Full Text of HB5220 102nd General Assembly
HB5220enr 102ND GENERAL ASSEMBLY |
| | HB5220 Enrolled | | LRB102 25772 BMS 35102 b |
|
| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Financial Institutions Code is amended by | 5 | | changing 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 | 9 | | Professional Regulation Institutions .
| 10 | | (b) "Director" means the Director of the Division of | 11 | | Financial Institutions and any authorized representative of | 12 | | the Director .
| 13 | | "Division" means the Division of Financial Institutions of | 14 | | the Department. | 15 | | (c) "Person" means any individual, partnership, joint | 16 | | venture, trust,
estate, firm, corporation, association or | 17 | | cooperative society or
association.
| 18 | | (d) "Financial institutions" means ambulatory and | 19 | | community currency
exchanges, credit unions, guaranteed credit | 20 | | unions, money transmitters, persons engaged in the
business of | 21 | | transmitting money to foreign countries or buying and selling
| 22 | | foreign money, pawners' societies, title insuring or | 23 | | guaranteeing
companies, consumer installment lenders, payday |
| | | HB5220 Enrolled | - 2 - | LRB102 25772 BMS 35102 b |
|
| 1 | | lenders, sales finance agencies, and any other industry or | 2 | | business that offers services or products that are regulated | 3 | | under any Act administered by the Director and persons engaged | 4 | | in the business of making loans of $800 or
less, all as | 5 | | respectively defined in the laws referred to in Section 6 of
| 6 | | this Act. The term includes sales finance agencies, as defined | 7 | | in the
"Sales Finance Agency Act", enacted by the 75th General | 8 | | Assembly .
| 9 | | "License" means any certificate or authorization issued to | 10 | | any person, party, or entity pursuant to any Act administered | 11 | | by the Division. | 12 | | "Licensee" means any person, party, or entity who is or | 13 | | comes to be certified, chartered, registered, licensed, or | 14 | | otherwise authorized by the Division pursuant to any Act | 15 | | administered by the Division. | 16 | | (e) "Payday loan" has the meaning ascribed to that
term in | 17 | | the Payday Loan Reform Act.
| 18 | | "Person" means any individual, partnership, joint venture, | 19 | | trust, estate, firm, corporation, cooperative society or | 20 | | association, or any other form of business association or | 21 | | legal entity. | 22 | | "Secretary" means the Secretary of Financial and | 23 | | Professional Regulation and any authorized representative of | 24 | | the Secretary. | 25 | | (Source: P.A. 94-13, eff. 12-6-05.)
|
| | | HB5220 Enrolled | - 3 - | LRB102 25772 BMS 35102 b |
|
| 1 | | (20 ILCS 1205/6) (from Ch. 17, par. 106)
| 2 | | Sec. 6. General powers and duties. In addition to the | 3 | | powers and duties provided by law and imposed elsewhere in | 4 | | this Act, the Division
Department has the following powers and | 5 | | duties :
| 6 | | (1) To administer and enforce the Consumer Installment | 7 | | Loan Act and its implementing rules. To exercise the rights, | 8 | | powers and duties vested by law in the
Auditor of Public | 9 | | Accounts under "An Act to provide for the incorporation,
| 10 | | management and regulation of pawners' societies and limiting | 11 | | the rate of
compensation to be paid for advances, storage and | 12 | | insurance on pawns and
pledges and to allow the loaning of | 13 | | money upon personal property", approved
March 29, 1899, as | 14 | | amended.
| 15 | | (2) To administer and enforce the Currency Exchange Act | 16 | | and its implementing rules. To exercise the rights, powers and | 17 | | duties vested by law in the
Auditor of Public Accounts under | 18 | | "An Act in relation to the definition,
licensing and | 19 | | regulation of community currency exchanges and ambulatory
| 20 | | currency exchanges, and the operators and employees thereof, | 21 | | and to make an
appropriation therefor, and to provide | 22 | | penalties and remedies for the
violation thereof", approved | 23 | | June 30, 1943, as amended.
| 24 | | (3) To administer and enforce the Debt Management Service | 25 | | Act and its implementing rules. To exercise the rights, | 26 | | powers, and duties vested by law in the
Auditor of Public |
| | | HB5220 Enrolled | - 4 - | LRB102 25772 BMS 35102 b |
|
| 1 | | Accounts under "An Act in relation to the buying and
selling of | 2 | | foreign exchange and the transmission or transfer of money to
| 3 | | foreign countries", approved June 28, 1923, as amended.
| 4 | | (4) To administer and enforce the Debt Settlement Consumer | 5 | | Protection Act and its implementing rules. To exercise the | 6 | | rights, powers, and duties vested by law in the
Auditor of | 7 | | Public Accounts under "An Act to provide for and regulate the
| 8 | | business of guaranteeing titles to real estate by | 9 | | corporations", approved
May 13, 1901, as amended.
| 10 | | (5) To administer and enforce the Illinois Development | 11 | | Credit Corporation Act and its implementing rules. To exercise | 12 | | the rights, powers and duties vested by law in the
Department | 13 | | of Insurance under "An Act to define, license, and regulate | 14 | | the
business of making loans of eight hundred dollars or less, | 15 | | permitting an
interest charge thereon greater than otherwise | 16 | | allowed by law, authorizing
and regulating the assignment of | 17 | | wages or salary when taken as security for
any such loan or as | 18 | | consideration for a payment of eight hundred dollars or
less, | 19 | | providing penalties, and to repeal Acts therein named", | 20 | | approved July
11, 1935, as amended.
