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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 1. Short title. This Act may be cited as the Debt | |||||||||||||||||||||||||||||
5 | Resolution Services Act. | |||||||||||||||||||||||||||||
6 | Section 2. Definitions. As used in this Act: | |||||||||||||||||||||||||||||
7 | "Agreement" means a contract between a licensee and a | |||||||||||||||||||||||||||||
8 | consumer that meets the requirements of Section 9. | |||||||||||||||||||||||||||||
9 | "Bank" means a financial institution, including a | |||||||||||||||||||||||||||||
10 | commercial bank, savings bank, savings and loan association, | |||||||||||||||||||||||||||||
11 | credit union, mortgage bank, or trust company, engaged in the | |||||||||||||||||||||||||||||
12 | business of banking, that is chartered under federal or State | |||||||||||||||||||||||||||||
13 | law and regulated by a federal or State banking regulatory | |||||||||||||||||||||||||||||
14 | agency. | |||||||||||||||||||||||||||||
15 | "Business address" means the designation of the physical | |||||||||||||||||||||||||||||
16 | location of a business, including the name and number of a | |||||||||||||||||||||||||||||
17 | street. | |||||||||||||||||||||||||||||
18 | "Business day" means a calendar day, except for Saturdays, | |||||||||||||||||||||||||||||
19 | Sundays, and legal holidays. | |||||||||||||||||||||||||||||
20 | "Consumer" means an individual who has executed an | |||||||||||||||||||||||||||||
21 | agreement with a licensee. | |||||||||||||||||||||||||||||
22 | "Creditor" means a person that has extended credit to a | |||||||||||||||||||||||||||||
23 | consumer, including any agent or assignee of the person. |
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1 | "Debt resolution services" means any program or service | ||||||
2 | represented, directly or by implication, to renegotiate, | ||||||
3 | settle, or in any way alter the terms of payment or other terms | ||||||
4 | of the debt between a consumer and one or more unsecured | ||||||
5 | creditors, including, but not limited to, a reduction in the | ||||||
6 | balance, interest rate, or fees owed by a consumer to an | ||||||
7 | unsecured creditor. | ||||||
8 | "Dedicated account" means an account that meets the | ||||||
9 | criteria set forth in paragraphs (1), (2), (3), (4), and (5) of | ||||||
10 | subsection (a) of Section 9. | ||||||
11 | "Dedicated account service provider" means an entity that | ||||||
12 | facilitates transactions authorized by the consumer under the | ||||||
13 | terms of 16 CFR 310.4(a)(5)(ii). | ||||||
14 | "Department" means the Department of Financial and | ||||||
15 | Professional Regulation. | ||||||
16 | "Licensee" means a provider of debt resolution services | ||||||
17 | that possesses a valid license issued pursuant to this Act. | ||||||
18 | "Person" means any individual, group, unincorporated | ||||||
19 | association, limited or general partnership, corporation, or | ||||||
20 | other business entity. | ||||||
21 | "State" means any state of the United States, the District | ||||||
22 | of Columbia, Puerto Rico, the Northern Mariana Islands, and | ||||||
23 | any other territory, possession, or protectorate of the United | ||||||
24 | States. | ||||||
25 | Section 3. License required. |
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1 | (a) No person shall provide or offer to provide debt | ||||||
2 | resolution services in this State unless the person first | ||||||
3 | obtains a debt resolution services license from the | ||||||
4 | Department. | ||||||
5 | (b) A licensee shall obtain a license for the licensee's | ||||||
6 | primary business address. | ||||||
7 | (c) A license may not be transferred or assigned. | ||||||
8 | (d) A licensee shall file a surety bond in favor of this | ||||||
9 | State in an amount and form that the Department determines | ||||||
10 | before the licensee may provide or offer to provide debt | ||||||
11 | resolution services in this State, but in no event shall the | ||||||
12 | amount of the bond be greater than $50,000. | ||||||
13 | (e) A licensee shall not provide debt resolution services | ||||||
14 | in this State under a business name other than the business | ||||||
15 | name that is listed on the licensee's license; however, a | ||||||
16 | licensee may do business under a fictitious business name, if | ||||||
17 | the licensee registers the fictitious business name with the | ||||||
18 | Secretary of State and provides evidence of the registration | ||||||
19 | to the Department. | ||||||
20 | (f) The Department may adopt rules for the licensing of | ||||||
21 | licensees and may require a reasonable license and | ||||||
22 | investigation fee in connection with the issuance or renewal | ||||||
23 | of any license required by this Act. | ||||||
24 | Section 4. Exempt persons. | ||||||
25 | (a) The following persons are exempt from this Act: |
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1 | (1) Persons organized under Section 501(c) or 501(q) | ||||||
2 | of the Internal Revenue Code. | ||||||
3 | (2) Judicial officers, including individuals acting | ||||||
4 | under the direction of a court. | ||||||
5 | (3) Banks and their agents and their employees. | ||||||
6 | (4) Attorneys licensed to practice law in this State | ||||||
7 | who provide debt resolution services within an | ||||||
8 | attorney-client relationship. | ||||||
9 | (5) Creditors or their employees who negotiate debt | ||||||
10 | resolutions with consumers or with licensees acting on | ||||||
11 | behalf of consumers. | ||||||
12 | (6) Assignees for the benefit of creditors. | ||||||
13 | (7) Officers or employees of the United States or any | ||||||
14 | state who perform debt resolution services on behalf of | ||||||
15 | the federal government, a state, a municipality, or a | ||||||
16 | state agency, and who receive compensation solely from the | ||||||
17 | governmental entity. | ||||||
18 | (8) Certified public accountants licensed in this | ||||||
19 | State who provide debt resolution services within an | ||||||
20 | accountant-client relationship. | ||||||
21 | (9) Dedicated account service providers that do not | ||||||
22 | otherwise provide debt resolution services for consumers. | ||||||
23 | (10) Persons, to the extent that the person provides | ||||||
24 | or agrees to provide debt resolution services to an | ||||||
25 | individual who the person has no reason to know resides in | ||||||
26 | this State at the time the person agrees to provide the |
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1 | services. | ||||||
2 | (b) The following persons are exempt from the licensing | ||||||
3 | requirement established in Section 3: | ||||||
4 | (1) A licensee's employees. | ||||||
5 | (2) Persons who market on behalf of licensees and do | ||||||
6 | not otherwise provide debt resolution services. | ||||||
7 | Section 5. Application for licensure. | ||||||
8 | (a) The application for a license and the application for | ||||||
9 | a license renewal shall be in a form prescribed by the | ||||||
10 | Department, signed under oath, and shall contain such | ||||||
11 | information as the Department reasonably requires. A license | ||||||
12 | to provide debt resolution services is for a period of 2 years | ||||||
13 | from the date of issuance. | ||||||
14 | (b) The following items are required in any application | ||||||
