HB3461ham001 103RD GENERAL ASSEMBLY

Rep. Debbie Meyers-Martin

Filed: 3/21/2023

10300HB3461ham001 LRB103 25804 SPS 59605 a

AMENDMENT TO HOUSE BILL 3461

AMENDMENT NO. ______. Amend House Bill 3461 by replacing everything after the enacting clause with the following:

"Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2Z as follows:

(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)

Sec. 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, the Automotive Collision Repair Act, the Home Repair and Remodeling Act, the Dance Studio Act, the Physical Fitness Services Act, the Hearing Instrument Consumer Protection Act, the Illinois Union Label Act, the Installment Sales Contract Act, the Job Referral and Job Listing Services Consumer Protection Act, the Travel Promotion Consumer Protection Act, the Credit Repair Services Organizations Act, the Automatic Telephone Dialers Act, the Pay-Per-Call Services Consumer Protection Act, the Telephone Solicitations Act, the Illinois Funeral or Burial Funds Act, the Cemetery Oversight Act, the Cemetery Care Act, the Safe and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales Act, the High Risk Home Loan Act, the Payday Loan Reform Act, the Predatory Loan Prevention Act, the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the Internet Caller Identification Act, paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois Vehicle Code, Article 3 of the Residential Real Property Disclosure Act, the Automatic Contract Renewal Act, the Reverse Mortgage Act, Section 25 of the Youth Mental Health Protection Act, the Personal Information Protection Act, or the Student Online Personal Protection Act commits an unlawful practice within the meaning of this Act.

(Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18; 100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)

Section 10. The Credit Services Organizations Act is amended by changing Sections 1, 2, 3, 5, 6, 7, 8, 9, 11, 12, 14, and 15 and by adding Sections 5.4, 5.5, 7.1, 17, 17.5, 18, 19, 20, 21, 22, 23, and 24 as follows:

(815 ILCS 605/1) (from Ch. 121 1/2, par. 2101)

Sec. 1. This Act shall be known and may be cited as the "Credit Repair Services Organizations Act".

(Source: P.A. 85-1384.)

(815 ILCS 605/2) (from Ch. 121 1/2, par. 2102)

Sec. 2. The General Assembly finds and declares that:

(a) The ability to obtain and use credit has become of great importance to consumers who have a vital interest in establishing and maintaining their credit worthiness and credit standing. As a result, consumers who have experienced credit problems may seek assistance from credit repair service businesses which offer to improve the credit standing of such consumers. Certain advertising and business practices of some companies engaged in the business of credit repair services have worked a financial hardship upon the people of this State, often on those who are of limited economic means and inexperienced in credit matters.

(b) The purpose of this Act is to provide prospective consumers of credit repair organizations services companies with the information necessary to make an informed decision regarding the purchase of those services and to protect the public from unfair or deceptive advertising and business practices.

(Source: P.A. 85-1384.)

(815 ILCS 605/3) (from Ch. 121 1/2, par. 2103)

Sec. 3. As used in this Act:

(a) "Buyer" or "consumer" means an individual who is solicited to purchase or who purchases the services of a credit repair services organization. "Buyer" or "consumer" includes an individual for whom the services of a credit repair organization are purchased.

(b) "Consumer reporting agency" has the meaning assigned by Section 603(f), Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)).

(c) "Extension of Credit" means the right to defer payment of a debt or to incur a debt and defer its payment that is offered or granted primarily for personal, family, or household purposes.

(d) "Credit Repair Services Organization" means any a person who sells, provides, performs, or represents that such person can or will sell, provide, or perform any service, with respect to the extension of credit by others and in return for the payment of money or other valuable consideration, for provides, or represents that the express or implied purpose of person can or will provide, any of the following services:

(i) improving a buyer's credit record, history, or rating;

(ii) (blank); or obtaining an extension of credit for a buyer; or

(iii) providing advice or assistance to a buyer with regard to activity or service described in item either subsection (i) or (ii).

