Rep. Mark L. Walker

Filed: 2/25/2022

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5220

2    AMENDMENT NO. ______. Amend House Bill 5220 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Financial Institutions Code is amended by
5changing Sections 4 and 6 as follows:
 
6    (20 ILCS 1205/4)  (from Ch. 17, par. 104)
7    Sec. 4. As used in this Act:
8    (a) "Department" means the Department of Financial and
9Professional Regulation Institutions.
10    (b) "Director" means the Director of the Division of
11Financial Institutions and any authorized representative of
12the Director.
13    "Division" means the Division of Financial Institutions of
14the Department.
15    (c) "Person" means any individual, partnership, joint
16venture, trust, estate, firm, corporation, association or

 

 

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1cooperative society or association.
2    (d) "Financial institutions" means ambulatory and
3community currency exchanges, credit unions, guaranteed credit
4unions, money transmitters, persons engaged in the business of
5transmitting money to foreign countries or buying and selling
6foreign money, pawners' societies, title insuring or
7guaranteeing companies, consumer installment lenders, payday
8lenders, sales finance agencies, and any other industry or
9business that offers services or products that are regulated
10under any Act administered by the Director and persons engaged
11in the business of making loans of $800 or less, all as
12respectively defined in the laws referred to in Section 6 of
13this Act. The term includes sales finance agencies, as defined
14in the "Sales Finance Agency Act", enacted by the 75th General
15Assembly.
16    "License" means any certificate or authorization issued to
17any person, party, or entity pursuant to any Act administered
18by the Division.
19    "Licensee" means any person, party, or entity who is or
20comes to be certified, chartered, registered, licensed, or
21otherwise authorized by the Division pursuant to any Act
22administered by the Division.
23    (e) "Payday loan" has the meaning ascribed to that term in
24the Payday Loan Reform Act.
25    "Person" means any individual, partnership, joint venture,
26trust, estate, firm, corporation, cooperative society or

 

 

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1association, or any other form of business association or
2legal entity.
3    "Secretary" means the Secretary of Financial and
4Professional Regulation and any authorized representative of
5the Secretary.
6(Source: P.A. 94-13, eff. 12-6-05.)
 
7    (20 ILCS 1205/6)  (from Ch. 17, par. 106)
8    Sec. 6. General powers and duties. In addition to the
9powers and duties provided by law and imposed elsewhere in
10this Act, the Division Department has the following powers and
11duties:
12    (1) To administer and enforce the Consumer Installment
13Loan Act and its implementing rules. To exercise the rights,
14powers and duties vested by law in the Auditor of Public
15Accounts under "An Act to provide for the incorporation,
16management and regulation of pawners' societies and limiting
17the rate of compensation to be paid for advances, storage and
18insurance on pawns and pledges and to allow the loaning of
19money upon personal property", approved March 29, 1899, as
20amended.
21    (2) To administer and enforce the Currency Exchange Act
22and its implementing rules. To exercise the rights, powers and
23duties vested by law in the Auditor of Public Accounts under
24"An Act in relation to the definition, licensing and
25regulation of community currency exchanges and ambulatory

 

 

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1currency exchanges, and the operators and employees thereof,
2and to make an appropriation therefor, and to provide
3penalties and remedies for the violation thereof", approved
4June 30, 1943, as amended.
5    (3) To administer and enforce the Debt Management Service
6Act and its implementing rules. To exercise the rights,
7powers, and duties vested by law in the Auditor of Public
8Accounts under "An Act in relation to the buying and selling of
9foreign exchange and the transmission or transfer of money to
10foreign countries", approved June 28, 1923, as amended.
11    (4) To administer and enforce the Debt Settlement Consumer
12Protection Act and its implementing rules. To exercise the
13rights, powers, and duties vested by law in the Auditor of
14Public Accounts under "An Act to provide for and regulate the
15business of guaranteeing titles to real estate by
16corporations", approved May 13, 1901, as amended.
17    (5) To administer and enforce the Illinois Development
18Credit Corporation Act and its implementing rules. To exercise
19the rights, powers and duties vested by law in the Department
20of Insurance under "An Act to define, license, and regulate
21the business of making loans of eight hundred dollars or less,
22permitting an interest charge thereon greater than otherwise
23allowed by law, authorizing and regulating the assignment of
24wages or salary when taken as security for any such loan or as
25consideration for a payment of eight hundred dollars or less,
26providing penalties, and to repeal Acts therein named",