15 | for a license under this Act: | ||||||
16 | (1) Proof of compliance with all relevant requirements | ||||||
17 | for an entity to engage in business in this State. | ||||||
18 | (2) The applicant's name, principal business address, | ||||||
19 | and telephone number; all business addresses in this | ||||||
20 | State; the principal email address for the business; and | ||||||
21 | the principal website address to be used for the business. | ||||||
22 | (3) The name and business address of each executive | ||||||
23 | officer and member of the board of directors, or | ||||||
24 | equivalent leadership structure, of the applicant. | ||||||
25 | (4) A statement describing, to the extent it is known |
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1 | or should be known by the applicant, any material civil or | ||||||
2 | criminal judgment in any jurisdiction, or any enforcement | ||||||
3 | action against the applicant, or any of its executive | ||||||
4 | officers or members of its board of directors, or | ||||||
5 | equivalent leadership structure, by any local, state, or | ||||||
6 | federal governmental agency, in each case relating to debt | ||||||
7 | adjusting, debt pooling, prorating, activity as a credit | ||||||
8 | services organization, unfair and deceptive trade | ||||||
9 | practices, false advertising, consumer deception law or | ||||||
10 | regulation, or any other similar law or regulation. | ||||||
11 | (5) A copy of each form of agreement and the schedule | ||||||
12 | of fees and charges that the applicant will use with | ||||||
13 | consumers who reside in this State. | ||||||
14 | (6) Income statements and balance sheets from the | ||||||
15 | applicant for the 2 fiscal years preceding the date of the | ||||||
16 | application. Notwithstanding any other requirement in this | ||||||
17 | Act or elsewhere, material submitted under this paragraph | ||||||
18 | shall be held confidential by the Department. | ||||||
19 | (c) In connection with any application for license | ||||||
20 | renewal, the licensee shall provide access to the licensee's | ||||||
21 | books and records with respect to consumers in this State that | ||||||
22 | are being or have been serviced by the licensee. | ||||||
23 | (d) The Department may participate in a multistate | ||||||
24 | licensing system for the sharing of regulatory information and | ||||||
25 | for the licensing and application, by electronic or other | ||||||
26 | means, of persons engaged in the business of debt resolution |
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1 | services. The Department may establish requirements for | ||||||
2 | participation by an applicant in a multistate licensing | ||||||
3 | system, which may vary from the provisions in this Act. The | ||||||
4 | applicant shall pay directly to a multistate licensing system | ||||||
5 | any additional fee relating to participation in a multistate | ||||||
6 | licensing system. | ||||||
7 | (e)(1) The Department may require each applicant applying | ||||||
8 | for initial licensure under this Act to submit a full set of | ||||||
9 | fingerprints of each of the applicant's executive officers in | ||||||
10 | order for the Department to obtain and receive national | ||||||
11 | criminal history records from the Federal Bureau of | ||||||
12 | Investigation criminal justice information services division. | ||||||
13 | Unless the Department, as authorized by paragraph (2), | ||||||
14 | contracts, or makes use of any existing contract, the | ||||||
15 | Department may submit each executive officer's fingerprints | ||||||
16 | and the fee required to perform the criminal history record | ||||||
17 | checks to the Illinois State Police and the Federal Bureau of | ||||||
18 | Investigation for state and national criminal history record | ||||||
19 | checks. The Department may require any fingerprints submitted | ||||||
20 | pursuant to this subsection be provided in an electronic | ||||||
21 | format. | ||||||
22 | (2) The Department may contract, or make use of any | ||||||
23 | existing contract with this State, for the collection and | ||||||
24 | transmission of fingerprints authorized under this Section. If | ||||||
25 | the Department contracts, or makes use of an existing | ||||||
26 | contract, the Department may order the applicant to pay the |
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1 | fee for collecting and transmitting fingerprints to the | ||||||
2 | contractor. The Department may agree to a reasonable | ||||||
3 | fingerprinting fee to be charged by the contractor to the | ||||||
4 | applicant. | ||||||
5 | (3) The Department shall treat and maintain any executive | ||||||
6 | officer's fingerprints and any criminal history record | ||||||
7 | information obtained under this Section as confidential and | ||||||
8 | limit the use of records solely to the purposes authorized in | ||||||
9 | this Section. The fingerprints and any criminal history record | ||||||
10 | information are not subject to subpoena, other than a subpoena | ||||||
11 | issued in a criminal action or investigation, and are | ||||||
12 | confidential by law and privileged, and are not subject to | ||||||
13 | discovery or admissible in evidence in any civil action. | ||||||
14 | (4) The Department shall refuse to issue an initial | ||||||
15 | license to an applicant who does not provide fingerprints in | ||||||
16 | compliance with this subsection. | ||||||
17 | (f) An applicant or licensee shall notify the Department | ||||||
18 | within 30 days after a material change in any of the | ||||||
19 | information submitted in connection with any application or | ||||||
20 | renewal application for a license under this Act, including, | ||||||
21 | but not limited to: | ||||||
22 | (1) a change in the licensee's principal place of | ||||||
23 | business; | ||||||
24 | (2) a merger or dissolution related to the license; or | ||||||
25 | (3) a licensee pleading guilty to or being convicted | ||||||
26 | of any felony in a court of competent jurisdiction. |
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1 | Section 6. Licensure issuance or denial. | ||||||
2 | (a) The Department may deny a license if: | ||||||
3 | (1) the applicant does not satisfy the criteria set | ||||||
4 | forth in Section 5; | ||||||
5 | (2) the application contains information that is | ||||||
6 | materially erroneous or materially incomplete; | ||||||
7 | (3) the applicant fails to provide in a timely manner | ||||||
8 | such information as the Department reasonably requests; | ||||||
9 | (4) an executive officer or member of the board of | ||||||
10 | directors, or equivalent leadership structure, of the | ||||||
11 | applicant has been convicted of or pled nolo contendere | ||||||
12 | to: | ||||||
13 | (A) a felony; or | ||||||
14 | (B) an act involving fraud, deceit, or dishonesty; | ||||||
15 | or | ||||||
16 | (5) an executive officer or member of the board of | ||||||
17 | directors, or equivalent leadership structure, of the | ||||||
18 | applicant has had a professional license revoked, | ||||||
19 | suspended, or subjected to enforcement action in any | ||||||
20 | state, and the license has not been reinstated. | ||||||
21 | (b) Not later than the 20th day after a license | ||||||
22 | application denial, the Department shall provide to the | ||||||
23 | applicant a written decision and findings containing the | ||||||
24 | reasons supporting a license denial. | ||||||
