Wednesday, February 3, 2016

FYI: Illinois Amends Collection Agency Act to Correct Problematic Provisions

Illinois Governor Bruce Rauner recently signed Illinois SB 1369 into law, thereby providing welcomed corrections to the Illinois Collection Agency Act ("ICAA") arising from problematic August 2015 amendments to the statute.


A copy of Act now signed into law is available here:  Link to Public Act 099-0500


We previously described the proposed changes in SB 1369 that would rewind some of the unintended consequences wrought by the prior August 2015 amendments.  The text of our prior update is available here:  Link to Update


The August 2015 amendments would potentially have expanded sections of the ICAA to commercial debt, and would have required disclosures contrary to (and possibly in violation of) the federal Fair Debt Collection Practices Act.


The corrective legislation:



-  Amends section 9.1 (Communication with persons other than debtor) to provide that when seeking location information from third parties, collection agencies and debt buyers must provide the name of their employer "only if expressly requested"


-  Amends section 9.3 (Debt validation) to provide that a collection agency or debt buyer provide a debtor with the name and address of the original creditor only if requested by a debtor, in writing, within the 30-day validation period


-  Amends the above sections as well as sections 2 (Definitions) and 9.2 (Communication in connection with debt) to apply only to debt incurred primarily for personal, family or household purposes


-  Adds that a collection agency or debt buyer is immune from civil liability under sections 2, 9.1, 9.2, or 9.3 of the ICCA if it can demonstrate compliance with comparable provisions of the FDCPA



The Act became effective upon the Governor's signature on January 29, 2016.





Ralph T. Wutscher
Maurice Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct:  (312) 551-9320
Fax: (312) 284-4751

Mobile:  (312) 493-0874


Admitted to practice law in Illinois




California   |   Florida   |   Illinois   |   Indiana   |   Maryland   |   Massachusetts   |   New Jersey   |   New York   |   Ohio   |   Pennsylvania   |   Texas   |   Washington, DC



NOTICE: We do not send unsolicited emails. If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention. Thank you.

Our updates and webinar presentations are available on the internet, in searchable format, at:


Financial Services Law Updates




The Consumer Financial Services Blog








California Finance Law Developments




Insurance Recovery Services