Third-party debt buyers purchase Ohio consumer debt portfolios for 4-8 cents per dollar, then sue for the full balance plus interest. A debt buyer who paid $400 for your $10,000 old credit card debt can potentially sue for the full $10,000—and if you don’t respond within Ohio’s 28-day Answer deadline, they’ll get it through wage garnishment taking 25% of your income.

This guide explains Ohio’s debt collection laws—the six-year statute of limitations, the Fair Debt Collection Practices Act, and Ohio’s Consumer Sales Practices Act—and how Guardian Litigation’s attorneys use these statutes to defend clients facing collection lawsuits. When collectors face legal representation, they must produce documentation they often don’t have, defend against affirmative defenses, and risk counterclaim liability for violations. That changes settlement economics entirely.

Guardian Litigation’s attorneys have handled over 55,000 debt collection cases across. We file Answers within Ohio’s 28-day deadline, raise defenses that create settlement leverage, conduct discovery that exposes missing documentation, and assert counterclaims when collectors violated federal law. 

Understanding Ohio’s Debt Collection Framework

Understanding Ohio’s Debt Collection Framework

Ohio debt collection operates under a dual-layer legal structure: federal protections that apply nationwide and Ohio-specific statutes that add enhanced consumer safeguards. The Fair Debt Collection Practices Ac provides baseline federal protections against abusive collection practices, while Ohio’s Consumer Sales Practices Act and related statutes create additional state-level remedies that apply to both original creditors and third-party collectors.

Why this dual structure matters: The FDCPA only regulates third-party debt collectors—companies collecting debts on behalf of others or debts they purchased. It doesn’t cover original creditors like the bank that issued your credit card. Ohio’s Consumer Sales Practices Act fills this gap by prohibiting deceptive and unfair practices by all entities involved in consumer transactions, including original creditors. This means Ohio residents have legal claims against abusive original creditors that consumers in many other states lack.

The Ohio Attorney General’s Consumer Protection Section enforces the Consumer Sales Practices Act and accepts complaints about both original creditors and debt collectors. Understanding both federal FDCPA rights and Ohio state law protections gives you the complete picture of available legal remedies and defenses.

What Debt Collectors Cannot Do in Ohio

Understanding Ohio’s Debt Collection Framework

Understanding Ohio’s Debt Collection Framework

Ohio debt collection operates under a dual-layer legal structure: federal protections that apply nationwide and Ohio-specific statutes that add enhanced consumer safeguards. The Fair Debt Collection Practices Act provides baseline federal protections against abusive collection practices, while Ohio’s Consumer Sales Practices Act and related statutes create additional state-level remedies that apply to both original creditors and third-party collectors.

Why this dual structure matters: The FDCPA only regulates third-party debt collectors—companies collecting debts on behalf of others or debts they purchased. It doesn’t cover original creditors like the bank that issued your credit card. Ohio’s Consumer Sales Practices Act fills this gap by prohibiting deceptive and unfair practices by all entities involved in consumer transactions, including original creditors. This means Ohio residents have legal claims against abusive original creditors that consumers in many other states lack.

The Ohio Attorney General’s Consumer Protection Section enforces the Consumer Sales Practices Act and accepts complaints about both original creditors and debt collectors. Understanding both federal FDCPA rights and Ohio state law protections gives you the complete picture of available legal remedies and defenses.

What Debt Collectors Cannot Do in Ohio

What Debt Collectors Cannot Do in Ohio

The FDCPA prohibits specific collection practices, including harassment, abuse, and deceptive tactics. In Ohio, these federal prohibitions combine with state law restrictions to create comprehensive protection against collector misconduct.

