The state of Illinois has passed a law that lowers interest rates for people drowning in consumer debt.
According to a state news release, the new “Consumer Fairness Act” legislation, signed into law today (Monday, July 29, 2019), lowers post-judgment interest rates from 9% to 5% on consumer debt under $25,000.
It also reduces the time frame to collect on a judgment from 26 years to 17 years by limiting revivals, preventing debt collectors from trapping families in debt with judgments that are decades old.
The new law takes effect Jan. 1, 2020.
HB 88 was passed unanimously without opposition from debt collectors and other financial institutions, the news release said.
According to the human rights organization Heartland Alliance, one in three Illinois residents is in the debt collection process.
“Debt can be a real, crushing thing that keeps people trapped in a cycle of poverty,” said Assistant Senate Majority Leader Iris Martinez. “By making it easier for people to make payments, we are not only making it more likely for the debt to be paid but also helping people move toward financial independence.”
SOURCE: state of Illinois news release