(205 ILCS 740/8) (was 225 ILCS 425/8)
(Section scheduled to be repealed on January 1, 2026)
Sec. 8. Bond requirement. A collection agency shall be required to file and maintain in force a surety bond, issued
by an insurance company authorized to transact fidelity and surety business
in the State of Illinois. The bond shall be for the benefit of creditors
who obtain a judgment from a court of competent jurisdiction based on the
failure of the agency to remit money collected on account and owed to the
creditor. No action on the bond shall be commenced more than one year after
the creditor obtains a judgment against the collection agency from a
court of competent jurisdiction.
The bond shall be in the form prescribed
by the Secretary in the sum of $25,000. The bond shall be continuous in
form and run concurrently with the original and each renewal license period
unless terminated by the insurance company. An insurance company may terminate
a bond and avoid further liability by filing a 60-day notice of termination
with the Department and at the same time sending the same notice to the
agency. A license shall be cancelled on the termination
date of the agency's bond unless a new bond is filed with the Department
to become effective at the termination date of the prior bond. If a license has been cancelled under this Section, the agency must file
a new application and will be considered a new applicant if it obtains a
new bond.
(Source: P.A. 99-227, eff. 8-3-15.)
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