Prohibited harassment and abuse under federal and Ohio law:

• Repeated phone calls intended to annoy, abuse, or harass (calling 5-10 times daily crosses this line)
• Using obscene, profane, or abusive language during collection attempts
• Threatening violence, harm to reputation, or criminal prosecution
• Publishing “shame lists” or publicly disclosing your debt to coerce payment
• Calling before 8:00 a.m. or after 9:00 p.m. in your time zone without permission

Prohibited deceptive practices:

• Falsely claiming to be attorneys, law enforcement, or government officials
• Misrepresenting the amount you owe or the legal status of the debt
• Threatening legal action they don’t intend to take or cannot legally take (like arrest for unpaid debt)
• Sending documents designed to look like court papers or official legal process when they’re not
• Falsely claiming the debt will affect your credit report if it’s already being reported

Ohio-specific protections under the Consumer Sales Practices Act: Ohio Revised Code § 1345.02 prohibits “unfair or deceptive acts or practices” in consumer transactions, including debt collection. This statute applies to original creditors (not just third-party collectors) and includes practices like misrepresenting the consequences of non-payment, using deceptive collection letters, or engaging in unconscionable collection tactics.

What these violations mean for your case: FDCPA violations create federal counterclaim rights allowing you to potentially sue collectors for statutory damages up to $1,000 plus actual damages and attorney fees. Ohio Consumer Sales Practices Act violations can result in damages, attorney fees, and in cases of willful violations, treble damages (three times actual damages).

How Ohio Law Defines the Statute of Limitations

Under Ohio Revised Code, written contracts—including credit card agreements, personal loan contracts, and auto financing agreements—carry a six-year statute of limitations. Lawsuits must be filed within six years after the “cause of action accrued,” which for debt collection purposes means when the breach occurred or when you missed a payment that wasn’t subsequently cured.

The Ohio Revised Code also establishes the same six-year limitation for oral contracts and implied agreements. This uniformity across contract types simplifies analysis for most consumer debts—whether your credit card agreement was explicitly written or an oral understanding about payment terms, the six-year deadline applies.

Why this matters strategically: Ohio’s six-year statute of limitations is longer than many states (some states have 3-4 year deadlines), giving collectors more time to sue. But it’s also long enough that many consumers have old debts that have already passed the six-year mark without realizing these debts are legally uncollectable. Debt buyers frequently purchase portfolios of 5-7 year old debts, then sue immediately hoping defendants won’t raise the statute of limitations defense.

When the Statute of Limitations Clock Starts Ticking in Ohio

The six-year countdown begins from the date of your last payment or the date the account first became delinquent and was never brought current, whichever is later. This is critical: the clock doesn’t start when collectors first contact you or when they file a lawsuit—it starts from your last activity on the account, often years before any lawsuit.

The documentation challenge for debt buyers: Third-party collectors who purchased your debt often lack complete payment records showing the exact date of last payment. They know approximately when the account went delinquent (based on when they purchased it), but they may not have documentation proving the precise last payment date. When attorneys raise statute of limitations as an affirmative defense, the collector bears the burden of proving the debt isn’t time-barred—and if they can’t produce payment records, they often settle rather than risk dismissal.

Actions that restart Ohio’s statute of limitations:

Making any payment, even $1, restarts the six-year clock from the payment date. 

This is the most common trap. If you pay $10 on a debt that’s 5 years and 11 months old (one month from becoming time-barred), the statute of limitations resets entirely. Collectors now have six more years from that $10 payment date to file lawsuits. 

Written acknowledgments of the debt restart the clock. If you sign any document—a settlement agreement, payment plan, or even a letter—acknowledging you owe the debt or promising to pay it, the statute of limitations restarts from the date of that written acknowledgment. 

Even emails or text messages where you acknowledge owing the debt can potentially restart the clock under Ohio law.

What does NOT restart the statute of limitations in Ohio:

• Verbal acknowledgment during phone calls (without written confirmation)
• Receiving collection letters or calls without responding
• Disputing the debt in writing
• Requesting debt validation under the FDCPA
• Simply being sued (the lawsuit itself doesn’t restart the clock, only your response to it)

The critical guidance: If a debt is already past the statute of limitations or approaching that deadline, making even small payments can be the most expensive mistake you make—converting an uncollectable debt into one with six fresh years of legal enforceability.

