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Public Act 102-0975 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Financial Institutions Code is amended by | ||||
changing Sections 4 and 6 as follows:
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(20 ILCS 1205/4) (from Ch. 17, par. 104)
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Sec. 4. As used in this Act:
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(a) "Department" means the Department of Financial and | ||||
Professional Regulation Institutions .
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(b) "Director" means the Director of the Division of | ||||
Financial Institutions and any authorized representative of | ||||
the Director .
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"Division" means the Division of Financial Institutions of | ||||
the Department. | ||||
(c) "Person" means any individual, partnership, joint | ||||
venture, trust,
estate, firm, corporation, association or | ||||
cooperative society or
association.
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(d) "Financial institutions" means ambulatory and | ||||
community currency
exchanges, credit unions, guaranteed credit | ||||
unions, money transmitters, persons engaged in the
business of | ||||
transmitting money to foreign countries or buying and selling
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foreign money, pawners' societies, title insuring or | ||||
guaranteeing
companies, consumer installment lenders, payday |
lenders, sales finance agencies, and any other industry or | ||
business that offers services or products that are regulated | ||
under any Act administered by the Director and persons engaged | ||
in the business of making loans of $800 or
less, all as | ||
respectively defined in the laws referred to in Section 6 of
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this Act. The term includes sales finance agencies, as defined | ||
in the
"Sales Finance Agency Act", enacted by the 75th General | ||
Assembly .
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"License" means any certificate or authorization issued to | ||
any person, party, or entity pursuant to any Act administered | ||
by the Division. | ||
"Licensee" means any person, party, or entity who is or | ||
comes to be certified, chartered, registered, licensed, or | ||
otherwise authorized by the Division pursuant to any Act | ||
administered by the Division. | ||
(e) "Payday loan" has the meaning ascribed to that
term in | ||
the Payday Loan Reform Act.
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"Person" means any individual, partnership, joint venture, | ||
trust, estate, firm, corporation, cooperative society or | ||
association, or any other form of business association or | ||
legal entity. | ||
"Secretary" means the Secretary of Financial and | ||
Professional Regulation and any authorized representative of | ||
the Secretary. | ||
(Source: P.A. 94-13, eff. 12-6-05.)
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(20 ILCS 1205/6) (from Ch. 17, par. 106)
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Sec. 6. General powers and duties. In addition to the | ||
powers and duties provided by law and imposed elsewhere in | ||
this Act, the Division
Department has the following powers and | ||
duties :
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(1) To administer and enforce the Consumer Installment | ||
Loan Act and its implementing rules. To exercise the rights, | ||
powers and duties vested by law in the
Auditor of Public | ||
Accounts under "An Act to provide for the incorporation,
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management and regulation of pawners' societies and limiting | ||
the rate of
compensation to be paid for advances, storage and | ||
insurance on pawns and
pledges and to allow the loaning of | ||
money upon personal property", approved
March 29, 1899, as | ||
amended.
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(2) To administer and enforce the Currency Exchange Act | ||
and its implementing rules. To exercise the rights, powers and | ||
duties vested by law in the
Auditor of Public Accounts under | ||
"An Act in relation to the definition,
licensing and | ||
regulation of community currency exchanges and ambulatory
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currency exchanges, and the operators and employees thereof, | ||
and to make an
appropriation therefor, and to provide | ||
penalties and remedies for the
violation thereof", approved | ||
June 30, 1943, as amended.
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(3) To administer and enforce the Debt Management Service | ||
Act and its implementing rules. To exercise the rights, | ||
powers, and duties vested by law in the
Auditor of Public |
Accounts under "An Act in relation to the buying and
selling of | ||
foreign exchange and the transmission or transfer of money to
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foreign countries", approved June 28, 1923, as amended.
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(4) To administer and enforce the Debt Settlement Consumer | ||
Protection Act and its implementing rules. To exercise the | ||
rights, powers, and duties vested by law in the
Auditor of | ||
Public Accounts under "An Act to provide for and regulate the
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business of guaranteeing titles to real estate by | ||
corporations", approved
May 13, 1901, as amended.
