Creditor and debtor law includes the rights and obligations of (1) creditors who extend credit and make loans to consumers and businesses and (2) consumers and businesses who seek credit and loans for their personal and business finances. Creditor/debtor law consists primarily of state and federal statutes.
In Illinois, creditor and debtor law is governed by a combination of state statutes and federal laws that outline the rights and obligations of creditors and debtors. Creditors are individuals or entities that extend credit or make loans, while debtors are consumers or businesses that seek credit or loans. State laws in Illinois, such as the Illinois Collection Agency Act and the Illinois Interest Act, regulate the activities of collection agencies and the amount of interest that can be charged on loans, respectively. Additionally, the Illinois Consumer Fraud and Deceptive Business Practices Act protects consumers from unfair or deceptive acts by creditors. On the federal level, laws like the Fair Debt Collection Practices Act (FDCPA) and the Truth in Lending Act (TILA) provide protections against abusive debt collection practices and mandate clear disclosure of credit terms. These laws work together to ensure a fair and regulated environment for credit transactions in Illinois.