IL
Illinois Senate Bill SB2283

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2283 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2283 Introduced 2/7/2025, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: 205 ILCS 740/2 was 225 ILCS 425/2205 ILCS 740/9.6 new Amends the Collection Agency Act. Provides that a debtor is not liable for any coerced debt, as defined in the Act, and may assert that they have incurred a coerced debt by providing to a collection agency an oral or written Statement of Coerced Debt, as specified. Sets forth provisions concerning notice of coerced debt to a collection agency; duties of a collection agency upon receiving an incomplete statement of coerced debt; affirmative defenses in collection actions or arbitration; civil liability; protections from perpetrators of coerced debt; restrictions on waivers; and liability of collection agencies for violations of the Act. Provides that, upon receiving the debtor's complete statement of coerced debt and specified supporting information, a collection agency shall review and consider all the information received from the debtor as well as any other information available in the collection agency's file or from the creditor related to the alleged coerced debt within 90 days after receipt of the statement of coerced debt. Requires a collection agency, within 5 days after receipt of the complete statement of coerced debt and supporting information, to cease any pre-judgment attempts to collect the coerced debt from the debtor, including refraining from filing any lawsuit or arbitration to collect the coerced debt, and notify any consumer reporting agency to which the collection agency or creditor furnished adverse information about the debtor that the debtor disputes the adverse information. Establishes additional requirements for a collection agency that reviews a statement of coerced debt. Provides that, within 180 days after the effective date of the Act, the Department of Financial and Professional Regulation may design and publish a model coerced debt and third party written verification form in English and any other language it determines, within its discretion, is the first language of a significant number of consumers in the State. Makes other changes. LRB104 10114 BAB 20186 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2283 Introduced 2/7/2025, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: 205 ILCS 740/2 was 225 ILCS 425/2205 ILCS 740/9.6 new 205 ILCS 740/2 was 225 ILCS 425/2 205 ILCS 740/9.6 new Amends the Collection Agency Act. Provides that a debtor is not liable for any coerced debt, as defined in the Act, and may assert that they have incurred a coerced debt by providing to a collection agency an oral or written Statement of Coerced Debt, as specified. Sets forth provisions concerning notice of coerced debt to a collection agency; duties of a collection agency upon receiving an incomplete statement of coerced debt; affirmative defenses in collection actions or arbitration; civil liability; protections from perpetrators of coerced debt; restrictions on waivers; and liability of collection agencies for violations of the Act. Provides that, upon receiving the debtor's complete statement of coerced debt and specified supporting information, a collection agency shall review and consider all the information received from the debtor as well as any other information available in the collection agency's file or from the creditor related to the alleged coerced debt within 90 days after receipt of the statement of coerced debt. Requires a collection agency, within 5 days after receipt of the complete statement of coerced debt and supporting information, to cease any pre-judgment attempts to collect the coerced debt from the debtor, including refraining from filing any lawsuit or arbitration to collect the coerced debt, and notify any consumer reporting agency to which the collection agency or creditor furnished adverse information about the debtor that the debtor disputes the adverse information. Establishes additional requirements for a collection agency that reviews a statement of coerced debt. Provides that, within 180 days after the effective date of the Act, the Department of Financial and Professional Regulation may design and publish a model coerced debt and third party written verification form in English and any other language it determines, within its discretion, is the first language of a significant number of consumers in the State. Makes other changes. LRB104 10114 BAB 20186 b LRB104 10114 BAB 20186 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2283 Introduced 2/7/2025, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
33 205 ILCS 740/2 was 225 ILCS 425/2205 ILCS 740/9.6 new 205 ILCS 740/2 was 225 ILCS 425/2 205 ILCS 740/9.6 new
44 205 ILCS 740/2 was 225 ILCS 425/2
55 205 ILCS 740/9.6 new
