Collection Agencies in Ohio and Laws

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List of collection agencies in Ohio

Most Ohio business owners assume they have six years to collect an unpaid bill. They are wrong.

Recent legislative shifts, specifically Senate Bill 13, have quietly slashed the legal collection window for many debts by 33%. If your intake forms aren’t perfectly drafted “written contracts,” your right to sue now expires in just 4 years—not 6.

For dental practices in Columbus or suppliers in Cleveland, this is a ticking time bomb. While you are busy managing patient care or shipping logistics, your older accounts receivable are silently crossing a legal finish line, becoming permanently uncollectible.

At NexaCollect, we don’t just “dial for dollars.” We act as a regulatory shield, auditing your portfolio against Ohio’s Revised Code to ensure you don’t lose revenue to a technicality.

Sector Spotlight: The Ohio Dental “squeeze”

Ohio’s dental market is uniquely pressured. While the average dental practice in the state generates over $1 million in revenue, operational overhead consumes nearly 62% of that income. You cannot afford to lose the remaining margin to bad debt.

The Uninsured Gap: Nearly 19% of Ohio children lack dental insurance—that is four times the rate of those without medical insurance. This creates a massive volume of “self-pay” responsibility that parents often struggle to manage.
The “Oral Contract” Risk: Many dental offices rely on simple sign-in sheets or verbal agreements for copays. Under Ohio law, these are often classified as “oral contracts,” which now have a strict 4-year statute of limitations. If your current agency is sitting on 5-year-old debt, they are chasing ghosts.

The Consumer Minefield: Why Federal Rules Aren’t Enough

If your agency follows a generic “50-State” playbook, they will miss the Ohio-specific traps that defense attorneys love to exploit.

1. The “Portfolio Acquisitions” Trap (SB 13)

The Law: Ohio distinguishes between “Written Contracts” (6 years) and “Open Accounts” (4 years).
The Risk: Following the legal precedent of Portfolio Acquisitions, LLC v. Feltman, courts frequently classify credit card debt and loose medical invoices as “Open Accounts.”
The Reality: If your agency waits until year 5 to file suit—thinking they are safe—the judge will dismiss the case with prejudice. You lose the money and pay legal fees.
Our Solution: We run a “Date of Service” Audit immediately. Any account approaching the 48-month mark is flagged for immediate escalation.

2. HCAP & The Indigent Defense

The Law: Ohio’s Hospital Care Assurance Program (HCAP) mandates free care for residents below the poverty line.
The Risk: With 41% of adults carrying healthcare debt, many of your patients may legally qualify for retroactive HCAP status. Suing them isn’t just futile; it invites an Attorney General investigation.
Our Solution: We screen for HCAP eligibility before we dial. If a patient qualifies, we help you process the claim to get paid by the state pool, rather than harassing a family that cannot pay.

The B2B Advantage: The “Cognovit” Nuclear Option

While consumer collections are getting harder, Ohio offers B2B creditors a weapon that exists in almost no other state.

The Weapon: The Cognovit Note (Ohio ORC § 2323.13).
The Power: If your commercial contract includes this specific clause (and the required warning text), the debtor waives their right to a trial.
The Result: We can walk into a court and obtain a judgment against a non-paying business in as little as 24 hours. No hearings. No delays. We freeze their assets before they even know we’ve filed.
The Catch: This is strictly illegal for consumer debts. We only use this for your commercial accounts, ensuring we stay on the right side of the law.

Real Ohio Recovery Scenarios

Here is how our specific knowledge of the Ohio Revised Code translates into recovered dollars.

Case Study 1: The “Handshake” Hygiene Bill (Dental)

The Client: A multi-location pediatric dental group in Cincinnati.
The Problem: They had $90,000 in unpaid orthodontic overages. The parents had agreed verbally to the extra costs, but the paperwork was thin. The debt was approaching 4.5 years old.
The Nexa Strategy: We recognized that under SB 13, these “verbal” agreements were already time-barred (4-year limit). Instead of wasting money on lawsuits we would lose, we pivoted to a “Credit Reporting Amnesty” campaign. We offered to settle for 60% if paid immediately, leveraging the fact that we could still report the debt to credit bureaus even if we couldn’t sue.
The Result: Recovered $38,000 from parents who wanted to clear their credit for mortgage applications, salvaging revenue that was legally uncollectible in court.

Case Study 2: The “Cognovit” Fast-Track (Construction)

The Client: A heavy equipment supplier in Akron.
The Problem: A contractor rented three bulldozers, racked up $55,000 in fees, and went silent. Rumors swirled that the contractor was liquidating assets to flee the state.
The Nexa Strategy: We reviewed the rental agreement and found a valid Cognovit Warning. We bypassed standard letters entirely. We filed for a Confession of Judgment on Monday morning. By Tuesday afternoon, we had a judgment and a bank attachment order served on their primary operating account.
The Result: We seized the full $55,000 before the contractor could drain the account.

Quick Guide: Ohio Collection Laws

For your reference, here is the cheat sheet on what is (and isn’t) legal in the Buckeye State.

Feature	Consumer Debt (B2C)	Commercial Debt (B2B)
Confession of Judgment	VOID / ILLEGAL	LEGAL (Allows instant judgment).
Statute of Limitations	6 Years (Written) / 4 Years (Oral/Open)	6 Years (Written) / 4 Years (Oral/Open).
Wage Garnishment	25% (Continuous Order allowed)	25% (Continuous Order allowed).
Medical Interest Rate	Proposed Cap at 3% (HB 257)	Contract Rate or Statutory 8%.
Hospital Liens	NO STATE STATUTE (Contractual only)	N/A