Debt Buyer Legislation Becomes Law
Clarity Sought by Creditors Bar Coalition of Illinois
FOR IMMEDIATE RELEASE
August 27, 2012
(Springfield, IL) - Illinois House Bill 5016, which amends the Illinois Collection Agency Act, was passed into law this week and goes into effect January 1, 2013. The legislation, sponsored by Representative Lou Lang (D-Skokie) and Senator Ira Silverstein (D-Chicago), clearly defines the term “Debt Buyer” in Illinois for the first time.
Debt Buyers have been regulated under the Illinois Collection Agency Act since 2008, but inconsistencies in the law and imprecise definitions resulted in differing interpretations and unintended consequences that led to numerous lawsuits. The new law, initiated by the Creditors Bar Coalition of Illinois (CBCI), precisely defines debt buyers as distinguished from the traditional collection agencies. Debt buyers are still subject to the Illinois Collection Agency Act and may be subject to enforcement action by the Attorney General, but the new law recognizes that certain collection agency requirements should not logically be applied to debt buyers. The text of the law can be found here.
Passage of the law was the culmination of a two-year process and hundreds of hours of hard work, and the CBCI applauds the dedication of the Office of the Attorney General and the Department of Financial and Professional Regulation in ensuring laws adequately protect consumers without unduly burdening legitimate businesses.
The CBCI is a not for profit organization comprised of debt collection attorneys and debt purchasers working together to preserve and protect the ability to collect legitimate debt in the State of Illinois.
Since 2009, the CBCI, along with its lobbyist David Manning of The Manning Consulting Group, have worked diligently with the bench and state lawmakers to help create rules that aid consumers while maintaining the ability to collect debt responsibly and protect the economy.