HB3352

Illinois HB3352 protects debtors from liability for coerced debt and outlines procedures for collection agencies.

HB3352 amends the Collection Agency Act to exempt debtors from liability for coerced debt, defined as debt incurred due to identity theft, fraud, or other non-consensual actions. Debtors can assert they have incurred coerced debt by submitting a statement to collection agencies. The statement must include details about the debt, how it was incurred, and be supported by documentation such as an Attorney General ID Theft Affidavit or a police report. Collection agencies must review the statement within 90 days and cease collection efforts if they determine the debt is coerced.