66 Amends the Collection Agency Act. Provides that a debtor is not liable for any coerced debt, as defined in the Act, and may assert that they have incurred a coerced debt by providing to a collection agency an oral or written Statement of Coerced Debt, as specified. Sets forth provisions concerning notice of coerced debt to a collection agency; duties of a collection agency upon receiving an incomplete statement of coerced debt; affirmative defenses in collection actions or arbitration; civil liability; protections from perpetrators of coerced debt; restrictions on waivers; and liability of collection agencies for violations of the Act. Provides that, upon receiving the debtor's complete statement of coerced debt and specified supporting information, a collection agency shall review and consider all the information received from the debtor as well as any other information available in the collection agency's file or from the creditor related to the alleged coerced debt within 90 days after receipt of the statement of coerced debt. Requires a collection agency, within 5 days after receipt of the complete statement of coerced debt and supporting information, to cease any pre-judgment attempts to collect the coerced debt from the debtor, including refraining from filing any lawsuit or arbitration to collect the coerced debt, and notify any consumer reporting agency to which the collection agency or creditor furnished adverse information about the debtor that the debtor disputes the adverse information. Establishes additional requirements for a collection agency that reviews a statement of coerced debt. Provides that, within 180 days after the effective date of the Act, the Department of Financial and Professional Regulation may design and publish a model coerced debt and third party written verification form in English and any other language it determines, within its discretion, is the first language of a significant number of consumers in the State. Makes other changes.
77 LRB104 10114 BAB 20186 b LRB104 10114 BAB 20186 b
88 LRB104 10114 BAB 20186 b
99 A BILL FOR
1010 SB2283LRB104 10114 BAB 20186 b SB2283 LRB104 10114 BAB 20186 b
1111 SB2283 LRB104 10114 BAB 20186 b
1212 1 AN ACT concerning regulation.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Collection Agency Act is amended by
1616 5 changing Section 2 and by adding Section 9.6 as follows:
1717 6 (205 ILCS 740/2) (was 225 ILCS 425/2)
1818 7 (Section scheduled to be repealed on January 1, 2026)
1919 8 Sec. 2. Definitions. In this Act:
2020 9 "Address of record" means the designated address recorded
2121 10 by the Department in the applicant's or licensee's application
2222 11 file or license file as maintained by the Department's
2323 12 licensure maintenance unit.
2424 13 "Board" means the Collection Agency Licensing and
2525 14 Disciplinary Board.
2626 15 "Charge-off balance" means an account principal and other
2727 16 legally collectible costs, expenses, and interest accrued
2828 17 prior to the charge-off date, less any payments or settlement.
2929 18 "Charge-off date" means the date on which a receivable is
3030 19 treated as a loss or expense.
3131 20 "Coerced debt" means any debt as defined by this Act or a
3232 21 portion of the debt, except for debt secured by real property,
3333 22 that was incurred by the debtor because of identity theft,
3434 23 fraud, duress, intimidation, threat, force, coercion, undue
3535
3636
3737
3838 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2283 Introduced 2/7/2025, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
3939 205 ILCS 740/2 was 225 ILCS 425/2205 ILCS 740/9.6 new 205 ILCS 740/2 was 225 ILCS 425/2 205 ILCS 740/9.6 new
4040 205 ILCS 740/2 was 225 ILCS 425/2
4141 205 ILCS 740/9.6 new
4242 Amends the Collection Agency Act. Provides that a debtor is not liable for any coerced debt, as defined in the Act, and may assert that they have incurred a coerced debt by providing to a collection agency an oral or written Statement of Coerced Debt, as specified. Sets forth provisions concerning notice of coerced debt to a collection agency; duties of a collection agency upon receiving an incomplete statement of coerced debt; affirmative defenses in collection actions or arbitration; civil liability; protections from perpetrators of coerced debt; restrictions on waivers; and liability of collection agencies for violations of the Act. Provides that, upon receiving the debtor's complete statement of coerced debt and specified supporting information, a collection agency shall review and consider all the information received from the debtor as well as any other information available in the collection agency's file or from the creditor related to the alleged coerced debt within 90 days after receipt of the statement of coerced debt. Requires a collection agency, within 5 days after receipt of the complete statement of coerced debt and supporting information, to cease any pre-judgment attempts to collect the coerced debt from the debtor, including refraining from filing any lawsuit or arbitration to collect the coerced debt, and notify any consumer reporting agency to which the collection agency or creditor furnished adverse information about the debtor that the debtor disputes the adverse information. Establishes additional requirements for a collection agency that reviews a statement of coerced debt. Provides that, within 180 days after the effective date of the Act, the Department of Financial and Professional Regulation may design and publish a model coerced debt and third party written verification form in English and any other language it determines, within its discretion, is the first language of a significant number of consumers in the State. Makes other changes.
