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HB3352 - 104th General Assembly
COLLECTION AGENCY COERCED DEBT
Last Action
House Sponsors
Rep. Kelly M. Cassidy - Nabeela Syed, Dagmara Avelar, Joyce Mason, Kevin John Olickal, Maura Hirschauer, Stephanie A. Kifowit, Jennifer Gong-Gershowitz, Jehan Gordon-Booth, Justin Slaughter, Diane Blair-Sherlock, Theresa Mah, Camille Y. Lilly, Nicolle Grasse, Rita Mayfield, Hoan Huynh, Amy Briel and Thaddeus JonesSenate Sponsors
(Sen. Kimberly A. Lightford - Robert Peters - Sue Rezin, Rachel Ventura, Celina Villanueva, Karina Villa, Adriane Johnson, Mary Edly-Allen, Willie Preston, Christopher Belt, Steve Stadelman and Graciela Guzmán)Statutes Amended In Order of Appearance
205 ILCS 740/2was 225 ILCS 425/2
Synopsis As Introduced
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.
House Floor Amendment No. 1
Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. Makes changes to defined terms. Provides that a debtor may assert that the debtor has incurred a coerced debt by providing to a collection agency a written statement (rather than written or oral) of coerced debt. Makes changes to the contents required to be in the statement of coerced debt. Establishes requirements for delivery of the statement of coerced debt. Provides that, if a debtor notifies a collection agency orally that the debt it is pursuing is coerced debt or is partially coerced debt, the collection agency shall notify the debtor orally or in writing, within 14 days (rather than 10 business days) after receiving oral notice, that the debtor's claim must be in writing and refer the debtor to any model statement that is posted by the Department of Financial and Professional Regulation on its website (rather than the model statement). Provides that a debtor shall have 21 days after receipt that the statement is incomplete to respond with the additional information required, and the collection agency may resume collection activities if a complete statement of coerced debt has not been provided by the debtor to the collection agency on or before 30 days after notice of an incomplete statement of coerced debt was provided to the debtor. Provides that a qualified third party who fraudulently certifies that the debtor sought assistance from the qualified third party related to the coerced debt, abuse, exploitation, or human trafficking shall be liable to the collection agency for actual damages, court costs and reasonable attorney's fees. Provides that any statute of limitation that may apply to a debt that is alleged to be coerced debt shall be tolled for the duration of any time period during which the collection agency is temporarily prevented from commencing legal action related to the debt or any portion of the debt. Provides that a debtor who receives a good faith determination, as provided, that the debt or portion of the debt does not constitute coerced debt may not submit a second or subsequent statement of coerced debt to the collection agency for the same debt or portion of the debt prior to any lawsuit or arbitration to collect that debt and the collection agency is not required to respond to the debtor regarding the second or subsequent statement of coerced debt. Makes other changes.
Actions
| Date | Chamber | Action |
|---|---|---|
| 2/07/2025 | House | Filed with the Clerk by Rep. Kelly M. Cassidy |
| 2/14/2025 | House | Added Chief Co-Sponsor Rep. Nabeela Syed |
| 2/14/2025 | House | Added Chief Co-Sponsor Rep. Bradley Fritts |
| 2/14/2025 | House | Remove Chief Co-Sponsor Rep. Bradley Fritts |
| 2/18/2025 | House | First Reading |
| 2/18/2025 | House | Referred to Rules Committee |
