102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3934

 

Introduced 1/21/2022, by Sen. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 425/9.2

    Amends the Collection Agency Act. Provides that a collection agency may not communicate with a debtor in connection with the collection of any debt in specified circumstances. Provides that these circumstances include debt that arises from domestic and economic abuse, elder abuse, human trafficking, and identity theft.


LRB102 22904 SPS 32057 b

 

 

A BILL FOR

 

SB3934LRB102 22904 SPS 32057 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
5changing Section 9.2 as follows:
 
6    (225 ILCS 425/9.2)
7    (Section scheduled to be repealed on January 1, 2026)
8    Sec. 9.2. Communication in connection with debt
9collection.
10    (a) Without the prior consent of the debtor given directly
11to the collection agency or the express permission of a court
12of competent jurisdiction, a collection agency may not
13communicate with a debtor in connection with the collection of
14any debt in any of the following circumstances:
15        (1) At any unusual time, place, or manner that is
16    known or should be known to be inconvenient to the debtor.
17    In the absence of knowledge of circumstances to the
18    contrary, a collection agency shall assume that the
19    convenient time for communicating with a debtor is after
20    8:00 a.m. and before 9:00 p.m. local time at the debtor's
21    location.
22        (2) If the collection agency knows the debtor is
23    represented by an attorney with respect to such debt and

 

 

SB3934- 2 -LRB102 22904 SPS 32057 b

1    has knowledge of or can readily ascertain, the attorney's
2    name and address, unless the attorney fails to respond
3    within a reasonable period of time to a communication from
4    the collection agency or unless the attorney consents to
5    direct communication with the debtor.
6        (3) At the debtor's place of employment, if the
7    collection agency knows or has reason to know that the
8    debtor's employer prohibits the debtor from receiving such
9    communication.
10    (b) Except as provided in Section 9.1 of this Act, without
11the prior consent of the debtor given directly to the
12collection agency, the express permission of a court of
13competent jurisdiction, or as reasonably necessary to
14effectuate a post judgment judicial remedy, a collection
15agency may not communicate, in connection with the collection
16of any debt, with any person other than the debtor, the
17debtor's attorney, a consumer reporting agency if otherwise
18permitted by law, the creditor, the attorney of the creditor,
19or the attorney of the collection agency.
20    (c) If a debtor notifies a collection agency in writing
21that the debtor refuses to pay a debt or that the debtor wishes
22the collection agency to cease further communication with the
23debtor, the collection agency may not communicate further with
24the debtor with respect to such debt, except to perform any of
25the following tasks:
26        (1) Advise the debtor that the collection agency's

 

 

SB3934- 3 -LRB102 22904 SPS 32057 b

1    further efforts are being terminated.
2        (2) Notify the debtor that the collection agency or
3    creditor may invoke specified remedies that are ordinarily
4    invoked by such collection agency or creditor.
5        (3) Notify the debtor that the collection agency or
6    creditor intends to invoke a specified remedy.
7    If such notice from the debtor is made by mail,
8notification shall be complete upon receipt.
9    (c-5) A collection agency may not communicate with a
10debtor in connection with the collection of any debt in any of
11the following circumstances:
12        (1) The debt arises from documented domestic and
13    economic abuse. Documented domestic and economic abuse
14    occurs if the following apply:
15            (A) the debtor has alleged in a police report that
16        the debtor has been the victim of domestic violence by
17        a specific perpetrator who is one of the following:
18                (i) a current or former spouse;
19                (ii) an individual with whom the debtor has a
20            child in common;
21                (iii) an individual with whom the debtor is or
22            was in a dating relationship; or
23                (iv) a current or former resident of the
24            debtor's household; and
25            (B) the debtor provides the collection agency with
26        a signed affidavit affirming that the following is

 

 

