Creditor and debtor law includes the rights and obligations of (1) creditors who extend credit and make loans to consumers and businesses and (2) consumers and businesses who seek credit and loans for their personal and business finances. Creditor/debtor law consists primarily of state and federal statutes.
In Ohio, creditor and debtor law is governed by a combination of state statutes and federal laws that outline the rights and obligations of both parties involved in credit and loan transactions. Creditors, such as banks and lending institutions, are regulated in their practices of extending credit and collecting debts. This includes adherence to the Ohio Fair Debt Collection Practices Act, which mirrors the federal Fair Debt Collection Practices Act, and sets standards for the conduct of debt collectors. Debtors, including consumers and businesses, are protected under these laws from abusive collection practices and have the right to receive clear information about their debts. Additionally, Ohio's laws regulate the interest rates that can be charged on loans, the process for repossession, and the procedures for filing for bankruptcy, which is also governed by federal bankruptcy law. It's important for both creditors and debtors to understand their legal rights and obligations to ensure fair and lawful interactions in their financial activities.