Ohio Demand Letter

Introduction

Key Things to Know

1. 1

   Ohio's Consumer Sales Practices Act does not require a demand letter before you sue for an unfair or deceptive practice, but if your claim involves a dishonored check valued under $5,000, a separate written demand that meets Ohio Revised Code Section 2307.61(C)'s own content and conspicuous-disclosure rules, served by certified mail at least 30 days before filing suit, is what unlocks recovery of your administrative costs, court costs, and attorney's fees under Section 2307.61(A)(2).

2. 2

   State your demand in specific numbers. Name the exact amount owed, the contract, invoice, or dishonored check it comes from, and a firm deadline to pay or act.

3. 3

   If you send a dishonored-check demand under Ohio Revised Code Section 2307.61(C), wait at least 30 days after service of that demand before filing suit. If the recipient pays in full, or enters and keeps a payment agreement, within that 30 days, Section 2307.61(D) bars you from suing on the claim.

4. 4

   Ohio's small claims division of a municipal or county court hears claims up to $6,000, exclusive of interest and costs (Ohio Revised Code Section 1925.02(A)(1)), and unlike some states, Ohio allows an attorney to appear in small claims (Section 1925.01(D)).

5. 5

   Mind Ohio's statute of limitations: six years to sue on a written contract (Ohio Revised Code Section 2305.06), four years on an oral contract (Section 2305.07(A)), and six years on a consumer open account (Section 2305.07(C)).

6. 6

   Interest on money owed accrues under Ohio Revised Code Section 1343.03 at a rate the tax commissioner determines annually under Section 5703.47, unless your written contract specifies its own rate.

7. 7

   Keep the tone firm and factual, not threatening. Do not threaten arrest, jail, or criminal prosecution to collect a civil debt. Separately, Ohio's Consumer Sales Practices Act defines 'supplier' broadly under Ohio Revised Code Section 1345.01(C), and bars an unfair, deceptive, or unconscionable act or practice in a consumer transaction under Sections 1345.02(A) and 1345.03(A).

Ohio Requirements for Demand Letter

• Bad-Check Demand Unlocks Fees and Costs

  Under Ohio Revised Code Section 2307.61(A)(2), for a dishonored check valued under $5,000, a written demand meeting Section 2307.61(C)'s content and conspicuous-disclosure rules, served by certified mail at least 30 days before suit, lets you also recover reasonable administrative costs, the cost of suit, and reasonable attorney's fees. Without that demand, only the liquidated damages in subsection (A)(1) are available.

• Base Bad-Check Liquidated Damages

  Ohio Revised Code Section 2307.61(A)(1) lets you recover $50 if the check was $50 or less, $100 if more than $50 but not more than $100, or $150 if more than $100, or, at your election, the greater of $200 or three times the check's value. This treble election does not apply to a check an individual borrower gives to a lender licensed under Ohio Revised Code Sections 1321.35 to 1321.48.

• 30-Day Payment Bar to Suit

  If the person who wrote the bad check pays your Section 2307.61(C) demand in full, or enters and keeps a payment agreement, within 30 days of service, Ohio Revised Code Section 2307.61(D) bars you from suing on the claim.

• Certified-Mail Delivery for a Bad-Check Demand

  Ohio Revised Code Section 2307.61(C) requires the demand to be served by certified mail, return receipt requested, and to conspicuously disclose the alleged offense, the 30-day payment deadline, the potential judgment amount, and the recipient's own right to recover fees if they prevail. The statute sets these content rules itself, so a general demand letter does not satisfy them.

• No CSPA Pre-Suit Notice Requirement

  Ohio's Consumer Sales Practices Act gives a consumer a cause of action for an unfair, deceptive, or unconscionable act without requiring the consumer to send the supplier a pre-suit demand, under Ohio Revised Code Section 1345.09(A)-(B).

• Consumer Debt Excluded From Contract Fee Clauses

  Ohio Revised Code Section 1319.02(A)(1) excludes debt incurred for purposes that are primarily personal, family, or household from its definition of a contract of indebtedness entirely, and for the debt it does cover, a contractual attorney's-fee clause is enforceable only if the amount owed exceeded $100,000 when the contract was signed.

• Small Claims Limit and Attorneys Permitted

  Ohio's small claims division of a municipal or county court hears claims up to $6,000, exclusive of interest and costs, under Ohio Revised Code Section 1925.02(A)(1), and Ohio permits an attorney to appear in small claims under Section 1925.01(D).

• Statute of Limitations by Claim Type

  Ohio gives six years to sue on a written contract under Ohio Revised Code Section 2305.06, four years on an oral or unwritten contract under Section 2305.07(A), and six years on a consumer transaction account, including an account stated, under Section 2305.07(C).

• Floating Interest Rate Mechanism

  Ohio Revised Code Section 1343.03(A) entitles a creditor to interest on money due under a written instrument, book account, settlement, or verbal contract, at the rate the tax commissioner determines annually under Section 5703.47, unless the written contract specifies its own rate.