25 | (c) A license application denial is a final administrative |
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1 | decision under the Administrative Review Law. | ||||||
2 | Section 7. Licensure suspension, revocation, or denial of | ||||||
3 | renewal. | ||||||
4 | (a) The Department may suspend, revoke, or deny renewal of | ||||||
5 | a license if: | ||||||
6 | (1) the Department asserts that the licensee has | ||||||
7 | materially violated this Act or any rule adopted under | ||||||
8 | this Act or any other law applicable to the conduct of the | ||||||
9 | licensee's business and the licensee has failed to cure | ||||||
10 | the violation after notice and a reasonable opportunity to | ||||||
11 | cure the violation; | ||||||
12 | (2) a fact or condition exists that, if it had existed | ||||||
13 | when the licensee applied for a license, would have | ||||||
14 | warranted the Department refusing to issue the license; | ||||||
15 | (3) the licensee does not satisfy the criteria for | ||||||
16 | licensure set out in Section 5; | ||||||
17 | (4) the licensee has refused to permit the Department | ||||||
18 | to examine the licensee's books and records, failed to | ||||||
19 | comply with Section 12, or made a material | ||||||
20 | misrepresentation or omission in complying with Section | ||||||
21 | 12; or | ||||||
22 | (5) the licensee has not responded within a reasonable | ||||||
23 | time and in an appropriate manner to the Department's | ||||||
24 | communications. | ||||||
25 | (b) If the Department suspends, revokes, or denies renewal |
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1 | of a license, the Department may require the licensee to make | ||||||
2 | available the licensee's books and records with respect to any | ||||||
3 | consumers in this State that are being or have been serviced by | ||||||
4 | the licensee. | ||||||
5 | (c) Except as provided in Section 8, a licensee shall | ||||||
6 | receive notice and a hearing before the Department revokes or | ||||||
7 | suspends a license. | ||||||
8 | (d) A licensee may deliver a written notice to the | ||||||
9 | Department to surrender the licensee's license. However, if a | ||||||
10 | licensee surrenders the licensee's license, the licensee's | ||||||
11 | civil or criminal liability for acts committed before the | ||||||
12 | surrender is not affected. | ||||||
13 | (e) Upon submission of a renewal application for a license | ||||||
14 | and until a renewal application is approved or denied, the | ||||||
15 | licensee may continue to provide or offer to provide debt | ||||||
16 | resolution services, but a suspension or denial of a license | ||||||
17 | terminates any right to provide or offer to provide debt | ||||||
18 | resolution services in this State unless continuation is | ||||||
19 | approved by the Department. | ||||||
20 | Section 8. Powers of the Department. | ||||||
21 | (a) The Illinois Administrative Procedures Act and the | ||||||
22 | Administrative Review Law govern all matters and procedures | ||||||
23 | respecting the hearing and judicial review of any violation or | ||||||
24 | contested case arising under this Act. | ||||||
25 | (b) If the Department finds that a delay in issuing an |
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1 | order under subsection (a) will irreparably harm the public | ||||||
2 | interest, the Department may summarily suspend the license | ||||||
3 | immediately. | ||||||
4 | (c) Any order issued under this Section is a final | ||||||
5 | administrative decision under the Administrative Review Law. | ||||||
6 | (d) The Department may investigate the books, accounts, | ||||||
7 | records, and files of a licensee or any other person that the | ||||||
8 | Department has reason to believe is providing or offering to | ||||||
9 | provide debt resolution services in this State. | ||||||
10 | Section 9. Prerequisites and permitted practices for | ||||||
11 | providing debt resolution services. | ||||||
12 | (a) A licensee may request or require a consumer, as a | ||||||
13 | condition to the provision of debt resolution services, to | ||||||
14 | establish and place funds into a dedicated account | ||||||
15 | administered by a dedicated account service provider, if: | ||||||
16 | (1) the funds are held in an FDIC-insured bank; | ||||||
17 | (2) the consumer owns the funds held in the account, | ||||||
18 | including all accrued interest on the account, if any; | ||||||
19 | (3) the dedicated account service provider is not | ||||||
20 | owned or controlled by, or affiliated with, the debt | ||||||
21 | resolution services provider. For purposes of this | ||||||
22 | paragraph, (i) "affiliated with" means a dedicated account | ||||||
23 | service provider that controls, is controlled by, or is | ||||||
24 | under common control with a licensee, and (ii) "control" | ||||||
25 | means the direct or indirect possession of the power to |
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1 | direct or cause the direction of the management of a | ||||||
2 | licensee, whether by contract or through ownership of more | ||||||
3 | than 20% of the voting securities of the licensee; | ||||||
4 | (4) the dedicated account service provider does not | ||||||
5 | give or accept any money or other compensation in exchange | ||||||
6 | for referrals of business involving the debt resolution | ||||||
7 | services; | ||||||
8 | (5) the consumer may terminate the debt resolution | ||||||
9 | services at any time without penalty by giving notice as | ||||||
10 | required in subsection (a) of Section 10, and thereafter, | ||||||
11 | the licensee shall notify the dedicated account service | ||||||
12 | provider of the consumer's termination within 5 business | ||||||
13 | days of the consumer's notice; and | ||||||
14 | (6) the agreement discloses each of the criteria set | ||||||
15 | forth in the preceding paragraphs. | ||||||
16 | (b) A licensee shall, at the time an agreement is executed | ||||||
17 | by a consumer, or as shortly thereafter as practical, | ||||||
18 | distribute or otherwise make available to the consumer a copy | ||||||
19 | of the executed agreement. For purposes of this Act, | ||||||
20 | electronic distribution of an executed agreement is permitted | ||||||
21 | if the consumer agrees. | ||||||
22 | (c) The agreement must disclose: | ||||||
23 | (1) the services that the licensee will perform; | ||||||
24 | (2) the methodology that the licensee will use to | ||||||
25 | calculate fees to be charged for debt resolution services | ||||||
26 | and, if reasonably available at the time the agreement is |
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1 | executed, the fees that the licensee will charge; | ||||||
2 | (3) the amount of time estimated on a good-faith basis | ||||||
3 | to be necessary to achieve the resolution of all enrolled | ||||||
4 | debts, and to the extent that the service may include a | ||||||
5 | resolution offer to any of the consumer's creditors, the | ||||||
6 | time estimated on a good-faith basis when the debt | ||||||
7 | resolution services provider will make a bona fide | ||||||
8 | resolution offer to each of them; | ||||||
9 | (4) to the extent that the debt resolution services | ||||||
10 | may include a resolution offer to any of the consumer's | ||||||
11 | creditors, the amount of money or the percentage of each | ||||||
12 | outstanding debt that the consumer must accumulate before | ||||||
