Bill lets collection firms tack fees onto Ohio student-loan debt
Even as state Attorney General Mike DeWine expressed concern in August about collection fees that can jack up the debt owed by former college students, a bill backed by his office was moving through the legislature to codify those fees.
Senate Bill 227, passed on Dec. 6, makes a variety of changes to how the attorney general’s office does business. Consumer advocates are questioning the one that says that, when the office hires a private law firm to collect delinquent debts, the fees paid to those firms “shall be fully recoverable from the party indebted” — tacked on to the principal, interest and late fees the debtor already owes, rather than deducted from it.
It puts no limit on how high the fees can be.