Illinois lawmakers are tackling the growing issue of coerced debt with the introduction of House Bill 3352, a significant legislative measure aimed at protecting consumers from predatory lending practices. Introduced on March 19, 2025, this bill seeks to establish clear guidelines for identifying and addressing debts that are incurred under coercive circumstances.

At the heart of House Bill 3352 is the recognition that many individuals find themselves trapped in debt due to manipulation or pressure from others. The bill outlines that in any lawsuit or arbitration concerning debt collection, a debtor can assert an affirmative defense if they can demonstrate that the debt is coerced. This shifts the burden of proof to collection agencies, requiring them to disprove the debtor's claims.

Key provisions of the bill include civil liability for those found to be perpetrators of coerced debt, who would be responsible for compensating both the collection agency and the debtor for damages incurred. Additionally, the bill mandates protective measures during court proceedings, such as sealing records and allowing remote testimonies to safeguard the debtor and their family from potential intimidation.

The introduction of this bill has sparked notable discussions among lawmakers and consumer advocates. Proponents argue that it is a necessary step toward consumer protection, especially in a climate where financial exploitation is increasingly prevalent. Critics, however, express concerns about the potential for abuse of the affirmative defense, fearing it may complicate legitimate debt collection efforts.

The implications of House Bill 3352 extend beyond individual cases; it could reshape the landscape of debt collection practices in Illinois. Experts suggest that if passed, the bill may encourage more transparency and accountability within the financial sector, ultimately fostering a safer environment for consumers.

As the legislative process unfolds, stakeholders are closely monitoring the bill's progress, anticipating amendments and further debates that could refine its provisions. With its potential to significantly impact consumer rights and debt collection practices, House Bill 3352 is poised to be a pivotal piece of legislation in Illinois.