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Read. Follow. Verify.Ohio Senate Bill 256 Establishes State Licensure and Regulatory Requirements for Debt Resolution Services Providers
Last action · October 1, 2025: Referred to Financial Institutions, Insurance and TechnologySponsors: George Lang and 2 others
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What This Bill Would Do
Ohio Senate Bill 256 requires debt resolution service providers operating in the state to obtain a license from the superintendent of financial institutions, file a surety bond up to fifty thousand dollars, and comply with strict consumer protection and fee restrictions. The measure sets detailed criteria for consumer agreements, account administration, record keeping, and prohibited practices, while exempting certain entities such as banks, attorneys, and certified public accountants. The licensing and regulatory provisions take effect one year after the act's effective date, with rule-making authorized immediately.
Consumers utilizing will see mandatory fee structures, clear required contract disclosures, and regular monthly statements of accounting, while providers must meet bonding, fingerprinting, and application criteria overseen by the state.
- State regulation of debt settlement and debt resolution companies has increasingly expanded across the United States to protect consumers from high upfront fees and misleading claims. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Debt resolution services providers
Providers must obtain state licensure, post surety bonds, comply with strict fee limits, maintain detailed records, and submit to oversight by the superintendent of financial institutions.
Consumers residing in this state
Consumers receive enhanced contract disclosures, monthly statements of accounting, strict protections on fee collections, and the right to terminate agreements without penalty.
Banks and financial institutions
Banks hold insured dedicated accounts established by consumers under debt resolution agreements.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who must obtain a debt resolution services license under this bill?
Can a debt resolution provider charge fees before a debt is successfully settled?
Can a consumer terminate a debt resolution agreement?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
2 actions- Oct 1, 2025SenateCommitteeReferred to Financial Institutions, Insurance and Technology
- Sep 8, 2025SenateIntroducedIntroduced
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Establishment of State Debt Resolution Licensure
The legislation transitions debt resolution providers from general business activity to a formal, supervised licensing regime under the superintendent of financial institutions.
Connected Entities
Sources
www.legislature.ohio.gov
Analysis Score
0–100- Significance75How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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