13 | the debt resolution services provider will make a bona | ||||||
14 | fide resolution offer to each of them; | ||||||
15 | (5) that debt resolution services may not be suitable | ||||||
16 | for all individuals; | ||||||
17 | (6) to the extent that any aspect of the debt | ||||||
18 | resolution services relies upon or results in the | ||||||
19 | consumer's failure to make timely payments to creditors, | ||||||
20 | that the failure to pay one's debts will likely adversely | ||||||
21 | affect the consumer's creditworthiness, may result in the | ||||||
22 | consumer being subject to collections efforts, including | ||||||
23 | lawsuits by creditors, and may increase the amount of | ||||||
24 | money the consumer owes due to the accrual of fees and | ||||||
25 | interest; | ||||||
26 | (7) that, unless the consumer is insolvent, if a |
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1 | creditor resolves a debt for less than its full amount, | ||||||
2 | the resolution may result in the creation of taxable | ||||||
3 | income to the consumer, even though the consumer does not | ||||||
4 | receive any money; | ||||||
5 | (8) that specific results cannot be predicted or | ||||||
6 | guaranteed and the licensee cannot require a creditor to | ||||||
7 | negotiate or resolve a debt; | ||||||
8 | (9) that debt resolution services programs require | ||||||
9 | that individuals meet regular savings goals in order to | ||||||
10 | enable resolutions; | ||||||
11 | (10) that the licensee does not provide tax, | ||||||
12 | accounting, or legal advice to individuals, unless the | ||||||
13 | licensee is licensed in this State to provide such advice; | ||||||
14 | (11) that the licensee is the consumer's advocate and | ||||||
15 | does not receive compensation of any sort from creditors | ||||||
16 | for providing debt resolution services to the consumer; | ||||||
17 | (12) that the licensee does not make monthly or other | ||||||
18 | payments to the consumer's creditors; | ||||||
19 | (13) the list of debts that the agreement covers; and | ||||||
20 | (14) that, if applicable, the consumer's rights are | ||||||
21 | subject to mandatory arbitration of any and all disputes | ||||||
22 | with the debt resolution services provider. | ||||||
23 | (d) A licensee shall maintain a toll-free | ||||||
24 | telecommunications system, staffed at a level that has | ||||||
25 | adequate capacity to accept requests from the reasonably | ||||||
26 | anticipated volume of consumers contacting the licensee during |
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1 | ordinary business hours. | ||||||
2 | (e) A licensee may extend credit to a consumer in the form | ||||||
3 | of a deferral of some or all of the licensee's fee for | ||||||
4 | resolving the consumer's debts, at no additional expense to | ||||||
5 | the consumer. A licensee may assist in arranging credit to the | ||||||
6 | consumer if such credit is extended to the consumer by or | ||||||
7 | through a person that is either separately licensed or | ||||||
8 | authorized to perform lending in this State or exempt from | ||||||
9 | such licensure. | ||||||
10 | Section 10. Consumer's right to terminate agreements. | ||||||
11 | (a) A consumer may terminate an agreement at any time | ||||||
12 | without penalty by notifying the licensee electronically, in | ||||||
13 | writing, or telephonically on a recorded line. | ||||||
14 | (b) Upon receipt of a consumer's notice of termination, a | ||||||
15 | licensee shall, as soon as possible but in all instances | ||||||
16 | within 2 business days, advise the consumer of the effect, if | ||||||
17 | any, a termination of the consumer's debt resolution services | ||||||
18 | program would have on previously negotiated installment | ||||||
19 | resolution agreements and pending resolution negotiations. Not | ||||||
20 | later than 5 business days following the delivery of such | ||||||
21 | advice, and absent further instruction from the consumer, a | ||||||
22 | licensee shall notify the dedicated account service provider | ||||||
23 | of the consumer's termination and request that the dedicated | ||||||
24 | account service provider communicate with the consumer | ||||||
25 | regarding disposition of all funds held in the dedicated |
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1 | account. | ||||||
2 | (c) Notwithstanding the consumer's right to terminate as | ||||||
3 | set forth in subsection (a), the licensee is entitled to | ||||||
4 | recover all fees earned prior to the receipt of any | ||||||
5 | termination notice, provided that the fee is requested or | ||||||
6 | received in compliance with Section 13. | ||||||
7 | Section 11. Licensee's right to terminate agreements. If a | ||||||
8 | consumer fails to honor the consumer's contractual obligations | ||||||
9 | on or before the 60th day after the consumer was required to | ||||||
10 | perform them, then the licensee may terminate its agreement | ||||||
11 | with the consumer electronically or in writing. If the | ||||||
12 | licensee terminates the agreement as permitted in this | ||||||
13 | Section, the consumer will not owe any further payment to the | ||||||
14 | licensee as of the date the licensee terminates the agreement, | ||||||
15 | other than for fees previously earned by the licensee. | ||||||
16 | Notwithstanding this Section, if a consumer refuses to pay any | ||||||
17 | fee to a licensee after the payment has been earned by the | ||||||
18 | licensee, then the licensee may, upon proper notice to the | ||||||
19 | consumer either electronically or in writing, terminate the | ||||||
20 | licensee's agreement with the consumer immediately. | ||||||
21 | Section 12. Annual reports. A licensee shall file with the | ||||||
22 | Department an annual report in writing, under oath, that | ||||||
23 | includes the following information for the calendar year | ||||||
24 | reporting period: total number of active consumers in this |
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1 | State, total number of enrolled consumers in this State, and | ||||||
2 | total fees collected in this State. If a licensee neglects to | ||||||
3 | file an annual report or fails to amend the same on or before | ||||||
4 | the 30th day after the Department provides notice to the | ||||||
5 | licensee, then the Department may assess civil penalties and | ||||||
6 | suspend, revoke, or refuse to renew any license under this | ||||||
7 | Act. | ||||||
8 | Section 13. Fees for debt resolution services. | ||||||
9 | (a) A licensee shall not impose, directly or indirectly, a | ||||||
10 | fee or other charge on a consumer or receive payment from or on | ||||||
11 | behalf of a consumer for performing debt resolution services | ||||||
12 | except as provided in this Section. | ||||||
13 | (b) A licensee may not request or receive payment of any | ||||||
14 | fee or consideration for any debt resolution services until | ||||||
15 | and unless: | ||||||
16 | (1) the licensee has renegotiated, resolved, reduced, | ||||||
17 | or otherwise altered the terms of at least one debt | ||||||
18 | pursuant to a resolution agreement or other such valid | ||||||
19 | contractual agreement executed by the consumer and the | ||||||
20 | creditor; | ||||||
21 | (2) the consumer has made at least one payment | ||||||
22 | pursuant to that resolution agreement or other valid | ||||||
23 | contractual agreement between the consumer and the | ||||||
