CHICAGO – State Rep. Theresa Mah, D-Chicago, joined Gov. J.B. Pritzker and consumer protection advocates for the signing of the Consumer Fairness Act, a measure to stop predatory debt collection practices in Illinois.
“Too many families in Illinois face the crisis of out-of-control debt made worse by predatory collection practices,” Mah said. “The Consumer Fairness Act lowers interest rates, lessens the amount of time for the collection of debts by nearly a decade and provides concrete relief to people who are working to pay down their debts.”
Mah sponsored House Bill 88, the Consumer Fairness Act, to provide relief for working-class and low-income Illinoisans who are working to pay down consumer debt judgements. Under the measure, the interest rate a debt holder can collect will be lowered to 5 percent from 9 percent and judgments can only be enforced for 17 years, instead of nearly three decades. Lowering the interest rate and shortening the collection period will help people with consumer debt judgments better manage their debt and take away incentives for creditors to act in a predatory manner.