# Illinois HB1279: DEBT RESOLUTION SERVICES ACT

Illinois HB1279, DEBT RESOLUTION SERVICES ACT, is a 104th General Assembly (2025–2026) House bill sponsored by Dagmara Avelar (Democratic); status in committee, last action 2025-03-18 (Added Chief Co-Sponsor Rep. Nicholas K. Smith) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB1279-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB1279
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: DEBT RESOLUTION SERVICES ACT
- Status: in committee
- Chamber: House
- Introduced: 2025-01-13
- Last action: 2025-03-18, Added Chief Co-Sponsor Rep. Nicholas K. Smith
- Sponsor: Dagmara Avelar (Democratic)
- Cosponsors: 2
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Creates the Debt Resolution Services Act. Provides that no person shall provide or offer to provide debt resolution services without a debt resolution services license. Defines "debt resolution services" as a program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one or more unsecured creditors. Sets forth requirements for a debt resolution services license. Sets forth the process for obtaining a debt resolution services license. Provides that specified persons are exempt under the Act. Provides the prerequisites and permitted practices for providing debt resolution services. Provides the requirements for a contract between a licensee and a consumer for debt resolution services. Provides that a consumer may terminate a contract to provide debt resolution services at any time without any penalty. Provides that a licensee may terminate a contract to provide debt resolution services if specified conditions are satisfied. Includes provisions concerning the powers of the Department of Financial and Professional Regulation; prohibited activities under the Act, including prohibitions against false or misleading advertising; annual reports filed by a licensee; fees for debt resolution services; information a licensee must provide to a consumer; records a licensee is required to keep; penalties for violating the Act; and transactions entered into before the effective date of the Act. Repeals the Debt Settlement Consumer Protection Act. Amends various Acts to replace references to the Debt Settlement Consumer Protection Act to the Debt Resolution Services Act. Effective one year after becoming law except that certain provisions concerning rulemaking are effective immediately.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Dagmara Avelar (Democratic), House
- Cosponsor: Harry Benton (Democratic), House
- Cosponsor: Nicholas K. Smith (Democratic), House

## Actions (5)

- 2025-03-18: Added Chief Co-Sponsor Rep. Nicholas K. Smith (House)
- 2025-03-17: Added Chief Co-Sponsor Rep. Harry Benton (House)
- 2025-01-28: Referred to Rules Committee (House)
- 2025-01-28: First Reading (House)
- 2025-01-13: Filed with the Clerk by Rep. Dagmara Avelar (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB1279.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB1279.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IL-HB1279-2025-2026 (as of 2026-11-01).