| 21 | | (6) To administer and enforce the Payday Loan Reform Act | 22 | | and its implementing rules. To administer and enforce "An Act | 23 | | to license and regulate the
keeping and letting of safety | 24 | | deposit boxes, safes, and vaults, and the
opening thereof, and | 25 | | to repeal a certain Act therein named", approved June
13, | 26 | | 1945, as amended.
|
| | | HB5220 Enrolled | - 5 - | LRB102 25772 BMS 35102 b |
|
| 1 | | (7) To administer and enforce the Safety Deposit License | 2 | | Act and its implementing rules. Whenever the Department is | 3 | | authorized or required by law to consider
some aspect of | 4 | | criminal history record information for the purpose of
| 5 | | carrying out its statutory powers and responsibilities, then, | 6 | | upon request
and payment of fees in conformance with the | 7 | | requirements of Section 2605-400 of the Illinois State Police | 8 | | Law, the
Illinois State Police is authorized to furnish, | 9 | | pursuant to positive
identification, such information | 10 | | contained in State files as is necessary
to fulfill the | 11 | | request.
| 12 | | (8) To administer and enforce the Sales Finance Agency Act | 13 | | and its implementing rules. To administer the Payday Loan | 14 | | Reform Act, the Consumer Installment Loan Act, the Predatory | 15 | | Loan Prevention Act, the Motor Vehicle Retail Installment | 16 | | Sales Act, and the Retail Installment Sales Act.
| 17 | | (9) To administer and enforce the Title Insurance Act and | 18 | | its implementing rules. | 19 | | (10) To administer and enforce the Transmitters of Money | 20 | | Act and its implementing rules. | 21 | | (11) To administer and enforce the Predatory Loan | 22 | | Prevention Act and its implementing rules. | 23 | | (12) To administer and enforce the Motor Vehicle Retail | 24 | | Installment Sales Act and its implementing rules. | 25 | | (13) To administer and enforce the Retail Installment | 26 | | Sales Act and its implementing rules. |
| | | HB5220 Enrolled | - 6 - | LRB102 25772 BMS 35102 b |
|
| 1 | | (14) To administer and enforce the Illinois Credit Union | 2 | | Act and its implementing rules. | 3 | | (15) To administer and enforce the Collection Agency Act | 4 | | and its implementing rules. | 5 | | (16) To administer and enforce any other Act administered | 6 | | by the Director or Division. | 7 | | (17) If the Division is authorized or required by law to | 8 | | consider some aspect of criminal history record information | 9 | | for the purpose of carrying out its statutory powers and | 10 | | responsibilities, to obtain from the Illinois State Police, | 11 | | upon request and payment of the fees required by the Illinois | 12 | | State Police Law of the Civil Administrative Code of Illinois, | 13 | | pursuant to positive identification, such information | 14 | | contained in State files as is necessary to carry out the | 15 | | duties of the Division. | 16 | | (18) To authorize and administer examinations to ascertain | 17 | | the qualifications of applicants and licensees for which the | 18 | | examination is held. | 19 | | (19) To conduct hearings in proceedings to revoke, | 20 | | suspend, refuse to renew, or take other disciplinary action | 21 | | regarding licenses, charters, certifications, registrations, | 22 | | or authorities of persons as authorized in any Act | 23 | | administered by the Division. | 24 | | (Source: P.A. 101-658, eff. 3-23-21; 102-538, eff. 8-20-21; | 25 | | revised 10-5-21.)
|
| | | HB5220 Enrolled | - 7 - | LRB102 25772 BMS 35102 b |
|
| 1 | | Section 10. The Collection Agency Act is amended by | 2 | | changing Sections 2, 4.5, 5, 7, 8a, 9, 9.2, 11, 13.2, 16, 26, | 3 | | and 30 as follows:
| 4 | | (225 ILCS 425/2) (from Ch. 111, par. 2002)
| 5 | | (Section scheduled to be repealed on January 1, 2026)
| 6 | | Sec. 2. Definitions. In this Act:
| 7 | | "Address of record" means the designated address recorded | 8 | | by the Department in the applicant's or licensee's application | 9 | | file or license file as maintained by the Department's | 10 | | licensure maintenance unit. | 11 | | "Board" means the Collection Agency Licensing and | 12 | | Disciplinary Board. | 13 | | "Charge-off balance" means an account principal and other | 14 | | legally collectible costs, expenses, and interest accrued | 15 | | prior to the charge-off date, less any payments or settlement. | 16 | | "Charge-off date" means the date on which a receivable is | 17 | | treated as a loss or expense. | 18 | | "Collection agency" means any person who, in the ordinary | 19 | | course of business, regularly, on behalf of himself or herself | 20 | | or others, engages in the collection of a debt. | 21 | | "Consumer debt" or "consumer credit" means money or
| 22 | | property, or their equivalent, due or owing or alleged to be
| 23 | | due or owing from a natural person by reason of a consumer | 24 | | credit transaction. | 25 | | "Credit transaction" means a transaction between a natural |
| | | HB5220 Enrolled | - 8 - | LRB102 25772 BMS 35102 b |
|
| 1 | | person and another person in which property, service, or money | 2 | | is acquired on credit by that natural person from such other | 3 | | person primarily for personal, family, or household purposes. | 4 | | "Creditor" means a person who extends consumer credit to a | 5 | | debtor. | 6 | | "Current balance" means the charge-off balance plus any | 7 | | legally collectible costs, expenses, and interest, less any | 8 | | credits or payments. | 9 | | "Debt" means money, property, or their equivalent which is | 10 | | due or owing or alleged to be due or owing from a person to | 11 | | another person. | 12 | | "Debt buyer" means a person or entity that is engaged in | 13 | | the business of purchasing delinquent or charged-off consumer | 14 | | loans or consumer credit accounts or other delinquent consumer | 15 | | debt for collection purposes, whether it collects the debt | 16 | | itself or hires a third-party for collection or an | 17 | | attorney-at-law for litigation in order to collect such debt. | 18 | | "Debtor" means a person from whom a collection agency | 19 | | seeks to collect a consumer or commercial debt that is due and | 20 | | owing or alleged to be due and owing from such person. | 21 | | "Department" means the Department of Financial and | 22 | | Professional Regulation. | 23 | | "Email address of record" means the designated email | 24 | | address recorded by the Department in the applicant's | 25 | | application file or the licensee's license file, as maintained | 26 | | by the Department's licensure maintenance unit. |
| | | HB5220 Enrolled | - 9 - | LRB102 25772 BMS 35102 b |
|
| 1 | | "Person" means a natural person, partnership, corporation, | 2 | | limited liability company, trust, estate, cooperative, | 3 | | association, or other similar entity.