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(5) To administer and enforce the Illinois Development | ||
Credit Corporation Act and its implementing rules. To exercise | ||
the rights, powers and duties vested by law in the
Department | ||
of Insurance under "An Act to define, license, and regulate | ||
the
business of making loans of eight hundred dollars or less, | ||
permitting an
interest charge thereon greater than otherwise | ||
allowed by law, authorizing
and regulating the assignment of | ||
wages or salary when taken as security for
any such loan or as | ||
consideration for a payment of eight hundred dollars or
less, | ||
providing penalties, and to repeal Acts therein named", | ||
approved July
11, 1935, as amended.
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(6) To administer and enforce the Payday Loan Reform Act | ||
and its implementing rules. To administer and enforce "An Act | ||
to license and regulate the
keeping and letting of safety | ||
deposit boxes, safes, and vaults, and the
opening thereof, and | ||
to repeal a certain Act therein named", approved June
13, | ||
1945, as amended.
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(7) To administer and enforce the Safety Deposit License | ||
Act and its implementing rules. Whenever the Department is | ||
authorized or required by law to consider
some aspect of | ||
criminal history record information for the purpose of
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carrying out its statutory powers and responsibilities, then, | ||
upon request
and payment of fees in conformance with the | ||
requirements of Section 2605-400 of the Illinois State Police | ||
Law, the
Illinois State Police is authorized to furnish, | ||
pursuant to positive
identification, such information | ||
contained in State files as is necessary
to fulfill the | ||
request.
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(8) To administer and enforce the Sales Finance Agency Act | ||
and its implementing rules. To administer the Payday Loan | ||
Reform Act, the Consumer Installment Loan Act, the Predatory | ||
Loan Prevention Act, the Motor Vehicle Retail Installment | ||
Sales Act, and the Retail Installment Sales Act.
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(9) To administer and enforce the Title Insurance Act and | ||
its implementing rules. | ||
(10) To administer and enforce the Transmitters of Money | ||
Act and its implementing rules. | ||
(11) To administer and enforce the Predatory Loan | ||
Prevention Act and its implementing rules. | ||
(12) To administer and enforce the Motor Vehicle Retail | ||
Installment Sales Act and its implementing rules. | ||
(13) To administer and enforce the Retail Installment | ||
Sales Act and its implementing rules. |
(14) To administer and enforce the Illinois Credit Union | ||
Act and its implementing rules. | ||
(15) To administer and enforce the Collection Agency Act | ||
and its implementing rules. | ||
(16) To administer and enforce any other Act administered | ||
by the Director or Division. | ||
(17) If the Division is authorized or required by law to | ||
consider some aspect of criminal history record information | ||
for the purpose of carrying out its statutory powers and | ||
responsibilities, to obtain from the Illinois State Police, | ||
upon request and payment of the fees required by the Illinois | ||
State Police Law of the Civil Administrative Code of Illinois, | ||
pursuant to positive identification, such information | ||
contained in State files as is necessary to carry out the | ||
duties of the Division. | ||
(18) To authorize and administer examinations to ascertain | ||
the qualifications of applicants and licensees for which the | ||
examination is held. | ||
(19) To conduct hearings in proceedings to revoke, | ||
suspend, refuse to renew, or take other disciplinary action | ||
regarding licenses, charters, certifications, registrations, | ||
or authorities of persons as authorized in any Act | ||
administered by the Division. | ||
(Source: P.A. 101-658, eff. 3-23-21; 102-538, eff. 8-20-21; | ||
revised 10-5-21.)
