To the editor: Legislation would hand lifeline to Ohioans facing debt challenges

BY DOUG KELLOGG

THE BLADE

FEBRUARY 18, 2026

Among the nation’s most dominant and consequential policy trends this century has been the movement of states toward flat income taxes and toward the full phaseout of state income taxes. Nearly half of the states now have either a flat income tax rate or no income tax at all, and more states are racing to join them.

Ohio has been at the forefront of this national trend toward lower and flatter state income taxes, enacting the second-lowest flat rate in the nation at 2.75 percent. Now, lawmakers in many other state capitals seek to follow the Buckeye State’s lead.

Ohio has also diligently addressed its overregulation problem and reduced unnecessary barriers to work and investment. A potential sign of success: Ohio finally saw domestic migration increase last year.

Despite this leadership, Ohio lags on one policy that has the state’s more than 9 million residents unable to access debt relief services that are available to most Americans.

Fortunately, there is legislation pending in Columbus that would provide Ohioans with more options in Senate Bill 256 sponsored by Sen. George Lang, and House Bill 534 sponsored by Rep. Erika White and Rep. Haraz Ghanbari. 

Like many Americans, Ohioans are grappling with mounting credit card bills.

Individual bankruptcy filings increased 4 percent last year, while average debt and delinquencies rose. In fact, credit card delinquency rates have risen more in Ohio than in all but four other states, according to WalletHub.

Ohioans are in need of proven options to get out of debt and avoid the devastating repercussions of bankruptcy. This is what S.B. 256 would provide by updating existing law to give debt settlement companies clarity so they can offer their services in Ohio.

Consumer debt relief is a lifeline to address debt and avoid bankruptcy.

Bankruptcy can cause lingering damage — up to a decade of credit report flags, very high interest rates or inability to borrow at all, lack of housing options, and more.

Existing law suggests past legislatures did not want to create the current situation which prevents consumer debt relief from operating widely in the state. It is the effect of a lack of clarity in statute following the Federal Trade Commission adopting its 2010 debt settlement rules.

 S.B. 256 creates a new regulatory framework and license to address this problem, bringing Ohio up to date and in line with more than half of other states.

The bill follows the proven “Three Part Test” from the FTC: debt settlement companies only receive their fees when the provider and creditor successfully negotiate a settlement, the consumer affirmatively agrees to that settlement, and the consumer successfully makes a payment to the creditor pursuant to the agreement.

The bill implements further consumer safeguards to prevent bad actors from taking advantage of Ohioans in a vulnerable position. Consumers can get out of arrangements with short notice and without penalty. S.B. 256 prohibits misleading marketing practices.

The superintendent of Financial Institutions will oversee licensees and ensure only those that follow the rules can operate in Ohio.

With these strong protections, S.B. 256 ensures that legal, widely known, licensed debt relief programs are available to Ohioans.

Americans for Tax Reform was founded in 1985 at the request of President Ronald Reagan. Kellogg is state projects director, Washington, D.C. 

First Published February 18, 2026, 11:23 a.m on The Blade (Click here to see the original article).