"Credit repair organization Services Organization" does not include any of the following:

(i) any creditor, with respect to any consumer, a person authorized to the extent make loans or extensions of credit under the creditor is assisting laws of this State or the consumer United States who is subject to restructure an extension of credit owed regulation and supervision by this State or the consumer to the creditor United States, or a lender approved by the United States Secretary of Housing and Urban Development for participation in a mortgage insurance program under the National Housing Act (12 U.S.C. Section 1701 et seq.);

(ii) a bank or savings and loan association whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or a subsidiary of such a bank or savings and loan association;

(iii) a credit union doing business in this State;

(iv) a bona fide nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, provided that such organization does not charge or receive any money or other valuable consideration for assisting prior to or upon the execution of a specific contract or other agreement between the buyer and the nonprofit organization;

(v) a person licensed as a real estate broker by this state if the person is acting within the course and scope of that license;

(vi) a person licensed to practice law in this State solely when engaged in the practice of law acting within the course and scope of the person's practice as an attorney;

(vii) a broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission acting within the course and scope of that regulation;

(viii) a consumer reporting agency; and

(ix) a licensed debt management service:

(1) providing debt management services, as defined in the Debt Management Service Act;

(2) acting within the course and scope of its debt management service license;

(3) that does not charge any fee for the services of a credit repair organization; and

(4) that does not hold itself out as providing the services of a credit repair organization;

(x) a licensed debt settlement provider:

(1) providing debt settlement services, as defined in the Debt Settlement Consumer Protection Act;

(2) acting within the course and scope of its debt settlement service license;

(3) that does not charge any fee for the services of a credit repair organization; and

(4) that does not hold itself out as providing the services of a credit repair organization; and

(xi) a residential mortgage loan broker or banker who is duly licensed under the Illinois Residential Mortgage License Act of 1987 and acting within the course and scope of that regulation.

(e) "Person" means an individual, sole proprietorship, corporation, partnership, joint venture, or any business entity.

(f) "Consumer report" has the meaning assigned by Section 1681a(d) of the Fair Credit Reporting Act (15 U.S.C. Section 1681a(d)).

(g) "Contract start date" means the date the consumer entered into a contract with a credit repair organization.

(h) "Creditor" has the meaning assigned by Section 103 of the Truth in Lending Act (15 U.S.C. Section 1602(g)).

(i) "Department" means the Department of Financial and Professional Regulation.

(i) "Permanent change" means any removal of negative items from a consumer's credit report or any change that turns a negative item on a consumer's credit report into a neutral or positive item change to the consumer's credit report that remains in place for at least 6 months.

(k) "Secretary" means the Secretary of Financial and Professional Regulation or the Secretary's designee.

(Source: P.A. 88-120.)

(815 ILCS 605/5) (from Ch. 121 1/2, par. 2105)

Sec. 5. No credit repair services organization, its salespersons, agents or representatives, or any independent contractor who sells or attempts to sell the services of a credit repair services organization shall:

(1) Charge or receive any money or other valuable consideration prior to: full and complete performance

(A) achieving a permanent change for a buyer;

(B) demonstrating achievement of the permanent change by providing the buyer with:

(i) a copy of the buyer's credit report pulled on or before the contract start date;

(ii) a second copy of the buyer's credit report, pulled after the contract start date, that shows the change for which the buyer is to be charged if the change persists for 6 months; and

(iii) a third copy of the buyer's credit report, pulled 6 months after the issuance of the copy described in item (ii), that shows the persistence of the change described in item (ii). of the services the credit services organization has agreed to perform for or on behalf of the buyer, unless the credit services organization has, in conformity with Section 10 of this Act, obtained

(C) obtaining a surety bond in compliance with Section 5.4 of this Act issued by a surety company licensed to do business in this State. If a credit services organization is in compliance with this subsection the salespersons, agents, and representatives who sell the services of such organization shall not be required to obtain the surety bond provided for by this Act.

