Sub. H.B. No. 173 Summary

• Establishes new regulatory framework for debt settlement service providers operating in Ohio, requiring registration with the Department of Commerce and maintenance of a $50,000 corporate surety bond.

• Prohibits providers from furnishing debt settlement services to Ohio residents except in compliance with new sections 4710.20 to 4710.32, with exemptions for financial institutions, attorneys, and certain other entities.

• Requires providers to disclose material information to debtors before agreement, including timeframes for results, potential credit damage, tax consequences, and the debtor's right to withdraw without penalty.

• Restricts fee collection to only after successful debt settlement, with fees calculated either proportionally by debt amount or as a consistent percentage of savings achieved.

• Authorizes the Superintendent of Financial Institutions to investigate violations, issue cease-and-desist orders, assess civil penalties up to $1,000 per violation, and order restitution; establishes debtor cause of action for violations.