GOOD NEWS FOR CONSUMERS: OHIO STATUTE OF LIMITATIONS ON WRITTEN CONTRACT CLAIMS REDUCED TO EIGHT YEARS
The Ohio law governing the statute of limitations for filing lawsuits based on written contracts has been reduced from 15 years to 8 years effective September 28, 2012. [Ohio Revised Code section 2305.06]. The 15 year statute of limitations was longer than most states and bad for consumers..
What does this mean for you? Collection agencies and creditors will not be able to sue you for breach of a written loan agreement or other contract if the breach of the agreement it is more than 8 years old. For example, if you default on your obligation to repay a loan through a finance company, the lender or collection agency to which the claim is assigned will not be able to sue you 8 years or more after the default occurs. This is good news for consumers and bad news for lenders and collection agencies.
The statute of limitations for claims on agreements that are not in writing remains the same at 6 years. [Ohio Revised Code section 2305.07]. Many claims arising from the non-payment of credit card debts are governed by the 6 year statute of limitations, rather than the 8 year one.