24 | creditor; and | ||||||
25 | (3) to the extent that debts enrolled in a service are |
| |||||||
| |||||||
1 | renegotiated, resolved, reduced, or otherwise altered | ||||||
2 | individually, the fee or consideration either: (i) bears | ||||||
3 | the same proportional relationship to the total fee for | ||||||
4 | renegotiating, resolving, reducing, or altering the terms | ||||||
5 | of the entire debt balance as the individual debt amount | ||||||
6 | bears to the entire debt amount. The individual debt | ||||||
7 | amount and the entire debt amount are those owed at the | ||||||
8 | time the debt was enrolled in the service; or (ii) is a | ||||||
9 | percentage of the amount saved as a result of the | ||||||
10 | renegotiation, resolution, reduction, or alteration. The | ||||||
11 | percentage charged cannot change from one individual debt | ||||||
12 | to another. The amount saved is the difference between the | ||||||
13 | amount owed at the time the debt was enrolled in the | ||||||
14 | service and the amount actually paid to satisfy the debt. | ||||||
15 | (c) A licensee shall not impose charges or receive payment | ||||||
16 | for debt resolution services until the licensee and the | ||||||
17 | consumer have signed an agreement that complies with Section | ||||||
18 | 9. | ||||||
19 | (d) Any fee or other charge imposed by or on behalf of a | ||||||
20 | dedicated account service provider in connection with the | ||||||
21 | administration of a dedicated account shall not be considered | ||||||
22 | a fee or other charge imposed for performing debt resolution | ||||||
23 | services for purposes of this Act. | ||||||
24 | (e) Any fee or other charge imposed by or on behalf of a | ||||||
25 | third-party legal service provider shall not be considered a | ||||||
26 | fee or other charge imposed by a licensee for performing debt |
| |||||||
| |||||||
1 | resolution services for purposes of this Act. | ||||||
2 | Section 14. Prohibitions. | ||||||
3 | (a) A licensee, a person who markets debt resolution | ||||||
4 | services on behalf of a licensee, or a person described in | ||||||
5 | paragraph (2) of subsection (b) of Section 4 shall not: | ||||||
6 | (1) take or exercise a power of attorney that | ||||||
7 | authorizes the licensee to resolve a debt. For purposes of | ||||||
8 | this paragraph, "resolve" means entering into a binding | ||||||
9 | agreement to discharge in full a debt in exchange for a | ||||||
10 | payment of a sum certain of money; | ||||||
11 | (2) send to creditors cease and desist notices, or | ||||||
12 | require consumers to notify creditors of changes of | ||||||
13 | address or phone number, meant to divert communication | ||||||
14 | from the creditor to the debt resolution services provider | ||||||
15 | rather than the consumer; | ||||||
16 | (3) exercise or attempt to exercise any authority of | ||||||
17 | the consumer after a licensee has received notice under | ||||||
18 | Section 10 that the consumer has terminated the consumer's | ||||||
19 | agreement with the licensee; | ||||||
20 | (4) initiate, or request that a dedicated account | ||||||
21 | service provider initiate, a transfer from a consumer's | ||||||
22 | bank account unless the transfer is: | ||||||
23 | (A) a return of money to the consumer; | ||||||
24 | (B) before any termination of an agreement and | ||||||
25 | properly authorized by the agreement and this Act for |
| |||||||
| |||||||
1 | payment of a fee; or | ||||||
2 | (C) at the express direction of the consumer, to a | ||||||
3 | consumer's creditor to fund a negotiated resolution | ||||||
4 | with that creditor; | ||||||
5 | (5) receive consumer funds or control consumer funds, | ||||||
6 | other than to receive funds in payment of fees earned by | ||||||
7 | the debt resolution services provider; | ||||||
8 | (6) resolve a debt or lead a consumer to believe that a | ||||||
9 | payment to a creditor is in resolution of a debt to the | ||||||
10 | creditor unless, at the time of resolution, the creditor | ||||||
11 | confirms that the payment is in full resolution of the | ||||||
12 | debt or is part of a payment plan that, upon completion, | ||||||
13 | will be in full resolution of the debt; | ||||||
14 | (7) make any representation that: | ||||||
15 | (A) the licensee will furnish money to pay bills | ||||||
16 | or prevent attachments; or | ||||||
17 | (B) participation in a program will prevent | ||||||
18 | litigation, garnishment, attachment, repossession, | ||||||
19 | foreclosure, eviction, or loss of employment; | ||||||
20 | (8) misrepresent that the licensee is able to furnish | ||||||
21 | legal advice or perform legal services; | ||||||
22 | (9) misrepresent, directly or by implication, any | ||||||
23 | material aspect of any debt resolution services program, | ||||||
24 | including, but not limited to, the amount of money or the | ||||||
25 | percentage of the debt amount that a consumer may save by | ||||||
26 | using such service; the amount of time necessary to |
| |||||||
| |||||||
1 | achieve the represented results; the amount of money or | ||||||
2 | the percentage of each outstanding debt that the consumer | ||||||
3 | must accumulate before the provider of the debt resolution | ||||||
4 | services will initiate attempts with the consumer's | ||||||
5 | creditors or make a bona fide offer to negotiate, resolve, | ||||||
6 | or modify the terms of the consumer's debt; the effect of | ||||||
7 | the service on a consumer's creditworthiness; the effect | ||||||
8 | of the service on collection efforts of the consumer's | ||||||
9 | creditors; the percentage or number of consumers who | ||||||
10 | attain the represented results; and whether debt | ||||||
11 | resolution services are offered or provided by a nonprofit | ||||||
12 | entity; | ||||||
13 | (10) take a confession of judgment or power of | ||||||
14 | attorney to confess judgment against a consumer; | ||||||
15 | (11) purchase a debt or obligation of the consumer, or | ||||||
16 | obtain a mortgage or other security interest from any | ||||||
17 | person in connection with the services provided to the | ||||||
18 | consumer; | ||||||
19 | (12) receive from or on behalf of a consumer a | ||||||
20 | promissory note or other negotiable instrument other than | ||||||
21 | a check or a demand draft or a post-dated check or demand | ||||||
22 | draft; or | ||||||
23 | (13) except as permitted by federal law or by order of | ||||||
24 | a court of competent jurisdiction, disclose the identity | ||||||
25 | or identifying information of a consumer or the identity | ||||||
26 | of the consumer's creditors, except to the Department, |
| |||||||
| |||||||
1 | upon proper demand, or to the extent necessary or | ||||||
2 | appropriate to administer the program, including, but not | ||||||
3 | limited to, a dedicated account service provider or to a | ||||||
4 | creditor of the consumer. | ||||||
5 | (b) An agreement must not: | ||||||
6 | (1) provide for the application of the law of any | ||||||
7 | jurisdiction other than the United States and this State; | ||||||
8 | (2) except as otherwise permitted by the laws of this | ||||||
9 | State and the Federal Arbitration Act (9 U.S.C. 1 et | ||||||
10 | seq.), contain a provision that restricts an individual's | ||||||
11 | remedies under this Act or any other law of this State; or | ||||||
12 | (3) contain a provision that limits or releases the | ||||||
