New Illinois Legislation Addresses Debt Collection Lawsuits

Have you faced harassment from debt collectors? Has a debt collector threatened to sue you to collect a debt owed, or have you received notice that a debt collector has filed a lawsuit against you? Dealing with debt collection companies can be extremely frustrating, especially when you are already experiencing significant anxiety surrounding the debt you owe. While there are federal protections for consumers under the Fair Debt Collection Practices Act (FDCPA), consumers do not always know about their rights or how to access them. New legislation in Illinois wants to take steps toward changing that.

Recently introduced legislation, House Bill 281, would require any lawsuits filed by debt collectors against consumers to contain clear information about the consumer’s rights among other things. We want to say more about this legislation and how it could help to protect consumer rights if it becomes law.

How House Bill 281 Aims to Protect Illinois Consumers
There are many ways in which House Bill 281 is designed to protect consumers, including but not limited to the following:
  • Provide debtors with clear information about their rights in a summons, including information about protecting certain assets like Social Security benefits, Veterans benefits, retirement benefits, and equity in a home;
  • Make clear to debtors that they can take action to stop debt collectors from making harassing or threatening contact;
  • Clarify that debtors can seek a reasonable payment plan to pay off their debt;
  • Increases the homestead exemption from $15,000 to $150,000, along with other exemption increases; and
  • Decreases timetable for a debt collector to file a claim against a debtor from seven to five years, meaning that a debt collector’s claim would become time-barred after only five years instead of seven.
Protections Currently Available to Consumers Under the FDCPA
While House Bill 281 is designed to clarify consumers’ rights when they are faced with a debt collection lawsuit, it is extremely important for consumers in Oak Park to know that they already have many rights and protections under the FDCPA. Now is a good time to remind consumers of what some of those rights and protections include. The FDCPA prohibits debt collectors from the following:
  • Calling debtors at certain times and places, including unusual times and places (including before 8 a.m. and after 9 p.m.), and at your place of employment if you ask them not to contact you there;
  • Harassing you, or anyone else you know or are related to, in any form of contact (including phone, email, and text message);
  • Lying or misrepresenting itself to you;
  • Threatening to have you arrested if you do not pay your debt; and
  • Contacting you directly if the debt collector knows you are represented by an attorney.
The FDCPA applies to many different types of consumer debts, including mortgage debt, credit card debt, medical debts, and other types of debt that have been accrued for personal, family, or other household purposes.

Contact an Oak Park Debt Collection Attorney
If you have been treated unfairly by a debt collector, including any type of harassment, it is important to seek advice from an experienced Oak Park consumer protection lawyer as soon as possible. The Emerson Law Firm has years of experience assisting Oak Park residents with consumer protection matters, including debt collection issues, and we can speak with you today about your situation. Contact us for more information about how we can help.


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