(225 ILCS 425/8b) (from Ch. 111, par. 2011b)
(Section scheduled to be repealed on January 1, 2026)
Sec. 8b. Assignment for collection. An account may be assigned
to a collection agency for collection with title passing to the collection
agency to enable collection of
the account in the agency's name as assignee for the
creditor provided:
(a) The assignment is manifested by a written agreement, separate from
and in addition to any document intended for the purpose of listing a debt
with a collection agency. The document manifesting the
assignment shall specifically state and include:
(i) the effective date of the assignment; and
(ii) the consideration for the assignment.
(b) The consideration for the assignment may be paid or given either
before or after the effective date of the assignment. The consideration
may be contingent upon the settlement or outcome of litigation and if the
debt being assigned has been listed with the collection agency as an
account for collection, the consideration for assignment may be the same as
the fee for collection.
(c) All assignments shall be voluntary and properly executed and
acknowledged by the corporate authority or individual transferring title to
the collection agency before any action can be taken in the name of the
collection agency.
(d) No assignment shall be required by any agreement to list a
debt with
a collection agency as an account for collection.
(e) No litigation shall commence in the name of the licensee as
plaintiff unless: (i) there is an assignment of the account that satisfies
the requirements of this Section and (ii) the licensee is
represented by a licensed attorney at law.
(f) If a collection agency takes assignments of accounts from 2
or
more creditors against the same debtor and commences litigation against
that debtor in a single action, in the name of the collection agency, then
(i) the complaint must be stated in
separate counts for each assignment and (ii) the debtor has an absolute
right to have any count severed from the rest of the action.
(Source: P.A. 99-227, eff. 8-3-15.)
|