Illinois House Bill 1289

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Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on January 13 2025 - 25% progression
Action: 2025-01-13 - Filed with the Clerk by Rep. Dagmara Avelar
Text: Latest bill text (Introduced) [HTML]

Creates the Debt Resolution Services Act. Provides that no person shall provide or offer to provide debt resolution services without a debt resolution services license. Defines "debt resolution services" as a program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one or more unsecured creditors. Sets forth requirements for a debt resolution services license. Sets forth the process for obtaining a debt resolution services license. Provides that specified persons are exempt under the Act. Provides the prerequisites and permitted practices for providing debt resolution services. Provides the requirements for a contract between a licensee and a consumer for debt resolution services. Provides that a consumer may terminate a contract to provide debt resolution services at any time without any penalty. Provides that a licensee may terminate a contract to provide debt resolution services if specified conditions are satisfied. Includes provisions concerning the powers of the Department of Financial and Professional Regulation; prohibited activities under the Act, including prohibitions against false or misleading advertising; annual reports filed by a licensee; fees for debt resolution services; information a licensee must provide to a consumer; records a licensee is required to keep; penalties for violating the Act; and transactions entered into before the effective date of the Act. Repeals the Debt Settlement Consumer Protection Act. Amends various Acts to replace references to the Debt Settlement Consumer Protection Act to the Debt Resolution Services Act. Effective one year after becoming law except that certain provisions concerning rulemaking are effective immediately.

DEBT RESOLUTION SERVICES ACT

Rep. Dagmara Avelar [D]

Date	Chamber	Action
2025-01-13	House	Filed with the Clerk by Rep. Dagmara Avelar

Chapter	Article	Section	Citation Type	Statute Text
20	1205	6	Amended Code	Citation Text
205	665	2	Amended Code	Citation Text
225	429	Act	Repealed Code	Citation Text
30	105	6z-26	Amended Code	Citation Text
815	505	2JJJ	Amended Code	Citation Text

Type	Source
Summary	https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1289&GAID=18&DocTypeID=HB&SessionID=114&GA=104
Text	https://www.ilga.gov/legislation/104/HB/10400HB1289.htm