13 | liability of any person for not performing the agreement | ||||||
14 | or for violating this Act. | ||||||
15 | Section 15. Information requirements. | ||||||
16 | (a) A licensee shall distribute or arrange to be | ||||||
17 | distributed a statement of accounting to a consumer: | ||||||
18 | (1) while a debt resolution services agreement is in | ||||||
19 | effect: | ||||||
20 | (A) at least once per month; and | ||||||
21 | (B) on or before the 5th business day after a | ||||||
22 | consumer requests a statement of accounting from a | ||||||
23 | licensee. However, this Act does not require a | ||||||
24 | licensee to provide more than one statement of | ||||||
25 | accounting per month per consumer in response to the |
| |||||||
| |||||||
1 | consumer's request; and | ||||||
2 | (2) within 5 business days from the date on which a | ||||||
3 | consumer or a licensee terminates an agreement. | ||||||
4 | (b) A statement of accounting shall contain the following | ||||||
5 | information to the extent applicable: | ||||||
6 | (1) The amount of money that the consumer has | ||||||
7 | deposited into the consumer's Dedicated Account, and all | ||||||
8 | withdrawals therefrom, from initiation of the consumer's | ||||||
9 | debt resolution services program. | ||||||
10 | (2) The amounts, dates, and creditors associated with | ||||||
11 | each resolution obtained by the licensee on behalf of the | ||||||
12 | consumer. | ||||||
13 | (3) The fees that the licensee has charged to and | ||||||
14 | collected from the consumer in connection with each of the | ||||||
15 | consumer's resolutions. | ||||||
16 | (4) The amount of money that the consumer holds in the | ||||||
17 | consumer's Dedicated Account. | ||||||
18 | (5) With respect to each resolution obtained by the | ||||||
19 | licensee for the consumer: | ||||||
20 | (A) the total amount of money that the consumer | ||||||
21 | paid to the creditor in full discharge or satisfaction | ||||||
22 | of the consumer's debt; | ||||||
23 | (B) the amount of the debt at the time the licensee | ||||||
24 | and the consumer entered into the agreement; | ||||||
25 | (C) the amount of the debt at the time the creditor | ||||||
26 | agreed to resolve the debt; and |
| |||||||
| |||||||
1 | (D) the amount of compensation that the licensee | ||||||
2 | received or will receive to resolve the debt. | ||||||
3 | (c) Notwithstanding the requirements set forth in | ||||||
4 | paragraphs (1) and (2) of subsection (a), a licensee that | ||||||
5 | enables, or arranges to enable, 24 hours per day, 7 days per | ||||||
6 | week, electronic access by a consumer to all of the consumer's | ||||||
7 | deposit account transaction information, including all deposit | ||||||
8 | and withdrawal activity, and electronic access by a consumer | ||||||
9 | to account activity, including, but not limited to, resolution | ||||||
10 | information, account status, resolution dates, resolution | ||||||
11 | amounts, and fees paid, is deemed to have satisfied the | ||||||
12 | content requirements in subsection (b) and the distribution | ||||||
13 | requirements in subsection (a). | ||||||
14 | Section 16. Prohibition on false and misleading | ||||||
15 | advertising. | ||||||
16 | (a) A licensee shall not, directly or through a person who | ||||||
17 | markets debt resolution services on behalf of a licensee or a | ||||||
18 | person described in paragraph (2) of subsection (b) of Section | ||||||
19 | 4, advertise, announce, broadcast, display, distribute, print, | ||||||
20 | publish, televise, or permit any other person to advertise, | ||||||
21 | announce, broadcast, display, distribute, print, publish, or | ||||||
22 | televise on the licensee's behalf a statement or | ||||||
23 | representation related to debt resolution services that is | ||||||
24 | deceptive, false, or misleading. | ||||||
25 | (b) A licensee shall not directly or indirectly provide |
| |||||||
| |||||||
1 | anything of value in exchange for favorable treatment in | ||||||
2 | reviews or favorable placement on rankings. | ||||||
3 | (c) Neither a licensee nor any affiliate of a licensee | ||||||
4 | shall directly or indirectly own or operate a website or other | ||||||
5 | public-facing resource presenting rankings or consumer reviews | ||||||
6 | of the licensee. | ||||||
7 | (d) A licensee shall not make any statement or take any | ||||||
8 | action that is likely to mislead consumers regarding whether | ||||||
9 | reviews the licensee uses to advertise its business accurately | ||||||
10 | reflect all reviews consumers have submitted to the licensee. | ||||||
11 | (e) A licensee shall comply with 16 CFR Part 255 and with | ||||||
12 | CFPB Bulletin 2022-05: Unfair and Deceptive Acts or Practices | ||||||
13 | That Impede Consumer Reviews. | ||||||
14 | Section 17. Records. | ||||||
15 | (a) At the time of providing to a consumer any materials or | ||||||
16 | agreements required by this Act, a licensee shall inform the | ||||||
17 | consumer that upon electronic, telephonic, or written request, | ||||||
18 | the licensee shall send the consumer a copy of the materials | ||||||
19 | and shall comply with a request as provided in subsection (b). | ||||||
20 | (b) If a consumer submits a request to a licensee, before | ||||||
21 | the expiration of 90 days after a program is completed or | ||||||
22 | terminated, to send a copy of the materials required by this | ||||||
23 | Act, the licensee shall send them to the consumer at no charge | ||||||
24 | within 5 business days after the request, but the licensee is | ||||||
25 | not required to comply with a request more than once per |
| |||||||
| |||||||
1 | calendar month or if it reasonably believes the request is | ||||||
2 | made for purposes of harassment. If a request is made more than | ||||||
3 | 90 days and less than 2 years after a program is completed or | ||||||
4 | terminated, the licensee must send within a reasonable time a | ||||||
5 | copy of the materials requested. The licensee is not required | ||||||
6 | to comply with any request from a consumer made more than the | ||||||
7 | later of (i) 2 years after a program is completed or terminated | ||||||
8 | or (ii) the expiration of the statute of limitations governing | ||||||
9 | contracts in this State. | ||||||
10 | (c) A licensee that maintains a website shall disclose on | ||||||
11 | the home page or on a page that is clearly and conspicuously | ||||||
12 | connected to the home page by a link that clearly reveals its | ||||||
13 | contents: | ||||||
14 | (1) the licensee's name and all names under which the | ||||||
15 | licensee does business in this State; and | ||||||
16 | (2) the licensee's principal business address, | ||||||
17 | telephone number, and email address, if any. | ||||||
18 | (d) Any licensee shall keep, for a period of 2 years from | ||||||
19 | the date the record is produced, the following records: | ||||||
20 | (1) All substantially different advertising, | ||||||
21 | brochures, telemarketing scripts, promotional materials, | ||||||
22 | and supportive data. | ||||||
23 | (2) The name and last known address of each consumer, | ||||||
24 | the goods or services purchased, the date such goods or | ||||||
25 | services were first provided or the consumer signed an | ||||||
26 | agreement for the provision of goods or services, and the |
| |||||||
| |||||||
1 | amount paid by the consumer for the goods or services. | ||||||