4343 LRB104 10114 BAB 20186 b LRB104 10114 BAB 20186 b
4444 LRB104 10114 BAB 20186 b
4545 A BILL FOR
4646
4747
4848
4949
5050
5151 205 ILCS 740/2 was 225 ILCS 425/2
5252 205 ILCS 740/9.6 new
5353
5454
5555
5656 LRB104 10114 BAB 20186 b
5757
5858
5959
6060
6161
6262
6363
6464
6565
6666 SB2283 LRB104 10114 BAB 20186 b
6767
6868
6969 SB2283- 2 -LRB104 10114 BAB 20186 b SB2283 - 2 - LRB104 10114 BAB 20186 b
7070 SB2283 - 2 - LRB104 10114 BAB 20186 b
7171 1 influence, or the non-consensual use of the debtor's personal
7272 2 identifying information between family or household members as
7373 3 defined in Section 103 of the Illinois Domestic Violence Act,
7474 4 as a result of abuse or exploitation as defined in Section 103
7575 5 of the Illinois Domestic Violence Act, or due to human
7676 6 trafficking as defined in subsections (b), (c), and (d) of
7777 7 Section 10-9 of the Criminal Code of 2012.
7878 8 "Collection agency" means any person who, in the ordinary
7979 9 course of business, regularly, on behalf of himself or herself
8080 10 or others, engages in the collection of a debt.
8181 11 "Consumer debt" or "consumer credit" means money or
8282 12 property, or their equivalent, due or owing or alleged to be
8383 13 due or owing from a natural person by reason of a consumer
8484 14 credit transaction.
8585 15 "Credit transaction" means a transaction between a natural
8686 16 person and another person in which property, service, or money
8787 17 is acquired on credit by that natural person from such other
8888 18 person primarily for personal, family, or household purposes.
8989 19 "Creditor" means a person who extends consumer credit to a
9090 20 debtor.
9191 21 "Current balance" means the charge-off balance plus any
9292 22 legally collectible costs, expenses, and interest, less any
9393 23 credits or payments.
9494 24 "Debt" means money, property, or their equivalent which is
9595 25 due or owing or alleged to be due or owing from a person to
9696 26 another person.
9797
9898
9999
100100
101101
102102 SB2283 - 2 - LRB104 10114 BAB 20186 b
103103
104104
105105 SB2283- 3 -LRB104 10114 BAB 20186 b SB2283 - 3 - LRB104 10114 BAB 20186 b
106106 SB2283 - 3 - LRB104 10114 BAB 20186 b
107107 1 "Debt buyer" means a person or entity that is engaged in
108108 2 the business of purchasing delinquent or charged-off consumer
109109 3 loans or consumer credit accounts or other delinquent consumer
110110 4 debt for collection purposes, whether it collects the debt
111111 5 itself or hires a third-party for collection or an
112112 6 attorney-at-law for litigation in order to collect such debt.
113113 7 "Debtor" means a person from whom a collection agency
114114 8 seeks to collect a consumer or commercial debt that is due and
115115 9 owing or alleged to be due and owing from such person.
116116 10 "Department" means the Department of Financial and
117117 11 Professional Regulation.
