“Consumer debt is at an all-time high all across the United States, and there are millions of people, including too many Illinois families, who are struggling under unconscionable circumstances,” said Governor JB Pritzker. “Today, here in Illinois, we are giving real relief to those who are simply trying to pay off their debts, so they can end the cycle of debt they are trapped in.”
With one in three Illinois residents in the debt collection process according to the Heartland Alliance, the new law takes two steps to protect Illinois residents from crushing debt.
Helping families avoid the cycle of debt that prevents them from building long-term financial security, the new law lowers post-judgment interest rates on consumer debt under $25,000 from 9% to 5%. It also reduces the timeframe to collect on a judgment from 26 to 17 years by limiting revivals, preventing debt collectors from trapping families in debt with judgments that are decades old.
HB 88 was passed unanimously without opposition from debt collectors and other financial institutions. The new law takes effect January 1, 2020.
