Ohio Lawmakers Consider Debt Relief options as Delinquencies Rise
COLUMBUS, OH – November 7, 2023 – As โOhio families face a record numberโ of outstanding debts, stateโ lawmakers are considering legislation aimed at expanding access to debt relief services. The move comes as a new study reveals a significant surge in credit card delinquency ratesโข across the state, particularly ahead โฃof the holiday season.
Data from a recent WalletHub study indicates that more than one in four credit card payments in Ohio are โคcurrently overdue – a nearly 50% increase compared to a year ago. This rise in debt is compounded โคby โคthe high cost of living, leaving many Ohioans โคliving paycheck โขto paycheck, according to Greg Lawson, a fellow from the Buckeye Institute.
“People get nervous, worried about what they’re going to do,” Lawson said. “worried about how they’re going to โคpay those things off without incurring really big, interest fees.”
To address this growing concern, Ohio lawmakers are proposing two bills that would revise the licensing requirements for debtโ relief โcompanies. The Buckeye Institute released a policy โคmemo explaining the potential benefits of these bills,noting that โcurrent state law can create obstaclesโค forโค companies operating in the debt โฃrelief space.
“As of the state law, it makes it a little bit more tough for some of the companies that are involved โin this space to be able to operate in Ohio,” Lawson โexplained. “Soโข whatโ the General Assembly is tryingโ to โขdo is make it easier.”
However, officials are cautioning consumers to exercise vigilance when seeking debt reliefโ assistance. Judy Dollison, president of the Better Business Bureau in Central Ohio, warns that vulnerable individuals can be targeted by scams โคorโ predatory companies.
“People that are in debt โand are struggling with how to get โฃout of debt can be vulnerable to that urgency of wanting to solve theirโ problem, and that really opens the door to be victims of either โscams or predatory companies,” Dollison said.
The Better Business Bureau recommends consumers conduct thorough research and utilizeโ resources like their scam tracker โข(https://www.bbb.org/scamtracker) to identify potential โrisks.โ Red flags โinclude companies that:
* โRequest upfront fees
* Guarantee credit repair before reviewing financial data
* Pressure clients to make โhasty decisions
Dollison also advises caution regarding โขindividuals claiming affiliation with government agencies or special programs.
Lawson emphasized the importance ofโข accessible debtโฃ management resources.โฃ “It can be depressing,” he said.”They need to know that ther are all kinds ofโข services that are out there that can definitely help them manage [debt] โข in different ways, depending on what โthey feel like that they can handle and what โthey feel is appropriate.”
The proposed legislation and ongoing warnings from consumer protection agencies aim to provide Ohioans with more options and safeguardsโ as they navigate increasing financial pressures, particularly duringโค the holiday season.
