Illinois Statutes Chapter 815. Business Transactions § 121/190. Pledge or sale of consumer legal funding

(a) No licensee or other person shall pledge, hypothecate, or sell a consumer legal funding entered into under the provisions of this Act by a consumer except to another licensee under this Act, a bank, savings bank, savings and loan association, or credit union created under the laws of this State or the United States, or to other persons or entities authorized by the Secretary in writing. Sales of such notes by licensees under this Act or other persons shall be made by agreement in writing and shall authorize the Secretary to examine the consumer legal funding documents so hypothecated, pledged, or sold.

(b) A consumer may pay the original consumer legal funding company until he or she receives notification of assignment of rights to payment pursuant to a consumer legal funding and that payment is to be made to the assignee. A notification which does not reasonably identify the rights assigned is ineffective. If requested by the consumer, the assignee shall seasonably furnish reasonable proof that the assignment has been made and, unless the assignee does so, the consumer may pay the original consumer legal funding company.

(c) An assignee of the rights of the consumer legal funding company is subject to all claims and defenses of the consumer against the consumer legal funding company arising from the consumer legal funding. A claim or defense of a consumer may be asserted against the assignee under this Section only if the consumer has made a good faith attempt to obtain satisfaction from the consumer legal funding company with respect to the claim or defense and then only to the extent of the amount owing to the assignee with respect to the consumer legal funding company claim or defense that arose at the time the assignee has notice of the claim or defense. Notice of the claim or defense may be given before the attempt specified in this subsection. Oral notice is effective unless the assignee requests written confirmation when or promptly after oral notice is given and the consumer fails to give the assignee written confirmation within the period of time, not less than 14 days, stated to the consumer when written confirmation is requested. An agreement may not limit or waive the claims or defenses of a consumer under this Section.