Debt Collection Bill Passes Both Houses in Illinois

First filed by state Senator Kimberly Lightford, the SB1866 Crime Victims-Debt Collection bill passed both houses of the Illinois General Assembly on May 29, 2015.

SB1866 amends the Crime Victims Compensation Act, outlining procedures for giving notice to a vendor waiting for payment of a claim for compensation filed under the Act. It provides that a vendor who has been given notice of the claim may not engage in debt collection activities against the applicant until the Court of Claims awards compensation for the debt and the payment is processed.

The Bill further:

• Provides that if the court denies compensation, the vendor may not engage in debt collection activities until 45 days after the date the court enters an order denying the compensation.
• Provides that the vendor may engage in specified activities, including:
  • Submitting a written request to the Court of Claims for notification of the Court’s decision involving a related debt. The Court of Claims shall provide notification of payment or denial of payment within 30 days of its decision;
  • Submitting a bill for a related debt to the Office of the Attorney General; and
  • Contacting the Office of Attorney General to inquire about the status of the claim.
  • Provides that the statute of limitations for collection of a related debt is tolled upon the filing of the claim for compensation and any related civil actions are stayed until 45 days after the Court of Claims enters an order denying the compensation.

The full text of the Bill can be found here.