Illinois General Assembly - Full Text of HB5016
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Full Text of HB5016  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/7/2012, by Rep. Lou Lang


225 ILCS 425/2  from Ch. 111, par. 2002
225 ILCS 425/8.5 new

    Amends the Collection Agency Act. Defines "charge-off date", "collection agency" or "agency", "debt buyer", and "principal balance" or "charge-off balance". Provides that if a debt buyer commences litigation against a debtor, then the debt buyer shall attach to the complaint an affidavit. Provides that a debt buyer shall be subject to all of the terms, conditions, and requirements of the Act, except that a debt buyer shall not be required to (i) file and maintain in force a surety bond; (ii) maintain a trust account; (iii) procure written authorization to refer the account to an attorney for suit; or (iv) adhere to the assignment for collection criteria. Provides that the Attorney General may enforce against debt buyers specified provisions under the Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.

LRB097 18247 CEL 63473 b





HB5016LRB097 18247 CEL 63473 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Collection Agency Act is amended by changing
5Section 2 and by adding Section 8.5 as follows:
6    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
7    (Section scheduled to be repealed on January 1, 2016)
8    Sec. 2. Definitions. In this Act:
9    "Charge-off date" means the date on which a receivable is
10treated as a loss or expense.
11    "Collection agency" or "agency" means any person engaged in
12the business of collecting or receiving for payment for others
13of any account, bill, or other indebtedness from a debtor.
14    "Consumer credit transaction" means a transaction between
15a natural person and another person in which property, service,
16or money is acquired on credit by that natural person from such
17other person primarily for personal, family, or household
19    "Consumer debt" or "consumer credit" means money,
20property, or their equivalent, due or owing or alleged to be
21due or owing from a natural person by reason of a consumer
22credit transaction.
23    "Creditor" means a person who extends consumer credit to a



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2    "Debt" means money, property, or their equivalent which is
3due or owing or alleged to be due or owing from a natural
4person to another person.
5    "Debt buyer" means any person whose principal business
6activity is purchasing accounts for value and acquiring all
7rights in and ownership of a debt.
8    "Debt collection" means any act or practice in connection
9with the collection of consumer debts.
10    "Debt collector", "collection agency", or "agency" means
11any person who, in the ordinary course of business, regularly,
12on behalf of himself or herself or others, engages in debt
14    "Debtor" means a natural person from whom a debt collector
15seeks to collect a consumer debt that is due and owing or
16alleged to be due and owing from such person.
17    "Department" means Division of Professional Regulation
18within the Department of Financial and Professional
20    "Director" means the Director of the Division of
21Professional Regulation within the Department of Financial and
22Professional Regulation.
23    "Person" means a natural person, partnership, corporation,
24limited liability company, trust, estate, cooperative,
25association, or other similar entity.
26    "Principal balance" or "charge-off balance" means an



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1account principal and other legally collectible costs,
2expenses, and interest that are accrued prior to the charge-off
3date, less any payments or settlements.
4(Source: P.A. 95-437, eff. 1-1-08.)
5    (225 ILCS 425/8.5 new)
6    Sec. 8.5. Debt buyers.
7    (a) The provisions of this Section shall apply to debt
8buyers. If a debt buyer commences litigation against a debtor,
9then the debt buyer shall attach to the complaint an affidavit
10in substantially the following form:

13        I,............................., being first duly
14    sworn upon my oath, depose and state as follows:
15        1. I am an employee of ............, the plaintiff in
16    this case and a debt buyer as defined in Section 2 of the
17    Collection Agency Act ("debt buyer").
18        2. I am authorized to execute this affidavit on behalf
19    of the debt buyer, and I am over the age of 18 and
20    competent to testify as to the matters contained herein.
21        3. In my capacity as an employee of the debt buyer, I
22    have access to the records maintained in the ordinary



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1    course of business of the debt buyer, including the records
2    for and relating to the subject account. Those records
3    include records acquired by the debt buyer at the time it
4    purchased the account from the transferor and records
5    generated by the debt buyer relating to the account since
6    the time it was purchased. I have reviewed or caused to be
7    reviewed those records relating to the account, and I make
8    this affidavit based upon that review and my own personal
9    knowledge of how the records are kept and maintained. The
10    account records generated by the debt buyer are made at or
11    near the time of the event, by or from information
12    transmitted by a person with knowledge of such information.
13    It is the regular practice of the debt buyer to keep such
14    records in the ordinary course of its regularly conducted
15    business activity.
16        4. The debt buyer owns the account that is the subject
17    of the pending collection action.
18        5. The debt buyer has filed this case within the
19    applicable statutory period of limitations.
20        6. The records of the debt buyer reflect that [debtor
21    name(s)], defendant in this case, was issued credit by
22    [creditor name], with an account number of [redacted
23    original account number] and that [creditor name], charged
24    off said account on [charge-off date]. The last payment
25    received on the debtor's account was on [last payment
26    date]. There is a balance due and owing to the debt buyer



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1    on this account in the amount of [charge-off balance due]
2    and the debt buyer has not received payment of that balance
3    due.
Further affiant sayeth naught.
(Signature of Affiant)
Print Name:...................
Print Title:..................
Debt Buyer:...................
11    Before me, of .............,......
12    ...............................................
13    Notary Public".
14    (b) With respect to its activities as a debt buyer in
15pursuing the collection of accounts it owns, a debt buyer shall
16be subject to all of the terms, conditions, and requirements of
17this Act, except that a debt buyer shall not be required to (i)
18file and maintain in force a surety bond under Section 8 of
19this Act; (ii) maintain a trust account under Section 8c of
20this Act; (iii) procure written authorization to refer the
21account to an attorney for suit under Section 8a-1 of this Act;
22or (iv) adhere to the assignment for collection criteria under
23Section 8b of this Act.



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1    (c) The Attorney General may enforce against debt buyers
2the provisions identified in Section 9.7 of this Act as an
3unlawful practice under the Consumer Fraud and Deceptive
4Business Practices Act.
5    Section 99. Effective date. This Act takes effect upon
6becoming law.