• Illinois legislators take aim at powerful debt collection industry

    Illinois General Assembly continues to mull over legislation that would change how the state’s repossession agents operate.  Illinois bankruptcy and repossession lawyers , consumer right advocates, and other professionals connected to the debt collection industry view the law as a positive sign toward protecting individuals from collectors.

    Illinois Senate bill No. 1306-the Collateral Recovery Act-has made it to the House’s Judiciary Civil Law Committee.  The bill will probably be modified by the Committee.

    The Act would significantly change state law.  If passed, it would require licensing of repossession agencies and recovery managers as well as repossession agency employees. The law would contain certain provisions addressing qualifications, application, examination, assignment, insurance requirements and administrative proceedings of the recovery companies.

    The bill was recently amended to become enforceable on July 1, 2012.

    The law also requires repossession agents to buy permit tickets for each potential recovery. The cost of tickets will be $10.  The bill makes it a crime to not purchase a ticket.

    Concerning enforcement of the law, legislatures will grant the Illinois Commerce Commission jurisdiction over industry disciplinary action and the licensing of managers, companies, and agents. State, county and local governments would also be required to assist the Commission in the enforcement of the law.

    The Act would have an impact on the entire debt-handling industry, including foreclosures, bankruptcies, and property repossession.

    Many professionals within the industry applaud the Assembly’s attempt to regulate more heavily the processes of debt collection.  Out of control debt collection is especially a problem in Chicago and other highly populated areas of the state.  Most  Chicago based bankruptcy attorneys , for example, believe the law will better protect their clients from a variety of issues associated with the process.

  • Facing life or death, Illinois charity hospitals brace for closure

    In business with the sole purpose of savings lives, two Illinois charity hospitals are themselves facing a dire situation. One in Chicago’s south suburbs, the other in poverty-stricken East St. Louis would like the state’s permission to close operations.  Nationwide, many charity hospitals have closed their doors, and some have even filed for bankruptcy .

    The hospitals have served the impoverished in Illinois for more than 100 years.   Many charity hospitals, including these two, face rising costs, towering budget cuts, and a widespread increase in the number of uninsured patients.

    The closings would inflict a huge blow to low-income urban neighborhoods in which the hospitals serve. Patients would feel the effects immediately.  Many patients would be forced to travel long distances to other hospitals; this would result in even longer emergency room wait times.

    The fates of the two Illinois hospitals are in the hands of the Illinois Health Facilities and Services Review Board. Chicago bankruptcy attorneys believe the hospitals will not likely survive the review.  Since there is very little money to help solve the hospital’s financial problems, the board will likely have no choice but to allow the hospitals to close.

    The protests have already begun outside the hospitals.  If the closure of the two hospitals has any resemblance to the closing of other hospitals in the country, patients and protesters will likely file suit to enforce their right to reasonable health care.