SB 251 Summary

• Requires persons providing debt settlement services in Ohio to obtain a license from the Director of Commerce, with exemptions for attorneys, accountants, financial planners, financial institutions, and court-appointed parties.

• Establishes comprehensive licensing requirements including application fees, surety bonds ($10,000-$50,000), and submission of agreements, fee schedules, and ownership information to the Director.

• Prohibits debt settlement providers from charging fees until a settlement is negotiated and at least one payment is made; fees must be reasonable and proportional to debts settled.

• Mandates extensive consumer protections including written disclosures about credit impacts, potential litigation, tax implications, and clear statements that results cannot be guaranteed; requires financial analysis before enrolling individuals.

• Creates enforcement mechanisms allowing the Director to investigate, issue cease-and-desist orders, impose penalties up to $1,000 per violation, and enables consumers to sue for damages, with a two-year statute of limitations.