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| 1 | AN ACT concerning regulation. | ||||||
| 2 | Be it enacted by the People of the State of Illinois, | ||||||
| 3 | represented in the General Assembly: | ||||||
| 4 | Section 5. The Debt Management Service Act is amended by | ||||||
| 5 | changing Sections 4 and 12 as follows: | ||||||
| 6 | (205 ILCS 665/4) (from Ch. 17, par. 5304) | ||||||
| 7 | Sec. 4. Application for license. Application for a license | ||||||
| 8 | to engage in the debt management service business in this | ||||||
| 9 | State shall be made to the Secretary and shall be in writing, | ||||||
| 10 | under oath, and in the form prescribed by the Secretary. | ||||||
| 11 | Each applicant, at the time of making such application, | ||||||
| 12 | shall pay to the Secretary the sum of $30.00 as a fee for | ||||||
| 13 | investigation of the applicant, and the additional sum of | ||||||
| 14 | $100.00 as a license fee. | ||||||
| 15 | Every applicant shall submit to the Secretary, at the time | ||||||
| 16 | of the application for a license, a bond to be approved by the | ||||||
| 17 | Secretary in which the applicant shall be the obligor, in the | ||||||
| 18 | sum of $50,000 $25,000 or such additional amount as required | ||||||
| 19 | by the Secretary based on the amount of disbursements made by | ||||||
| 20 | the licensee in the previous year, and in which an insurance | ||||||
| 21 | company, which is duly authorized by the State of Illinois, to | ||||||
| 22 | transact the business of fidelity and surety insurance shall | ||||||
| 23 | be a surety. | ||||||
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| 1 | The bond shall run to the Secretary for the use of the | ||||||
| 2 | Department or of any person or persons who may have a cause of | ||||||
| 3 | action against the obligor in said bond arising out of any | ||||||
| 4 | violation of this Act or rules by a license. Such bond shall be | ||||||
| 5 | conditioned that the obligor will faithfully conform to and | ||||||
| 6 | abide by the provisions of this Act and of all rules, | ||||||
| 7 | regulations and directions lawfully made by the Secretary and | ||||||
| 8 | will pay to the Secretary or to any person or persons any and | ||||||
| 9 | all money that may become due or owing to the State or to such | ||||||
| 10 | person or persons, from said obligor under and by virtue of the | ||||||
| 11 | provisions of this Act. | ||||||
| 12 | (Source: P.A. 96-1420, eff. 8-3-10.) | ||||||
| 13 | (205 ILCS 665/12) (from Ch. 17, par. 5312) | ||||||
| 14 | Sec. 12. Fees and charges of debt management service | ||||||
| 15 | providers. A debt management service provider may not charge a | ||||||
| 16 | debtor any fees or penalties except the following: | ||||||
| 17 | (1) an initial counseling fee not to exceed $75 $50 | ||||||
| 18 | per debtor counseled; and | ||||||
| 19 | (2) additional fees at the completion of the initial | ||||||
| 20 | counseling services, which shall not exceed per month: (A) | ||||||
| 21 | 15% of the amount disbursed monthly to creditors or $75, | ||||||
| 22 | whichever is less, if there are fewer than 6 creditors | ||||||
| 23 | enrolled in the debt management plan; or (B) 15% of the | ||||||
| 24 | amount disbursed monthly to creditors or $100, whichever | ||||||
| 25 | is less, if there are 6 or more creditors enrolled in the | ||||||
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| 1 | debt management plan $50 per month. | ||||||
| 2 | (Source: P.A. 96-1420, eff. 8-3-10.) | ||||||