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Ohio's debt collection laws combine federal and state regulations to protect consumers and guide collectors. Here's what you need to know:
Staying compliant with these laws is critical to avoiding lawsuits and penalties. Proper documentation, clear communication, and adherence to legal limits are key to lawful debt collection in Ohio.
Ohio Statute of Limitations for Different Debt Types
Ohio's debt collection laws combine federal and state regulations to ensure fair practices. These rules are designed to protect consumers while guiding collectors on lawful methods. Compliance is essential to avoid legal consequences.
The FDCPA, a federal law, safeguards Ohio consumers from harassment, threats, and dishonest tactics by third-party debt collectors. Violations of this Act can lead to statutory damages of up to $1,000 per incident. Additionally, since Ohio is a "one-party consent" state, consumers can record calls without informing the collector. These recordings can serve as evidence in FDCPA-related cases.
This federal law sets the groundwork, which Ohio state laws further refine to address local concerns.
The Ohio Consumer Sales Practices Act (CSPA), outlined in the Ohio Revised Code § 1345.01 et seq., extends its reach to include both third-party collectors and many original creditors. The Ohio Attorney General describes the CSPA as:
"The cornerstone of Ohio consumer law is the Consumer Sales Practices Act (CSPA), which protects individual consumers from unfair, deceptive and unconscionable sales practices in connection with consumer transactions."
Under the CSPA, debt collection is considered a consumer transaction. Practices such as misrepresentation or taking advantage of a consumer's vulnerabilities are strictly prohibited. While the FDCPA caps statutory damages at $1,000, the CSPA allows consumers to recover actual damages plus up to $5,000 in noneconomic damages if they win their case. However, lawsuits under the CSPA must generally be filed within one year of the violation.
In Ohio, most debts tied to written contracts, oral agreements, and open accounts (like credit cards) are subject to a six-year statute of limitations. This timeframe was reduced from eight years by Senate Bill 13, effective June 14, 2021. The clock usually starts ticking from the date of default (the first missed payment) or the last voluntary payment or written acknowledgment. Once the statute expires, creditors and collectors cannot sue or threaten legal action. Attempting to do so violates the FDCPA.
In Q2 2025, the Federal Trade Commission received over 140,000 complaints about debt collection, many involving attempts to collect time-barred debt. A notable case involved Asset Acceptance, LLC, which reached a $2.5 million settlement with the FTC and the Department of Justice for pursuing time-barred debts and misleading consumers about their obligations.
It's worth noting that actions like making a partial payment, signing a written acknowledgment, or entering a new payment agreement can restart the statute of limitations. Collectors need to verify key dates, such as charge-offs and last payments, to ensure accurate handling of accounts.
The table below outlines Ohio's statute of limitations for various debt types:
| Debt Type | Statute of Limitations | Relevant Ohio Statute |
|---|---|---|
| Written Contracts | 6 Years | Ohio Rev. Code § 2305.06 |
| Oral Contracts | 6 Years | Ohio Rev. Code § 2305.07 |
| Open Accounts (Credit Cards) | 6 Years | Ohio Rev. Code § 2305.06 / § 2305.07 |
| Promissory Notes | 6 Years | Ohio Rev. Code § 1303.16 |
| Medical Debt | 4 Years | State Law |
| Mortgage Deficiency | 2 Years | Ohio Rev. Code § 2329.08 |
Collectors can still request voluntary payments on time-barred debt, but they are legally required to disclose that the debt is no longer enforceable in court. Failing to make this disclosure exposes collectors to regulatory penalties.
Knowing what debt collectors can and cannot do in Ohio is essential for both parties - helping collectors stay within legal boundaries and empowering consumers to safeguard their rights. Both state and federal laws clearly outline acceptable practices and prohibit harassment or abuse.
Ohio law provides a clear framework for lawful debt collection practices. Collectors, after obtaining a court judgment, have access to several legal tools:
Additionally, collection agencies in Ohio can take assignment of debts and file lawsuits in their own name as long as they work with a licensed attorney and meet documentation requirements under O.R.C. § 1319.12.
Communication is also regulated. Collectors can contact consumers between 8 a.m. and 9 p.m. via phone, mail, or email. Within five days of the first contact, they must send a validation notice that includes the debt amount and informs the consumer of their right to dispute the debt within 30 days. If a written dispute is submitted during this period, all collection activity must pause until the debt is verified.
While these practices are allowed, collectors must strictly adhere to the legal limits to avoid violations.
Ohio law also specifies practices that are off-limits, aiming to protect consumers from harassment and deception.
If a debtor has legal representation, collectors must direct all communications to the attorney and cease contacting the consumer directly. Other banned practices include using postcards, charging for collect calls, or failing to properly identify themselves during contact.
These restrictions are in place to ensure that debt collection remains fair and respectful, protecting consumers from undue stress or harm.
Ohio's legal framework provides clear guidelines for debt buyers and collectors, ensuring they operate within the law. Following these rules can help avoid legal disputes and regulatory penalties.
In Ohio, general collection agencies are not required to have a state license or bond to operate. However, debt adjusters face more stringent regulations. They must comply with the Debt Adjusters Act, which includes holding at least $100,000 in insurance coverage and maintaining separate trust accounts for debtor funds. Additionally, debt adjusters must file annual audits conducted by an independent CPA with the Attorney General's Office. Fee limits also apply, capping charges for consultations and monthly services.