(1.5) Fail to contemporaneously provide a buyer with a copy of all communications sent to a credit reporting agency on a buyer's behalf.

(2) Charge, pay, offer, or receive any money, discount, or receive any money, discount, or other valuable consideration solely for the referral of a buyer to or from a credit repair organization a retail seller who will or may extend credit to the buyer if such extension of credit is in substantially the same terms as those available to the general public.

(2.5) Represent changes that do not meet the definition of permanent change as successful results in advertisements.

(3) Make, or advise any buyer to make, any statement that is untrue or misleading, or that should be known by the exercise of reasonable care to be untrue or misleading, with respect to a buyer's credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer has made application for an extension of credit.

(4) Make or use any untrue or misleading representations in the advertising, offer, or sale of the services of a credit repair services organization or engage .

(5) Engage, directly or indirectly, in any act, practice or course of business reasonably likely intended to defraud or deceive a buyer in connection with the officer office or sale of such services; including but not limited to: the amount or type of credit a consumer can expect to receive as a result of the performance of the services offered; the qualifications, training or experience of its personnel; or the amount of credit improvement the consumer can expect to receive as a result of the services.

(Source: P.A. 85-1384.)

(815 ILCS 605/5.4 new)

Sec. 5.4. Surety bond. Every credit repair organization shall maintain a surety bond or electronic surety bond in the principal sum of $100,000 issued by a bonding company authorized to do business in this State and approved by the Secretary. The bond shall run to the Secretary and shall be for the benefit of any consumer who incurs damages as a result of any violation of this Act or rules adopted under this Act.

(815 ILCS 605/5.5 new)

Sec. 5.5. Duties of the Secretary.

(a) The Secretary shall oversee the activities of credit repair organizations and compliance with this Act.

(b) A credit repair organization shall submit a report every 6 months to the Secretary, in a form and manner as the Secretary may prescribe, containing the following information:

(1) the number of buyers under contract with the credit repair organization during the reporting term;

(2) the number of credit report items questioned for each buyer under contract through a dispute, a complaint, or some other documented action by the credit repair organization since the contract start date;

(3) the number of items successfully removed from each buyer's credit report;

(4) the number of items reinserted in a buyer's credit reports within 6 months;

(5) the number of items that stayed off a buyers' credit reports for 6 or more months; and

(6) any additional information as determined by the Secretary.

(c) A credit repair organization shall file with the Secretary, every 6 months, statistical proof that confirms the information used to demonstrate successful results in advertisements, including, but not limited to, advertisements sent by mail, posted on the Internet, printed in newspapers or other publications, and sent electronically by text or e-mail.

(d) The Secretary may issue reports to the General Assembly and the general public, that includes a compilation of the statistical proof received from credit repair organizations described in paragraph (4) of Section 5 and an assessment of the quality of services provided by credit repair organizations to consumers.

(815 ILCS 605/6) (from Ch. 121 1/2, par. 2106)

Sec. 6. Before the execution of a contract or other form of agreement between a buyer and a credit repair services organization or before the credit repair organization receives receipt by any such organization of money or other valuable consideration, whichever occurs first, such organization shall provide the buyer with a statement, in writing, containing the following:

(1) a complete and accurate statement of the buyer's right to review any file on the buyer maintained by a consumer reporting agency, as provided under the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.);

(2) a statement that the buyer may review his consumer reporting agency file at no charge if a request therefor is made to such agency within 30 days after receipt by the buyer of notice that credit has been denied and if such request is not made within the allotted time, the approximate charge to the buyer for such review;

(3) a complete and accurate statement of the buyer's right to dispute the completeness or accuracy of any item contained in any file on the buyer maintained by a consumer reporting agency;

(4) (blank); a complete and detailed description of the services to be performed by the credit services organization and the total cost to the buyer for such services;

(5) a statement notifying the buyer that: (i) credit reporting agencies have no obligation to remove information from credit reports unless the information is erroneous, cannot be verified or is more than 7 years old; and (ii) credit reporting agencies have no obligation to remove information concerning bankruptcies unless such information is more than 10 years old;

(6) a statement asserting the buyer's right to proceed against the surety bond required under Section 5.4 10; and

(7) the name and business address of any such surety company together with the name and the number of the account.