118118 12 "Email address of record" means the designated email
119119 13 address recorded by the Department in the applicant's
120120 14 application file or the licensee's license file, as maintained
121121 15 by the Department's licensure maintenance unit.
122122 16 "Perpetrator of coerced debt" or "perpetrator" means an
123123 17 individual who caused coerced debt to be incurred by another.
124124 18 "Person" means a natural person, partnership, corporation,
125125 19 limited liability company, trust, estate, cooperative,
126126 20 association, or other similar entity.
127127 21 "Licensed collection agency" means a person who is
128128 22 licensed under this Act to engage in the practice of debt
129129 23 collection in Illinois.
130130 24 "Multi-state licensing system" means a web-based platform
131131 25 that allows licensure applicants to submit their applications
132132 26 and renewals to the Department online.
133133
134134
135135
136136
137137
138138 SB2283 - 3 - LRB104 10114 BAB 20186 b
139139
140140
141141 SB2283- 4 -LRB104 10114 BAB 20186 b SB2283 - 4 - LRB104 10114 BAB 20186 b
142142 SB2283 - 4 - LRB104 10114 BAB 20186 b
143143 1 "Secretary" means the Secretary of Financial and
144144 2 Professional Regulation or his or her designee.
145145 3 (Source: P.A. 102-975, eff. 1-1-23.)
146146 4 (205 ILCS 740/9.6 new)
147147 5 Sec. 9.6. Coerced debt.
148148 6 (a) A debtor is not liable for any coerced debt, as defined
149149 7 in this Act, and may assert that they have incurred a coerced
150150 8 debt by providing to a collection agency an oral or written
151151 9 statement of coerced debt. The statement of coerced debt
152152 10 shall:
153153 11 (1) contain enough information about the debt or
154154 12 portion of the debt to allow a collection agency to
155155 13 identify any account associated with the debt;
156156 14 (2) inform the collection agency that the debtor did
157157 15 not willingly authorize the use of the debtor's name,
158158 16 account, or personal information for incurring the debt or
159159 17 portion of the debt or to claim that a debt or portion of
160160 18 the debt is a coerced debt;
161161 19 (3) if the debtor knows how the debt was incurred,
162162 20 provide facts describing how the debt was incurred;
163163 21 (4) include the debtor's preferred contact method and
164164 22 information such as a phone number, email address,
165165 23 physical address, or safe address for either the debtor or
166166 24 a third party whom the debtor designates to receive
167167 25 information about the coerced debt; and
168168
169169
170170
171171
172172
173173 SB2283 - 4 - LRB104 10114 BAB 20186 b
174174
175175
176176 SB2283- 5 -LRB104 10114 BAB 20186 b SB2283 - 5 - LRB104 10114 BAB 20186 b
177177 SB2283 - 5 - LRB104 10114 BAB 20186 b
178178 1 (5) be supported by at least one of the following:
179179 2 (A) an Attorney General ID Theft Affidavit as
180180 3 described in Section 9.4 of this Act;
181181 4 (B) a police report that identifies the coerced
182182 5 debt, or a portion of the debt, and describes the
183183 6 circumstances under which the coerced debt was
184184 7 incurred;
185185 8 (C) a Federal Trade Commission identity theft
186186 9 report;
187187 10 (D) an order from a court of competent
188188 11 jurisdiction setting forth findings of coerced debt;
189189 12 (E) written verification on letterhead or on a
190190 13 form published by the Department from a qualified
191191 14 third party to whom the debtor reported the coerced
192192 15 debt that identifies the name, organization, address,
193193 16 and telephone number of the third party, identifies
194194 17 the coerced debt or a portion of the debt, and attests
195195 18 that the debtor sought the qualified third party's
196196 19 assistance related to the coerced debt, abuse or
197197 20 exploitation under the Illinois Domestic Violence Act,
198198 21 or because they are a victim of human trafficking
199199 22 under Section 10-9 of the Criminal Code; or
200200 23 (F) any other document that individually or in
201201 24 combination with other documents, including an order
202202 25 of protection under Article 2 of the Illinois Domestic
203203 26 Violence Act or a protective order under Section 112A
204204
205205
206206
207207
208208
209209 SB2283 - 5 - LRB104 10114 BAB 20186 b
210210
211211
212212 SB2283- 6 -LRB104 10114 BAB 20186 b SB2283 - 6 - LRB104 10114 BAB 20186 b
213213 SB2283 - 6 - LRB104 10114 BAB 20186 b
214214 1 of the Code of Criminal Procedure of 1963, that
215215 2 demonstrates a person was subject to coerced debt.