 

 

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1approved July 11, 1935, as amended.
2    (6) To administer and enforce the Payday Loan Reform Act
3and its implementing rules. To administer and enforce "An Act
4to license and regulate the keeping and letting of safety
5deposit boxes, safes, and vaults, and the opening thereof, and
6to repeal a certain Act therein named", approved June 13,
71945, as amended.
8    (7) To administer and enforce the Safety Deposit License
9Act and its implementing rules. Whenever the Department is
10authorized or required by law to consider some aspect of
11criminal history record information for the purpose of
12carrying out its statutory powers and responsibilities, then,
13upon request and payment of fees in conformance with the
14requirements of Section 2605-400 of the Illinois State Police
15Law, the Illinois State Police is authorized to furnish,
16pursuant to positive identification, such information
17contained in State files as is necessary to fulfill the
18request.
19    (8) To administer and enforce the Sales Finance Agency Act
20and its implementing rules. To administer the Payday Loan
21Reform Act, the Consumer Installment Loan Act, the Predatory
22Loan Prevention Act, the Motor Vehicle Retail Installment
23Sales Act, and the Retail Installment Sales Act.
24    (9) To administer and enforce the Title Insurance Act and
25its implementing rules.
26    (10) To administer and enforce the Transmitters of Money

 

 

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1Act and its implementing rules.
2    (11) To administer and enforce the Predatory Loan
3Prevention Act and its implementing rules.
4    (12) To administer and enforce the Motor Vehicle Retail
5Installment Sales Act and its implementing rules.
6    (13) To administer and enforce the Retail Installment
7Sales Act and its implementing rules.
8    (14) To administer and enforce the Illinois Credit Union
9Act and its implementing rules.
10    (15) To administer and enforce the Collection Agency Act
11and its implementing rules.
12    (16) To administer and enforce any other Act administered
13by the Director or Division.
14    (17) If the Division is authorized or required by law to
15consider some aspect of criminal history record information
16for the purpose of carrying out its statutory powers and
17responsibilities, to obtain from the Illinois State Police,
18upon request and payment of the fees required by the Illinois
19State Police Law of the Civil Administrative Code of Illinois,
20pursuant to positive identification, such information
21contained in State files as is necessary to carry out the
22duties of the Division.
23    (18) To authorize and administer examinations to ascertain
24the qualifications of applicants and licensees for which the
25examination is held.
26    (19) To conduct hearings in proceedings to revoke,

 

 

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1suspend, refuse to renew, or take other disciplinary action
2regarding licenses, charters, certifications, registrations,
3or authorities of persons as authorized in any Act
4administered by the Division.
5(Source: P.A. 101-658, eff. 3-23-21; 102-538, eff. 8-20-21;
6revised 10-5-21.)
 
7    Section 10. The Collection Agency Act is amended by
8changing Sections 2, 4.5, 5, 7, 8a, 9, 9.2, 11, 13.2, 16, 26,
9and 30 as follows:
 
10    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
11    (Section scheduled to be repealed on January 1, 2026)
12    Sec. 2. Definitions. In this Act:
13    "Address of record" means the designated address recorded
14by the Department in the applicant's or licensee's application
15file or license file as maintained by the Department's
16licensure maintenance unit.
17    "Board" means the Collection Agency Licensing and
18Disciplinary Board.
19    "Charge-off balance" means an account principal and other
20legally collectible costs, expenses, and interest accrued
21prior to the charge-off date, less any payments or settlement.
22    "Charge-off date" means the date on which a receivable is
23treated as a loss or expense.
24    "Collection agency" means any person who, in the ordinary

 

 

