Ohio Administrative Code › Title 1301:8 - Division of Financial Institutions: Consumer Finance › Chapter 1301:8-2 - Small Loan Act › Section 1301:8-2-05 - Advertising

Current through all regulations passed and filed through July 1, 2024
(A) The following
			 advertising requirements shall be observed by all small loan licensees:
(1) The words "advertisement" and
			 "advertising," as used in sections
			 1321.01 to
			 1321.19
			 of the Revised Code and this chapter, shall include all material printed,
			 published, displayed, distributed or broadcast for the purpose of obtaining
			 applications for loans. Materials displayed or distributed over the internet,
			 telephone, facsimile, or other electronic transmission for the purposes of
			 obtaining applications for loans are considered advertising for purposes of
			 this rule.
(2) A small loan
			 licensee shall not advertise that loans will be made at any place other than
			 that named in the small loan license. Every advertisement shall state and
			 clearly indicate the identity of the small loan licensee and shall do so in a
			 manner that prevents confusion with the name of any other unrelated small loan
			 licensee.
(3) A small loan licensee
			 shall not use loan advertisements, 
									that provide only telephone
			 number, email address, or facsimile number
			 , that
			 
									does not
			 clearly indicate the identity of the small loan licensee.
			 A licensee who clearly displays their NMLS licensee
			 number on their advertisement shall be in compliance with this
			 paragraph.
(4) A small loan
			 licensee shall not advertise that loans shall be made within a specified time
			 after the loan application is received, unless it is the general practice of
			 the small loan licensee to make loans within the specified time.
(5) A small loan licensee shall not advertise
			 special terms, reduced rates, reduced payments, or any other special feature of
			 a loan within a specified limited time, unless the advertisement clearly states
			 any limitations that apply to the offer.
(6) A small loan licensee shall not advertise
			 by the use of unqualified superlatives, including but not limited to "lowest
			 rates," "lowest costs," "lowest payment plan," or "cheapest loans," or by
			 making offers which cannot be reasonably fulfilled.
(7) A small loan licensee shall not advertise
			 the words "new" or "reduced," or words of similar import, in connection with
			 rates, costs, payments or plans, for more than ninety days after the rates,
			 costs, payments or plans shall have become effective.
(8) Any small loan licensee specifying in any
			 advertisement charges on loans in dollars shall also state the length of time
			 required to repay the loans as well as the method of repayment, and shall, when
			 the rate of interest is stated, do so in a manner to prevent
			 misunderstanding.
(9) Any small
			 loan licensee advertising flat or average payments on loans which include
			 principal and interest shall specify the number and frequency of payments
			 required to repay the loans. Whenever the amounts of periodic payments are
			 advertised, the amounts must include all interest to the borrower, as well as
			 principal. However, the principal payments alone may be shown separately,
			 provided the interest charges are also clearly stated with equal
			 prominence.
(10) A small loan
			 licensee shall not advertise rebates, rates, or charges below the maximum
			 lawful rate of interest which are conditioned upon prompt payment unless the
			 condition is clearly indicated.
(11) A small loan licensee shall not
			 advertise:
(a) Waiver of payments in the event
			 of sickness or disability or other contingency, without advertising that the
			 interest and other charges, if assessed, continue during the waiver
			 period.
(b) That the first payment
			 on any loan may be made more than thirty days after the date of loan closing,
			 without advertising that the interest and other charges, if assessed, will
			 accrue from the date of disbursement of the loan funds until the first payment
			 is due.
(12) A small
			 loan licensee shall not advertise loans for illegal purposes.
(13) A small loan licensee shall not
			 advertise specific amounts of loans to be made on designated makes and models
			 of automobiles unless it is also stated that the amounts so specified are only
			 the average loan values and are subject to the actual condition of the
			 automobiles.
(14) A small loan
			 licensee shall not give, or advertise an offer to give, any article or
			 merchandise or anything of value, other than a reduction in interest, as an
			 inducement to a borrower to make a loan.
(15) A small loan licensee shall not
			 advertise the availability of credit-related insurance without disclosing the
			 charge, if any, for the insurance.