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Ohio House panel hears testimony on bill to license debt‑resolution companies
Summary
The House Financial Institutions Committee heard proponent testimony on HB 534, which would license and regulate companies that provide debt‑resolution (debt‑settlement) services in Ohio, require disclosures and bonding, prohibit advance fees and align state rules with federal protections, while lawmakers pressed witnesses on fees, arbitration and credit impacts.
The Ohio House Financial Institutions Committee heard several hours of proponent testimony on House Bill 534, which would create a state licensing framework for companies that help consumers settle unsecured debts.
Supporters at the March hearing told committee members the bill would align Ohio law with the Federal Trade Commission’s telemarketing sales rule (TSR), ban advance fees, require background checks and bonding, keep consumer funds in FDIC‑insured accounts controlled by consumers, and impose detailed disclosures and accounting requirements on providers.
Proponents said the measure would give Ohioans a third, regulated option between credit counseling and bankruptcy. "HB 534 provides a sensible regulated third option, debt resolution, that allows consumers to settle their unsecured debts for less than they owe, avoid bankruptcy, and regain financial stability in a dignified way," said Mike Kamashka, government affairs manager for the Association for Consumer Debt Relief.
The bill’s supporters…
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