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1course of business, regularly, on behalf of himself or herself
2or others, engages in the collection of a debt.
3    "Consumer debt" or "consumer credit" means money or
4property, or their equivalent, due or owing or alleged to be
5due or owing from a natural person by reason of a consumer
6credit transaction.
7    "Credit transaction" means a transaction between a natural
8person and another person in which property, service, or money
9is acquired on credit by that natural person from such other
10person primarily for personal, family, or household purposes.
11    "Creditor" means a person who extends consumer credit to a
12debtor.
13    "Current balance" means the charge-off balance plus any
14legally collectible costs, expenses, and interest, less any
15credits or payments.
16    "Debt" means money, property, or their equivalent which is
17due or owing or alleged to be due or owing from a person to
18another person.
19    "Debt buyer" means a person or entity that is engaged in
20the business of purchasing delinquent or charged-off consumer
21loans or consumer credit accounts or other delinquent consumer
22debt for collection purposes, whether it collects the debt
23itself or hires a third-party for collection or an
24attorney-at-law for litigation in order to collect such debt.
25    "Debtor" means a person from whom a collection agency
26seeks to collect a consumer or commercial debt that is due and

 

 

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1owing or alleged to be due and owing from such person.
2    "Department" means the Department of Financial and
3Professional Regulation.
4    "Email address of record" means the designated email
5address recorded by the Department in the applicant's
6application file or the licensee's license file, as maintained
7by the Department's licensure maintenance unit.
8    "Person" means a natural person, partnership, corporation,
9limited liability company, trust, estate, cooperative,
10association, or other similar entity.
11    "Licensed collection agency" means a person who is
12licensed under this Act to engage in the practice of debt
13collection in Illinois.
14    "Multi-state licensing system" means a web-based platform
15that allows licensure applicants to submit their applications
16and renewals to the Department online.
17    "Secretary" means the Secretary of Financial and
18Professional Regulation or his or her designee.
19(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16;
20100-132, eff. 8-18-17.)
 
21    (225 ILCS 425/4.5)
22    (Section scheduled to be repealed on January 1, 2026)
23    Sec. 4.5. Unlicensed practice; violation; civil penalty.
24    (a) Any person who practices, offers to practice, attempts
25to practice, or holds oneself out to practice as a collection

 

 

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1agency without being licensed under this Act shall, in
2addition to any other penalty provided by law, pay a civil
3penalty to the Department in an amount not to exceed $10,000
4for each offense as determined by the Department. The civil
5penalty shall be assessed by the Department after a hearing is
6held in accordance with the provisions set forth in this Act
7regarding the provision of a hearing for the discipline of a
8licensee.
9    (b) The Department has the authority and power to
10investigate any and all unlicensed activity. In addition to
11taking any other action provided under this Act, whenever the
12Department has reason to believe a person has violated any
13provision of subsection (a) of this Section, the Department
14may issue a rule to show cause why an order to cease and desist
15should not be entered against that person. The rule shall
16clearly set forth the grounds relied upon by the Department
17and shall provide a period of 7 days from the date of the rule
18to file an answer to the satisfaction of the Department.
19Failure to answer to the satisfaction of the Department shall
20provide the Department authority to issue cause an order to
21cease and desist to be issued immediately.
22    (c) The civil penalty shall be paid within 60 days after
23the effective date of the order imposing the civil penalty.
24The order shall constitute a judgment and may be filed and
25executed execution had thereon in the same manner as any
26judgment from any court of record.

 

 

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1    (d) All moneys collected under this Section shall be
2deposited into the Financial Institution Fund.
3(Source: P.A. 102-205, eff. 7-30-21.)
 
4    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
5    (Section scheduled to be repealed on January 1, 2026)
6    Sec. 5. Application for original license. Application for
7an original license shall be made to the Secretary on forms
8provided by the Department or through a multi-state licensing
9system as designated by the Secretary. The application , shall
10be accompanied by the required fee and shall state:
11        (1) the applicant's name and address;
12        (2) the names and addresses of the officers of the
13    collection agency and, if the collection agency is a
14    corporation, the names and addresses of all persons owning
15    10% or more of the stock of such corporation, if the
16    collection agency is a partnership, the names and
17    addresses of all partners of the partnership holding a 10%
18    or more interest in the partnership, if the collection
19    agency is a limited liability company, the names and
20    addresses of all members holding 10% or more interest in
21    the limited liability company, and if the collection
22    agency is any other legal business entity, the names and
23    addresses of all persons owning 10% or more interest in
24    the entity; and
25        (3) such other information as the Department may deem

 

 

