SB3140 100TH GENERAL ASSEMBLY

LRB100 20434 HEP 35771 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3140

Introduced 2/15/2018, by Sen. Thomas Cullerton

SYNOPSIS AS INTRODUCED:

15 ILCS 205/4	from Ch. 14, par. 4
15 ILCS 205/9 new
735 ILCS 5/2-625 new

Amends the Attorney General Act. Requires the Attorney General to compile and file with the General Assembly twice a year a report containing, among other information, the number of and status of actions against debt collection agencies. Requires the Attorney General to attend and conduct specified meetings relating to debt collection practices and conferences of interested and relevant groups and associations. Amends the Code of Civil Procedure. Provides that a debt collector or collection agency that brings a legal action on a debt against any consumer shall attach specified documentation to the complaint establishing that the plaintiff is the owner of the debt. Provides that if the debt was assigned more than once, each assignment or other writing evidencing transfer of ownership must be attached to establish an unbroken chain of ownership, beginning with the original creditor to the first debt buyer and each subsequent sale. Provides that before entry of a default judgment against a consumer in an action on a debt owned by a debt buyer, the plaintiff shall file with the court specified evidence that establishes the amount and nature of the debt.

A BILL FOR

AN ACT concerning debt collection.

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

Section 5. The Attorney General Act is amended by changing Section 4 and by adding Section 9 as follows:

(15 ILCS 205/4) (from Ch. 14, par. 4)

Sec. 4. The duties of the Attorney General shall be--

First - To appear for and represent the people of the State before the supreme court in all cases in which the State or the people of the State are interested.

Second - To institute and prosecute all actions and proceedings in favor of or for the use of the State, which may be necessary in the execution of the duties of any State officer.

Third - To defend all actions and proceedings against any State officer, in his official capacity, in any of the courts of this State or the United States.

Fourth - To consult with and advise the several State's Attorneys in matters relating to the duties of their office; and when, in his judgment, the interest of the people of the State requires it, he shall attend the trial of any party accused of crime, and assist in the prosecution. When the Attorney General has requested in writing that a State's Attorney initiate court proceedings to enforce any provisions of the Election Code or to initiate a criminal prosecution with respect to a violation of the Election Code, and when the State's Attorney has declined in writing to initiate those proceedings or prosecutions or when the State's Attorney has neither initiated the proceedings or prosecutions nor responded in writing to the Attorney General within 60 days of the receipt of the request, the Attorney General may, concurrently with or independently of the State's Attorney, initiate such proceedings or prosecutions. The Attorney General may investigate and prosecute any violation of the Election Code at the request of the State Board of Elections or a State's Attorney.

Fifth - To investigate alleged violations of the statutes which the Attorney General has a duty to enforce and to conduct other investigations in connection with assisting in the prosecution of a criminal offense at the request of a State's Attorney.

Sixth - To consult with and advise the governor and other State officers, and give, when requested, written opinions upon all legal or constitutional questions relating to the duties of such officers respectively.

Seventh - To prepare, when necessary, proper drafts for contracts and other writings relating to subjects in which the State is interested.

Eighth - To give written opinions, when requested by either branch of the general assembly, or any committee thereof, upon constitutional or legal questions.

Ninth - To enforce the proper application of funds appropriated to the public institutions of the State, prosecute breaches of trust in the administration of such funds, and, when necessary, prosecute corporations for failure or refusal to make the reports required by law.

Tenth - To keep, a register of all cases prosecuted or defended by him, in behalf of the State or its officers, and of all proceedings had in relation thereto, and to deliver the same to his successor in office.

Eleventh - To keep on file in his office a copy of the official opinions issued by the Attorney General and deliver same to his successor.

Twelfth - To pay into the State treasury all moneys received by him for the use of the State.

Thirteenth - To attend to and perform any other duty which may, from time to time, be required of him by law.

Fourteenth - To attend, present evidence to and prosecute indictments returned by each Statewide Grand Jury.

Fifteenth - To give written binding and advisory public access opinions as provided in Section 7 of this Act.

Sixteenth – To submit a biannual report and attend meetings as required in Section 9 of this Act.

