SB3234sam001 97TH GENERAL ASSEMBLY

Sen. William R. Haine

Filed: 3/8/2012

09700SB3234sam001 LRB097 18787 JLS 67262 a

AMENDMENT TO SENATE BILL 3234

AMENDMENT NO. ______. Amend Senate Bill 3234 by replacing everything after the enacting clause with the following:

"Section 5. The Consumer Installment Loan Act is amended by adding Section 19.3 as follows:

(205 ILCS 670/19.3 new)

Sec. 19.3. Debtor incarceration prevention.

(a) A licensee shall develop and maintain in each place of business and in each headquarters a written policy regarding the filing and handling of collection actions against consumers. The policy shall include a provision regarding consumers who fail to appear at a court-ordered hearing. The written policy shall provide that the licensee shall instruct all counsel representing the licensee not to request or otherwise seek writs of body attachment or other orders causing the arrest of a consumer except under extraordinary circumstances. Extraordinary circumstances shall exist when the consumer (1) has repeatedly failed to appear without notifying the court or the licensee's counsel and despite having received actual notice of the duty to appear or (2) is alleged to have engaged in fraud or the willful concealment of assets.

(b) A licensee shall abide by the policy developed pursuant to subsection (a). Failure to develop, maintain, or abide by the policy shall constitute a violation of this Act.

(c) A licensee shall maintain records on all cases in which the licensee is the plaintiff and the court orders a writ of body attachment. These records shall include the complaint filed in court by the plaintiff or its agent, the amount of the debt, whether the attachment was delivered to the sheriff for service, whether the attachment was served, the date on which the consumer was taken into custody, the date on which the consumer was released from custody, the amount of the bond required by the court, and the amount of the bond, if any, tendered to the licensee. A licensee shall provide an annual report to the Department containing the information required by this subsection. If the licensee or its agent has filed no cases in which body attachments were ordered, no report shall be submitted to the Department.

Section 10. The Collection Agency Act is amended by adding Section 8d as follows:

(225 ILCS 425/8d new)

Sec. 8d. Debtor incarceration prevention.

(a) A licensee shall develop and maintain in each place of business and in each headquarters a written policy regarding the filing and handling of collection actions against debtors. The policy shall include a provision regarding debtors who fail to appear at a court-ordered hearing. The written policy shall provide that the licensee shall instruct all counsel representing the licensee not to request or otherwise seek writs of body attachment or other orders causing the arrest of a debtor except under extraordinary circumstances. Extraordinary circumstances shall exist when the debtor (1) has repeatedly failed to appear without notifying the court or the licensee's counsel and despite having received actual notice of the duty to appear or (2) is alleged to have engaged in fraud or the willful concealment of assets.

(b) A licensee shall abide by the policy developed pursuant to subsection (a). Failure to develop, maintain, or abide by the policy shall constitute a violation of this Act.

(c) A licensee shall maintain records on all cases in which the licensee is the plaintiff and the court orders a writ of body attachment. These records shall include the complaint filed in court by the plaintiff or its agent, the amount of the debt, whether the attachment was delivered to the sheriff for service, whether the attachment was served, the date on which the debtor was taken into custody, the date on which the debtor was released from custody, the amount of the bond required by the court, and the amount of the bond, if any, tendered to the licensee. A licensee shall provide an annual report to the Department containing the information required by this subsection. If the licensee or its agent has filed no cases in which body attachments were ordered, no report shall be submitted to the Department.

Section 15. The Payday Loan Reform Act is amended by adding Section 2-21 as follows:

(815 ILCS 122/2-21 new)

Sec. 2-21. Debtor incarceration prevention.

(a) A licensee shall develop and maintain in each place of business and in each headquarters a written policy regarding the filing and handling of collection actions against consumers. The policy shall include a provision regarding consumers who fail to appear at a court-ordered hearing. The written policy shall provide that the licensee shall instruct all counsel representing the licensee not to request or otherwise seek writs of body attachment or other orders causing the arrest of a consumer except under extraordinary circumstances. Extraordinary circumstances shall exist when the consumer (1) has repeatedly failed to appear without notifying the court or the licensee's counsel and despite having received actual notice of the duty to appear or (2) is alleged to have engaged in fraud or the willful concealment of assets.

(b) A licensee shall abide by the policy developed pursuant to subsection (a). Failure to develop, maintain, or abide by the policy shall constitute a violation of this Act.

(c) A licensee shall maintain records on all cases in which the licensee is the plaintiff and the court orders a writ of body attachment. These records shall include the complaint filed in court by the plaintiff or its agent, the amount of the debt, whether the attachment was delivered to the sheriff for service, whether the attachment was served, the date on which the consumer was taken into custody, the date on which the consumer was released from custody, the amount of the bond required by the court, and the amount of the bond, if any, tendered to the licensee. A licensee shall provide an annual report to the Department containing the information required by this subsection. If the licensee or its agent has filed no cases in which body attachments were ordered, no report shall be submitted to the Department.

Section 99. Effective date. This Act takes effect January 1, 2013.".