| 3/04/2025 | House | Added Co-Sponsor Rep. Dagmara Avelar |
| 3/04/2025 | House | Added Co-Sponsor Rep. Joyce Mason |
| 3/04/2025 | House | Added Co-Sponsor Rep. Kevin John Olickal |
| 3/04/2025 | House | Added Co-Sponsor Rep. Maura Hirschauer |
| 3/06/2025 | House | Added Co-Sponsor Rep. Stephanie A. Kifowit |
| 3/06/2025 | House | Added Co-Sponsor Rep. Jennifer Gong-Gershowitz |
| 3/06/2025 | House | Added Co-Sponsor Rep. Jehan Gordon-Booth |
| 3/06/2025 | House | Added Co-Sponsor Rep. Justin Slaughter |
| 3/11/2025 | House | Assigned to Judiciary - Civil Committee |
| 3/19/2025 | House | Do Pass / Short Debate Judiciary - Civil Committee; 013-007-000 |
| 3/19/2025 | House | Placed on Calendar 2nd Reading - Short Debate |
| 3/26/2025 | House | Second Reading - Short Debate |
| 3/26/2025 | House | Held on Calendar Order of Second Reading - Short Debate |
| 4/07/2025 | House | House Floor Amendment No. 1 Filed with Clerk by Rep. Kelly M. Cassidy |
| 4/07/2025 | House | House Floor Amendment No. 1 Referred to Rules Committee |
| 4/08/2025 | House | House Floor Amendment No. 1 Rules Refers to Judiciary - Civil Committee |
| 4/08/2025 | House | Added Co-Sponsor Rep. Diane Blair-Sherlock |
| 4/09/2025 | House | House Floor Amendment No. 1 Recommends Be Adopted Judiciary - Civil Committee; 020-000-000 |
| 4/09/2025 | House | Added Co-Sponsor Rep. Theresa Mah |
| 4/10/2025 | House | Added Co-Sponsor Rep. Camille Y. Lilly |
| 4/10/2025 | House | House Floor Amendment No. 1 Adopted |
| 4/10/2025 | House | Placed on Calendar Order of 3rd Reading - Short Debate |
| 4/10/2025 | House | Third Reading - Short Debate - Passed 089-023-000 |
| 4/10/2025 | House | Added Co-Sponsor Rep. Nicolle Grasse |
| 4/10/2025 | House | Added Co-Sponsor Rep. Rita Mayfield |
| 4/10/2025 | House | Added Co-Sponsor Rep. Hoan Huynh |
| 4/14/2025 | Senate | Arrive in Senate |
| 4/14/2025 | Senate | Placed on Calendar Order of First Reading |
| 4/14/2025 | Senate | Chief Senate Sponsor Sen. Kimberly A. Lightford |
| 4/14/2025 | Senate | First Reading |
| 4/14/2025 | Senate | Referred to Assignments |
| 4/23/2025 | House | Added Co-Sponsor Rep. Amy Briel |
| 4/29/2025 | Senate | Assigned to Financial Institutions |
| 5/07/2025 | Senate | Added as Alternate Chief Co-Sponsor Sen. Robert Peters |
| 5/07/2025 | Senate | Added as Alternate Co-Sponsor Sen. Rachel Ventura |
| 5/07/2025 | Senate | Do Pass Financial Institutions; 008-000-000 |
| 5/07/2025 | Senate | Placed on Calendar Order of 2nd Reading May 8, 2025 |
| 5/08/2025 | Senate | Second Reading |
| 5/08/2025 | Senate | Placed on Calendar Order of 3rd Reading May 13, 2025 |
| 5/16/2025 | House | Added Co-Sponsor Rep. Thaddeus Jones |
| 5/16/2025 | Senate | Added as Alternate Co-Sponsor Sen. Celina Villanueva |
| 5/16/2025 | Senate | Added as Alternate Co-Sponsor Sen. Karina Villa |
| 5/22/2025 | Senate | Third Reading - Passed; 056-000-000 |
| 5/22/2025 | House | Passed Both Houses |
| 5/22/2025 | Senate | Added as Alternate Co-Sponsor Sen. Adriane Johnson |
| 5/22/2025 | Senate | Added as Alternate Co-Sponsor Sen. Mary Edly-Allen |
| 5/22/2025 | Senate | Added as Alternate Co-Sponsor Sen. Willie Preston |
| 5/22/2025 | Senate | Added as Alternate Chief Co-Sponsor Sen. Sue Rezin |
| 5/22/2025 | Senate | Added as Alternate Co-Sponsor Sen. Christopher Belt |
| 5/22/2025 | Senate | Added as Alternate Co-Sponsor Sen. Steve Stadelman |
| 6/20/2025 | House | Sent to the Governor |
| 6/24/2025 | Senate | Added as Alternate Co-Sponsor Sen. Graciela Guzmán |
| 8/15/2025 | House | Governor Approved |
| 8/15/2025 | House | Effective Date January 1, 2026 |
| 8/15/2025 | House | Public Act . . . . . . . . . 104-0297 |