Ohio Lawmakers Consider Debt Relief options as Delinquencies Rise
COLUMBUS, OH – November 7, 2023 – As Ohio families face a record number of outstanding debts, state 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 rates across the state, particularly ahead of the holiday season.
Data from a recent WalletHub study indicates that more than one in four credit card payments in Ohio are currently overdue – a nearly 50% increase compared to a year ago. This rise in debt is compounded by the high cost of living, leaving many Ohioans living paycheck to 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 pay 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 debt relief companies. The Buckeye Institute released a policy memo explaining the potential benefits of these bills,noting that current state law can create obstacles for companies operating in the debt relief space.
“As of the state law, it makes it a little bit more tough for some of the companies that are involved in this space to be able to operate in Ohio,” Lawson explained. “So what the General Assembly is trying to do is make it easier.”
However, officials are cautioning consumers to exercise vigilance when seeking debt relief assistance. Judy Dollison, president of the Better Business Bureau in Central Ohio, warns that vulnerable individuals can be targeted by scams or predatory companies.
“People that are in debt and are struggling with how to get out of debt can be vulnerable to that urgency of wanting to solve their problem, and that really opens the door to be victims of either scams or predatory companies,” Dollison said.
The Better Business Bureau recommends consumers conduct thorough research and utilize resources like their scam tracker (https://www.bbb.org/scamtracker) to identify potential risks. Red flags include companies that:
* Request upfront fees
* Guarantee credit repair before reviewing financial data
* Pressure clients to make hasty decisions
Dollison also advises caution regarding individuals claiming affiliation with government agencies or special programs.
Lawson emphasized the importance of accessible debt management resources. “It can be depressing,” he said.”They need to know that ther are all kinds of services that are out there that can definitely help them manage [debt] in different ways, depending on what they feel like that they can handle and what they feel is appropriate.”
The proposed legislation and ongoing warnings from consumer protection agencies aim to provide Ohioans with more options and safeguards as they navigate increasing financial pressures, particularly during the holiday season.