Illinois Suspension of Consumer Debt Collection Measures Takes Effect

In the face of the COVID-19 pandemic, Governor J.B. Pritzker has provided relief to Illinois consumers’ pocketbooks. On April 14, 2020, the Governor issued Executive Order in Response to COVID-19 No. 23 (“Executive Order 23”). The stated purpose of Executive Order 23 is to ensure that Illinois residents have funds for essential items such as food, medicine, housing, and transportation by temporarily suspending certain consumer debt collection measures. The Governor's rationale for this suspension is that the COVID-19 pandemic and social distancing requirements are likely to interfere with a consumer debtor’s ability to contest debt collection including traveling to court hearings or financial institutions to seek relief from consumer debt collection activity.

In overview, Executive Order 23 suspends litigation or other involuntary debt collection measures involving consumer debtors or consumer garnishees under the applicable sections of the Illinois Code of Civil Procedure through the duration of the Gubernatorial Disaster Proclamations. These statutes permit service of a garnishment summons, wage deduction summons, and citations to discover assets. Importantly, Executive Order 23 does not apply to domestic support obligations, including child support and spousal maintenance obligations nor does it relieve a debtor of any liability for the debt.

Executive Order 23 is intended to provide much-needed relief for consumer debtors during the COVID-19 pandemic, but what will the impact be on consumer creditors? As always, if you are in the consumer debt collection business, please contact an attorney to discuss how Executive Order 23 will impact your business during these unprecedented times.

For more information about Executive Order 23, please contact Heather Kramer (312-627-2299 or hkramer@dykema.com), Lindsay Henry (312-627-2287 or lhenry@dykema.com), Dawn Peacock (312-627-2483 or dpeacock@dykema.com), or your Dykema relationship attorney.

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