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Debt Collection Laws in Illinois

Sarah Edwards | November 10, 2023

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Illinois residents are protected from harassment from debt collectors, thanks to both federal and state regulations. While a collection agency is responsible for providing a debt disclosure document, SoloSuit can help you draft a Debt Validation Letter to stop communication from collectors, stand up for our rights in court, or settle your debt to avoid going to court altogether.

Illinois residents have certain rights that protect them from harassment at the hands of debt collectors. Understanding these rights can help you push back against aggressive or unscrupulous debt collection practices. And if you’re facing repeated phone calls from a debt collector, it’s important to know how to respond and resolve your debt.

SoloSuit can help, but first, you’ll need to know more about Illinois debt collection laws.

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Illinois debt collection laws protect you

In the state of Illinois, debt collectors are governed by two distinct laws. The first is the nationwide Fair Debt Collection Practices Act (FDCPA), which prohibits debt collection agencies from using such practices as:

  • Calling you before 8 a.m. or after 9 p.m.
  • Contacting you more than once per day.
  • Contacting you after receiving a Cease and Desist Letter.
  • Refusing to validate your debt.
  • Contacting a third party about your debt (friends, family, coworkers, etc.).
  • Using vulgar or threatening language.
  • Attempting to mislead you with false information.
  • Falsifying legal documents.
  • Threatening you with imprisonment should you fail to pay the debt.

In addition, debt collectors in Illinois must also abide by the Illinois Collection Agency Act (ICAA). This act largely mirrors the stipulations of the FDCPA, though it also includes prohibitions that prevent debt collectors from:

  • Threatening to seize your personal property.
  • Using an unauthorized badge or uniform.
  • Falsely claiming to represent an attorney.
  • Attempting to intimidate you with attorney fees or other penalties.

The ICAA also requires that debt collectors disclose the details of your debt in writing within five days of initial contact, including the name of your original creditor and the amount of debt you owe.

If your original creditor differs from your current creditor, the collection agency has 30 days to disclose details regarding the original creditor.

You have 30 days from the receipt of this disclosure document to dispute the debt. After this deadline, the debt collector can assume that the debt is valid and continue its attempts to collect. In order to dispute the debt, you can send a Debt Validation Letter to force the collector to verify your debt before taking further action.

Illinois statute of limitations on debt prevents old debt lawsuits

Debt collectors have a narrow window in which to collect your past debts through legal action. And this window varies by the type of debt in question. The table below outlines the statute of limitations on different types of debt in Illinois:

Statute of Limitations on Debt in Illinois
Debt Type Deadline
Oral Contract 5 years
Credit Card 10 years
Medical 10 years
Auto Loan 10 years
Student Loan 10 years
Mortgage 10 years
Judgment 20 years
Source: 735 ILCS 5/13-205, 5/13-206, and 5/13-218

So, in other words, debt collectors only have ten years to sue you for debt, typically starting from the date of your last payment or action on the account.

If a collector doesn't file a suit within this timeframe, then their case will not stand in court. However, that won’t stop them from suing you, and it is your responsibility to raise the statute of limitations as a defense. The judge won’t check for you; it’s up to you.

Don’t let debt collectors talk you into making any payments until you’ve received a disclosure document. Collectors like to pressure you into making a small payment as a sign of good faith, though this will only reset the Statute of Limitations, giving the collector the right to file a debt lawsuit for another 5, 10, or even 20 years.

How to report aggressive debt collectors

Because debt collectors are regulated by both federal and state laws, you can report violators to the appropriate agency. Here’s how.

FDCPA violations

If you believe that the debt collector has violated the terms of the FDCPA, you can report it to the Federal Trade Commission. You can use the FTC website or call the agency directly at 877-382-4357.

ICAA violations

Illinois residents may also file a complaint with the Illinois Department of Financial and Professional Regulation. The website also lets you check the licensing status of your debt collector to ensure that the phone calls are legitimate.

How to respond to debt collectors in Illinois

You’ve just been contacted by a debt collector. What’s your next step?

Well, it depends on what stage of the debt collection process you find yourself in. Here’s how to respond to debt collectors at all phases of the collection process.

Validate your debt

The most important thing to do is validate your debt. The ICAA requires that collection agencies disclose the details of your debt, but you can also get the ball rolling by sending a Debt Validation Letter to confirm that the debt is yours and that it falls within the Illinois Statute of Limitations.

If you still have questions about validating your debt, check out this Q&A on Debt Validation Letters.

Send a Cease and Desist Letter

The ICAA also requires that debt collectors abide by Cease and Desist Letters. These letters are official requests to cease further contact.

Sending a Cease and Desist Letter should make the phone calls stop. If they don’t, you can report violators to the Illinois Department of Financial and Professional Regulation. But if you lose track of your debt, you expose yourself to the possibility of a debt collection lawsuit.

Respond to your debt lawsuit

By the time you decide to take action, you may already have a lawsuit on your hands. Luckily, SoloSuit can help you respond to a debt lawsuit in Illinois, stand up for your rights, and increase your chances of winning the case.

To respond to your debt lawsuit, you must file a written Answer into the case and send a copy to the opposing attorney. In your Answer, you will respond to each claim against you and assert your affirmative defenses (i.e. the statute of limitations is expired).

SoloSuit’s software can help you draft and file a personalized Answer in a matter of minutes.

Settle your debt

Save yourself additional hassle and embarrassment by settling your debt. Most debt collectors earn a living by purchasing old debts from existing creditors, such as credit card companies and banking institutions. They may be just as eager as you are to settle the debt — even if it’s for a lower amount.

To negotiate a settlement fast, start using SoloSettle today.

Let’s look at an example of debt settlement in Illinois.

Example: Initially, Kalyn had been ignoring the repeated phone calls. But eventually, the collection agency caught up with her. The collector promptly sent her a disclosure statement. Sure enough, Kalyn had racked up a credit card bill that had never been paid. After searching for advice on how to respond to debt collectors in Illinois, she discovered SoloSuit. She used SoloSettle to negotiate a settlement payment of 60% of her original debt. Now that the phone calls have stopped, Kalyn is looking forward to improving her credit score and accomplishing her financial goals.


To learn more about how to settle your debt in Illinois, check out this video:

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

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The Ultimate 50 State Guide

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Resolve your debt with your creditor

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Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

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Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

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Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

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Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



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