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1    necessary.
2(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
3    (225 ILCS 425/7)  (from Ch. 111, par. 2010)
4    (Section scheduled to be repealed on January 1, 2026)
5    Sec. 7. Qualifications for license. In order to be
6qualified to obtain a license or a renewal license under this
7Act, a collection agency's owners or officers shall:
8        (a) have the financial responsibility, financial
9    condition, business experience, character, and general
10    fitness such as to merit the confidence and trust of the
11    public that an applicant, licensee, or regulated person is
12    fit, willing, and able to carry on his or her proposed
13    business in a lawful and fair manner be of good moral
14    character and of the age of 18 years or more;
15        (a-5) be 18 years of age or more;
16        (b) (blank); and
17        (c) have an acceptable credit rating, have no
18    unsatisfied judgments; and not have been officers and
19    owners of 10% or more interest of a former licensee under
20    this Act whose license was suspended or revoked without
21    subsequent restoration.
22(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
23    (225 ILCS 425/8a)  (from Ch. 111, par. 2011a)
24    (Section scheduled to be repealed on January 1, 2026)

 

 

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1    Sec. 8a. Fees.
2    (a) The fees for the administration and enforcement of
3this Act, including but not limited to original licensure,
4renewal, and restoration, shall be set by the Department by
5rule. All fees are nonrefundable.
6    (b) All fees collected under this Act by the Department
7shall be deposited into the Financial Institution Fund and
8shall be appropriated to the Department for the ordinary and
9contingent expenses of the Department in the administration of
10this Act. After the effective date of this amendatory Act of
11the 102nd General Assembly, the Department may transfer any
12funds fees collected under this Act from the General
13Professions Dedicated Fund to the Financial Institution Fund.
14    (c) The administration fee charged by the multi-state
15licensing system shall be paid directly to the multi-state
16licensing system.
17(Source: P.A. 102-205, eff. 7-30-21.)
 
18    (225 ILCS 425/9)  (from Ch. 111, par. 2012)
19    (Section scheduled to be repealed on January 1, 2026)
20    Sec. 9. Disciplinary actions.
21    (a) The Department may refuse to issue or renew, or may
22revoke, suspend, place on probation, reprimand or take other
23disciplinary or non-disciplinary action as the Department may
24deem proper, including fines not to exceed $10,000 per
25violation, for any one or any combination of the following

 

 

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1causes:
2        (1) Material misstatement in furnishing information to
3    the Department.
4        (2) Violations of this Act or of the rules promulgated
5    hereunder.
6        (3) Conviction by plea of guilty or nolo contendere,
7    finding of guilt, jury verdict, or entry of judgment or by
8    sentencing of any crime, including, but not limited to,
9    convictions, preceding sentences of supervision,
10    conditional discharge, or first offender probation of the
11    collection agency or any of the officers or owners of more
12    than 10% interest of the agency of any crime under the laws
13    of any U.S. jurisdiction that (i) is a felony, (ii) is a
14    misdemeanor, an essential element of which is dishonesty,
15    or (iii) is directly related to the practice of a
16    collection agency.
17        (4) Fraud or misrepresentation in applying for, or
18    procuring, a license under this Act or in connection with
19    applying for renewal of a license under this Act.
20        (5) Aiding or assisting another person in violating
21    any provision of this Act or rules adopted under this Act.
22        (6) Failing, within 60 days, to provide information in
23    response to a written request made by the Department.
24        (7) Habitual or excessive use or addiction to alcohol,
25    narcotics, stimulants or any other chemical agent or drug
26    which results in the inability to practice with reasonable

 

 

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1    judgment, skill, or safety by any of the officers or
2    owners of 10% or more interest of a collection agency.
3        (8) Discipline by another state, the District of
4    Columbia, a territory of the United States, or a foreign
5    nation, if at least one of the grounds for the discipline
6    is the same or substantially equivalent to those set forth
7    in this Act.
8        (9) A finding by the Department that the licensee,
9    after having his or her license placed on probationary
10    status, has violated the terms of probation.
11        (10) Willfully making or filing false records or
12    reports in his or her practice, including, but not limited
13    to, false records filed with State agencies or
14    departments.
15        (11) Practicing or attempting to practice under a
16    false or, except as provided by law, an assumed name.
17        (12) An adjudicated A finding by the Federal Trade
18    Commission or other federal or State agency that a
19    licensee violated the federal Fair Debt Collection
20    Practices Act or its rules.
21        (13) Failure to file a return, or to pay the tax,
22    penalty or interest shown in a filed return, or to pay any
23    final assessment of tax, penalty or interest, as required
24    by any tax Act administered by the Illinois Department of
25    Revenue until such time as the requirements of any such
26    tax Act are satisfied.