The credit repair services organization shall maintain on file, for a period of 2 years after the date the statement is provided, an exact copy of the statement, signed by the buyer, acknowledging receipt of the statement.

(Source: P.A. 91-357, eff. 7-29-99.)

(815 ILCS 605/7) (from Ch. 121 1/2, par. 2107)

Sec. 7. (a) Each contract between the buyer and a credit repair services organization for the purchase of the services of the credit repair services organization shall be in writing, dated, signed by the buyer and an authorized employee of the credit repair organization, and shall include:

(1) (blank); a conspicuous statement in boldfaced type, in immediate proximity to the space reserved for the signature of the buyer, as follows:

"You, the buyer, may cancel this contract at any time before midnight of the third day after the date of the transaction. See the attached notice of cancellation form for an explanation of this right";

(2) a complete and detailed description of the terms and conditions of payment consistent with Section 5 of this Act, including the total of all payments to be made by the buyer, whether to the credit repair organization credit services organization or to another person;

(A) If a buyer seeks to stop using the services of a credit repair organization, the buyer shall submit a request to the credit repair organization to cancel the contract. A credit repair organization shall allow submission of a cancellation request electronically.

(B) A credit repair organization that has received a request to cancel services for a buyer shall process the cancellation within 15 days after the postmark of any written request or of receipt of an electronic request, and cease to conduct any additional work on behalf of the buyer.

(C) Consumers whose cancellation requests are processed and completed, remain obligated to pay for any permanent change resulting from actions taken by the credit repair organization during the contract term from the contract start date through the date the cancellation is processed.

(3) a full and detailed description of the services to be performed by the credit repair services organization for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated date by which the services are to be performed or the estimated length of time for performing the services; and

(4) the address of the credit repair services organization's principal place of business and the name and address of its agent in the State authorized to receive service of process.

(b) (Blank). The contract must have two easily detachable copies of a notice of cancellation. The notice must be in boldfaced type and in the following form:

"Notice of Cancellation"

"You may cancel this contract, without any penalty or obligation, within three days after the date the contract is signed.

If you cancel, any payment made by you under this contract will be returned within 10 days after the date of receipt by the seller of your cancellation notice.

To cancel this contract, mail or deliver a signed, dated copy of this cancellation notice, or other written notice to:

(name of seller) at (address of seller) (place of business) not later than midnight (date) I hereby cancel this transaction." .............................. .............................

(date) (purchaser's signature)

(c) The credit repair services organization shall give to the buyer a copy of the completed contract and all other documents the credit repair services organization requires the buyer to sign at the time they are signed. A credit repair organization shall not unreasonably deny a buyer's request for an additional copy of the contract or any other document the buyer signed.

(Source: P.A. 85-1384.)

(815 ILCS 605/7.1 new)

Sec. 7.1. Recordkeeping. The credit repair organization shall maintain on file, for a period of 2 years after the date the statement required in Section 7 is provided, an exact copy of the statement, signed by the buyer, acknowledging receipt of the statement.

(815 ILCS 605/8) (from Ch. 121 1/2, par. 2108)

Sec. 8. (a) Any contract for services which does not comply with applicable provisions of this article shall be void and unenforceable as contrary to public policy. Any waiver by a buyer of the provisions of this Act shall be deemed void and unenforceable by a credit services organization as contrary to public policy. Any attempt by a credit repair services organization to have a buyer waive rights granted by this Act shall constitute a violation of this Act.

