Retail Installment Sales

Ohio’s Retail Installment Sales Act (RISA) (starting at Ohio Revised Code (ORC) Section 1317.01) covers certain types of sales in which the cash price may be paid in installments over a period of time.

Contacts Covered Under RISA

Sales of the following goods and services are covered under RISA: health spa services; home improvement services; automobiles; mobile homes; furniture; cemetery burial plots and swimming pools. Additional installment sales also may apply.

Requirements for a RISA Contract

A RISA contract must be in writing, and the seller must provide a copy of the signed contract to the buyer. Each contract must contain the following:

• Cash price of the specific goods;
• Buyer’s down-payment, if any, of money and/or goods;
• Unpaid balance of the cash price;
• Cost of any insurance the buyer has agreed to purchase;
• Principal balance owed on the contract;
• Amount of the finance charge; and
• Total amount owed, number of installment payments required and amount and due date of each payment.

Prohibited Charges

Certain charges are prohibited in a RISA contract, such as attorney fees and excessive finance charges for document services or late payments.

Under RISA, if the original seller transfers the contract to another person, that person inherits the legal rights the consumer had under the original seller. The transfer of the contract to another seller or owner does not change the consumer’s legal rights.