 

 

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1        (14) Using or threatening to use force or violence to
2    cause physical harm to a debtor, his or her family or his
3    or her property.
4        (15) Threatening to instigate an arrest or criminal
5    prosecution where no basis for a criminal complaint
6    lawfully exists.
7        (16) Threatening the seizure, attachment or sale of a
8    debtor's property where such action can only be taken
9    pursuant to court order without disclosing that prior
10    court proceedings are required.
11        (17) Disclosing or threatening to disclose information
12    adversely affecting a debtor's reputation for credit
13    worthiness with knowledge the information is false.
14        (18) Threatening Initiating or threatening to initiate
15    communication with a debtor's employer unless there has
16    been a default of the payment of the obligation for at
17    least 30 days and the licensee has given at least 5 days
18    prior written notice, to the last known address of the
19    debtor, of the intention to communicate with the employer
20    has been given to the employee to the last known address of
21    the debtor , except as expressly permitted by law or court
22    order.
23         (19) Communicating with the debtor or any member of
24    the debtor's family at such a time of day or night and with
25    such frequency as to constitute harassment of the debtor
26    or any member of the debtor's family. For purposes of this

 

 

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1    Section the following conduct shall constitute harassment:
2            (A) Communicating with the debtor or any member of
3        his or her family in connection with the collection of
4        any debt without the prior consent of the debtor given
5        directly to the debt collector, or the express
6        permission of a court of competent jurisdiction, at
7        any unusual time or place or a time or place known or
8        which should be known to be inconvenient to the
9        debtor. In the absence of knowledge of circumstances
10        to the contrary, a debt collector shall assume that
11        the convenient time for communicating with a consumer
12        is after 8 o'clock a.m. and before 9 o'clock p.m. in
13        the debtor's local time at the debtor's location.
14            (B) The threat of publication or publication of a
15        list of consumers who allegedly refuse to pay debts,
16        except to a consumer reporting agency.
17            (C) The threat of advertisement or advertisement
18        for sale of any debt to coerce payment of the debt.
19            (D) Causing a telephone to ring or engaging any
20        person in telephone conversation repeatedly or
21        continuously with intent to annoy, abuse, or harass
22        any person at the called number.
23        (20) Using profane, obscene or abusive language in
24    communicating with a debtor, his or her family or others.
25        (21) Disclosing or threatening to disclose information
26    relating to a debtor's debt to any other person except

 

 

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1    where such other person has a legitimate business need for
2    the information or except where such disclosure is
3    permitted by law.
4        (22) Disclosing or threatening to disclose information
5    concerning the existence of a debt which the collection
6    agency knows to be disputed by the debtor without
7    disclosing the fact that the debtor disputes the debt.
8        (23) Engaging in any conduct that is intended to cause
9    and did cause mental or physical illness to the debtor or
10    his or her family.
11        (24) Attempting or threatening to enforce a right or
12    remedy with knowledge or reason to know that the right or
13    remedy does not exist.
14        (25) Failing to disclose to the debtor or his or her
15    family the legally authorized corporate, partnership or
16    proprietary name, or other trade or business name, under
17    which the collection agency is engaging in debt
18    collections and which he or she is legally authorized to
19    use.
20        (26) Using any form of communication which simulates
21    legal or judicial process or which gives the appearance of
22    being authorized, issued, or approved by a governmental
23    agency or official or by an attorney at law when it is not.
24        (27) Using any badge, uniform, or other indicia of any
25    governmental agency or official except as authorized by
26    law.