(Source: P.A. 95-699, eff. 11-9-07; 96-542, eff. 1-1-10.)

(15 ILCS 205/9 new)

Sec. 9. Debt collection agency report.

(a) On a biannual basis, the Attorney General shall prepare a report accounting for the efficient discharge of all of the responsibilities of the Attorney General arising under the Collection Agency Act. In addition to any other information deemed relevant by the Attorney General, the biannual report shall address with specificity the following: enforcement actions completed and whether those actions were appealed or otherwise challenged; and the number of complaints processed and details as to outcomes and resolutions of complaints. The report shall include a description of any significant legal filings such as amicus briefs in any court and a summary of new rules or regulations, legal developments, and any significant matters that need to be addressed at the request of the regulated community or public. The report shall be submitted to the General Assembly and published on the Attorney General's website by July 1 and December 31 of each year.

(b) In order to facilitate information sharing, to present the biannual report or similar information, and to solicit information relevant to the general enforcement of the Collection Agency Act, the Attorney General, or a representative designated by the Attorney General, shall attend meetings and conferences of interested and relevant groups and associations. Upon attendance, the Attorney General shall have minutes from those meetings prepared and published on the Attorney General's website and made part of the next biannual report. The Attorney General, or designee, shall attend the following on an annual basis:

(1) at the invitation of the collection agency industry, one local and one national association of collection agencies or other collection agency trade association meeting;

(2) at the invitation of the collection agency industry, one annual meeting of other business entity associations or groups that represent clients of collection agencies, debt buyers, or other related trade associations; and

(3) one annual meeting of a relevant consumer advocacy association.

(c) The Attorney General shall host an annual public meeting in January of each year, with direct notice at least one month in advance to consumer advocacy groups and associations and other interested parties. The Attorney General shall also host an annual public meeting in July of each year with direct notice at least one month in advance to licensees under the Collection Agency Act, industry groups, client groups, and other interested parties.

Section 10. The Code of Civil Procedure is amended by adding Section 2-625 as follows:

(735 ILCS 5/2-625 new)

Sec. 2-625. Legal actions by collection agencies.

(a) A debt collector or collection agency that brings a legal action on a debt owned by a debt buyer shall:

(1) attach the following materials to the complaint, as applicable:

(A) a copy of the contract, account-holder agreement, or other writing from the original creditor or the consumer evidencing the consumer's agreement to the original debt;

(B) in the case of a medical debt, a copy of a redacted itemization of charges incurred;

(C) if a signed writing evidencing the original debt does not exist, a copy of the document provided to the consumer while the account was active, demonstrating that the debt was incurred by the consumer; or, for a credit card debt, the most recent monthly statement recording a purchase transaction, payment, or balance transfer; or

(D) if a claim is based on an electronic transaction for which a signed writing evidencing the original debt never existed, a copy of the records created during the transaction evidencing the consumer's agreement to the debt and recording the date and terms of the transaction and information provided by the consumer during the transaction; and

(2) attach to the compliant a copy of the assignment or other writing establishing that the debt buyer is the owner of the debt.

If the debt was assigned more than once, each assignment or other writing evidencing transfer of ownership must be attached to establish an unbroken chain of ownership, beginning with the original creditor to the first debt buyer and each subsequent sale.

(b) Before entry of a default judgment against a consumer in an action on a debt owned by a debt buyer, the plaintiff shall file with the court evidence that satisfies the applicable rules of evidence or is otherwise authorized by law or court rule, establishes the amount and nature of the debt, and includes:

(1) the original account number at charge-off;

(2) the original creditor at charge-off;

(3) the amount due at charge-off or, if the balance has not been charged off, an itemization of the amount claimed to be owed, including the principal, interest, fees, and other charges or reductions from payment made or other credits;

(4) an itemization of post charge-off additions, if any;

(5) as applicable:

(A) the date of the last payment; or

(B) the date of the last transaction; and

(6) if the account is not a revolving credit account, the date the debt was incurred.

(c) In the absence of evidence required by this Section, an affidavit does not satisfy the requirements of this Section.