On July 27, Gov. Bruce Rauner approved an amendment to Illinois’ Student Loan Servicing Rights Act. The legislation, HB 4397, passed unanimously in both chambers and becomes effective Dec. 31, 2018.
The legislation amends the definition of “student loan servicer” in the Student Loan Servicing Rights Act by excluding “a law firm or licensed attorney that is collecting post-default debt.” The Act already excluded licensed collection agencies collecting on post-default debt.
The Student Loan Servicing Rights Act, which becomes effective on the same date, requires licensing of student loan servicers and includes a “Student Loan Bill of Rights” that imposes various restrictions and requirements intended to prevent unfair or deceptive practices or misrepresentations of material information. That legislation passed via an override of Gov. Rauner’s veto.