Illinois Follows FDCPA Under New Law

Illinois laws governing collection agencies now match the federal Fair Debt Collections Practices Act under a bill signed by Gov. Rod Blagojevich this week.

The bill requires third-party collection agencies to send debtors a detailed report on their debt within five days of original communication. The report must include amount of debt, the original creditor, and disclose the debtor’s right to dispute the debt within 30 days.

The law also gives the state’s attorney general the authority to prosecute violations.

“This bill offers overdue protection for consumers from abusive tactics of collection agencies nationwide,” said Rep. Marlow H. Colvin, the legislation’s sponsor in the Illinois House. “This makes us more consistent with federal law. It gives the state attorney general powers to prosecute if federal authorities aren’t active.”

Colvin, a Democrat from Chicago, says his brother ran a collection agency for a time and he sees collections as a necessity to ensure people pay their bills. Still, “this legislation is past due. How you treat consumers is important,” he said.

The bill goes into effect on January 1, 2008.