Collection Agencies in Ohio and Laws

Ohio Debt Collection Laws

1. Fair Debt Collection Practices Act (FDCPA): Like all states, Ohio is subject to the federal Fair Debt Collection Practices Act. The FDCPA applies to third-party debt collectors and prohibits them from engaging in deceptive, abusive, or unfair practices when collecting a debt.

2. Ohio Fair Debt Collection Practices Act: Ohio has its own Fair Debt Collection Practices Act, which is similar to the federal FDCPA. However, it also applies to original creditors in addition to third-party debt collectors, providing additional protections to consumers.

3. Statute of Limitations: In 2021, the statute of limitations for written contracts in Ohio is 8 years, and 6 years for oral contracts. For debts related to store credit cards, the statute of limitations is 4 years. Once this period has passed, debt collectors cannot sue to collect the debt. Be cautious as making a payment or acknowledging the debt may restart the statute of limitations.

4. Wage Garnishment: In Ohio, if a creditor has obtained a judgment against a debtor, they may be able to garnish wages. The limits on wage garnishments are generally in line with federal law, which allows the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage.

5. Bank Account Levies and Property Liens: After obtaining a judgment, a creditor may seek to levy a debtor’s bank account or put a lien on property. However, there are certain exemptions that may protect a portion of the debtor’s assets.

6. Communication with Debt Collectors: Debt collectors in Ohio are subject to restrictions on their communication practices, similar to the FDCPA. For example, they cannot contact debtors at inconvenient times, harass them, or communicate with third parties about the debtor’s debt without permission.

7. Bond Requirement for Debt Collectors: In Ohio, debt collectors are required to post a bond with the state before engaging in debt collection activities. This bond can be used to compensate consumers who have been harmed by illegal debt collection practices.

8. Exemptions: Ohio law provides certain exemptions to protect a debtor’s property and income from being seized to pay a judgment. This includes exemptions for homesteads, personal property, wages, and retirement accounts.

Please remember that laws change and the information I have provided may no longer be accurate. Consult a lawyer or legal aid organization to get the most current information and advice on dealing with debt collectors in Ohio.

A complete list of federal laws to be followed by all collection agencies in USA are listed here: Debt collection laws 

Ohio Debt Statistics

• Average Student Loan in Ohio is about $29,700
• The average mortgage debt in Ohio was $122K in 2018.
• The average credit card debt in Ohio as of 2019 is around $5,843
• Ohioans had an average credit score of  678 in 2018

Ohio Geographical Stats

• Population in Ohio : 11.5  million (year 2018)
• Number of millionaires: 243K 

Ohio debt collection agency can collect all across the state, including Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Canton and Youngstown.