| 4 | | "Licensed collection agency" means a person who is | 5 | | licensed under this Act to engage in the practice of debt | 6 | | collection in Illinois. | 7 | | "Multi-state licensing system" means a web-based platform | 8 | | that allows licensure applicants to submit their applications | 9 | | and renewals to the Department online. | 10 | | "Secretary" means the Secretary of Financial and | 11 | | Professional Regulation or his or her designee . | 12 | | (Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16; | 13 | | 100-132, eff. 8-18-17.)
| 14 | | (225 ILCS 425/4.5)
| 15 | | (Section scheduled to be repealed on January 1, 2026)
| 16 | | Sec. 4.5. Unlicensed practice; violation; civil penalty.
| 17 | | (a) Any person who practices, offers to practice, attempts | 18 | | to practice, or
holds oneself out to practice as a collection | 19 | | agency without being licensed
under this Act shall, in
| 20 | | addition to any other penalty provided by law, pay a civil | 21 | | penalty to the
Department in an amount not to exceed $10,000 | 22 | | for each offense as determined by
the Department. The civil | 23 | | penalty shall be assessed by the Department after a
hearing is | 24 | | held in accordance with the provisions set forth in this Act
| 25 | | regarding the provision of a hearing for the discipline of a |
| | | HB5220 Enrolled | - 10 - | LRB102 25772 BMS 35102 b |
|
| 1 | | licensee.
| 2 | | (b) The Department has the authority and power to | 3 | | investigate any and all
unlicensed activity. In addition to | 4 | | taking any other action provided under this Act, whenever the | 5 | | Department has reason to believe a person has violated any | 6 | | provision of subsection (a) of this Section, the Department | 7 | | may issue a rule to show cause why an order to cease and desist | 8 | | should not be entered against that person. The rule shall | 9 | | clearly set forth the grounds relied upon by the Department | 10 | | and shall provide a period of 7 days from the date of the rule | 11 | | to file an answer to the satisfaction of the Department. | 12 | | Failure to answer to the satisfaction of the Department shall | 13 | | provide the Department authority to issue cause an order to | 14 | | cease and desist to be issued immediately.
| 15 | | (c) The civil penalty shall be paid within 60 days after | 16 | | the effective date
of the order imposing the civil penalty. | 17 | | The order shall constitute a judgment
and may be filed and | 18 | | executed execution had thereon in the same manner as any | 19 | | judgment
from any court of record.
| 20 | | (d) All moneys collected under this Section shall be | 21 | | deposited into the Financial Institution Fund. | 22 | | (Source: P.A. 102-205, eff. 7-30-21.)
| 23 | | (225 ILCS 425/5) (from Ch. 111, par. 2008)
| 24 | | (Section scheduled to be repealed on January 1, 2026)
| 25 | | Sec. 5. Application for original license. Application for |
| | | HB5220 Enrolled | - 11 - | LRB102 25772 BMS 35102 b |
|
| 1 | | an original license shall be made to the Secretary on
forms | 2 | | provided by the Department or through a multi-state licensing | 3 | | system as designated by the Secretary . The application , shall | 4 | | be accompanied by the required fee
and shall state:
| 5 | | (1) the applicant's name and address;
| 6 | | (2) the names and addresses of the officers of the | 7 | | collection agency
and, if the collection agency is a | 8 | | corporation, the names and addresses
of all persons owning | 9 | | 10% or more of the stock of such corporation, if the | 10 | | collection agency is a partnership, the names and | 11 | | addresses of all partners of the partnership holding a 10% | 12 | | or more interest in the partnership, if the collection | 13 | | agency is a limited liability company, the names and | 14 | | addresses of all members holding 10% or more interest in | 15 | | the limited liability company, and if the collection | 16 | | agency is any other legal business entity, the names and | 17 | | addresses of all persons owning 10% or more interest in | 18 | | the entity; and
| 19 | | (3) such other information as the Department may deem | 20 | | necessary.
