Rep. Lou Lang
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AMENDMENT TO HOUSE BILL 5016
AMENDMENT NO. ______. Amend House Bill 5016 by replacing
everything after the enacting clause with the following:
The Collection Agency Act is amended by
changing Section 2 and by adding Section 8.5 and 8.6 as
(225 ILCS 425/2)
(from Ch. 111, par. 2002)
(Section scheduled to be repealed on January 1, 2016)
Definitions. In this Act:
"Charge-off date" means the date on which a receivable is
treated as a loss or expense.
"Consumer credit transaction" means a transaction between
a natural person and another person in which property, service,
or money is acquired on credit by that natural person from such
other person primarily for personal, family, or household
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"Consumer debt" or "consumer credit" means money,
property, or their equivalent, due or owing or alleged to be
due or owing from a natural person by reason of a consumer
"Creditor" means a person who extends consumer credit to a
"Debt" means money, property, or their equivalent which is
due or owing or alleged to be due or owing from a natural
person to another person.
"Debt buyer" means any person engaging in, or holding
itself out as engaging in, the business of purchasing accounts
for value and acquiring all rights in and ownership of a debt.
"Debt collection" means any act or practice in connection
with the collection of consumer debts.
"Debt collector", "collection agency", or "agency" means
any person who, in the ordinary course of business, regularly,
on behalf of himself or herself or others, engages in debt
"Debtor" means a natural person from whom a debt collector
seeks to collect a consumer debt that is due and owing or
alleged to be due and owing from such person.
"Department" means Division of Professional Regulation
within the Department of Financial and Professional
"Director" means the Director of the Division of
Professional Regulation within the Department of Financial and
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"Person" means a natural person, partnership, corporation,
limited liability company, trust, estate, cooperative,
association, or other similar entity.
"Principal balance" or "charge-off balance" means an
account principal and other legally collectible costs,
expenses, and interest that are accrued prior to the charge-off
date, less any payments or settlement.
(Source: P.A. 95-437, eff. 1-1-08.)
(225 ILCS 425/8.5 new)
A debt buyer shall be subject to all
of the terms, conditions, and requirements of this Act, except
for subsection (b) of Section 8.6 of this Act.
(225 ILCS 425/8.6 new)
Debt buyer activities.
(a) The provisions of this Section 8.6 shall apply to debt
buyers. If a debt buyer commences litigation against a debtor,
then the debt buyer shall attach to the complaint an affidavit
in substantially the following form:
"[CAPTION OF COURT PROCEEDING]
AFFIDAVIT OF ACCOUNT OWNERSHIP
I,................, being first duly sworn upon my
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oath, depose and state as follows:
1. I am an authorized agent of................., the
plaintiff in this case and a debt buyer as defined in
Section 2 of the Collection Agency Act ("debt buyer").
2. I am authorized to execute this affidavit on behalf
of the debt buyer, and I am over the age of 18 and
competent to testify as to the matters contained herein.
3. In my capacity as an authorized agent of the debt
buyer, I have access to the records maintained in the
ordinary course of business of the debt buyer, including
the records for and relating to the subject account. Those
records include records acquired by the debt buyer at the
time it purchased the account from the transferor, and
records generated by the debt buyer relating to the account
since the time it was purchased. I have reviewed or caused
to be reviewed those records relating to the account, and I
make this affidavit based upon that review and my own
personal knowledge of how the records are kept and
maintained. The account records generated by the debt buyer
are made at or near the time of the event, by or from
information transmitted by a person with knowledge of such
information. It is the regular practice of the debt buyer
to keep such records in the ordinary course of its
regularly conducted business activity.
4. The debt buyer owns the account that is the subject
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of the pending collection action.
5. On the date of the signature of this affidavit, this
account was within the applicable statutory period of
6. The records of the debt buyer reflect that [debtor
name(s)], defendant in this case, was issued credit by
[creditor name], with an account number of [redacted
original account number] and that [credit name],
[charge-off date]. The last payment, if any, received on
the debtor's account was on [last payment date]. There is a
balance due and owing to the debt buyer on this account in
the amount of [charge-off balance due] less any post
charge-off credits, and the debt buyer has not received
payment of that balance due.
Further affiant sayeth naught.
(Signature of Affiant)
SUBSCRIBED AND SWORN TO
Before me, this.....day of .............,......
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(b) With respect to its activities as a debt buyer in
pursuing the collection of accounts it owns, a debt buyer shall
be subject to all of the terms, conditions, and requirements of
this Act, except that a debt buyer shall not be required to (i)
file and maintain in force a surety bond under Section 8 of
this Act; (ii) maintain a trust account under Section 8c of
this Act; (iii) procure written authorization to refer the
account to an attorney for suit under Section 8a-1 of this Act;
or (iv) adhere to the assignment for collection criteria under
Section 8b of this Act.
(c) The Attorney General may enforce against debt buyers
the provisions identified in Section 9.7 of this Act as an
unlawful practice under the Consumer Fraud and Deceptive
Business Practices Act.
This Act takes effect January