal status, APR limits, repossession rules, and safer alternatives to protect your vehicle in Ohio.
Ohio significantly restricted predatory lending with the Short-Term Loan Act (STLA). Title loans in Ohio are now capped under lending regulations that limit fees and require licensing.
Key Loan Terms in Ohio
Safer Alternatives in Ohio
Before risking your vehicle, consider these options:
- →Ohio credit union PALs
- →Ohio Department of Job and Family Services emergency benefits
- →Ohio 211 community resources
- →Nonprofit credit counseling agencies
Title Loans and Selling Your Car
A title loan creates a lien on your vehicle. You cannot sell the car, transfer the title, or refinance until the lien is fully paid off and released by the lender. If you need to sell your vehicle to exit a title loan, coordinate with the lender to use the sale proceeds as a payoff.
Ohio passed significant lending reform legislation in 2018 after years of predatory lending. The reforms dramatically reduced high-cost loan availability while protecting consumers.
Frequently Asked Questions
Are car title loans legal in Ohio?
Ohio significantly restricted predatory lending with the Short-Term Loan Act (STLA). Title loans in Ohio are now capped under lending regulations that limit fees and require licensing.
What is the maximum APR for a car title loan in Ohio?
28% APR (STLA cap). Ohio's STLA caps short-term loans at 28% APR. Lenders can also charge a monthly maintenance fee of up to $10. Effective APR can still be significant for short-term loans but is far below pre-reform levels.
Can a lender repossess my car in Ohio?
Ohio lenders must follow the Ohio Consumer Sales Practices Act for all collections. Wrongful repossession is a violation of state consumer law.
What are the alternatives to a car title loan in Ohio?
Safer alternatives include: Ohio credit union PALs; Ohio Department of Job and Family Services emergency benefits; Ohio 211 community resources; Nonprofit credit counseling agencies.
What happens if I cannot repay a title loan?
If you cannot repay a title loan, the lender may repossess your vehicle. Ohio's STLA prohibits loan rollovers. Borrowers must repay or refinance under stricter rules. Once repossessed, you may have a redemption window — but costs escalate rapidly. Contact a nonprofit credit counselor immediately if you are struggling.
Does a title loan affect my ability to sell the car?
Yes — a title loan creates a lien on your vehicle's title. You cannot sell the car or transfer the title until the lien is paid off and the lender releases it. This can significantly complicate a private sale.