Ohio Debt Collection Laws & Statute of Limitations 2026: The SB 13 Reform Guide

Ohio underwent one of the most significant debt collection law reforms in recent US history with the passage of Senate Bill 13 in 2021. The reform cut the Statute of Limitations on most consumer debt from 8 years to 6 years — a major shift that catches both consumers and debt collectors off-guard. Combined with the Ohio Consumer Sales Practices Act (OCSPA) — one of the few state laws that covers original creditors and allows up to $5,000 in noneconomic damages — Ohio is now a meaningfully consumer-friendly state for debt defense.

This guide explains the SB 13 reform timeline, the OCSPA's unusually strong damages provisions, the dual licensing requirement under ORC § 1319.12 that trips up out-of-state debt buyers, and how to use all three when responding to an Ohio collection lawsuit.

The SB 13 reform: how Ohio cut SoL from 8 to 6 years

Until 2021, Ohio had one of the LONGEST Statutes of Limitations in the United States: 8 years on written contracts under the old Ohio Revised Code § 2305.06. Only a handful of states (Iowa, Rhode Island) had longer periods. Ohio Senate Bill 13, signed by Governor DeWine on March 16, 2021 and effective June 14, 2021, reduced this to 6 years — bringing Ohio in line with neighboring states like Michigan and Pennsylvania.

The "cause of action accrual date" in Ohio debt cases is typically defined as the date of default — usually 30 days after the last missed payment per most credit card contracts. Some courts have held that the date charge-off was reported also marks accrual. When the collector's complaint is silent or vague on this date, demand specific evidence in discovery.

Statute of Limitations by debt type (post-SB 13)

OCSPA: the $5,000 weapon against original creditors

The Ohio Consumer Sales Practices Act (ORC Chapter 1345) is what makes Ohio meaningfully different from neighboring states like Pennsylvania or Michigan in debt defense. Unlike the federal FDCPA — which ONLY applies to third-party debt collectors — the OCSPA classifies original creditors, debt buyers, and their attorneys as "suppliers" subject to its provisions.

What counts as an OCSPA violation in debt collection:

• Filing suit on time-barred debt (after SB 13's 6-year period)
• Misrepresenting the amount or legal status of the debt
• Threatening actions that cannot legally be taken (e.g., arrest, criminal prosecution)
• Failing to provide debt validation when requested
• Contacting third parties about your debt (with limited exceptions)
• Calling outside permitted hours (before 8 AM or after 9 PM Ohio time)
• Continuing collection after written cease-and-desist

Banks excluded: a notable limitation — financial institutions like FDIC-insured banks are partially excluded from OCSPA coverage when collecting their OWN debt directly. However, once a bank assigns or sells the debt to a third party, the OCSPA applies fully to the buyer.

The ORC 1319.12 licensing defense

Under Ohio Revised Code § 1319.12, all debt collection agencies operating in Ohio must be properly licensed. Critically, the statute requires that collection lawsuits be filed by Ohio-licensed counsel, not by the debt buyer directly or by out-of-state attorneys.

This requirement creates an effective defense when out-of-state debt buyers attempt to collect Ohio debts:

Judgment dormancy under ORC 2329.07

Ohio uses a unique "dormancy" framework for judgments that differs from most states. Under ORC § 2329.07, a court judgment goes "dormant" 5 years after the date of issuance (or after the last execution attempt). A dormant judgment cannot be enforced through wage garnishment, bank levy, or other collection means.

To revive a dormant judgment, the creditor must file a Motion to Revive within 10 years of the original judgment date. Once revived, the judgment becomes enforceable for another 5-year period. This cycle can theoretically continue indefinitely, but in practice creates significant administrative burden on creditors, leading many to abandon enforcement of older judgments.

Strategic implication: if a debt collector is enforcing an Ohio judgment older than 5 years, verify whether it has been properly revived through court records. Enforcement actions on un-revived dormant judgments may be invalid.

How to respond if sued in Ohio (6 steps)

Ohio courts will NOT automatically dismiss time-barred lawsuits. You must raise the SoL defense in your Answer under Ohio Rule of Civil Procedure 8(C) or it is waived.

Ohio vs other major states

Finding legal help in Ohio

Ohio has a particularly robust community of consumer protection attorneys who specialize in OCSPA litigation. The $5,000 noneconomic damages provision means many attorneys can take cases on contingency that would not be economically viable in other states.

Frequently asked questions

When did Ohio change its Statute of Limitations from 8 years to 6 years?

Ohio Senate Bill 13 was signed into law in March 2021 and took effect on June 14, 2021. It reduced the SoL on written contracts (including credit cards) from 8 years to 6 years under Ohio Revised Code Section 2305.06, and on oral contracts from 6 years to 4 years (later restored to 6 years for most types). The reform applied to causes of action that accrued on or after the effective date. For debts where the cause of action accrued BEFORE June 14, 2021, the older 8-year SoL applies but cannot extend beyond June 14, 2029. This transitional period is why some debt collectors still file lawsuits citing the older 8-year limit.

What is the current Statute of Limitations on credit card debt in Ohio?

For credit card debt where the last payment was made on or after June 14, 2021, the Ohio Statute of Limitations is 6 years under Ohio Revised Code Section 2305.06. For older debts where the cause of action accrued before June 14, 2021, the previous 8-year SoL applies but cannot extend past June 14, 2029. Credit card agreements are treated as written contracts in Ohio if the original signed cardholder agreement exists. If the collector cannot produce the signed agreement, the debt may be classified as an open account or oral agreement with different limitation periods.