| 21 | | (Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| 22 | | (225 ILCS 425/7) (from Ch. 111, par. 2010)
| 23 | | (Section scheduled to be repealed on January 1, 2026)
| 24 | | Sec. 7. Qualifications for license. In order to be | 25 | | qualified to obtain a license or a renewal license under this |
| | | HB5220 Enrolled | - 12 - | LRB102 25772 BMS 35102 b |
|
| 1 | | Act, a collection agency's owners or officers shall:
| 2 | | (a) have the financial responsibility, financial | 3 | | condition, business experience, character, and general | 4 | | fitness such as to merit the confidence and trust of the | 5 | | public that an applicant, licensee, or regulated person is | 6 | | fit, willing, and able to carry on his or her proposed | 7 | | business in a lawful and fair manner be of
good moral | 8 | | character and of the age of 18 years or more ;
| 9 | | (a-5) be 18 years of age or more; | 10 | | (b) (blank); and
| 11 | | (c) have an acceptable credit rating, have no | 12 | | unsatisfied judgments; and not
have been officers and | 13 | | owners of 10% or more interest of a former licensee under | 14 | | this Act whose license was suspended or revoked without | 15 | | subsequent restoration.
| 16 | | (Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| 17 | | (225 ILCS 425/8a) (from Ch. 111, par. 2011a)
| 18 | | (Section scheduled to be repealed on January 1, 2026)
| 19 | | Sec. 8a. Fees. | 20 | | (a) The
fees for the administration and enforcement of | 21 | | this Act, including but not
limited to original licensure, | 22 | | renewal, and restoration, shall be set by the Department by | 23 | | rule. All fees are
nonrefundable.
| 24 | | (b) All fees collected under this Act by the Department | 25 | | shall be deposited into the Financial Institution Fund and |
| | | HB5220 Enrolled | - 13 - | LRB102 25772 BMS 35102 b |
|
| 1 | | shall be appropriated to the Department for the
ordinary and | 2 | | contingent expenses of the Department in the administration of
| 3 | | this Act. After the effective date of this amendatory Act of | 4 | | the 102nd General Assembly, the Department may transfer any | 5 | | funds fees collected under this Act from the General | 6 | | Professions Dedicated Fund to the Financial Institution Fund.
| 7 | | (c) The administration fee charged by the multi-state | 8 | | licensing system shall be paid directly to the multi-state | 9 | | licensing system. | 10 | | (Source: P.A. 102-205, eff. 7-30-21.)
| 11 | | (225 ILCS 425/9) (from Ch. 111, par. 2012)
| 12 | | (Section scheduled to be repealed on January 1, 2026)
| 13 | | Sec. 9. Disciplinary actions. | 14 | | (a) The Department may refuse to issue or renew, or may
| 15 | | revoke, suspend, place on probation, reprimand or take other | 16 | | disciplinary or non-disciplinary
action as the Department may | 17 | | deem proper, including fines not to exceed $10,000 per | 18 | | violation, for any one or any combination of the
following | 19 | | causes:
| 20 | | (1) Material misstatement in furnishing information to | 21 | | the Department. | 22 | | (2) Violations of this Act or of the rules promulgated | 23 | | hereunder.
| 24 | | (3) Conviction by plea of guilty or nolo contendere, | 25 | | finding of guilt, jury verdict, or entry of judgment or by |
| | | HB5220 Enrolled | - 14 - | LRB102 25772 BMS 35102 b |
|
| 1 | | sentencing of any crime, including, but not limited to, | 2 | | convictions, preceding sentences of supervision, | 3 | | conditional discharge, or first offender probation of the | 4 | | collection agency or any of the officers or owners of more | 5 | | than 10% interest of the agency
of any crime under the laws | 6 | | of any U.S. jurisdiction that (i) is a felony, (ii) is a | 7 | | misdemeanor, an essential element of which is dishonesty, | 8 | | or (iii) is directly related to the practice of a | 9 | | collection agency.
| 10 | | (4) Fraud or misrepresentation in applying for, or | 11 | | procuring, a license under this Act or in connection with | 12 | | applying for renewal of a license
under this Act. | 13 | | (5) Aiding or assisting another person in violating | 14 | | any provision of this Act or rules adopted under this Act. | 15 | | (6) Failing, within 60 days, to provide information in | 16 | | response to a written request made by the Department.
| 17 | | (7) Habitual or excessive use or addiction to alcohol, | 18 | | narcotics,
stimulants or any other chemical agent or drug | 19 | | which results in the
inability to practice with reasonable | 20 | | judgment, skill, or safety by any of
the officers or | 21 | | owners of 10% or more interest of a collection agency.
| 22 | | (8) Discipline by another state, the District of | 23 | | Columbia, a territory of the United States, or a foreign | 24 | | nation, if at
least one of the grounds for the discipline | 25 | | is the same or substantially
equivalent to those set forth | 26 | | in this Act.
|
| | | HB5220 Enrolled | - 15 - | LRB102 25772 BMS 35102 b |
|
| 1 | | (9) A finding by the Department that the licensee, | 2 | | after having his or her
license placed on probationary | 3 | | status, has violated the terms of probation. | 4 | | (10) Willfully making or filing false records or | 5 | | reports in his or her practice, including, but not limited | 6 | | to, false records filed with State agencies or | 7 | | departments.
