Ohio Senate Bill 122, regarding Debt Adjusting, passes the Senate Committee on Insurance and Financial Institutions.
First proposed to the Ohio Senate in March of 2019 by Senator Eklund, Ohio Senate Bill 112 has been in the Committee on Insurance and Financial Institutions for the past year and a half. On September 2, 2020, during the fifth committee hearing on the Bill, the Committee on Insurance and Financial Institutions passed the Bill in a 9 (yay) to 4 (nay) vote. The vote was relatively down party lines, with nine republicans voting yay, and all three democrats on the committee voting nay, joined by only one republican member.
The bill modifies the Debt Adjusting Law by expanding the definition of “debt adjusting” and by addressing the conflicts that exist between that Debt Adjusting Law and the federal laws on debt adjusting by establishing that a person in compliance with federal law relating to debt adjusting is not subject to any conflicting requirement under Ohio’s Debt Adjusting Law. Most importantly, this Bill removes the 8.5% fee cap, and therefore removes fee caps altogether for Ohio Debt Adjusting companies.
Next, Bill 122 will head to the Ohio Senate floor where the entire Ohio Senate will have the opportunity to debate and amend the Bill again before voting on it. If a bill receives a majority of the votes cast (17 of the 33 votes in the Ohio Senate), it passes and moves to the Ohio House of Representatives.
We will continue to keep you abreast of any updates regarding this Bill and its trajectory through the Ohio General Assembly.