Ohio § 1317.06

§ 1317.06.

(A) A retail seller at the time of making any retail installment sale may charge and

contract for the payment of a finance charge by the retail buyer and collect and receive

the same, which shall not exceed the greater of the following: (1) A base finance charge at the rate of eight dollars per one hundred dollars per year

on the principal balance of the retail installment contract.  On retail installment contracts providing for principal balances less than, nor

not in multiples of one hundred dollars, or for installment payments extending for

a period less than or greater than one year, said finance charge shall be computed

proportionately.  In addition to the base finance charge, the retail seller may charge and contract

for a service charge of fifty cents per month for the first fifty dollar unit or fraction

thereof, of the principal balance for each month of the term of the installment contract;

 and an additional service charge of twenty-five cents per month for each of the next

five fifty dollar units or fraction thereof, of the principal balance for each month

of the term of the installment contract.  This paragraph applies only to retail installment contracts with a principal balance

of seven hundred dollars or less. (2) A pre-computed base finance charge not in excess of the amount obtained by applying

the rate of one and one-half per cent per month to the unpaid portion of the unpaid

principal balance determined to be outstanding from time to time according to the

terms and schedule of payments of the retail installment contract executed in connection

with such retail installment sale. Such base finance charge and service charges may be computed on a basis of a full

month for any fractional period in excess of ten days.  For a fractional period of a month not in excess of ten days, there shall be no

base finance charge or service charge. Sections 1317.01 to 1317.11 of the Revised Code do not apply to any sale in which the base finance and service charge does not exceed

the sum of fifteen dollars. (B) Every retail seller may, at the time of making any retail installment sale, contract

for the payment by the retail buyer of lawful delinquent charges as follows: (1) No charges shall be made for delinquent payments less than ten days late. (2) Five cents for each dollar for a delinquent payment that is more than ten days late

may be charged, but in no event shall a delinquent charge for any one installment

exceed three dollars. A provision for the payment of interest on any installment not paid in full on or

before its scheduled due date at a rate not to exceed one and one-half per cent interest

per month is not a delinquent charge and is expressly authorized. (C)(1) No retail installment contract arising out of a consumer transaction and requiring

the payment of the charges authorized by this section shall be executed unless the

combined total of the cash price and all finance charges and service charges is required

to be paid according to one of the following: (a) A schedule of substantially equal consecutive installments, except where the contract

contains a provision allowing the buyer to refinance the contract under terms no less

favorable than those of the original contract after making the refund credit required

by section 1317.09 of the Revised Code ; (b) A schedule of periodic installments in which no scheduled installment is more than

fifty per cent greater than any other scheduled installment, except where the contract

contains a provision allowing the buyer to refinance the contract under terms not

less favorable than those of the original contract after making the refund credit

required by section 1317.09 of the Revised Code . (2) No seller shall, pursuant to any provision in a retail installment contract arising

out of a consumer transaction, accelerate any payments on account of a default in

the making of an installment payment that has not continued for at least thirty days.  Division (C) of this section does not apply to the extent that the payment schedule

is adjusted to the seasonal or irregular income of the buyer.