 

 

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1        (28) Conducting business under any name or in any
2    manner which suggests or implies that the collection
3    agency is a branch of or is affiliated in any way with a
4    governmental agency or court if such collection agency is
5    not.
6        (29) Failing to disclose, at the time of making any
7    demand for payment, the name of the person to whom the debt
8    is owed and at the request of the debtor, the address where
9    payment is to be made and the address of the person to whom
10    the debt is owed.
11        (30) Misrepresenting the amount of the debt alleged to
12    be owed.
13        (31) Representing that an existing debt may be
14    increased by the addition of attorney's fees,
15    investigation fees or any other fees or charges when such
16    fees or charges may not legally be added to the existing
17    debt.
18        (32) Representing that the collection agency is an
19    attorney at law or an agent for an attorney if he or she is
20    not.
21        (33) Collecting or attempting to collect any interest
22    or other charge or fee in excess of the actual debt unless
23    such interest or other charge or fee is expressly
24    authorized by the agreement creating the debt unless
25    expressly authorized by law or unless in a commercial
26    transaction such interest or other charge or fee is

 

 

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1    expressly authorized in a subsequent agreement. If a
2    contingency or hourly fee arrangement (i) is established
3    under an agreement between a collection agency and a
4    creditor to collect a debt and (ii) is paid by a debtor
5    pursuant to a contract between the debtor and the
6    creditor, then that fee arrangement does not violate this
7    Section unless the fee is unreasonable. The Department
8    shall determine what constitutes a reasonable collection
9    fee.
10        (34) Communicating or threatening to communicate with
11    a debtor when the collection agency is informed in writing
12    by an attorney that the attorney represents the debtor
13    concerning the debt. If the attorney fails to respond
14    within a reasonable period of time, the collector may
15    communicate with the debtor. The collector may communicate
16    with the debtor when the attorney gives his or her
17    consent.
18        (35) Engaging in dishonorable, unethical, or
19    unprofessional conduct of a character likely to deceive,
20    defraud, or harm the public.
21    (b) No collection agency while collecting or attempting to
22collect a debt shall engage in any of the Acts specified in
23this Section, each of which shall be unlawful practice.
24(Source: P.A. 99-227, eff. 8-3-15; 100-872, eff. 8-14-18.)
 
25    (225 ILCS 425/9.2)

 

 

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1    (Section scheduled to be repealed on January 1, 2026)
2    Sec. 9.2. Communication in connection with debt
3collection.
4    (a) Without the prior consent of the debtor given directly
5to the collection agency or the express permission of a court
6of competent jurisdiction, a collection agency may not
7communicate with a debtor in connection with the collection of
8any debt in any of the following circumstances:
9        (1) At any unusual time, place, or manner that is
10    known or should be known to be inconvenient to the debtor.
11    In the absence of knowledge of circumstances to the
12    contrary, a collection agency shall assume that the
13    convenient time for communicating with a debtor is after
14    8:00 a.m. and before 9:00 p.m. in the debtor's local time
15    at the debtor's location.
16        (2) If the collection agency knows the debtor is
17    represented by an attorney with respect to such debt and
18    has knowledge of or can readily ascertain, the attorney's
19    name and address, unless the attorney fails to respond
20    within a reasonable period of time to a communication from
21    the collection agency or unless the attorney consents to
22    direct communication with the debtor.
23        (3) At the debtor's place of employment, if the
24    collection agency knows or has reason to know that the
25    debtor's employer prohibits the debtor from receiving such
26    communication.

 

 

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1    (b) Except as provided in Section 9.1 of this Act, a
2collection agency may not communicate, in connection with the
3collection of any debt, with any person other than the debtor,
4the debtor's attorney, a consumer reporting agency if
5otherwise permitted by law, the creditor, the attorney of the
6creditor, or the attorney of the collection agency without the
7prior consent of the debtor given directly to the collection
8agency, the express permission of a court of competent
9jurisdiction, or as reasonably necessary to effectuate a
10post-judgment judicial remedy, a collection agency may not
11communicate, in connection with the collection of any debt,
12with any person other than the debtor, the debtor's attorney,
13a consumer reporting agency if otherwise permitted by law, the
14creditor, the attorney of the creditor, or the attorney of the
15collection agency.
16    (c) If a debtor notifies a collection agency in writing
17that the debtor refuses to pay a debt or that the debtor wishes
18the collection agency to cease further communication with the
19debtor, the collection agency may not communicate further with
20the debtor with respect to such debt, except to perform any of
21the following tasks:
22        (1) Advise the debtor that the collection agency's
23    further efforts are being terminated.
24        (2) Notify the debtor that the collection agency or
25    creditor may invoke specified remedies that are ordinarily
26    invoked by such collection agency or creditor.

