I am starting a collection agency and I was interested in your services for the legal
contracts. I live in Ohio would you be able to Assist me with the debt laws?
In Ohio, debt collection is primarily governed by the Fair Debt Collection Practices
Act (FDCPA), which is a federal law that regulates the practices of debt collectors.
Additionally, Ohio has its own debt collection laws that supplement the FDCPA.
Under Ohio law, debt collectors are required to provide certain disclosures to
consumers, including information about the amount of the debt and the identity of the
creditor. Debt collectors are also prohibited from engaging in abusive, deceptive, or
harassing conduct, such as making false statements or threats, or repeatedly
contacting a debtor at unreasonable times or in an abusive manner.
Since you’re starting a collection agency in Ohio, it’s important to ensure that you
comply with both federal and state debt collection laws. It may be a good idea to
consult with a local attorney who can provide you with guidance on the specific legal
requirements that apply to your business.
About the Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the
practices of debt collectors, including those operating in Ohio. The FDCPA sets forth
various requirements that debt collectors must follow when attempting to collect
debts from consumers.
Some of the key provisions of the FDCPA include:
1. Prohibition of certain collection practices: The FDCPA prohibits debt collectors
from engaging in certain abusive or deceptive collection practices, such as
using false or misleading statements, harassing or threatening the debtor, or
communicating with the debtor at inconvenient times or places.
2. Disclosure requirements: Debt collectors must disclose certain information to
the debtor, such as the amount of the debt, the name of the creditor, and the
debtor’s rights under the law.
3. Verification of debts: If a debtor disputes a debt, the FDCPA requires the debt
collector to provide verification of the debt, such as a copy of the original
contract or a statement of the amount owed.
4. Cease and desist requests: If a debtor requests that the debt collector cease
and desist from further communication, the debt collector must stop
contacting the debtor, with certain exceptions (such as to inform the debtor of
legal action being taken).
5. Penalties for violations: The FDCPA provides for penalties and damages for
debt collectors who violate its provisions, including fines, damages, and
attorneys’ fees.
As a debt collector in Ohio, it’s important for you to comply with the requirements of
the FDCPA to avoid liability for violations. It may be beneficial to train your
employees on the requirements of the FDCPA to avoid accidental violations.
Do’s and Don’ts for debt collectors under the Fair Debt Collection Practices Act
(FDCPA):
Do’s:
1. Identify yourself and your company: Debt collectors must disclose their
identity and the name of the company they represent in all communication
with the debtor.
2. Provide accurate information: Debt collectors must provide accurate
information about the debt, including the amount owed, the creditor’s name,
and any fees or interest that may apply.
3. Provide written notice: Within five days of the first communication with the
debtor, debt collectors must provide a written notice that includes information
about the debt and the debtor’s rights under the law.
4. Respond to disputes: If a debtor disputes the debt, the debt collector must
provide verification of the debt or cease collection efforts until verification is
provided.
5. Be respectful: Debt collectors must treat debtors with respect and cannot use
abusive, harassing, or threatening language or engage in other forms of
intimidation.
Don’ts:
1. Misrepresent yourself or the debt: Debt collectors cannot falsely represent
themselves or the debt, such as by claiming to be a government agency or
misrepresenting the amount owed.
2. Contact debtors at inconvenient times: Debt collectors cannot contact debtors
before 8 a.m. or after 9 p.m., or at other inconvenient times or places.
3. Use threatening or intimidating language: Debt collectors cannot threaten or
intimidate debtors, such as by threatening legal action or implying that non-
payment will result in arrest or imprisonment.
4. Discuss the debt with third parties: Debt collectors cannot discuss the debt
with anyone other than the debtor, the debtor’s spouse, or the debtor’s
attorney.
5. Continue collection efforts after a cease and desist request: If a debtor
requests that the debt collector cease and desist from further communication,
the debt collector must stop all collection efforts, except for limited purposes
such as informing the debtor of legal action being taken.
Other Laws that supplement the FDCPA that you need to familiarize yourself with.
Ohio has its own laws that regulate debt collection practices. These laws supplement
the FDCPA and provide additional protections for Ohio consumers. Some of the key
Ohio debt collection laws include:
1. The Ohio Consumer Sales Practices Act (CSPA): The CSPA prohibits unfair
or deceptive acts or practices in the sale or lease of consumer goods or
services, including debt collection practices. It prohibits debt collectors from
misrepresenting the character, extent, or amount of the debt, or threatening to
take any action that cannot legally be taken.
2. The Ohio Retail Installment Sales Act (RISA): The RISA governs consumer
credit sales made by retail sellers, and prohibits deceptive or unfair acts or
practices in connection with such sales. It requires that certain disclosures be
made to the consumer, and regulates the content and form of retail
installment contracts.
3. The Ohio Uniform Commercial Code (UCC): The UCC provides a framework
for the creation and enforcement of security interests in personal property,
including debt collections. It requires that certain rules be followed when a
creditor repossesses collateral, and regulates the sale of repossessed
collateral.
4. The Ohio Mortgage Brokers Act (OMBA): The OMBA regulates the activities
of mortgage brokers and loan officers in Ohio, including those involved in debt
collection activities related to mortgage loans.
5. The Ohio Revised Code (ORC): The ORC contains various provisions that
regulate debt collection practices, including requirements for the filing of
lawsuits to collect debts, procedures for the garnishment of wages or bank
accounts, and the statute of limitations for debt collection actions.
6. The Ohio Fair Credit Reporting Act (OFCRA): The OFCRA regulates the use
of credit reports and consumer credit information, including the reporting of
debts to credit reporting agencies.
7. The Ohio Consumer Sales Practices Act (CSPA): The CSPA prohibits
deceptive or unconscionable acts or practices in consumer transactions, and
applies to the collection of debts by debt collectors.
8. The Ohio Identity Theft Protection Act: This law requires businesses to take
certain measures to safeguard personal information, including the information
of debtors, from identity theft.
9. The Ohio Uniform Fraudulent Transfer Act (UFTA): The UFTA provides
remedies for creditors who are defrauded by debtors who transfer assets to
avoid paying debts.
10. The Ohio Unfair Claims Settlement Practices Act (UCSPA): The UCSPA
regulates the handling of insurance claims and may apply to debt collection
activities involving insurance claims.
11. The Ohio Consumer Protection Act (OCPA): The OCPA prohibits unfair or
deceptive acts or practices in consumer transactions, and may apply to debt
collection activities involving consumer transactions.
12. The Ohio Uniform Commercial Code (UCC): The UCC provides rules and
guidelines for secured transactions, including debt collection activities. For
example, the UCC governs the sale of repossessed property and the priority
of liens.
13. The Ohio Deceptive Trade Practices Act: This law prohibits deceptive trade
practices, including false or misleading representations made in connection
with debt collection activities.
14. The Ohio Wage Garnishment Law: This law sets limits on the amount of
wages that can be garnished to satisfy a debt, and requires employers to
follow certain procedures when responding to garnishment orders.
15. The Ohio Interest Rate and Usury Law: This law sets limits on the amount of
interest that can be charged on debts in Ohio, and may be relevant to debt
collection activities that involve interest charges.
16. The Ohio Home Solicitation Sales Act: This law regulates door-to-door sales
and may be relevant to debt collection activities that involve in-person
solicitations.
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