SB3934- 4 -LRB102 22904 SPS 32057 b

1        true:
2                (i) the debtor was the victim of domestic
3            violence by a specified perpetrator as documented
4            in the police report;
5                (ii) as a result of threats of domestic
6            violence from the perpetrator referenced in the
7            police report, the debtor was compelled to incur
8            debt or was provided credit that the debtor would
9            not otherwise have incurred in the absence of the
10            threat of violence; and
11                (iii) the debt that is the subject of the
12            person's contact with the debtor is a debt
13            incurred solely because of this threat of domestic
14            violence.
15        The prohibition in this paragraph applies for 2 years
16    after the affidavit is provided to the collection agency,
17    except that the prohibition applies indefinitely if the
18    perpetrator has been convicted of a crime relating to
19    domestic violence arising from the conduct referenced in
20    the police report.
21        (2) The debt arises from documented elder and economic
22    abuse. Documented elder and economic abuse occurs if the
23    following apply:
24            (A) the debtor, or someone with fiduciary
25        responsibility for the debtor, has alleged in a police
26        report that the debtor has been the victim of elder

 

 

SB3934- 5 -LRB102 22904 SPS 32057 b

1        abuse or neglect by a specified alleged perpetrator;
2        and
3            (B) the debtor, or someone with fiduciary
4        responsibility for the debtor, provides the collection
5        agency with a signed affidavit affirming that the
6        following is true:
7                (i) the debtor was the victim of elder abuse
8            or neglect as documented in the police report;
9                (ii) as a result of the alleged elder abuse or
10            neglect, the debtor was compelled to incur debt or
11            was provided credit that the debtor would not
12            otherwise have incurred in the absence of this
13            elder abuse or neglect, including, but not limited
14            to, instances where the debtor's identity has been
15            stolen; and
16                (iii) the debt that is the subject of the
17            person's contact with the debtor is a debt
18            incurred solely because of elder abuse or neglect.
19        The prohibition in this paragraph applies for 2 years
20    after the affidavit is provided to the collection agency,
21    except that the prohibition applies indefinitely if the
22    perpetrator has been convicted of a crime under Section
23    12-4.4a of the Criminal Code of 2012 arising from the
24    conduct referenced in the police report.
25        (3) The debt arises from documented human trafficking
26    and economic abuse. Documented human trafficking and

 

 

SB3934- 6 -LRB102 22904 SPS 32057 b

1    economic abuse occurs if the following apply:
2            (A) it has been alleged in a police report that at
3        least one incident of human trafficking has occurred
4        where the debtor has been listed as a victim; and
5            (B) the debtor provides the collection agency with
6        a signed affidavit affirming that the following is
7        true:
8                (i) the debtor was the victim of human
9            trafficking as documented in the police report;
10                (ii) as a result of human trafficking, the
11            debtor was compelled to incur debt or was provided
12            credit that the debtor would not otherwise have
13            incurred in the absence of this trafficking and
14            abuse, including, but not limited to, instances
15            where the debtor's identity has been stolen; and
16                (iii) the debt that is the subject of the
17            person's contact with the debtor is debt incurred
18            solely because of human trafficking.
19        The prohibition in this paragraph applies for 2 years
20    after the affidavit is provided to the collection agency,
21    except that this prohibition applies indefinitely if the
22    perpetrator has been convicted of a crime relating to
23    human trafficking offenses under Section 10-9 of the
24    Criminal Code of 2012 as alleged in the police report.
25        (4) The debt arises from documented identity theft.
26    Documented identity theft occurs if the following apply:

 

 

SB3934- 7 -LRB102 22904 SPS 32057 b

1            (A) the debtor produces a Federal Trade Commission
2        identity theft report indicating that the debtor has
3        been the victim of identity theft; and
4            (B) the debtor provides the collection agency with
5        a signed affidavit affirming that the following is
6        true:
7                (i) the debtor was the victim of identity
8            theft as documented in the Federal Trade
9            Commission identity theft report;
10                (ii) as a result of identity theft, the debt
11            was incurred in the debtor's name, but in no way
12            benefited the debtor; and
13                (iii) the debt that is the subject of the
14            person's contact with the debtor is debt incurred
15            solely because of identity theft.
16        The prohibition in this paragraph applies
17    indefinitely.
18    (d) For the purposes of this Section, "debtor" includes
19the debtor's spouse, parent (if the debtor is a minor),
20guardian, executor, or administrator.
21    (e) This Section applies to a collection agency or debt
22buyer only when engaged in the collection of consumer debt.
23(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)