SB3934 102ND GENERAL ASSEMBLY

LRB102 22904 SPS 32057 b

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.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Collection Agency Act is amended by changing Section 9.2 as follows:

(225 ILCS 425/9.2)

(Section scheduled to be repealed on January 1, 2026)

Sec. 9.2. Communication in connection with debt collection.

(a) Without the prior consent of the debtor given directly to the collection agency or the express permission of a court of competent jurisdiction, a collection agency may not communicate with a debtor in connection with the collection of any debt in any of the following circumstances:

(1) At any unusual time, place, or manner that is known or should be known to be inconvenient to the debtor. In the absence of knowledge of circumstances to the contrary, a collection agency shall assume that the convenient time for communicating with a debtor is after 8:00 a.m. and before 9:00 p.m. local time at the debtor's location.

(2) If the collection agency knows the debtor is represented by an attorney with respect to such debt and has knowledge of or can readily ascertain, the attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the collection agency or unless the attorney consents to direct communication with the debtor.

(3) At the debtor's place of employment, if the collection agency knows or has reason to know that the debtor's employer prohibits the debtor from receiving such communication.

(b) Except as provided in Section 9.1 of this Act, without the prior consent of the debtor given directly to the collection agency, the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a post judgment judicial remedy, a collection agency may not communicate, in connection with the collection of any debt, with any person other than the debtor, the debtor's attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the collection agency.

(c) If a debtor notifies a collection agency in writing that the debtor refuses to pay a debt or that the debtor wishes the collection agency to cease further communication with the debtor, the collection agency may not communicate further with the debtor with respect to such debt, except to perform any of the following tasks:

(1) Advise the debtor that the collection agency's further efforts are being terminated.

(2) Notify the debtor that the collection agency or creditor may invoke specified remedies that are ordinarily invoked by such collection agency or creditor.

(3) Notify the debtor that the collection agency or creditor intends to invoke a specified remedy.

If such notice from the debtor is made by mail, notification shall be complete upon receipt.

(c-5) A collection agency may not communicate with a debtor in connection with the collection of any debt in any of the following circumstances:

(1) The debt arises from documented domestic and economic abuse. Documented domestic and economic abuse occurs if the following apply:

(A) the debtor has alleged in a police report that the debtor has been the victim of domestic violence by a specific perpetrator who is one of the following:

(i) a current or former spouse;

(ii) an individual with whom the debtor has a child in common;

(iii) an individual with whom the debtor is or was in a dating relationship; or

(iv) a current or former resident of the debtor's household; and

(B) the debtor provides the collection agency with a signed affidavit affirming that the following is true:

(i) the debtor was the victim of domestic violence by a specified perpetrator as documented in the police report;

(ii) as a result of threats of domestic violence from the perpetrator referenced in the police report, the debtor was compelled to incur debt or was provided credit that the debtor would not otherwise have incurred in the absence of the threat of violence; and

(iii) the debt that is the subject of the person's contact with the debtor is a debt incurred solely because of this threat of domestic violence.

The prohibition in this paragraph applies for 2 years after the affidavit is provided to the collection agency, except that the prohibition applies indefinitely if the perpetrator has been convicted of a crime relating to domestic violence arising from the conduct referenced in the police report.

(2) The debt arises from documented elder and economic abuse. Documented elder and economic abuse occurs if the following apply:

(A) the debtor, or someone with fiduciary responsibility for the debtor, has alleged in a police report that the debtor has been the victim of elder abuse or neglect by a specified alleged perpetrator; and

(B) the debtor, or someone with fiduciary responsibility for the debtor, provides the collection agency with a signed affidavit affirming that the following is true:

(i) the debtor was the victim of elder abuse or neglect as documented in the police report;

(ii) as a result of the alleged elder abuse or neglect, the debtor was compelled to incur debt or was provided credit that the debtor would not otherwise have incurred in the absence of this elder abuse or neglect, including, but not limited to, instances where the debtor's identity has been stolen; and

(iii) the debt that is the subject of the person's contact with the debtor is a debt incurred solely because of elder abuse or neglect.

The prohibition in this paragraph applies for 2 years after the affidavit is provided to the collection agency, except that the prohibition applies indefinitely if the perpetrator has been convicted of a crime under Section 12-4.4a of the Criminal Code of 2012 arising from the conduct referenced in the police report.

(3) The debt arises from documented human trafficking and economic abuse. Documented human trafficking and economic abuse occurs if the following apply:

(A) it has been alleged in a police report that at least one incident of human trafficking has occurred where the debtor has been listed as a victim; and

(B) the debtor provides the collection agency with a signed affidavit affirming that the following is true:

(i) the debtor was the victim of human trafficking as documented in the police report;

(ii) as a result of human trafficking, the debtor was compelled to incur debt or was provided credit that the debtor would not otherwise have incurred in the absence of this trafficking and abuse, including, but not limited to, instances where the debtor's identity has been stolen; and

(iii) the debt that is the subject of the person's contact with the debtor is debt incurred solely because of human trafficking.

The prohibition in this paragraph applies for 2 years after the affidavit is provided to the collection agency, except that this prohibition applies indefinitely if the perpetrator has been convicted of a crime relating to human trafficking offenses under Section 10-9 of the Criminal Code of 2012 as alleged in the police report.

(4) The debt arises from documented identity theft. Documented identity theft occurs if the following apply:

(A) the debtor produces a Federal Trade Commission identity theft report indicating that the debtor has been the victim of identity theft; and

(B) the debtor provides the collection agency with a signed affidavit affirming that the following is true:

(i) the debtor was the victim of identity theft as documented in the Federal Trade Commission identity theft report;

(ii) as a result of identity theft, the debt was incurred in the debtor's name, but in no way benefited the debtor; and

(iii) the debt that is the subject of the person's contact with the debtor is debt incurred solely because of identity theft.

The prohibition in this paragraph applies indefinitely.

(d) For the purposes of this Section, "debtor" includes the debtor's spouse, parent (if the debtor is a minor), guardian, executor, or administrator.

(e) This Section applies to a collection agency or debt buyer only when engaged in the collection of consumer debt.

(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)