 

 

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1        (3) Notify the debtor that the collection agency or
2    creditor intends to invoke a specified remedy.
3    If such notice from the debtor is made by mail,
4notification shall be complete upon receipt.
5    (d) For the purposes of this Section, "debtor" includes
6the debtor's spouse, parent (if the debtor is a minor),
7guardian, executor, or administrator.
8    (e) This Section applies to a collection agency or debt
9buyer only when engaged in the collection of consumer debt.
10(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
 
11    (225 ILCS 425/11)  (from Ch. 111, par. 2036)
12    (Section scheduled to be repealed on January 1, 2026)
13    Sec. 11. Informal conferences. Informal conferences, after
14a formal hearing is requested, shall be conducted with at
15least one member of the Board in attendance. Notwithstanding
16any provisions concerning the conduct of hearings and
17recommendations for disciplinary actions, the Department has
18the authority to negotiate agreements with licensees and
19applicants resulting in disciplinary or non-disciplinary
20consent orders. The consent orders may provide for any of the
21forms of discipline provided in this Act. The consent orders
22shall provide that they were not entered into as a result of
23any coercion by the Department.
24(Source: P.A. 99-227, eff. 8-3-15.)
 

 

 

10200HB5220ham001- 24 -LRB102 25772 BMS 36920 a

1    (225 ILCS 425/13.2)  (from Ch. 111, par. 2038.2)
2    (Section scheduled to be repealed on January 1, 2026)
3    Sec. 13.2. Powers and duties of Department. The Department
4shall exercise the powers and duties prescribed by the
5Financial Institutions Code Civil Administrative Code of
6Illinois for the administration of licensing Acts and shall
7exercise such other powers and duties necessary for
8effectuating the purposes of this Act.
9    Subject to the provisions of this Act, the Department may:
10        (1) Conduct hearings on proceedings to refuse to issue
11    or renew or to revoke licenses or suspend, place on
12    probation, or reprimand persons licensed under this Act.
13        (2) To adopt rules consistent with the purposes of
14    this Act, including, but not limited to: (i) rules in
15    connection with the activities of collection agencies as
16    may be necessary and appropriate for the protection of
17    consumers in this State; (ii) rules as may be necessary
18    and appropriate to define and enforce against improper or
19    fraudulent business practices in connection with the
20    activities of collection agencies; (iii) rules that define
21    the terms used in this Act and as may be necessary and
22    appropriate to interpret and implement the provisions of
23    this Act; and (iv) rules as may be necessary for the
24    enforcement of this Act Formulate rules required for the
25    administration of this Act.
26        (3) Obtain written recommendations from the Board

 

 

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1    regarding standards of professional conduct, formal
2    disciplinary actions and the formulation of rules
3    affecting these matters. Notice of proposed rulemaking
4    shall be transmitted to the Board and the Department shall
5    review the response of the Board and any recommendations
6    made in the response. The Department may solicit the
7    advice of the Board on any matter relating to the
8    administration and enforcement of this Act.
9        (4) (Blank).
10(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
11    (225 ILCS 425/16)
12    (Section scheduled to be repealed on January 1, 2026)
13    Sec. 16. Investigation; notice and hearing. The Department
14may investigate the actions or qualifications of any applicant
15or of any person rendering or offering to render collection
16agency services or any person holding or claiming to hold a
17license as a collection agency. The Department shall, before
18refusing to issue or renew, revoking, suspending, placing on
19probation, reprimanding, or taking any other disciplinary
20action under Section 9 of this Act, serve notice on any person,
21including a statement of the reasons for the Department's
22action, and notify the person that they may file a Petition for
23a Hearing with the Department within 30 days of service. All
24hearings shall be conducted in accordance with 38 Ill. Adm.
25Code 100 at least 30 days before the date set for the hearing,

 

 