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Section 10. The Collection Agency Act is amended by | ||
changing Sections 2, 4.5, 5, 7, 8a, 9, 9.2, 11, 13.2, 16, 26, | ||
and 30 as follows:
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(225 ILCS 425/2) (from Ch. 111, par. 2002)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 2. Definitions. In this Act:
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"Address of record" means the designated address recorded | ||
by the Department in the applicant's or licensee's application | ||
file or license file as maintained by the Department's | ||
licensure maintenance unit. | ||
"Board" means the Collection Agency Licensing and | ||
Disciplinary Board. | ||
"Charge-off balance" means an account principal and other | ||
legally collectible costs, expenses, and interest accrued | ||
prior to the charge-off date, less any payments or settlement. | ||
"Charge-off date" means the date on which a receivable is | ||
treated as a loss or expense. | ||
"Collection agency" means any person who, in the ordinary | ||
course of business, regularly, on behalf of himself or herself | ||
or others, engages in the collection of a debt. | ||
"Consumer debt" or "consumer credit" means money or
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property, or their equivalent, due or owing or alleged to be
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due or owing from a natural person by reason of a consumer | ||
credit transaction. | ||
"Credit transaction" means a transaction between a natural |
person and another person in which property, service, or money | ||
is acquired on credit by that natural person from such other | ||
person primarily for personal, family, or household purposes. | ||
"Creditor" means a person who extends consumer credit to a | ||
debtor. | ||
"Current balance" means the charge-off balance plus any | ||
legally collectible costs, expenses, and interest, less any | ||
credits or payments. | ||
"Debt" means money, property, or their equivalent which is | ||
due or owing or alleged to be due or owing from a person to | ||
another person. | ||
"Debt buyer" means a person or entity that is engaged in | ||
the business of purchasing delinquent or charged-off consumer | ||
loans or consumer credit accounts or other delinquent consumer | ||
debt for collection purposes, whether it collects the debt | ||
itself or hires a third-party for collection or an | ||
attorney-at-law for litigation in order to collect such debt. | ||
"Debtor" means a person from whom a collection agency | ||
seeks to collect a consumer or commercial debt that is due and | ||
owing or alleged to be due and owing from such person. | ||
"Department" means the Department of Financial and | ||
Professional Regulation. | ||
"Email address of record" means the designated email | ||
address recorded by the Department in the applicant's | ||
application file or the licensee's license file, as maintained | ||
by the Department's licensure maintenance unit. |
"Person" means a natural person, partnership, corporation, | ||
limited liability company, trust, estate, cooperative, | ||
association, or other similar entity.
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"Licensed collection agency" means a person who is | ||
licensed under this Act to engage in the practice of debt | ||
collection in Illinois. | ||
"Multi-state licensing system" means a web-based platform | ||
that allows licensure applicants to submit their applications | ||
and renewals to the Department online. | ||
"Secretary" means the Secretary of Financial and | ||
Professional Regulation or his or her designee . | ||
(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16; | ||
100-132, eff. 8-18-17.)
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(225 ILCS 425/4.5)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 4.5. Unlicensed practice; violation; civil penalty.
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(a) Any person who practices, offers to practice, attempts | ||
to practice, or
holds oneself out to practice as a collection | ||
agency without being licensed
under this Act shall, in
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addition to any other penalty provided by law, pay a civil | ||
penalty to the
Department in an amount not to exceed $10,000 | ||
for each offense as determined by
the Department. The civil | ||
penalty shall be assessed by the Department after a
hearing is | ||
held in accordance with the provisions set forth in this Act
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regarding the provision of a hearing for the discipline of a |
licensee.
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(b) The Department has the authority and power to | ||
investigate any and all
unlicensed activity. In addition to | ||
taking any other action provided under this Act, whenever the | ||
Department has reason to believe a person has violated any | ||
provision of subsection (a) of this Section, the Department | ||
may issue a rule to show cause why an order to cease and desist | ||
should not be entered against that person. The rule shall | ||
clearly set forth the grounds relied upon by the Department | ||
and shall provide a period of 7 days from the date of the rule | ||
to file an answer to the satisfaction of the Department. | ||
Failure to answer to the satisfaction of the Department shall | ||
provide the Department authority to issue cause an order to | ||
cease and desist to be issued immediately.