2 | (3) The name, any fictitious name used, the last known | ||||||
3 | home address and telephone number, and the job title for | ||||||
4 | all current and former employees directly involved in | ||||||
5 | sales or solicitations; however, if the licensee permits | ||||||
6 | fictitious names to be used by employees, each fictitious | ||||||
7 | name must be traceable to only one specific employee. | ||||||
8 | (e) In addition to the records required by subsection (d), | ||||||
9 | the licensee must keep a copy of each signed agreement with any | ||||||
10 | consumer for not less than 5 years from the date that the | ||||||
11 | consumer either graduates or terminates the debt resolution | ||||||
12 | services program. | ||||||
13 | (f) A licensee may keep the records required by | ||||||
14 | subsections (d) and (e) in any form, and in the same manner, | ||||||
15 | format, or place as they keep such records in the ordinary | ||||||
16 | course of business. Failure to keep all records required by | ||||||
17 | subsections (d) and (e) is a violation of this Act. | ||||||
18 | (g) In the event of any dissolution or termination of the | ||||||
19 | licensee's business, the principal of that licensee shall | ||||||
20 | maintain all records as required under subsections (d) and | ||||||
21 | (e). In the event of any sale, assignment, or other change in | ||||||
22 | ownership of the licensee's business, the successor business | ||||||
23 | shall maintain all records required under subsections (d) and | ||||||
24 | (e). | ||||||
25 | Section 18. Penalty for violation. |
| |||||||
| |||||||
1 | (a) If the Department finds that a person has violated any | ||||||
2 | material provision of this Act, a rule adopted pursuant to | ||||||
3 | this Act, or any other law applicable to the conduct of a | ||||||
4 | licensee, the Department may, after notice and opportunity to | ||||||
5 | cure, order or impose a penalty upon the person, which must not | ||||||
6 | exceed $1,000 per violation of law or rule, up to a maximum of | ||||||
7 | $100,000, plus the costs of investigation. Notwithstanding | ||||||
8 | anything to the contrary herein or elsewhere, a continuing | ||||||
9 | violation shall be deemed to be a singular violation and not be | ||||||
10 | given multiple effect. | ||||||
11 | (b) A finding or order that the Department issues under | ||||||
12 | this Section is a final administrative decision under the | ||||||
13 | Administrative Review Law. | ||||||
14 | Section 19. Statute of limitations. An action or | ||||||
15 | proceeding brought by the Department under this Act must be | ||||||
16 | commenced within the longer of (i) 3 years after the conduct | ||||||
17 | that underlies the complaint is discovered by the Department | ||||||
18 | or the harmed consumer or (ii) if the violation constitutes a | ||||||
19 | criminal offense, the applicable statute of limitations. | ||||||
20 | Section 20. Transitional provisions. Transactions entered | ||||||
21 | into before this Act takes effect, and the rights, duties, and | ||||||
22 | interests resulting from them, may be completed, terminated, | ||||||
23 | or enforced as required or permitted by a law amended, | ||||||
24 | repealed, modified, or preempted by this Act as though the |
| |||||||
| |||||||
1 | amendment, repeal, modification, or preemption had not | ||||||
2 | occurred. | ||||||
3 | Section 21. Illinois Administrative Procedure Act. The | ||||||
4 | Illinois Administrative Procedure Act is hereby expressly | ||||||
5 | adopted and incorporated herein as if all of the provisions of | ||||||
6 | that Act were included in this Act. | ||||||
7 | Section 22. Rulemaking. The Department may adopt rules to | ||||||
8 | administer and enforce Section 3. | ||||||
9 | Section 900. The State Finance Act is amended by changing | ||||||
10 | Section 6z-26 as follows: | ||||||
11 | (30 ILCS 105/6z-26) | ||||||
12 | Sec. 6z-26. The Financial Institution Fund. All moneys | ||||||
13 | received by the Department of Financial and Professional | ||||||
14 | Regulation under the Safety Deposit License Act, the Foreign | ||||||
15 | Exchange License Act, the Pawners Societies Act, the Sale of | ||||||
16 | Exchange Act, the Currency Exchange Act, the Sales Finance | ||||||
17 | Agency Act, the Debt Management Service Act, the Consumer | ||||||
18 | Installment Loan Act, the Illinois Development Credit | ||||||
19 | Corporation Act, the Title Insurance Act, the Debt Resolution | ||||||
20 | Services Settlement Consumer Protection Act, the Debt | ||||||
21 | Management Service Consumer Protection Fund, and any other Act | ||||||
22 | administered by the Department of Financial and Professional |
| |||||||
| |||||||
1 | Regulation as the successor of the Department of Financial | ||||||
2 | Institutions now or in the future (unless an Act specifically | ||||||
3 | provides otherwise) shall be deposited in the Financial | ||||||
4 | Institution Fund (hereinafter "Fund"), a special fund that is | ||||||
5 | hereby created in the State Treasury. | ||||||
6 | Moneys in the Fund shall be used by the Department, | ||||||
7 | subject to appropriation, for expenses incurred in | ||||||
8 | administering the above named and referenced Acts. | ||||||
9 | The Comptroller and the State Treasurer shall transfer | ||||||
10 | from the General Revenue Fund to the Fund any monies received | ||||||
11 | by the Department after June 30, 1993, under any of the above | ||||||
12 | named and referenced Acts that have been deposited in the | ||||||
13 | General Revenue Fund. | ||||||
14 | As soon as possible after the end of each calendar year, | ||||||
15 | the Comptroller shall compare the balance in the Fund at the | ||||||
16 | end of the calendar year with the amount appropriated from the | ||||||
17 | Fund for the fiscal year beginning on July 1 of that calendar | ||||||
18 | year. If the balance in the Fund exceeds the amount | ||||||
19 | appropriated, the Comptroller and the State Treasurer shall | ||||||
20 | transfer from the Fund to the General Revenue Fund an amount | ||||||
21 | equal to the difference between the balance in the Fund and the | ||||||
22 | amount appropriated. | ||||||
23 | Nothing in this Section shall be construed to prohibit | ||||||
24 | appropriations from the General Revenue Fund for expenses | ||||||
25 | incurred in the administration of the above named and | ||||||
26 | referenced Acts. |
| |||||||
| |||||||
1 | Moneys in the Fund may be transferred to the Professions | ||||||
2 | Indirect Cost Fund, as authorized under Section 2105-300 of | ||||||
3 | the Department of Professional Regulation Law of the Civil | ||||||
4 | Administrative Code of Illinois. | ||||||
5 | (Source: P.A. 96-1420, eff. 8-3-10.) | ||||||
6 | Section 905. The Financial Institutions Code is amended by | ||||||
7 | changing Section 6 as follows: | ||||||
8 | (20 ILCS 1205/6) | ||||||
9 | Sec. 6. General powers and duties. In addition to the | ||||||
10 | powers and duties provided by law and imposed elsewhere in | ||||||
11 | this Act, the Division has the following powers and duties: | ||||||
12 | (1) To administer and enforce the Consumer Installment | ||||||
13 | Loan Act and its implementing rules. | ||||||
14 | (2) To administer and enforce the Currency Exchange | ||||||
15 | Act and its implementing rules. | ||||||
16 | (3) To administer and enforce the Debt Management | ||||||
17 | Service Act and its implementing rules. | ||||||