Proper documentation is crucial for protecting legal rights, especially in litigation. Under Ohio Revised Code § 1319.12, collection agencies must maintain a written assignment that documents the transfer of debt. This document should include the assignment date, details of any consideration exchanged, and authorization for litigation, as required by O.R.C. § 1319.12. Without this, agencies may lose legal standing in court.
When consolidating multiple accounts against a single debtor, each account must be separately identified in court filings. If a debtor disputes one of the accounts in good faith, the court will isolate that account to address it individually. These measures ensure transparency and fairness in legal proceedings.
Once proper documentation is in place, collectors must follow strict verification protocols. Within five days of initial contact, collectors are required to provide validation information. This includes their contact details, the creditor's name, the account number, and an itemized breakdown of interest, fees, and the current amount owed. Consumers have 30 days to dispute the debt in writing or request details about the original creditor.
If a dispute is filed, all collection activity must stop until the debt is verified through the original bill or proof of ownership. Tammy Burns, Editor at ConsumerAffairs, explains:
Disputing the debt or asking for more information on the original creditor means the debt collector must pause collection efforts until they respond to you.
Collectors should regularly review their validation notices to ensure they include a full itemization of all interest, fees, and credits applied since the original default. These steps are key for staying compliant and ensuring smooth collection operations.
Once creditors meet verification and documentation requirements, they can take legal steps to recover debts. Knowing the ins and outs of Ohio's judgment process is essential for staying compliant and making the most of recovery efforts.
In Ohio, judgments issued in 2026 will carry a statutory interest rate of 7% per year. This rate is determined annually by the Ohio Tax Commissioner. The calculation involves rounding the federal short-term interest rate to the nearest whole number and adding 3%. Unless a written contract specifies a different rate, this 7% applies across the board.
David A. Head, Shareholder and Consumer Collections Group Chair at Weltman, Weinberg & Reis Co., LPA, explains:
"The tax commissioner has determined that this rate is 7% for the year 2026. All judgments granted in Ohio in 2026 will bear interest at the rate of 7% per annum, except where there is a written contract providing for a different rate of interest."
Once a judgment is issued, the interest accrues at this rate until the debt is fully paid. By default, the interest is calculated as simple interest, unless there’s a specific agreement or law requiring compound interest. Creditors should carefully examine the original loan or credit agreement, as any agreed-upon rate in the contract takes precedence over the statutory 7%.
After securing a judgment, creditors can use various court-approved methods to enforce it. These include:
Ohio judgments are enforceable for five years. However, if no action - such as an execution sale or filing a certificate of judgment - occurs within that time, the judgment becomes "dormant." Dormant judgments can be revived within 10 years, but creditors must act promptly to avoid losing their enforcement rights.
Certain income sources are fully shielded from garnishment, including workers' compensation, unemployment benefits, disability payments, and most pensions. Additionally, Ohio law protects employees by prohibiting employers from firing someone due to a single wage garnishment within a 12-month period.
These collection tools highlight the importance of adhering to legal requirements and acting swiftly to recover debts effectively. Proper execution ensures creditors can maximize their recovery efforts while staying compliant with Ohio laws.
Ohio's debt collection laws require a careful balance of adherence to both federal and state regulations. The Fair Debt Collection Practices Act (FDCPA) and the Ohio Consumer Sales Practices Act (CSPA) set the rules for debt buyers, lenders, and collection agencies. While Ohio does not mandate licensing or bonding for collectors, the compliance expectations are stringent. Violations of these laws can result in legal action within a year of the offense. Under the CSPA, consumers may recover actual damages along with up to $5,000 in noneconomic damages.
Proper documentation is a must. Each debt assignment must be voluntary, in writing, and clearly authorize legal action while disclosing any account consolidations. The statute of limitations for most consumer debts in Ohio is six years, though medical debt generally has a shorter four-year limit.
Collectors must adhere to strict validation and communication rules. A detailed validation notice must be sent within five days of initial contact, and all collection efforts must stop if the debtor disputes the debt within a 30-day period. Communication is restricted to between 8:00 a.m. and 9:00 p.m., and collectors must cease contact entirely if the debtor submits a written request.
These points underscore the importance of understanding and applying Ohio's debt collection laws. With these foundations in place, the next step is to focus on practical strategies for compliance.
To meet Ohio's legal requirements, consider implementing the following measures:
"If you mistakenly violate the Ohio debt collection laws, you could create a liability for your business and even open yourself up to an expensive lawsuit".
Additionally, monitor the Ohio Attorney General's website and the Consumer Financial Protection Bureau (CFPB) for updates on enforcement actions and regulatory changes.
Leveraging technology can also simplify compliance. Platforms like Debexpert can help track statute of limitations deadlines, manage documentation, and ensure proper verification processes during debt acquisition and collection. These steps will help align your practices with Ohio's legal framework and minimize potential risks.
In Ohio, disputing a debt does not reset the statute of limitations. The six-year timeframe starts from the date of the last payment or activity on the account. However, if you make a new payment, it can restart the clock and potentially revive the debt. If you're uncertain about your legal obligations, think carefully before making any payments, as this could impact the statute of limitations.
In Ohio, proving that a debt buyer owns an account requires specific documentation. This includes evidence that the debt was purchased, such as an assignment of the debt or records detailing the transfer of ownership from the original creditor to the debt buyer. These requirements are clearly defined under Ohio Revised Code Section 1319.12.
In Ohio, some types of income and funds are safeguarded from garnishment or bank levies. These include Social Security benefits, government assistance, workers' compensation payments, retirement funds (such as pensions or annuities), and money received for child support or alimony. These measures ensure that individuals can still access essential income sources, even when facing debt collection efforts.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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