The new legislation would make things much easier for the average consumer, Hackett said.
“(The bill) adds more tools to the toolbox for the consumer,” he stated. “The consumer can decide what’s best for them on that.”
Former attorney general Betty Montgomery is a proponent of the bill. In her eyes, the benefits of the legislation are twofold.
“First of all, the most important thing is it gives consumers an option,” she said. “Secondly, it also sort of levels the playing field between credit counselors and debt settlers.”
The bill could also benefit the businesses to which some debts are owed by expediting the repayment process, Hackett said.
“In a way it can help businesses, because it allows them to get paid a part of their debt to whatever is negotiated that the consumer owes,” he said.
A recent Supreme Court decision paved the way for this legislation to move forward, Montgomery said.
“Many times over the past 10 years, it’s been debated and we’ve gotten out of one house but not out of the other house (in the legislature),” she said. “The Supreme Court decision finally sort of illuminated the issues legally.”
Opposition for the FAIR Act is likely to come from bankruptcy attorneys, as the passage of the legislation could potentially diminish their client base, Montgomery said.
The legitimacy of some debt settlement companies could also be called into question, per Hackett. However, the Federal Trade Commission has implemented a strict set of rules surrounding these companies to ensure consumers are not unfairly or illegally charged, Montgomery said.
Much of the outstanding debt in the state of Ohio is related to medical expenses, Montgomery said. Following an extended period of economic hardship, the time to set the new legislation in motion is now, she said.
“We’ve gone through a very difficult time financially in this country and in the state,” she stated. “It should be passed. Hopefully, it will be passed.”
The FAIR Act will be designated to the Financial Institutions Committee when a new Statehouse session begins in September, per Hackett. His hope is that the bill will progress through both chambers quickly and be passed by the end of 2021.
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