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
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