| 8 | | (11) Practicing or attempting to practice under a | 9 | | false or, except as provided by law, an assumed name.
| 10 | | (12) An adjudicated A finding by the Federal Trade | 11 | | Commission or other federal or State agency that a | 12 | | licensee violated
the federal Fair Debt Collection | 13 | | Practices Act or its rules.
| 14 | | (13) Failure to file a return, or to pay the tax, | 15 | | penalty or interest
shown in a filed return, or to pay any | 16 | | final assessment of tax, penalty or
interest, as required | 17 | | by any tax Act administered by the Illinois
Department of | 18 | | Revenue until such time as the requirements of any such | 19 | | tax
Act are satisfied.
| 20 | | (14) Using or threatening to use force or violence to | 21 | | cause physical
harm to a debtor, his or her family or his | 22 | | or her property.
| 23 | | (15) Threatening to instigate an arrest or criminal | 24 | | prosecution where no
basis for a criminal complaint | 25 | | lawfully exists.
| 26 | | (16) Threatening the seizure, attachment or sale of a |
| | | HB5220 Enrolled | - 16 - | LRB102 25772 BMS 35102 b |
|
| 1 | | debtor's property
where such action can only be taken | 2 | | pursuant to court order without
disclosing that prior | 3 | | court proceedings are required.
| 4 | | (17) Disclosing or threatening to disclose information | 5 | | adversely
affecting a debtor's reputation for credit | 6 | | worthiness with knowledge the
information is false.
| 7 | | (18) Threatening Initiating or threatening to initiate | 8 | | communication with a debtor's
employer unless there has | 9 | | been a default of the payment of the obligation
for at | 10 | | least 30 days and the licensee has given at least 5 days | 11 | | prior written notice , to the last
known address of the | 12 | | debtor, of the intention to communicate with the
employer | 13 | | has been given to the employee to the last known address of | 14 | | the debtor , except as expressly permitted by
law or court | 15 | | order .
| 16 | |
(19) Communicating with the debtor or any member of | 17 | | the debtor's family
at such a time of day or night and with | 18 | | such frequency as to constitute
harassment of the debtor | 19 | | or any member of the debtor's family. For
purposes of this | 20 | | Section the following conduct shall constitute harassment:
| 21 | | (A) Communicating with the debtor or any member of | 22 | | his or her family
in connection with the collection of | 23 | | any debt without the prior consent of the
debtor given | 24 | | directly to the debt collector, or the express | 25 | | permission of a
court of competent jurisdiction, at | 26 | | any unusual time or place or a time or
place known or |
| | | HB5220 Enrolled | - 17 - | LRB102 25772 BMS 35102 b |
|
| 1 | | which should be known to be inconvenient to the | 2 | | debtor. In
the absence of knowledge of circumstances | 3 | | to the contrary, a debt collector
shall assume that | 4 | | the convenient time for communicating with a consumer | 5 | | is
after 8 o'clock a.m. and before 9 o'clock p.m. in | 6 | | the debtor's local time at the debtor's
location .
| 7 | | (B) The threat of publication or publication of a | 8 | | list of consumers who
allegedly refuse to pay debts, | 9 | | except to a consumer reporting agency.
| 10 | | (C) The threat of advertisement or advertisement | 11 | | for sale of any debt to
coerce payment of the debt.
| 12 | | (D) Causing a telephone to ring or engaging any | 13 | | person in telephone
conversation repeatedly or | 14 | | continuously with intent to annoy, abuse, or
harass | 15 | | any person at the called number.
| 16 | | (20) Using profane, obscene or abusive language in | 17 | | communicating with a
debtor, his or her family or others.
| 18 | | (21) Disclosing or threatening to disclose information | 19 | | relating to a
debtor's debt to any other person except | 20 | | where such other person has
a legitimate business need for | 21 | | the information or except where such
disclosure is | 22 | | permitted by law.
| 23 | | (22) Disclosing or threatening to disclose information | 24 | | concerning the
existence of a debt which the collection | 25 | | agency knows to be
disputed by the debtor without | 26 | | disclosing the fact that the debtor
disputes the debt.
|
| | | HB5220 Enrolled | - 18 - | LRB102 25772 BMS 35102 b |
|
| 1 | | (23) Engaging in any conduct that is intended to
cause | 2 | | and did cause mental or physical illness to the debtor or | 3 | | his
or her
family.
| 4 | | (24) Attempting or threatening to enforce a right or | 5 | | remedy with
knowledge or reason to know that the right or | 6 | | remedy does not exist.
| 7 | | (25) Failing to disclose to the debtor or his or her | 8 | | family the legally authorized
corporate, partnership or | 9 | | proprietary name, or other trade or business name,
under
| 10 | | which the collection agency is engaging in debt | 11 | | collections and which he or
she is legally authorized to | 12 | | use .
| 13 | | (26) Using any form of communication which simulates | 14 | | legal or judicial
process or which gives the appearance of | 15 | | being authorized, issued , or
approved by a governmental | 16 | | agency or official or by an attorney at law
when it is not.
| 17 | | (27) Using any badge, uniform, or other indicia of any | 18 | | governmental
agency or official except as authorized by | 19 | | law.