216216 3 As used in this Section, "qualified third party" means any
217217 4 law enforcement officer; attorney; physician, physician
218218 5 assistant, psychiatrist, psychologist, social worker, nurse,
219219 6 therapist, clinical professional counselor, or other medical
220220 7 professional; any person who advises or provides services to
221221 8 persons regarding domestic violence, family violence, sexual
222222 9 assault, human trafficking, or abuse of children, the elderly,
223223 10 or dependent adults; or a member of the clergy of a church,
224224 11 religious society, or denomination.
225225 12 (b) If a debtor notifies a collection agency orally that
226226 13 the debt it is pursuing is coerced debt or is partially coerced
227227 14 debt, the collection agency shall notify the debtor orally or
228228 15 in writing that the debtor's claim must be in writing and, if a
229229 16 model statement of coerced debt is published by the
230230 17 Department, refer the debtor to the model statement. A
231231 18 collection agency receiving an oral notice of coerced debt
232232 19 must notify any consumer reporting agency to which the
233233 20 collection agency furnished adverse information about the
234234 21 debtor that the debtor disputes the adverse information.
235235 22 (c) If the statement of coerced debt is incomplete in any
236236 23 respect, the collection agency shall notify the debtor using
237237 24 the debtor's preferred contact method within 15 business days
238238 25 of receipt that the statement is incomplete and the type of
239239 26 additional information needed to complete the coerced debt. If
240240
241241
242242
243243
244244
245245 SB2283 - 6 - LRB104 10114 BAB 20186 b
246246
247247
248248 SB2283- 7 -LRB104 10114 BAB 20186 b SB2283 - 7 - LRB104 10114 BAB 20186 b
249249 SB2283 - 7 - LRB104 10114 BAB 20186 b
250250 1 the collection agency provides this notice orally, the
251251 2 collection agency shall also provide notice to the debtor in
252252 3 writing via email or first-class mail.
253253 4 (d) Upon receiving the debtor's complete statement of
254254 5 coerced debt and supporting information described in
255255 6 subsection (a), the collection agency shall review and
256256 7 consider all the information received from the debtor as well
257257 8 as any other information available in the collection agency's
258258 9 file or from the creditor related to the alleged coerced debt
259259 10 within 90 days after receipt.
260260 11 (1) Within 5 days after receipt of the complete
261261 12 statement of coerced debt and supporting information, the
262262 13 collection agency shall (i) cease any pre-judgment
263263 14 attempts to collect the coerced debt from the debtor,
264264 15 including refraining from filing any lawsuit or
265265 16 arbitration to collect the coerced debt; and (ii) notify
266266 17 any consumer reporting agency to which the collection
267267 18 agency or creditor furnished adverse information about the
268268 19 debtor that the debtor disputes the adverse information.