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(c) The civil penalty shall be paid within 60 days after | ||
the effective date
of the order imposing the civil penalty. | ||
The order shall constitute a judgment
and may be filed and | ||
executed execution had thereon in the same manner as any | ||
judgment
from any court of record.
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(d) All moneys collected under this Section shall be | ||
deposited into the Financial Institution Fund. | ||
(Source: P.A. 102-205, eff. 7-30-21.)
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(225 ILCS 425/5) (from Ch. 111, par. 2008)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 5. Application for original license. Application for |
an original license shall be made to the Secretary on
forms | ||
provided by the Department or through a multi-state licensing | ||
system as designated by the Secretary . The application , shall | ||
be accompanied by the required fee
and shall state:
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(1) the applicant's name and address;
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(2) the names and addresses of the officers of the | ||
collection agency
and, if the collection agency is a | ||
corporation, the names and addresses
of all persons owning | ||
10% or more of the stock of such corporation, if the | ||
collection agency is a partnership, the names and | ||
addresses of all partners of the partnership holding a 10% | ||
or more interest in the partnership, if the collection | ||
agency is a limited liability company, the names and | ||
addresses of all members holding 10% or more interest in | ||
the limited liability company, and if the collection | ||
agency is any other legal business entity, the names and | ||
addresses of all persons owning 10% or more interest in | ||
the entity; and
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(3) such other information as the Department may deem | ||
necessary.
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(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
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(225 ILCS 425/7) (from Ch. 111, par. 2010)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 7. Qualifications for license. In order to be | ||
qualified to obtain a license or a renewal license under this |
Act, a collection agency's owners or officers shall:
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(a) have the financial responsibility, financial | ||
condition, business experience, character, and general | ||
fitness such as to merit the confidence and trust of the | ||
public that an applicant, licensee, or regulated person is | ||
fit, willing, and able to carry on his or her proposed | ||
business in a lawful and fair manner be of
good moral | ||
character and of the age of 18 years or more ;
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(a-5) be 18 years of age or more; | ||
(b) (blank); and
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(c) have an acceptable credit rating, have no | ||
unsatisfied judgments; and not
have been officers and | ||
owners of 10% or more interest of a former licensee under | ||
this Act whose license was suspended or revoked without | ||
subsequent restoration.
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(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
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(225 ILCS 425/8a) (from Ch. 111, par. 2011a)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 8a. Fees. | ||
(a) The
fees for the administration and enforcement of | ||
this Act, including but not
limited to original licensure, | ||
renewal, and restoration, shall be set by the Department by | ||
rule. All fees are
nonrefundable.
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(b) All fees collected under this Act by the Department | ||
shall be deposited into the Financial Institution Fund and |
shall be appropriated to the Department for the
ordinary and | ||
contingent expenses of the Department in the administration of
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this Act. After the effective date of this amendatory Act of | ||
the 102nd General Assembly, the Department may transfer any | ||
funds fees collected under this Act from the General | ||
Professions Dedicated Fund to the Financial Institution Fund.
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(c) The administration fee charged by the multi-state | ||
licensing system shall be paid directly to the multi-state | ||
licensing system. | ||
(Source: P.A. 102-205, eff. 7-30-21.)
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(225 ILCS 425/9) (from Ch. 111, par. 2012)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 9. Disciplinary actions. | ||
(a) The Department may refuse to issue or renew, or may
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revoke, suspend, place on probation, reprimand or take other | ||
disciplinary or non-disciplinary
action as the Department may | ||
deem proper, including fines not to exceed $10,000 per | ||
violation, for any one or any combination of the
following | ||
causes:
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(1) Material misstatement in furnishing information to | ||
the Department. | ||
(2) Violations of this Act or of the rules promulgated | ||
hereunder.