(b) The provisions of this Act shall apply to any person who seeks to evade its application by any device, subterfuge, or pretense, including, without limitation:

(1) instructing or suggesting that a buyer make payments into an account controlled by a third party;

(2) using any agents, affiliates, or subsidiaries in an attempt to avoid the application of the provisions of this Act; or

(3) having any affiliation or other business arrangement with an entity that is exempt from the provisions of this Act for the purpose of evading the provisions of this Act.

(c) A violation of this Section shall constitute a violation of this Act.

(Source: P.A. 85-1384.)

(815 ILCS 605/9) (from Ch. 121 1/2, par. 2109)

Sec. 9. (a) A credit repair services organization shall file a registration statement with the Secretary of State before conducting business in this State. The registration statement shall contain:

(1) the name and address of the credit repair services organization;

(2) the name and address of the registered agent authorized to accept service of process on behalf of the credit repair services organization;

(3) the name and address of any person who directly or indirectly owns or controls 10 percent or more of the outstanding shares of stock in the credit repair services organization; and

(4) the name, numbers, and location of the surety company issuing a surety bond maintained as required by Section 5.4 10 of this Act.

(b) The registration statement must also contain either:

(1) a full and complete disclosure of any litigation or unresolved complaint filed with a governmental authority of this State, any other state or the United States relating to the operation of the credit repair services organization; or

(2) a notarized statement that states that there has been no litigation or unresolved complaint filed with a governmental authority of this State, any other state or the United States relating to the operation of the credit repair services organization.

(c) The credit repair services organization shall update such statement not later than 30 days the 90th day after the date on which a change in the information required in the statement occurs.

(d) Each credit repair services organization registering under this Section shall maintain a copy of the registration statement in their files. The credit repair services organization shall allow a buyer to inspect the registration statement on request.

(e) The Department Secretary of State may charge each credit services organization that files a registration statement a reasonable fee not to exceed $100 to cover the cost of filing.

(Source: P.A. 85-1384.)

(815 ILCS 605/11) (from Ch. 121 1/2, par. 2111)

Sec. 11. Any person injured by a violation of this Act or by the credit repair services organization's breach of a contract entered into pursuant to Section 7 of this Act, may bring any action for recovery of actual damages and statutory damages of $5,000 for the first offense and $10,000 for a second and any subsequent offense. Such person may also be awarded punitive damages, reasonable attorney's fees and court costs.

Where the buyer demonstrates actual or statutory damages, proof of reliance shall not be required to pursue a claim based on misrepresentation, false statements, or the omission of any material fact.

(Source: P.A. 85-1384.)

(815 ILCS 605/12) (from Ch. 121 1/2, par. 2112)

Sec. 12. A. Nothing in this Act shall be construed to restrict the exercise of powers or the performance of the duties of the Attorney General, a State's Attorney, or federal law enforcement. The Attorney General, the State's Attorney of any county, or a buyer may bring an action in a circuit court to enjoin a violation of this Act. In addition to any injunction, the Attorney General or any State's Attorney or any county, in the name of the People of the State of Illinois, may seek to recover damages pursuant to this Act or any other relief permitted by law. The Attorney General may enforce a violation of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

(Source: P.A. 85-1384.)

(815 ILCS 605/14) (from Ch. 121 1/2, par. 2114)

Sec. 14. Construction.

(a) For purposes of carrying out the objectives of this Act:

(1) This Act shall be liberally construed.

(2) This Act shall be construed as a consumer protection law.

(3) All exclusions from the definition of the credit repair organization, as described in subsection (g) of Section 3, shall be construed narrowly and the burden of proving an exclusion from the definition of credit repair organization definition exemption under subsection (g) of Section 3 is on the person claiming the exemption.

(b) It is the intent of the General Assembly for this Act to apply to the conduct of attorneys when not engaged in the practice of law.

(c) In construing this Act consideration shall be given to the interpretations of the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) In an action under this Act the burden of proving an exemption under paragraph (d) of Section 3 is on the person claiming the exemption.