18 | (4) To administer and enforce the Debt Resolution | ||||||
19 | Services Settlement Consumer Protection Act and its | ||||||
20 | implementing rules. | ||||||
21 | (5) To administer and enforce the Illinois Development | ||||||
22 | Credit Corporation Act and its implementing rules. | ||||||
23 | (6) To administer and enforce the Payday Loan Reform | ||||||
24 | Act and its implementing rules. |
| |||||||
| |||||||
1 | (7) To administer and enforce the Safety Deposit | ||||||
2 | License Act and its implementing rules. | ||||||
3 | (8) To administer and enforce the Sales Finance Agency | ||||||
4 | Act and its implementing rules. | ||||||
5 | (9) To administer and enforce the Title Insurance Act | ||||||
6 | and its implementing rules. | ||||||
7 | (10) To administer and enforce the Transmitters of | ||||||
8 | Money Act and its implementing rules. | ||||||
9 | (11) To administer and enforce the Predatory Loan | ||||||
10 | Prevention Act and its implementing rules. | ||||||
11 | (12) To administer and enforce the Motor Vehicle | ||||||
12 | Retail Installment Sales Act and its implementing rules. | ||||||
13 | (13) To administer and enforce the Retail Installment | ||||||
14 | Sales Act and its implementing rules. | ||||||
15 | (14) To administer and enforce the Illinois Credit | ||||||
16 | Union Act and its implementing rules. | ||||||
17 | (15) To administer and enforce the Collection Agency | ||||||
18 | Act and its implementing rules. | ||||||
19 | (16) To administer and enforce any other Act | ||||||
20 | administered by the Director or Division. | ||||||
21 | (17) If the Division is authorized or required by law | ||||||
22 | to consider some aspect of criminal history record | ||||||
23 | information for the purpose of carrying out its statutory | ||||||
24 | powers and responsibilities, to obtain from the Illinois | ||||||
25 | State Police, upon request and payment of the fees | ||||||
26 | required by the Illinois State Police Law of the Civil |
| |||||||
| |||||||
1 | Administrative Code of Illinois, pursuant to positive | ||||||
2 | identification, such information contained in State files | ||||||
3 | as is necessary to carry out the duties of the Division. | ||||||
4 | (18) To authorize and administer examinations to | ||||||
5 | ascertain the qualifications of applicants and licensees | ||||||
6 | for which the examination is held. | ||||||
7 | (19) To conduct hearings in proceedings to revoke, | ||||||
8 | suspend, refuse to renew, or take other disciplinary | ||||||
9 | action regarding licenses, charters, certifications, | ||||||
10 | registrations, or authorities of persons as authorized in | ||||||
11 | any Act administered by the Division. | ||||||
12 | (Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22; | ||||||
13 | 102-975, eff. 1-1-23; 103-154, eff. 6-30-23.) | ||||||
14 | Section 910. The Debt Management Service Act is amended by | ||||||
15 | changing Section 2 as follows: | ||||||
16 | (205 ILCS 665/2) (from Ch. 17, par. 5302) | ||||||
17 | Sec. 2. Definitions. As used in this Act: | ||||||
18 | "Credit counselor" means an individual, corporation, or | ||||||
19 | other entity that is not a debt management service that | ||||||
20 | provides (1) guidance, educational programs, or advice for the | ||||||
21 | purpose of addressing budgeting, personal finance, financial | ||||||
22 | literacy, saving and spending practices, or the sound use of | ||||||
23 | consumer credit; or (2) assistance or offers to assist | ||||||
24 | individuals and families with financial problems by providing |
| |||||||
| |||||||
1 | counseling; or (3) a combination of the activities described | ||||||
2 | in items (1) and (2) of this definition. | ||||||
3 | "Debt management service" means the planning and | ||||||
4 | management of the financial affairs of a debtor for a fee and | ||||||
5 | the receiving of money from the debtor for the purpose of | ||||||
6 | distributing it to the debtor's creditors in payment or | ||||||
7 | partial payment of the debtor's obligations or soliciting | ||||||
8 | financial contributions from creditors. The business of debt | ||||||
9 | management is conducted in this State if the debt management | ||||||
10 | business, its employees, or its agents are located in this | ||||||
11 | State or if the debt management business solicits or contracts | ||||||
12 | with debtors located in this State. "Debt management service" | ||||||
13 | does not include "debt resolution services" "debt settlement | ||||||
14 | service" as defined in the Debt Resolution Services Settlement | ||||||
15 | Consumer Protection Act. | ||||||
16 | This term shall not include the following when engaged in | ||||||
17 | the regular course of their respective businesses and | ||||||
18 | professions: | ||||||
19 | (a) Attorneys at law licensed, or otherwise authorized | ||||||
20 | to practice, in Illinois who are engaged in the practice | ||||||
21 | of law. | ||||||
22 | (b) Banks, operating subsidiaries of banks, affiliates | ||||||
23 | of banks, fiduciaries, credit unions, savings and loan | ||||||
24 | associations, and savings banks as duly authorized and | ||||||
25 | admitted to transact business in the State of Illinois and | ||||||
26 | performing credit and financial adjusting service in the |
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1 | regular course of their principal business. | ||||||
2 | (c) Title insurers, title agents, independent | ||||||
3 | escrowees, and abstract companies, while doing an escrow | ||||||
4 | business. | ||||||
5 | (d) Judicial officers or others acting pursuant to | ||||||
6 | court order. | ||||||
7 | (e) Employers for their employees, except that no | ||||||
8 | employer shall retain the services of an outside debt | ||||||
9 | management service to perform this service unless the debt | ||||||
10 | management service is licensed pursuant to this Act. | ||||||
11 | (f) Bill payment services, as defined in the | ||||||
12 | Transmitters of Money Act. | ||||||
13 | (g) Credit counselors, only when providing services | ||||||
14 | described in the definition of credit counselor in this | ||||||
15 | Section. | ||||||
16 | "Debtor" means the person or persons for whom the debt | ||||||
17 | management service is performed. | ||||||
18 | "Person" means an individual, firm, partnership, | ||||||
19 | association, limited liability company, corporation, or | ||||||
20 | not-for-profit corporation. | ||||||
21 | "Licensee" means a person licensed under this Act. | ||||||
22 | "Secretary" means the Secretary of Financial and | ||||||
23 | Professional Regulation. | ||||||
24 | (Source: P.A. 100-201, eff. 8-18-17.) | ||||||
25 | (225 ILCS 429/Act rep.) |
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1 | Section 915. The Debt Settlement Consumer Protection Act | ||||||
2 | is repealed. | ||||||
3 | Section 920. The Consumer Fraud and Deceptive Business | ||||||
4 | Practices Act is amended by changing Section 2JJJ as follows: | ||||||
5 | (815 ILCS 505/2JJJ) | ||||||
6 | Sec. 2JJJ. Violations of the Debt Resolution Services | ||||||
7 | Settlement Consumer Protection Act. Any person who violates | ||||||
8 | the Debt Resolution Services Settlement Consumer Protection | ||||||
9 | Act commits an unlawful practice within the meaning of this | ||||||
10 | Act. | ||||||
11 | (Source: P.A. 96-1420, eff. 8-3-10; 97-333, eff. 8-12-11.) | ||||||
12 | Section 999. Effective date. This Act takes effect January | ||||||
13 | 9, 2025. |