CREDIT REPORT-SEALED RECORDS

104th Regular Session Introduced by Camille Lilly and 1 co-sponsor

Prohibits consumer reporting agencies from including adverse information in reports if the record has been expunged or sealed by a court.

Summary — HB 2928: Credit Reports — Expunged and Sealed Records

Status: Introduced Feb 2025; passed both chambers and signed by the Governor (Bill timeline entries show signature on May 23, 2025).
Primary subject: Adds a prohibition to the Illinois Consumer Fraud and Deceptive Business Practices Act regarding consumer/credit reports containing expunged or sealed records.

Purpose

To prevent consumer reporting agencies (CRAs) from creating, furnishing, or otherwise including adverse information in consumer or credit reports when that information has been expunged or sealed by a court. The aim is to ensure that expungement/sealing actions are effective in downstream credit and consumer reporting contexts.

Key provisions

Adds Section 2HHHH to the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505), creating an unlawful practice for:

Any consumer reporting agency to make, create, or furnish a consumer report or credit report that contains, incorporates, or reflects adverse information the agency knows or reasonably should know was expunged or sealed by a court of competent jurisdiction.

Incorporates FCRA-based definitions by reference:

“Consumer report” / “credit report” — defined as in 15 U.S.C. §1681a(d).
“Consumer reporting agency” — defined as in 15 U.S.C. §1681a(f).

Definitions and legal standard

The text relies on federal Fair Credit Reporting Act (FCRA) definitions for “consumer report” and “consumer reporting agency,” tying the state prohibition to nationally accepted meanings.

The culpability standard is knowledge or constructive knowledge (“knows or should know”), which places an obligation on CRAs to take reasonable steps to avoid reporting sealed/expunged records.

Who is affected

Primary: Consumer reporting agencies (credit bureaus and similar entities).

Secondary: Data furnishers (entities that provide data to CRAs), employers/landlords/creditors who rely on consumer reports, and consumers whose records have been expunged or sealed.

Consumers with court-ordered expungements/sealings would stand to benefit through reduced reporting of adverse history.

Enforcement & likely practical effects

By making the conduct an unlawful practice under the Illinois Consumer Fraud Act, violations are subject to the remedies and enforcement mechanisms available under that Act (including enforcement by the Attorney General and private causes of action under the Act). Consult the Consumer Fraud Act for specific remedies, penalties, and procedures.

Practical impacts may include increased compliance and record‑matching responsibilities for CRAs and furnishers, operational costs to screen and suppress sealed/expunged records, and potential litigation over compliance and alleged reporting of prohibited information.

Expected outcome for consumers: fewer residual consequences of expunged/sealed records in credit and consumer reporting contexts (employment, housing, lending decisions).

Legislative timeline (selected)

Introduced/Filed: early Feb 2025 (Illinois entries show Feb 6, 2025).

Committee referrals and readings followed in February–March 2025.

Passed both chambers (multiple entries in March–May 2025).

Signed by the Governor: May 23, 2025 (per provided actions).

Note: The bill text provided is limited to the core prohibition and incorporated definitions. For full legal effect, remedies, effective date, and implementing guidance, consult the enacted statute and related administrative or court interpretations.