Working with delinquent borrowers is now easier with HB 133
Published by: Emily Leite
June 16, 2021 | Government Affairs
Further empowering how your credit union helps people and families navigate a challenging financial situation just got a little easier. On June 2, Governor Mike DeWine signed House Bill 133 into law, clearing up a frustrating regulatory hurdle to how your credit union works with delinquent junior lien borrowers. Clear and consistent member communication is currently challenged by ORC 1349.72 as the references “collects” or “attempts to collect” a debt is not clearly defined in the statute. The resulting practice of this ambiguous and broad interpretation formerly lead Ohio credit unions to send a specific and alarming notification before and after every communication with a delinquent member. The notification corrections in House Bill 133 become effective on Sept. 1, 2021, and restores the former personalization and sensitive communication credit unions have always offered members managing a difficult financial situation. Moving forward, Ohio credit unions will be able to communicate and work directly with a delinquent borrower. They must simply send a debt collection notification 30-days prior to filing a foreclosure action, which can be included on or accompany any other communication with the debtor.
Reach out to Chief Advocacy Officer Emily Leite for additional information on the modified debt collection notification standards connected to junior liens or other credit union empowerment provisions in House Bill 133.
Contact Emily Leite for questions or assistance.
