Interest, Usury and Late Charges

"The parties to a bond, bill, promissory note, or other instrument of writing may stipulate an interest rate not to exceed 8% annually; except under limited circumstances. ORC § 1343.01

An exception to this rule occurs when there is no written instrument in which the interest rate is stipulated, the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47. ORC §1343.03

Ohios General Assembly has the power to regulate rates of interest in regard to specific matters such as:

(1) interest under the Uniform Bond Law ( ORC §133.26)
(2) interest on loans by credit unions (ORC §1733.25)
(3) interest on retail installment sales (ORC §1317.06)
(4) interest on loans by small loan companies (ORC § 1321.13) "

"The failure of statutes that create obligations or special liabilities to mention interest, generally, does not manifest an unequivocal legislative intent for the obligation to not bear interest. It has, however, been held that interest is not recoverable where the statue creating the liability imposes a penalty or designates the damages recoverable. Iron R. Co. v. Lawrence Furnace Co., 49 Ohio St. 102, 30 N.E. 616 (1892).The Ohio legislature has very broad power in regard to the protection of the public from financial loss under the general police power of the state. The amount of interest recoverable has long been subject to state legislation. Smith v. Parsons, 1 Ohio 236, 1823 WL 18 (1823)

Banks are permitted to charge an interest rate allowable to natural persons. La Dow v. First Nat. Bank of New London, 51 Ohio St. 234, 37 N.E. 11 (1894)."