How does the Ohio Consumer Sales Practices Act protect me?

The Ohio Consumer Sales Practices Act (OCSPA), codified in ORC Chapter 1345, is one of the most consumer-protective state laws in the United States. Unlike the federal FDCPA which only covers third-party collectors, the OCSPA extends to original creditors, debt buyers, and their attorneys — all classified as 'suppliers' under state law. The Ohio Supreme Court has held in Anderson v. Barclay's Capital that debt buyers of credit card debt and their attorneys are subject to the OCSPA. Successful OCSPA lawsuits allow consumers to recover actual damages PLUS up to 5,000 dollars in noneconomic damages, plus attorney fees. Violations include misrepresenting the enforceability of time-barred debts.

Can Ohio creditors garnish my wages for credit card debt?

Yes, but only after obtaining a court judgment. Under Ohio Revised Code Chapter 2716, wage garnishment is limited to the lesser of (1) 25 percent of disposable earnings, or (2) earnings exceeding 30 times federal minimum wage hourly. Always-protected income includes Social Security, SSI, VA benefits, federal pensions, and public assistance. Ohio also allows bank account levies after judgment. Without a court judgment, collectors threatening wage garnishment is illegal under both the federal FDCPA and the OCSPA. This is a common FDCPA violation worth documenting if it happens to you.

What is the Ohio homestead exemption?

The Ohio homestead exemption, codified in ORC Section 2329.66, protects up to 182,625 dollars of equity in your primary residence per debtor (adjusted for inflation; this figure is for 2025 and adjusts every 3 years per Ohio law). Married couples filing jointly can potentially double this to 365,250 dollars on jointly owned property. Personal property exemptions include 700 dollars per item up to 14,575 dollars total, 4,675 dollars for one motor vehicle, and 537 dollars cash. The homestead exemption applies automatically to your primary residence and does not require a separate filing for non-bankruptcy creditor claims.

How do I respond if I am sued for old debt in Ohio?

You have 28 days to file an Answer in the Ohio Court of Common Pleas (28 days for cases over 15,000 dollars) or 28 days in Municipal Court (cases under 15,000 dollars). For Small Claims Court (under 6,000 dollars), the deadline may be shorter. You must raise the Statute of Limitations as an affirmative defense in your written Answer under Ohio Rule of Civil Procedure 8(C), or it is waived. Specifically state: 'Plaintiff's claim is barred by the Statute of Limitations under Ohio Revised Code Section 2305.06.' Also raise: lack of standing if a debt buyer, insufficient documentation, and any OCSPA violations.

What is the Statute of Limitations on judgments in Ohio?

Court judgments in Ohio are valid for 5 years before going 'dormant' under Ohio Revised Code Section 2329.07. A dormant judgment cannot be enforced through wage garnishment or bank levies until revived by court order. To revive a dormant judgment, the creditor must file a motion within 10 years of the original judgment date. After revival, the judgment becomes enforceable again for another 5-year period. This dormancy/revival cycle can extend judgment enforcement up to 21 years total. Post-judgment interest accrues at the statutory rate (3 percent above federal short-term rate, adjusted annually).

Does making a payment restart the SoL in Ohio?

Yes. Ohio follows the traditional common-law rule that partial payment or written acknowledgment of the debt restarts the Statute of Limitations under ORC Section 2305.08. This applies whether the SoL is still running or has already expired. Critical warning: even a one-dollar payment to a debt collector on old debt can resurrect a time-barred debt and give the collector another 6 years to sue. Always verify the date of last payment and SoL status BEFORE making any payment on old debt, and never agree to a payment plan without first consulting a consumer attorney.

Are debt buyers in Ohio subject to special licensing requirements?

Yes. Under Ohio Revised Code Section 1319.12, debt collection agencies operating in Ohio must be properly licensed and registered with the Ohio Secretary of State. Additionally, when filing collection lawsuits, debt buyers must use licensed Ohio counsel (this is the holding in Mansfield Manufacturing v. Cain Sealcoating). Unlicensed collection activity is itself a violation of both ORC 1319.12 and the OCSPA. When responding to a collection lawsuit, demand documentation that the plaintiff is properly licensed and registered in Ohio — this is often missing for out-of-state debt buyers.

What is the medical debt Statute of Limitations in Ohio?

Medical debt in Ohio is generally subject to the same 6-year SoL as other written contracts under ORC 2305.06, assuming the hospital can produce signed treatment consent forms and financial responsibility agreements. Many medical debt cases are dismissed because hospitals cannot produce these documents for old accounts. Note: Ohio has not enacted a special medical debt SoL reform like Florida (3 years from collection referral). Recent CFPB rule changes (2025) prohibit medical debt from appearing on credit reports for debts under 500 dollars, but this does not change the SoL for collection lawsuits.

Should I hire an Ohio consumer protection attorney?

Strongly recommended for any debt collection lawsuit, especially given the OCSPA's strong consumer protections. Ohio has a robust community of consumer protection attorneys who specialize in FDCPA and OCSPA litigation, often taking cases on contingency. Resources: Legal Aid Society of Cleveland for low-income debtors in Northeast Ohio, Legal Aid of Western Ohio for the western half of the state, Southeastern Ohio Legal Services, Community Legal Aid Services in Akron, the Ohio State Bar Association Lawyer Referral Service at ohiobar.org, and the National Association of Consumer Advocates at consumeradvocates.org. The OCSPA's noneconomic damages provision means many attorneys can recover fees even on small cases.

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