Resolution Options for Ohio Residents Facing Debt

Multiple pathways exist for resolving debt problems, each with different advantages depending on your situation. Debt settlement involves negotiating with creditors to accept less than the full amount owed as payment in full. This option works best when you can offer a lump sum payment or have access to funds to make the settlement attractive to creditors.

Settled debts are reported as “settled” on credit reports, which may affect your score, but this is better than leaving the debt unpaid or subject to a judgment.

Debt Management Plans

Debt management plans offered by credit counseling agencies provide a structured 3–5 year repayment schedule with reduced or sometimes zero interest rates. This option works well for individuals with steady income who can make monthly payments but are held back by high-interest debts, helping them make consistent progress toward being debt-free.

These plans consolidate all payments into a single monthly amount sent to the counseling agency, which then distributes funds to your creditors. While enrolled, you typically cannot use the credit cards included in the plan, preventing further debt accumulation. 

Bankruptcy Protection

Bankruptcy protects you from creditors and can eliminate or restructure debts when other options aren’t viable. Chapter 7 liquidates non-exempt assets to pay creditors, while Chapter 13 sets up a 3–5 year repayment plan for secured and some unsecured debts.

Filing bankruptcy triggers an “automatic stay” that halts lawsuits, wage garnishments, foreclosures, and collection calls, giving you time to reorganize finances. While it initially affects your credit, scores often begin recovering within 12–24 months as you build new positive credit history.

How Guardian Litigation Group Can Help Ohio Residents

Dealing with aggressive debt collectors or lawsuits doesn’t have to be done alone. Guardian Litigation Group offers comprehensive debt defense for Ohio residents, using decades of legal experience to protect consumers from unfair collection practices.

FAQs 

Can debt collectors contact my family, friends, or employer about my debt?

Collectors can only contact third parties to find your location, not to discuss the debt. Violations of the FDCPA can give you grounds to sue. If collectors overstep, consider consulting an attorney to protect your rights.

What should I do if I receive a debt collection letter for a debt I don’t recognize?

It’s ideal to send a debt validation letter within 30 days to request proof of the debt. The collector must stop collection efforts until they respond. Acting quickly can prevent errors from turning into legal claims.

How long do negative marks from debt collection stay on my credit report?

Most collection accounts remain on your credit report for seven years from the date of first delinquency. Bankruptcies can stay up to 10 years for Chapter 7 or 7 years for Chapter 13. While these marks affect your credit score, settling or paying debts changes the status to “paid” or “settled,” which lenders view more favorably over time.

If I’m sued for debt, is it better to settle before trial or go to court?

Settling before trial can save legal costs and provide certainty, often allowing for negotiated terms more favorable than a judgment. However, if you have strong defenses—such as expired statute of limitations, improper documentation, or disputes over ownership of the debt—going to court may lead to dismissal or better results. Consulting a debt attorney helps determine the best strategy for your specific situation.

Can Ohio creditors garnish my Social Security or retirement benefits?

Most federal benefits, including Social Security, SSI, and VA benefits, are protected from garnishment by private creditors. Ohio law also exempts most pensions and retirement accounts. However, federal agencies can garnish these benefits for unpaid taxes or defaulted student loans. Banks must also protect federally deposited benefits going back two months when garnishment orders are received. Learn more from the Social Security Administration.

What’s the difference between dealing with original creditors versus debt collection agencies?

Original creditors, such as credit card companies or utility providers, aren’t fully bound by the FDCPA, giving them more flexibility in collection practices. Collection agencies and debt buyers must follow both FDCPA and the Ohio Consumer Sales Practices Act (OCSPA). 

Should I make partial payments on old debts that might be past the statute of limitations?

Making any payment on a time-barred debt can restart the statute of limitations, giving collectors a new window to sue for credit card or medical debts. If the debt is already expired, you may respond that it is time-barred rather than making payments. 

The information provided in this blog article is for informational purposes only and should not be construed as legal advice. It is not intended to create an attorney-client relationship.