| 20 | | (28) Conducting business under any name or in any | 21 | | manner which suggests
or implies that the collection | 22 | | agency is a
branch of or is affiliated in any way with a | 23 | | governmental agency or court if such
collection agency is | 24 | | not.
| 25 | | (29) Failing to disclose, at the time of making any | 26 | | demand for payment,
the name of the person to whom the debt |
| | | HB5220 Enrolled | - 19 - | LRB102 25772 BMS 35102 b |
|
| 1 | | is owed and at the request of the
debtor, the address where | 2 | | payment is to be made and the address of the
person to whom | 3 | | the debt is owed.
| 4 | | (30) Misrepresenting the amount of the debt alleged to | 5 | | be owed.
| 6 | | (31) Representing that an existing debt may be | 7 | | increased by the addition
of attorney's fees, | 8 | | investigation fees or any other fees or charges when
such | 9 | | fees or charges may not legally be added to the existing | 10 | | debt.
| 11 | | (32) Representing that the collection agency is an | 12 | | attorney at law or an
agent for an attorney if he or she is | 13 | | not.
| 14 | | (33) Collecting or attempting to collect any interest | 15 | | or other charge or
fee in excess of the actual debt unless | 16 | | such interest or other
charge or fee is expressly | 17 | | authorized by the agreement creating the debt unless | 18 | | expressly authorized by law or unless in a commercial
| 19 | | transaction such interest or other charge or fee is | 20 | | expressly authorized in
a subsequent agreement. If a | 21 | | contingency or hourly fee arrangement (i) is
established | 22 | | under an agreement between a collection agency and a | 23 | | creditor to
collect a debt and (ii) is paid by a debtor | 24 | | pursuant to a contract between the
debtor and the | 25 | | creditor, then that fee arrangement does not violate this
| 26 | | Section unless the fee is unreasonable. The Department |
| | | HB5220 Enrolled | - 20 - | LRB102 25772 BMS 35102 b |
|
| 1 | | shall determine what
constitutes a reasonable collection | 2 | | fee.
| 3 | | (34) Communicating or threatening to communicate with | 4 | | a debtor when the
collection agency is informed in writing | 5 | | by an attorney that the attorney
represents the debtor | 6 | | concerning the debt. If the attorney fails to respond | 7 | | within a reasonable period of
time, the collector may | 8 | | communicate with the debtor. The collector may
communicate | 9 | | with the debtor when the attorney gives his or her | 10 | | consent.
| 11 | | (35) Engaging in dishonorable, unethical, or | 12 | | unprofessional conduct of a
character likely to deceive, | 13 | | defraud, or harm the public.
| 14 | | (b) No collection agency while collecting or attempting to | 15 | | collect a debt shall
engage in any of the Acts specified in | 16 | | this Section, each of which shall
be unlawful practice.
| 17 | | (Source: P.A. 99-227, eff. 8-3-15; 100-872, eff. 8-14-18.)
| 18 | | (225 ILCS 425/9.2) | 19 | | (Section scheduled to be repealed on January 1, 2026) | 20 | | Sec. 9.2. Communication in connection with debt | 21 | | collection. | 22 | | (a) Without the prior consent of the debtor given directly | 23 | | to the collection agency or the express permission of a court | 24 | | of competent jurisdiction, a collection agency may not | 25 | | communicate with a debtor in connection with the collection of |
| | | HB5220 Enrolled | - 21 - | LRB102 25772 BMS 35102 b |
|
| 1 | | any debt in any of the following circumstances: | 2 | | (1) At any unusual time, place, or manner that is | 3 | | known or should be known to be inconvenient to the debtor. | 4 | | In the absence of knowledge of circumstances to the | 5 | | contrary, a collection agency shall assume that the | 6 | | convenient time for communicating with a debtor is after | 7 | | 8:00 a.m. and before 9:00 p.m. in the debtor's local time | 8 | | at the debtor's location . | 9 | | (2) If the collection agency knows the debtor is | 10 | | represented by an attorney with respect to such debt and | 11 | | has knowledge of or can readily ascertain, the attorney's | 12 | | name and address, unless the attorney fails to respond | 13 | | within a reasonable period of time to a communication from | 14 | | the collection agency or unless the attorney consents to | 15 | | direct communication with the debtor. | 16 | | (3) At the debtor's place of employment, if the | 17 | | collection agency knows or has reason to know that the | 18 | | debtor's employer prohibits the debtor from receiving such | 19 | | communication. | 20 | | (b) Except as provided in Section 9.1 of this Act, a | 21 | | collection agency may not communicate, in connection with the | 22 | | collection of any debt, with any person other than the debtor, | 23 | | the debtor's attorney, a consumer reporting agency if | 24 | | otherwise permitted by law, the creditor, the attorney of the | 25 | | creditor, or the attorney of the collection agency without the | 26 | | prior consent of the debtor given directly to the collection |
| | | HB5220 Enrolled | - 22 - | LRB102 25772 BMS 35102 b |
|
| 1 | | agency, the express permission of a court of competent | 2 | | jurisdiction, or as reasonably necessary to effectuate a | 3 | | post - judgment judicial remedy , a collection agency may not | 4 | | communicate, in connection with the collection of any debt, | 5 | | with any person other than the debtor, the debtor's attorney, | 6 | | a consumer reporting agency if otherwise permitted by law, the | 7 | | creditor, the attorney of the creditor, or the attorney of the | 8 | | collection agency . | 9 | | (c) If a debtor notifies a collection agency in writing | 10 | | that the debtor refuses to pay a debt or that the debtor wishes | 11 | | the collection agency to cease further communication with the | 12 | | debtor, the collection agency may not communicate further with | 13 | | the debtor with respect to such debt, except to perform any of | 14 | | the following tasks: | 15 | | (1) Advise the debtor that the collection agency's | 16 | | further efforts are being terminated. | 17 | | (2) Notify the debtor that the collection agency or | 18 | | creditor may invoke specified remedies that are ordinarily | 19 | | invoked by such collection agency or creditor. | 20 | | (3) Notify the debtor that the collection agency or | 21 | | creditor intends to invoke a specified remedy. | 22 | | If such notice from the debtor is made by mail, | 23 | | notification shall be complete upon receipt.