(Source: P.A. 85-1384.)

(815 ILCS 605/15) (from Ch. 121 1/2, par. 2115)

Sec. 15. The remedies provided by this Act are in addition to other remedies provided by law. A violation of this Act shall also constitute a violation of the Consumer Fraud and Deceptive Business Practices Act. A violation of the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. Section 6101 et seq.), and its implementing regulations, 16 CFR 310.1 et seq., or of the credit repair organizations Act (15 U.S.C. Section 1679 et seq.) shall also be a violation of this Act.

(Source: P.A. 85-1384.)

(815 ILCS 605/17 new)

Sec. 17. Rulemaking.

(a) In addition to powers granted to the Department this Act, the Department may adopt rules consistent with the purposes of this Act, including, but not limited to:

(1) rules in connection with the activities of credit repair organizations as may be necessary and appropriate for the protection of consumers in this State;

(2) rules as may be necessary and appropriate to define and deter improper or fraudulent business practices in connection with the activities of credit repair organizations;

(3) rules that define the terms used in this Act and as may be necessary and appropriate to interpret and implement the provisions of this Act; and

(4) rules to prevent evasion of this Act; and

(5) rules as may be necessary for the enforcement and administration of this Act.

(b) The Secretary is may make specific rulings, demands, and findings that the Secretary deems necessary for the proper conduct of any credit repair organization.

(815 ILCS 605/17.5 new)

Sec. 17.5. Regulatory assessment.

(a) Every credit repair organization shall annually pay to the Department its pro rata share of the cost for administration of the Act, as estimated by the Department, for the current year and for any deficit actually incurred in the administration of the Act in prior years. Every credit repair organization's pro rata share shall be the percentage that the number of buyers under contract with the credit repair organization bears to the total buyers under contract with all credit repair organizations in the previous year, or any other method of pro rata fee assessment as established by rule.

(b) The Secretary may establish other fees by rule as necessary to administer and enforce this Act.

(c) All fees received under this Section shall be nonrefundable.

(815 ILCS 605/18 new)

Sec. 18. Evasion. Any agreement, contract, or transaction that is structured to evade this Act shall be deemed to covered by this Act.

(815 ILCS 605/19 new)

Sec. 19. Examination and reports.

(a) The Secretary may examine the business affairs of a credit report organization for compliance with this Act as often as the Secretary deems necessary and proper. The Department may adopt rules with respect to the frequency and manner of examination. The Secretary shall appoint a suitable person to perform an examination. The Secretary and his or her appointees may examine under oath the entire books, records, documents, and operations of each credit repair organization and its subsidiary, affiliate, or agent, and may examine any of the credit repair organization's or the officers, directors, employees, and agents of its subsidiaries, affiliates, or agents.

(b) Affiliates of a credit repair organization shall be subject to examination by the Secretary on the same terms as the credit repair organization.

(c) The expenses of any examination of the credit repair organization and affiliates shall be borne by the licensee and assessed by the Secretary as established by rule.

(d) In addition to any reports required under this Act, every licensee shall file any other report that the Secretary requires.

(815 ILCS 605/20 new)

Sec. 20. Violations. It is a violation of this Act for a credit repair organization, or other person subject to this Act to:

(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead any person, including, but not limited to, engaging in bait and switch advertising or sales practices;

(2) directly or indirectly engage in any unfair or deceptive act or practice toward any person, including, but not limited to, any false or deceptive statement about fees or other terms of the contract with a buyer;

(3) directly or indirectly obtain property by fraud or misrepresentation;

(4) knowingly make, publish, or disseminate any false, deceptive, or misleading information;

(5) fail to make any report or statement lawfully required by the Secretary or other public official;

(6) demonstrate, by course of conduct, negligence or incompetence in performing any act directly or indirectly relating to activities covered by this Act;

(7) violate the Consumer Fraud and Deceptive Business Practices Act; and

(8) fail to comply with the provisions of this Act or with any lawful order, agreement, or rule made or issued under the provisions of this Act.

