Facing Foreclosure in Schaumburg? Gov. Pat Quinn Backs New Consumer Protection Laws

SCHAUMBURG, IL, September 26, 2012

Illinois Governor Pat Quinn recently signed new consumer protection bills into law, bringing the state of Illinois up-to-date in its protection of people against predatory lending practices and unfair debt collection practices.

According to John Presta's Examiner story, Gov. Quinn has a "long history" of political effort aimed at helping Illinois consumers, which goes back to creating a consumer watchdog organization during his time as commissioner of the Cook County Board of Tax Appeals in the early 1980s.

Most recently, Gov. Quinn signed both Senate Bill 1692 and House Bill 5434 into law. These new laws are described below.

Senate Bill 1692 Addresses Home Loans

As Presta reports, Senate Bill 1692 makes some significant changes to the law of home mortgages in Illinois:

- Requires a clear definition of high-risk mortgages for borrowers
- Limits fees and penalties assessed by mortgage companies against borrowers
- Abolishes pre-payment penalties for mortgages paid off early

Beginning Jan. 1, 2013, this new law will hopefully prove effective at protecting would-be borrowers and current homeowners against predatory mortgage lending practices, which commonly lead to home foreclosure problems for many Schaumburg residents.

House Bill 5434 Addresses the Scourge of 'Debtor's Prison'

Did you think that debtor's prison was a thing of the past? Think again. In Illinois, an indebted consumer can end up behind bars for failing to attend court hearings or pay debts after legal judgment has been entered against them.

This new law is effective immediately, writes Presta. Here's what it does:

- Protects consumers against debt collectors who want to send them to jail for failing to pay debts, by first requiring debt collectors to bring to court evidence that there are actual assets available for payment
- Requiring actual notice for consumers about court dates before being hauled off to jail for missing court

Bankruptcy stops creditor harassment, but very often Schaumburg consumers find that their rights have been violated (like having been sent to debtor's prison) before they even come to the point of considering bankruptcy protection. House Bill 5434 is an improvement in consumer rights law, protecting consumers against unfair debt collection practices in Illinois.

Source: Governor Quinn signs bill to protect from risky home loans and 'debtor's prison'

The Schaumburg law firm of Ledford and Wu offers affordable and individualized debt relief solutions. Our attorneys have more than 50 years of collective experience in consumer bankruptcy, mortgage solutions and consumer rights law.

Website: http://www.bankruptcyinschaumburg.com