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(3) Conviction by plea of guilty or nolo contendere, | ||
finding of guilt, jury verdict, or entry of judgment or by |
sentencing of any crime, including, but not limited to, | ||
convictions, preceding sentences of supervision, | ||
conditional discharge, or first offender probation of the | ||
collection agency or any of the officers or owners of more | ||
than 10% interest of the agency
of any crime under the laws | ||
of any U.S. jurisdiction that (i) is a felony, (ii) is a | ||
misdemeanor, an essential element of which is dishonesty, | ||
or (iii) is directly related to the practice of a | ||
collection agency.
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(4) Fraud or misrepresentation in applying for, or | ||
procuring, a license under this Act or in connection with | ||
applying for renewal of a license
under this Act. | ||
(5) Aiding or assisting another person in violating | ||
any provision of this Act or rules adopted under this Act. | ||
(6) Failing, within 60 days, to provide information in | ||
response to a written request made by the Department.
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(7) Habitual or excessive use or addiction to alcohol, | ||
narcotics,
stimulants or any other chemical agent or drug | ||
which results in the
inability to practice with reasonable | ||
judgment, skill, or safety by any of
the officers or | ||
owners of 10% or more interest of a collection agency.
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(8) Discipline by another state, the District of | ||
Columbia, a territory of the United States, or a foreign | ||
nation, if at
least one of the grounds for the discipline | ||
is the same or substantially
equivalent to those set forth | ||
in this Act.
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(9) A finding by the Department that the licensee, | ||
after having his or her
license placed on probationary | ||
status, has violated the terms of probation. | ||
(10) Willfully making or filing false records or | ||
reports in his or her practice, including, but not limited | ||
to, false records filed with State agencies or | ||
departments.
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(11) Practicing or attempting to practice under a | ||
false or, except as provided by law, an assumed name.
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(12) An adjudicated A finding by the Federal Trade | ||
Commission or other federal or State agency that a | ||
licensee violated
the federal Fair Debt Collection | ||
Practices Act or its rules.
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(13) Failure to file a return, or to pay the tax, | ||
penalty or interest
shown in a filed return, or to pay any | ||
final assessment of tax, penalty or
interest, as required | ||
by any tax Act administered by the Illinois
Department of | ||
Revenue until such time as the requirements of any such | ||
tax
Act are satisfied.
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(14) Using or threatening to use force or violence to | ||
cause physical
harm to a debtor, his or her family or his | ||
or her property.
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(15) Threatening to instigate an arrest or criminal | ||
prosecution where no
basis for a criminal complaint | ||
lawfully exists.
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(16) Threatening the seizure, attachment or sale of a |
debtor's property
where such action can only be taken | ||
pursuant to court order without
disclosing that prior | ||
court proceedings are required.
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(17) Disclosing or threatening to disclose information | ||
adversely
affecting a debtor's reputation for credit | ||
worthiness with knowledge the
information is false.
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(18) Threatening Initiating or threatening to initiate | ||
communication with a debtor's
employer unless there has | ||
been a default of the payment of the obligation
for at | ||
least 30 days and the licensee has given at least 5 days | ||
prior written notice , to the last
known address of the | ||
debtor, of the intention to communicate with the
employer | ||
has been given to the employee to the last known address of | ||
the debtor , except as expressly permitted by
law or court | ||
order .
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(19) Communicating with the debtor or any member of | ||
the debtor's family
at such a time of day or night and with | ||
such frequency as to constitute
harassment of the debtor | ||
or any member of the debtor's family. For
purposes of this | ||
Section the following conduct shall constitute harassment:
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(A) Communicating with the debtor or any member of | ||
his or her family
in connection with the collection of | ||
any debt without the prior consent of the
debtor given | ||
directly to the debt collector, or the express | ||
permission of a
court of competent jurisdiction, at | ||
any unusual time or place or a time or
place known or |
which should be known to be inconvenient to the | ||
debtor. In
the absence of knowledge of circumstances | ||
to the contrary, a debt collector
shall assume that | ||
the convenient time for communicating with a consumer | ||
is
after 8 o'clock a.m. and before 9 o'clock p.m. in | ||
the debtor's local time at the debtor's
location .