(815 ILCS 605/21 new)

Sec. 21. Enforcement.

(a) In order to enforce this Act, the Department may:

(1) take any action authorized by this Act against a credit repair organization or other person subject to this Act for any violation of this Act;

(2) order relief under this Section which may include, but is not limited to, any of the following:

(A) rescission or reformation of contracts;

(B) refund of moneys or return of real property;

(C) restitution;

(D) disgorgement or compensation for unjust enrichment, with any disgorged amounts returned to the affected consumers, to the extent practicable;

(E) payment of damages or other monetary relief;

(F) public notification regarding the violation, including the costs of notification;

(G) limits on the activities or functions of the person; and

(F) monetary penalties, as set forth more fully in paragraph (1) of subsection (d);

(3) compromise, modify, or remit any penalty that may be assessed or has already been assessed; and

(4) impose penalties to deter future violations by any person subject to this Act.

(b) In any administrative action brought under this Act, the following penalties shall apply:

(1) Any person that violates any provision of this Act, through any act or omission, to forfeit and pay a penalty as follows:

(A) For any violation of this Act, rule, order, or condition imposed in writing by the Department, a penalty may not exceed the greater of either $5,000 for each day during which the violation or failure to pay continues or $2,500 for each act or omission in violation of this subparagraph.

(B) For any reckless violation by a person of this Act, rule, order, or condition imposed by the Department, a penalty may not exceed the greater of $25,000 for each day during which the violation continues or $10,000 for each act or omission in violation of this subparagraph.

(C) For any knowing violation, by a person of this Act, rule, order, or condition imposed by the Department, a penalty may not exceed the lesser of 1% of the person's total assets or $1,000,000 for each day during which the violation continues, but in no circumstances may be less than or $25,000 for each act or omission in violation of this subparagraph.

(2) In determining the amount of any penalty assessed under this Act, the Department shall take into account mitigating factors and the appropriateness of the penalty with respect to all of the following:

(A) the amount of financial resources of the person charged;

(B) the good faith of the person charged;

(C) the gravity of the violation;

(D) the severity of the risks to or losses of the consumer, which may take into account the number of products or services sold or provided;

(E) the history of previous violations; and

(G) other facts and circumstances as justice may require.

(815 ILCS 605/22 new)

Sec. 22. Confidential supervisory information.

(a) Reports of investigation and examination, other reports rendered under this Act, and correspondence and memoranda concerning or arising out of an investigation, examination, or report, including any copies thereof, in the possession of the Secretary shall be confidential communications, shall not be subject to disclosure under the Freedom of Information Act, and shall not be made public unless the Secretary finds that the ends of justice and the public advantage will be served by the disclosure. Upon such finding, the Secretary may disclose, in whole or in part, any report or other material referred to in this Section in the manner he considers proper.

(b) The Secretary may release any of the information described in subsection (a) to any agency of this State, another state, or the United States.

(c) Any information provided by a credit repair organization under subsections (a) and (b) and Section 5.5, other than personal identifiable information of a buyer, shall be a public record subject to disclosure under the Freedom of Information Act.

(815 ILCS 605/23 new)

Sec. 23. Judicial review. All final administrative decisions of the Department under this Act, all amendments and modifications of final administrative decisions, and any rules adopted by the Department under this Act, shall be subject to judicial review under the provisions of the Administrative Review Law.

(815 ILCS 605/24 new)

Sec. 24. Superiority of this Act. To the extent this Act conflicts with any other State laws, this Act is superior and supersedes those laws.

(815 ILCS 605/4 rep.)

(815 ILCS 605/10 rep.)

Section 15. The Credit Services Organizations Act is amended by repealing Sections 4 and 10.

Section 99. Effective date. This Act takes effect January 1, 2024.".