David Schultz Discusses Hinshaw’s “Crucial Role” in Shaping New Illinois Coerced Debt Protection Law

The ACA Daily recently reported on the passage and signature into law of the Illinois bill HB 3352, which creates new protections for consumers affected by coerced debt. The law, which goes into effect on January 1, 2026, includes requirements for consumers to notify a collection agency of coerced debt and for collection agencies when evaluating a consumer’s statement of coerced debt.

The article noted that an ACA International agency team, which included Hinshaw partner David Schultz, played a “crucial role” in helping craft legislation that balances the ability of collection agencies to resolve debts and conduct lawful collection with important consumer protections.

According to David, the proposed legislation had popular support, and it would have been quite difficult to try to block it. Instead, the agency team worked to make changes to the bill so that it was more manageable. He added that “it is possible that this [law] will help prevent litigation if the requirements are followed by the victims of coerced debt and the agencies involved.”

Finally, David noted that since the law has several procedures to follow when coerced debt is at issue, “agencies will need to be aware of the law and what to do with such a claim.”

• • ACA Daily: “Illinois Governor Advances Coerced Debt Protections in New Law,” August 18, 2025.