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(B) The threat of publication or publication of a | ||
list of consumers who
allegedly refuse to pay debts, | ||
except to a consumer reporting agency.
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(C) The threat of advertisement or advertisement | ||
for sale of any debt to
coerce payment of the debt.
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(D) Causing a telephone to ring or engaging any | ||
person in telephone
conversation repeatedly or | ||
continuously with intent to annoy, abuse, or
harass | ||
any person at the called number.
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(20) Using profane, obscene or abusive language in | ||
communicating with a
debtor, his or her family or others.
| ||
(21) Disclosing or threatening to disclose information | ||
relating to a
debtor's debt to any other person except | ||
where such other person has
a legitimate business need for | ||
the information or except where such
disclosure is | ||
permitted by law.
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(22) Disclosing or threatening to disclose information | ||
concerning the
existence of a debt which the collection | ||
agency knows to be
disputed by the debtor without | ||
disclosing the fact that the debtor
disputes the debt.
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(23) Engaging in any conduct that is intended to
cause | ||
and did cause mental or physical illness to the debtor or | ||
his
or her
family.
| ||
(24) Attempting or threatening to enforce a right or | ||
remedy with
knowledge or reason to know that the right or | ||
remedy does not exist.
| ||
(25) Failing to disclose to the debtor or his or her | ||
family the legally authorized
corporate, partnership or | ||
proprietary name, or other trade or business name,
under
| ||
which the collection agency is engaging in debt | ||
collections and which he or
she is legally authorized to | ||
use .
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(26) Using any form of communication which simulates | ||
legal or judicial
process or which gives the appearance of | ||
being authorized, issued , or
approved by a governmental | ||
agency or official or by an attorney at law
when it is not.
| ||
(27) Using any badge, uniform, or other indicia of any | ||
governmental
agency or official except as authorized by | ||
law.
| ||
(28) Conducting business under any name or in any | ||
manner which suggests
or implies that the collection | ||
agency is a
branch of or is affiliated in any way with a | ||
governmental agency or court if such
collection agency is | ||
not.
| ||
(29) Failing to disclose, at the time of making any | ||
demand for payment,
the name of the person to whom the debt |
is owed and at the request of the
debtor, the address where | ||
payment is to be made and the address of the
person to whom | ||
the debt is owed.
| ||
(30) Misrepresenting the amount of the debt alleged to | ||
be owed.
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(31) Representing that an existing debt may be | ||
increased by the addition
of attorney's fees, | ||
investigation fees or any other fees or charges when
such | ||
fees or charges may not legally be added to the existing | ||
debt.
| ||
(32) Representing that the collection agency is an | ||
attorney at law or an
agent for an attorney if he or she is | ||
not.
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(33) Collecting or attempting to collect any interest | ||
or other charge or
fee in excess of the actual debt unless | ||
such interest or other
charge or fee is expressly | ||
authorized by the agreement creating the debt unless | ||
expressly authorized by law or unless in a commercial
| ||
transaction such interest or other charge or fee is | ||
expressly authorized in
a subsequent agreement. If a | ||
contingency or hourly fee arrangement (i) is
established | ||
under an agreement between a collection agency and a | ||
creditor to
collect a debt and (ii) is paid by a debtor | ||
pursuant to a contract between the
debtor and the | ||
creditor, then that fee arrangement does not violate this
| ||
Section unless the fee is unreasonable. The Department |
shall determine what
constitutes a reasonable collection | ||
fee.
| ||
(34) Communicating or threatening to communicate with | ||
a debtor when the
collection agency is informed in writing | ||
by an attorney that the attorney
represents the debtor | ||
concerning the debt. If the attorney fails to respond | ||
within a reasonable period of
time, the collector may | ||
communicate with the debtor. The collector may
communicate | ||
with the debtor when the attorney gives his or her | ||
consent.