| 24 | | (d) For the purposes of this Section, "debtor" includes | 25 | | the debtor's spouse, parent (if the debtor is a minor), | 26 | | guardian, executor, or administrator.
|
| | | HB5220 Enrolled | - 23 - | LRB102 25772 BMS 35102 b |
|
| 1 | | (e) This Section applies to a collection agency or debt | 2 | | buyer only when engaged in the collection of consumer debt. | 3 | | (Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
| 4 | | (225 ILCS 425/11) (from Ch. 111, par. 2036)
| 5 | | (Section scheduled to be repealed on January 1, 2026)
| 6 | | Sec. 11. Informal conferences. Informal conferences , after | 7 | | a formal hearing is requested, shall be conducted
with at | 8 | | least one member of the Board in attendance.
Notwithstanding | 9 | | any provisions concerning the conduct of hearings and
| 10 | | recommendations for disciplinary actions, the Department has | 11 | | the authority to
negotiate agreements with licensees and | 12 | | applicants resulting in disciplinary or non-disciplinary
| 13 | | consent orders. The consent orders may provide for any of the | 14 | | forms of
discipline provided in this Act. The consent orders | 15 | | shall provide that they
were not entered into as a result of | 16 | | any coercion by the Department.
| 17 | | (Source: P.A. 99-227, eff. 8-3-15.)
| 18 | | (225 ILCS 425/13.2) (from Ch. 111, par. 2038.2)
| 19 | | (Section scheduled to be repealed on January 1, 2026)
| 20 | | Sec. 13.2. Powers and duties of Department. The Department | 21 | | shall
exercise the powers and duties prescribed by the | 22 | | Financial Institutions Code Civil Administrative Code
of | 23 | | Illinois for the administration of licensing Acts and shall | 24 | | exercise
such other powers and duties necessary for |
| | | HB5220 Enrolled | - 24 - | LRB102 25772 BMS 35102 b |
|
| 1 | | effectuating the purposes of
this Act.
| 2 | | Subject to the provisions of this Act, the Department may: | 3 | | (1) Conduct hearings on proceedings to refuse to issue | 4 | | or renew or to revoke licenses or suspend, place on | 5 | | probation, or reprimand persons licensed under this Act. | 6 | | (2) To adopt rules consistent with the purposes of | 7 | | this Act, including, but not limited to: (i) rules in | 8 | | connection with the activities of collection agencies as | 9 | | may be necessary and appropriate for the protection of | 10 | | consumers in this State; (ii) rules as may be necessary | 11 | | and appropriate to define and enforce against improper or | 12 | | fraudulent business practices in connection with the | 13 | | activities of collection agencies; (iii) rules that define | 14 | | the terms used in this Act and as may be necessary and | 15 | | appropriate to interpret and implement the provisions of | 16 | | this Act; and (iv) rules as may be necessary for the | 17 | | enforcement of this Act Formulate rules required for the | 18 | | administration of this Act . | 19 | | (3) Obtain written recommendations from the Board | 20 | | regarding standards of professional conduct, formal | 21 | | disciplinary actions and the formulation of rules | 22 | | affecting these matters. Notice of proposed rulemaking | 23 | | shall be transmitted to the Board and the
Department shall | 24 | | review the response of the Board and any recommendations | 25 | | made in the response.
The Department may solicit the | 26 | | advice of the Board on any matter relating
to the |
| | | HB5220 Enrolled | - 25 - | LRB102 25772 BMS 35102 b |
|
| 1 | | administration and enforcement of this Act.
