You are never under an obligation to accept the loan you are offered
Ohio Direct Lenders Versus Matching Service
The main advantage of using a matching service is that only one application is required to apply to multiple lenders. This can save time and effort as each application can take 5 to 15 minutes to complete. It can also increase your chances of getting approved as you will hit multiple lenders all at once.
The downside to using a matching services is you are unable to pick the lenders. This means the lenders may include unlicensed lenders as well as licensed lenders. We prefer state-licensed lenders. It also means you may not get the best loan possible as the matching service generally sells the loan to the highest bidder versus the lender with the best deal for you. If you use a matching service, once you are offered a loan, make sure you are comfortable with your lender and the terms.
Whether you use a matching service or a direct lender there is a high likelihood that your data will end up with other lenders. An NPR article recounts a story where after applying via a matching service (with fake data) the author received calls months later from possible lenders.
We generally do not see anything wrong with a matching service in concept but one should be aware of how the services work. For more information see Direct Lenders or Matching Service.
Licensed Versus Unlicensed Lenders
Ohio regulation of installment loans falls into a bit of a gray area as they sometimes fall outside of the technical definition of a payday loan and more into the area of general unsecured installment loans. We prefer Ohio enders licensed in your state because they are typically more closely regulated and monitored. State-licensed lenders generally must apply, register, and remain compliant in every state in which they operate. As a result, state-licensed lenders are typically larger more permanent companies.
If a lender is unlicensed, they operating in Ohio under the assumption they can export laws from their state or tribe into Ohio. When we say tribe we are talking about tribal lenders. It refers to lenders backed by tribes formally recognized as American Indian Tribes that are generally treated as separate federal entities and operate under their own laws. These lenders were very common in early 2010’s, almost disappeared towards the end of the 2010’s, and in 2020 started to become more common again.
Doshound believes in transparent markets, fair regulations, and consumer choice. To the extent, the existence of tribal lenders provides more choice this is a good thing. The creation of the self-regulating Native American Financial Services Association (NAFSA) is also a good thing. We’d like to see continued transparency and enforcement to create safer choices for borrowers. For more information see Ohio Payday Loan Laws.
The above is our understanding of how Ohio installment lending works but we are not a law firm. Please contact the Ohio Division of Financial Institutions for more information.
They differ from companies who provide matching services because installment lenders underwrite and lend money. Many sites will advertise loans and even take an application, but they are not lenders. Instead, they are matching services representing a network of lenders. These sites take your application and then pass them on to the lenders in their network. These networks can consist of hundreds of lenders. In some cases, if the lender may even payday loan Nelsonville pass your application on to another lender if they are unable to make a loan to you. One can distinguish direct lenders from matching services by looking at the fine print of most websites. Matching services will say something like, “the operator of this website is NOT A LENDER.” Direct lenders will not include this disclaimer.
