Bills.com > Manage Debt > Deal with Debt > Debt Relief Q&A > Ohio Statute of Limitations
Question:
APR 18, 2012

Ohio Statute of Limitations

What are the statutes of limitations for debt in Ohio?

Read full question
Bill's Answer: Bills.com Resident Expert

Ohio has the most creditor-friendly statutes of limitations in the country. According to Ohio 2305.07 Contract not in writing, and 2305.06 Contract in writing, the statute of limitations for an oral contract is six years, a written contract is 15 years.

When it comes to credit cards, Ohio courts apply statute of limitations inconsistently. In other words, the party with the clearest argument and facts in their favor wins. Some courts apply Ohio’s "open account" statute of limitations, which is 6 years (Ohio R.C. 2305.07). Other Ohio courts use the written contracts rule, which is 15 years (2305.06). Others use Ohio’s Retail Installment Sales Act, which sets the limit at 4 years (1302.98 and 1317.01).

The statute of limitations for recovering a deficiency balance relating to a mortgage foreclosure is 21 years, according to Ohio 2305.04 Recovery of real estate.

See the Bills.com resource Collection Laws and the Statute of Limitations for the rules in other states.

Statute of Limitations

The passing of the SOL does not mean that a creditor cannot sue you. If a lawsuit is filed the debtor will have an absolute defense against the lawsuit if the defendant raises the SOL defense in a timely manner. The defendant must raise this defense — a court will not do it for the defendant. If the defendant responds to the suit stating the SOL has expired, the judge should dismiss the case.

In most states, the SOL begins running from the date of the breach. In other words, the SOL starts running 30 days after the last payment. This means that if you paid just a few dollars to a collector a couple of years ago, the running SOL for that debt could have been reset.

The passage of the SOL does not forbid a creditor from calling the debtor to collect on the debt; it simply provides the debtor an absolute defense in court if the creditor files suit. Debtors can stop collection calls by sending a cease and desist letter to the creditor.

Consult with an attorney licensed to practice in your state to discuss the specifics of your situation and to help you determine if the statute of limitations for your creditor to sue you has expired.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Comments (7)


Teresa L.
Cincinnati, OH  |  April 18, 2012
What about payday loans. I had a company referring to themselves as an "arbitration firm" threatening me with wage garnishment over a "fraud" charge from something back in 2005. Yesterday was the first time I received any phone calls regarding this. They were asking for my bank info and I told them I didn't feel comfortable providing that over the phone to someone I don't know without any correspondence. I asked for something in writing. If I owe it, that's fine, but they made it seem like if I didn't pay it now, I could end up being charged over $4k in fees if it goes to court. Does this sound legit?
Bills.com
April 18, 2012
It does not sound legitimate. It sounds like the kind of scam discussed in an FBI warning issued in February 2012. Pull a credit report and see if any unpaid debts appear. If you receive written notice of the debt, make sure to validate the debt.
Avatar
Teresa L.
Cincinnati, OH  |  April 18, 2012
Thanks for the quick response! I read the FBI warning, and one of the tactics mentioned was what this company said to me. They told me that if I pay it now I can avoid court and avoid paying $4k in court and other fees. I looked the company up, it's called National Check Affiliates and their site looks legit, but unless I have something in writing, I cannot validate the debt nor will I give out account info over the phone. Even if it is a legitimate debt, they are being ridiculous about it and using scare tactics by telling me they're charging me with "fraud against a federal lending institution". Thanks again!
Lani B.
April 07, 2012
What about medical bills? We are attempting to dispute a bill we believe to be false but are worried about 'resetting the clock.'
Bills.com
April 07, 2012
In most states, a consumer resets the statute of limitations when they either make a payment to the creditor, or acknowledge the debt. Acknowledging a debt is making a clear statement to the creditor you have liability for the debt. Therefore, take care when negotiating a resolution to a debt with a creditor. Do not say, "my debt" or "the amount I owe you" or "my account" or other similar phrases that show you accept responsibility for the debt. Instead, refer to the debt as, "Account ABC123" or "the amount you say I owe" or "this matter" or "this account." If you have any doubts about acknowledging a debt accidentally during a debt resolution, consult with a lawyer who has consumer law experience.
Avatar
Lani B.
April 07, 2012
Thank you for the quick response. We modified our dispute letter. We believe the debt was incurred by someone using our identity but do not want to reset the clock just in case. Would medical bills fall under the 4/6 year rule stated in your above article? Only credit card bills were listed there.
Bills.com
April 07, 2012
My guess, note that word choice, is you signed a written contract before you were treated. This would make the debt fall under Ohio's 15-year statute of limitations. However, I hasten to add Ohio's many statutes of limitations on debt baffle me, you would be wise to consult with an Ohio lawyer about this debt.
Waiting for comments to load Loading more comments
Thanks for your feedback!
 
Articles Ask Bill
Thank you for subscribing!