IL HB3352

Defines "coerced debt" as debt incurred through fraud, duress, intimidation, force, coercion, undue influence, or non-consensual use of personal information between family/household members due to domestic violence, abuse, exploitation, or human trafficking (excludes debt secured by real property)

Establishes that debtors are not liable for coerced debt and may assert this by submitting a written statement to the collection agency containing account information, facts about how the debt was incurred, and supporting documentation such as a police report, court order, or verification from a qualified third party

Requires collection agencies to cease collection activities within 10 days of receiving a complete coerced debt statement and review the claim within 90 days; agencies must notify credit reporting agencies that the debt is disputed

Creates an affirmative defense in lawsuits or arbitration for debtors claiming coerced debt, with the collection agency bearing the burden to disprove the defense by preponderance of evidence

Holds perpetrators of coerced debt civilly liable for the full debt amount to collection agencies and for actual damages to debtors; collection agencies that violate these provisions face liability of up to $2,500 per debt plus court costs and attorney's fees