Beginning January 1, 2020, the one in three Illinois residents that are behind in payments of loans and other consumer debtsthat have progressed to collectionswill be granted some relief in the never-ending debt cycle.
Governor J.B. Pritzker signed the Consumer Protection Act (HB 88) into law in July 2019 which will lower the current interest rate from 9%, which is one of the highest interest rates in the country, to 5% on consumer debts less than $25,000 following a court judgment. It also reduces the amount of time debt collectors can pursue borrowers for their unpaid debts from 26 years to 17 years.
The new law will cover debts from consumer transactions like medical bills, credit card debt, and auto loans, but will not apply to debts such as alimony or child support. If a consumer has debts with multiple lenders, each case will go through a court judgment process separately, but still be capped at the maximum interest rate of 5% for each debt.
Unfortunately, Illinois residents that are currently in collections will not benefit from the new law for their debts. Instead, the law will only cover new debts accrued after January 1, 2020.
If you are stuck in the debt cycle and dealing with collections agencies, seeking legal counsel can help you to get back on track with a beneficial deal on repayment options and asset protections that you may not be aware of, as well as stop the phone calls and harassment that you may be experiencing.
If you owe a consumer debt or you are being harassed by debt collectors, contact Agruss Law Firm, LLC to discuss your case. We have settled thousands of debt collection and harassment cases, and we’re prepared to help you, too. Contact Agruss Law Firm at 888-572-0176 to stop the never-ending debt cycle and harassment once and for all.
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