| 2 | | (4) (Blank). | 3 | | (Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| 4 | | (225 ILCS 425/16)
| 5 | | (Section scheduled to be repealed on January 1, 2026)
| 6 | | Sec. 16. Investigation; notice and hearing. The Department | 7 | | may
investigate the actions or qualifications of any applicant | 8 | | or of any person rendering or offering to render collection | 9 | | agency services or any person holding or
claiming to hold a | 10 | | license as a collection agency. The Department shall, before
| 11 | | refusing to issue or renew, revoking, suspending, placing on | 12 | | probation, reprimanding, or taking any other disciplinary | 13 | | action under Section 9 of this Act, serve notice on any person, | 14 | | including a statement of the reasons for the Department's | 15 | | action, and notify the person that they may file a Petition for | 16 | | a Hearing with the Department within 30 days of service. All | 17 | | hearings shall be conducted in accordance with 38 Ill. Adm. | 18 | | Code 100 at least 30 days before
the date set for the hearing, | 19 | | (i) notify the accused in writing of the charges made and the | 20 | | time and place for the hearing on the charges, (ii) direct him | 21 | | or her
to
file his or her written answer to the charges with | 22 | | the Department under oath within 20 days after the
service
on | 23 | | him or her of the notice, and (iii) inform the accused that if | 24 | | he or she fails to
file an answer
default will be taken against | 25 | | him or her or his or her license may be
suspended, revoked, or |
| | | HB5220 Enrolled | - 26 - | LRB102 25772 BMS 35102 b |
|
| 1 | | placed on probation, or other disciplinary action may be taken | 2 | | with regard to the license, including limiting the scope, | 3 | | nature, or extent of his or her practice, as the Department may | 4 | | consider proper. At the time and place fixed in
the notice, the | 5 | | Department shall proceed to hear the charges. The parties or
| 6 | | their counsel shall be accorded ample opportunity to present | 7 | | any pertinent statements,
testimony, evidence, and arguments. | 8 | | The Department may continue the hearing from time to time. | 9 | | Nothing in this
Section
shall be construed to require that a | 10 | | hearing be commenced and completed in one
day . At the | 11 | | discretion of the Secretary, after having first received the
| 12 | | recommendation of the Board, the accused person's license
may | 13 | | be suspended or revoked, if the evidence constitutes | 14 | | sufficient grounds for
such action under this Act. If the | 15 | | person fails to file an answer after receiving notice, his or | 16 | | her license may, in the discretion of the Department, be | 17 | | suspended, revoked, or placed on probation, or the Department | 18 | | may take whatever disciplinary action it considers proper, | 19 | | including limiting the scope, nature, or extent of the | 20 | | person's practice or the imposition of a fine, without a | 21 | | hearing, if the act or acts charged constitute sufficient | 22 | | grounds for such action under this Act. Written or electronic | 23 | | notice may be served by personal delivery, mail, or email to | 24 | | the applicant or licensee at the address of record or email | 25 | | address of record. Service by mail is completed when the | 26 | | notice is deposited in the U.S. Mail. Service to the email |
| | | HB5220 Enrolled | - 27 - | LRB102 25772 BMS 35102 b |
|
| 1 | | address of record is completed when the email is sent.
| 2 | | (Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| 3 | | (225 ILCS 425/26)
| 4 | | (Section scheduled to be repealed on January 1, 2026)
| 5 | | Sec. 26. Administrative review; venue. | 6 | | (a) All final administrative decisions of
the Department | 7 | | are subject to judicial review under the Administrative Review
| 8 | | Law and its rules. The term "administrative decision" is | 9 | | defined as in Section
3-101 of the Code of Civil Procedure.
| 10 | | (b) Proceedings for judicial review shall be commenced in | 11 | | the circuit court of
the county in which the party applying for | 12 | | review resides, but if the party is
not a resident of Illinois, | 13 | | the venue shall be in Cook County or Sangamon County.
| 14 | | (Source: P.A. 99-227, eff. 8-3-15.)
| 15 | | (225 ILCS 425/30) | 16 | | (Section scheduled to be repealed on January 1, 2026) | 17 | | Sec. 30. Expiration, renewal, and restoration of license. | 18 | | The expiration date and renewal period for each license shall | 19 | | be set by rule. A collection agency whose license has expired | 20 | | may restore its license at any time within one year 5 years | 21 | | after the expiration thereof , by making a renewal application | 22 | | and by paying the required fee. | 23 | | However, any licensed collection agency whose license has | 24 | | expired while the individual licensed person or while a |
| | | HB5220 Enrolled | - 28 - | LRB102 25772 BMS 35102 b |
|
| 1 | | shareholder, partner, or member owning 50% or more of the | 2 | | interest in the collection agency whose license has expired | 3 | | while he or she was (i) on active duty with the Armed Forces of | 4 | | the United States or called into service or training by the | 5 | | State militia; or (ii) in training or education under the | 6 | | supervision of the United States preliminary to induction into | 7 | | the military service, may have his or her license renewed or | 8 | | restored without paying any lapsed renewal fee or restoration | 9 | | fee if, within 2 years after termination of the service, | 10 | | training, or education, he or she furnishes the Department | 11 | | with satisfactory evidence of service, training, or education | 12 | | and it has been terminated under honorable conditions. | 13 | | Any collection agency whose license has expired for more | 14 | | than one year 5 years may have it restored by applying to the | 15 | | Department, paying the required fee, and filing acceptable | 16 | | proof of fitness to have the license restored as set by rule.
| 17 | | (Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| 18 | | (225 ILCS 425/25 rep.)
| 19 | | Section 15. The Collection Agency Act is amended by | 20 | | repealing Section 25. | 21 | | Section 95. Illinois Compiled Statutes reassignment. The | 22 | | Legislative Reference Bureau shall reassign the following Act | 23 | | to the specified location in the Illinois Compiled Statutes | 24 | | and file appropriate documents with the Index Division of the |
| | | HB5220 Enrolled | - 29 - | LRB102 25772 BMS 35102 b |
|
| 1 | | Office of the Secretary of State in accordance with subsection | 2 | | (c) of Section 5.04 of the Legislative Reference Bureau Act: | 3 | | Collection Agency Act, reassigned from 225 ILCS 425/ to | 4 | | 205 ILCS 740/.
| 5 | | Section 99. Effective date. This Act takes effect January | 6 | | 1, 2023.
|
|