HB 542 Summary

• Requires providers of debt settlement services to obtain a license from the Ohio Director of Commerce and establishes comprehensive regulatory requirements for licensees.

• Prohibits charging fees to individuals until a debt settlement agreement is executed and at least one payment is made; limits total fees to reasonable amounts and restricts how fees are calculated.

• Mandates licensees provide written disclosures to individuals before enrollment, including warnings about credit rating impacts, potential litigation, tax consequences, and that results cannot be guaranteed.

• Establishes a corporate surety bond requirement (between $10,000-$50,000) for all licensees and requires licensees to maintain toll-free customer service and disclose their licensing status in advertisements.

• Creates enforcement authority for the Director of Commerce to investigate complaints, impose civil penalties up to $1,000 per violation, and allows individuals to recover damages, attorney's fees, and a minimum of $1,000 for certain violations.