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Debt Collection Laws in Illinois

Here are some relevant federal and state laws that were in effect as of 2021:

  1. Fair Debt Collection Practices Act (FDCPA): This federal law protects consumers from abusive, deceptive, or unfair debt collection practices. It sets limitations on when and how debt collectors can contact consumers and provides consumers with rights to dispute debts and obtain information about the debts.
  2. Fair Credit Reporting Act (FCRA): Another federal law, the FCRA regulates the collection and use of consumer credit information. It provides consumers the right to access their credit reports and to dispute any inaccuracies.
  3. Illinois Collection Agency Act: The Illinois Collection Agency Act regulates the practices of collection agencies within the state. The Act requires collection agencies to be licensed, and it prohibits certain conduct, such as using abusive language, misrepresenting the amount owed, or communicating with debtors at inconvenient times or places.
  4. Illinois Consumer Fraud and Deceptive Business Practices Act: This law provides additional protections against deceptive and unfair practices by debt collectors, including the prohibition of false or misleading representations and the use of unfair practices.
  5. Statute of Limitations in Illinois: In Illinois, there is a time limit for when creditors can sue consumers for unpaid debts. As of 2021, the statute of limitations for written contracts was 10 years, and for open-ended accounts such as credit cards, it was 5 years.
  6. Illinois Wage Garnishment Laws: If a creditor obtains a court judgment against a debtor in Illinois, they can garnish the debtor’s wages. However, Illinois law limits the amount that can be garnished to the lesser of 15% of gross weekly wages or the amount by which disposable earnings exceed 45 times the federal minimum wage.
  7. Exemptions in Illinois: Illinois has laws that protect certain types of property from being taken by creditors to satisfy a debt judgment. These include a homestead exemption, personal property exemptions, and exemptions for certain types of income and benefits.
  8. Health Care Services Debt Collections: Illinois has specific laws related to the collection of medical debt, including requirements for hospitals to provide financial assistance to certain patients before engaging in collection activities.

Please make sure to verify the most current legal information or consult an attorney or legal advisor with expertise in debt collection laws in Illinois for the most up-to-date details on debt collection laws in the state.

A complete list of federal laws to be followed by all collection agencies in USA is listed here: Debt collection laws 

Illinois Debt Statistics

  • In Illinois, consumers owed $58  billion in student loan debt. Average Student Loan in Illinois in 2019: $28.5K.
  • The average mortgage debt in Illinois is $179K.
  • The average credit card debt in Illinois is about $6400
  • Illinois consumers have an average credit score of 683

Illinois Geographical Stats

  • Population of Illinois: 12.9 million (year 2018)
  • Number of millionaires: 300K  ( year 2018)