H.B. 222 Summary

• Requires persons providing debt settlement services in Ohio to obtain a license from the Director of Commerce and establishes comprehensive regulatory standards for licensees.

• Prohibits charging fees for debt settlement services unless a settlement has been executed and at least one payment made; restricts fees to reasonable amounts based on debt reduction or proportional savings.

• Mandates licensees maintain surety bonds ($10,000-$50,000), provide financial analyses, disclose all terms and risks to consumers before agreements, and maintain toll-free customer service lines.

• Allows the Director of Commerce to investigate licensees, impose civil penalties up to $1,000 per violation, suspend or revoke licenses, and establish licensing fees through rulemaking.

• Provides consumers private rights of action to recover compensatory damages, statutory damages of at least $1,000 for certain violations, and attorney's fees; deems unlicensed debt settlement service violations unfair consumer practices.