How can I protect my rights as a borrower in Columbus, Ohio?

Your Action Plan: Before You Borrow

A. Check Lender Licensing:

• This is the most critical step. Always verify that the lender in Columbus is licensed to operate in Ohio.

• How to Check: Use the Nationwide Multistate Licensing System (NMLS) Consumer Access website or the Ohio Department of Commerce's Division of Financial Institutions website. This is your best defense against illegal loan sharks.

B. Read and Understand EVERYTHING:

• Get all promises in writing. Verbal promises are unenforceable.

• Scrutinize the APR: The Annual Percentage Rate is the true cost of your loan, including interest and fees. Use it to compare offers.

• Understand All Fees: Look for origination fees, prepayment penalties (fees for paying off the loan early), late fees, and any other charges.

• Calculate the Total Repayment Amount: Understand exactly how much you will pay back over the life of the loan.

C. Shop Around:

• Don't accept the first offer you get. Compare rates and terms from:

  • Local credit unions (like Kemba, Credit Union of Ohio, or BMI Federal Credit Union) often offer the most competitive rates and member-friendly terms.

  • Banks

  • Reputable online lenders

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