This Letter to the Editor appeared in the Akron Beacon Journal.

The Dec. 10 editorial “No relief for debt adjusters” wrongly argues that state legislators need to protect Ohioans from debt settlement companies. Such government paternalism may be well-intended, but all too often creates unintended consequences that end up hurting the very people it tries to help.

Unfortunately, the fact is that thousands of Ohioans are up to their eyeballs in unsecured debt and can’t afford the minimum monthly payments. People in these situations deserve to have every option available to help them to get out of debt — including debt settlement.

However, Ohio’s current laws restrict the debt settlement services with arbitrary fee caps and poorly tailored language. These flaws make it legally murky for many debt settlement companies to operate in the state.

Limited regulations on debt settlement services are appropriate. Companies must disclose to clients the costs, benefits and risks of debt settlement programs, and clients don’t pay until they accept a settlement and start paying off their debt. Further regulations to protect Ohioans just limits options and makes it harder for indebted Ohioans to get help.

Greg R. Lawson,
The Buckeye Institute
Columbus