269269 20 (2) If, after review, the collection agency makes a
270270 21 good faith determination that the debt or any portion of
271271 22 the debt does not qualify as coerced debt, the collection
272272 23 agency shall provide the debtor with a written statement
273273 24 setting forth the determination, along with any evidence
274274 25 relied upon in forming this determination. A collection
275275 26 agency may only resume collection activities after
276276
277277
278278
279279
280280
281281 SB2283 - 7 - LRB104 10114 BAB 20186 b
282282
283283
284284 SB2283- 8 -LRB104 10114 BAB 20186 b SB2283 - 8 - LRB104 10114 BAB 20186 b
285285 SB2283 - 8 - LRB104 10114 BAB 20186 b
286286 1 providing debtor with a copy of this written statement and
287287 2 supporting evidence at the debtor's preferred email or
288288 3 mailing address from the statement of coerced debt or, if
289289 4 not provided as part of the statement, at their last known
290290 5 mailing address.
291291 6 (3) If, after its review, the collection agency does
292292 7 not make a good faith determination that the debt does not
293293 8 qualify as coerced debt under paragraph (2), it shall: (i)
294294 9 refrain from any further collection activities, including
295295 10 the filing of any lawsuit or arbitration, to collect the
296296 11 coerced debt from the debtor who submitted the statement
297297 12 of coerced debt; (ii) notify that debtor through their
298298 13 preferred contact method that it is ceasing all attempts
299299 14 to collect the debt from the debtor based on the debtor's
300300 15 claim of coerced debt; and (iii) contact any consumer
301301 16 reporting agency to which it furnished information about
302302 17 the coerced debt and request they delete such information.
303303 18 (4) The collection agency may request that the debtor
304304 19 provide the identity of the alleged perpetrator and the
305305 20 individual's contact information, if known.
306306 21 (5) A collection agency shall not provide the contact
307307 22 information of debtor or a copy of the statement of
308308 23 coerced debt or supporting information to an alleged
309309 24 perpetrator of coerced debt or another person but may
310310 25 summarize the allegations about how the coerced debt was
311311 26 incurred in order to collect the debt from the
312312
313313
314314
315315
316316
317317 SB2283 - 8 - LRB104 10114 BAB 20186 b
318318
319319
320320 SB2283- 9 -LRB104 10114 BAB 20186 b SB2283 - 9 - LRB104 10114 BAB 20186 b
321321 SB2283 - 9 - LRB104 10114 BAB 20186 b
322322 1 perpetrator.
323323 2 (e) In any lawsuit or arbitration to collect a debt, it
324324 3 shall be an affirmative defense that the debt is or is
325325 4 partially coerced debt. A debtor establishes a prima facie
326326 5 affirmative defense to any action by a collection agency to
327327 6 collect a debt by submitting a complete statement of coerced
328328 7 debt as set forth in subsection (a) to the collection agency
329329 8 and the court or arbitrator. A collection agency has the
330330 9 burden to disprove the debtor's defense by a preponderance of
331331 10 the evidence.
332332 11 (f) A person found by a court or arbitrator of competent
333333 12 jurisdiction to be a perpetrator of coerced debt shall be
334334 13 civilly liable to (1) the collection agency for the full
335335 14 amount of the debt, less any portion that has been satisfied by
336336 15 the debtor or otherwise, and (2) the debtor for any actual
337337 16 damages incurred for payments, garnishments, or any other
338338 17 costs related to the coerced debt.
339339 18 (g) During any court action or arbitration under
340340 19 subsections (e) and (f), the presiding official shall take
341341 20 appropriate steps necessary to protect the debtor or any
342342 21 immediate family member or household member of the debtor from
343343 22 an alleged perpetrator of coerced debt, including but not
344344 23 limited to sealing court records, redacting personally
345345 24 identifiable information about the debtor and any immediate
346346 25 family member or household member of the debtor, and directing
347347 26 that any deposition or evidentiary hearing be conducted
348348
349349
350350
351351
352352
353353 SB2283 - 9 - LRB104 10114 BAB 20186 b
354354
355355
356356 SB2283- 10 -LRB104 10114 BAB 20186 b SB2283 - 10 - LRB104 10114 BAB 20186 b
357357 SB2283 - 10 - LRB104 10114 BAB 20186 b
358358
359359
360360
361361
362362
363363 SB2283 - 10 - LRB104 10114 BAB 20186 b