10200HB5220ham001- 26 -LRB102 25772 BMS 36920 a

1(i) notify the accused in writing of the charges made and the
2time and place for the hearing on the charges, (ii) direct him
3or her to file his or her written answer to the charges with
4the Department under oath within 20 days after the service on
5him or her of the notice, and (iii) inform the accused that if
6he or she fails to file an answer default will be taken against
7him or her or his or her license may be suspended, revoked, or
8placed on probation, or other disciplinary action may be taken
9with regard to the license, including limiting the scope,
10nature, or extent of his or her practice, as the Department may
11consider proper. At the time and place fixed in the notice, the
12Department shall proceed to hear the charges. The parties or
13their counsel shall be accorded ample opportunity to present
14any pertinent statements, testimony, evidence, and arguments.
15The Department may continue the hearing from time to time.
16Nothing in this Section shall be construed to require that a
17hearing be commenced and completed in one day. At the
18discretion of the Secretary, after having first received the
19recommendation of the Board, the accused person's license may
20be suspended or revoked, if the evidence constitutes
21sufficient grounds for such action under this Act. If the
22person fails to file an answer after receiving notice, his or
23her license may, in the discretion of the Department, be
24suspended, revoked, or placed on probation, or the Department
25may take whatever disciplinary action it considers proper,
26including limiting the scope, nature, or extent of the

 

 

10200HB5220ham001- 27 -LRB102 25772 BMS 36920 a

1person's practice or the imposition of a fine, without a
2hearing, if the act or acts charged constitute sufficient
3grounds for such action under this Act. Written or electronic
4notice may be served by personal delivery, mail, or email to
5the applicant or licensee at the address of record or email
6address of record. Service by mail is completed when the
7notice is deposited in the U.S. Mail. Service to the email
8address of record is completed when the email is sent.
9(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
10    (225 ILCS 425/26)
11    (Section scheduled to be repealed on January 1, 2026)
12    Sec. 26. Administrative review; venue.
13    (a) All final administrative decisions of the Department
14are subject to judicial review under the Administrative Review
15Law and its rules. The term "administrative decision" is
16defined as in Section 3-101 of the Code of Civil Procedure.
17    (b) Proceedings for judicial review shall be commenced in
18the circuit court of the county in which the party applying for
19review resides, but if the party is not a resident of Illinois,
20the venue shall be in Cook County or Sangamon County.
21(Source: P.A. 99-227, eff. 8-3-15.)
 
22    (225 ILCS 425/30)
23    (Section scheduled to be repealed on January 1, 2026)
24    Sec. 30. Expiration, renewal, and restoration of license.

 

 

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1The expiration date and renewal period for each license shall
2be set by rule. A collection agency whose license has expired
3may restore its license at any time within one year 5 years
4after the expiration thereof, by making a renewal application
5and by paying the required fee.
6    However, any licensed collection agency whose license has
7expired while the individual licensed person or while a
8shareholder, partner, or member owning 50% or more of the
9interest in the collection agency whose license has expired
10while he or she was (i) on active duty with the Armed Forces of
11the United States or called into service or training by the
12State militia; or (ii) in training or education under the
13supervision of the United States preliminary to induction into
14the military service, may have his or her license renewed or
15restored without paying any lapsed renewal fee or restoration
16fee if, within 2 years after termination of the service,
17training, or education, he or she furnishes the Department
18with satisfactory evidence of service, training, or education
19and it has been terminated under honorable conditions.
20    Any collection agency whose license has expired for more
21than one year 5 years may have it restored by applying to the
22Department, paying the required fee, and filing acceptable
23proof of fitness to have the license restored as set by rule.
24(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
25    (225 ILCS 425/25 rep.)

 

 

10200HB5220ham001- 29 -LRB102 25772 BMS 36920 a

1    Section 15. The Collection Agency Act is amended by
2repealing Section 25.
 
3    Section 95. Illinois Compiled Statutes reassignment. The
4Legislative Reference Bureau shall reassign the following Act
5to the specified location in the Illinois Compiled Statutes
6and file appropriate documents with the Index Division of the
7Office of the Secretary of State in accordance with subsection
8(c) of Section 5.04 of the Legislative Reference Bureau Act:
9    Collection Agency Act, reassigned from 225 ILCS 425/ to
10205 ILCS 740/.
 
11    Section 99. Effective date. This Act takes effect January
121, 2023.".