| ||
(35) Engaging in dishonorable, unethical, or | ||
unprofessional conduct of a
character likely to deceive, | ||
defraud, or harm the public.
| ||
(b) No collection agency while collecting or attempting to | ||
collect a debt shall
engage in any of the Acts specified in | ||
this Section, each of which shall
be unlawful practice.
| ||
(Source: P.A. 99-227, eff. 8-3-15; 100-872, eff. 8-14-18.)
| ||
(225 ILCS 425/9.2) | ||
(Section scheduled to be repealed on January 1, 2026) | ||
Sec. 9.2. Communication in connection with debt | ||
collection. | ||
(a) Without the prior consent of the debtor given directly | ||
to the collection agency or the express permission of a court | ||
of competent jurisdiction, a collection agency may not | ||
communicate with a debtor in connection with the collection of |
any debt in any of the following circumstances: | ||
(1) At any unusual time, place, or manner that is | ||
known or should be known to be inconvenient to the debtor. | ||
In the absence of knowledge of circumstances to the | ||
contrary, a collection agency shall assume that the | ||
convenient time for communicating with a debtor is after | ||
8:00 a.m. and before 9:00 p.m. in the debtor's local time | ||
at the debtor's location . | ||
(2) If the collection agency knows the debtor is | ||
represented by an attorney with respect to such debt and | ||
has knowledge of or can readily ascertain, the attorney's | ||
name and address, unless the attorney fails to respond | ||
within a reasonable period of time to a communication from | ||
the collection agency or unless the attorney consents to | ||
direct communication with the debtor. | ||
(3) At the debtor's place of employment, if the | ||
collection agency knows or has reason to know that the | ||
debtor's employer prohibits the debtor from receiving such | ||
communication. | ||
(b) Except as provided in Section 9.1 of this Act, a | ||
collection agency may not communicate, in connection with the | ||
collection of any debt, with any person other than the debtor, | ||
the debtor's attorney, a consumer reporting agency if | ||
otherwise permitted by law, the creditor, the attorney of the | ||
creditor, or the attorney of the collection agency without the | ||
prior consent of the debtor given directly to the collection |
agency, the express permission of a court of competent | ||
jurisdiction, or as reasonably necessary to effectuate a | ||
post - judgment judicial remedy , a collection agency may not | ||
communicate, in connection with the collection of any debt, | ||
with any person other than the debtor, the debtor's attorney, | ||
a consumer reporting agency if otherwise permitted by law, the | ||
creditor, the attorney of the creditor, or the attorney of the | ||
collection agency . | ||
(c) If a debtor notifies a collection agency in writing | ||
that the debtor refuses to pay a debt or that the debtor wishes | ||
the collection agency to cease further communication with the | ||
debtor, the collection agency may not communicate further with | ||
the debtor with respect to such debt, except to perform any of | ||
the following tasks: | ||
(1) Advise the debtor that the collection agency's | ||
further efforts are being terminated. | ||
(2) Notify the debtor that the collection agency or | ||
creditor may invoke specified remedies that are ordinarily | ||
invoked by such collection agency or creditor. | ||
(3) Notify the debtor that the collection agency or | ||
creditor intends to invoke a specified remedy. | ||
If such notice from the debtor is made by mail, | ||
notification shall be complete upon receipt.
| ||
(d) For the purposes of this Section, "debtor" includes | ||
the debtor's spouse, parent (if the debtor is a minor), | ||
guardian, executor, or administrator.
|
(e) This Section applies to a collection agency or debt | ||
buyer only when engaged in the collection of consumer debt. | ||
(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
| ||
(225 ILCS 425/11) (from Ch. 111, par. 2036)
| ||
(Section scheduled to be repealed on January 1, 2026)
| ||
Sec. 11. Informal conferences. Informal conferences , after | ||
a formal hearing is requested, shall be conducted
with at | ||
least one member of the Board in attendance.
Notwithstanding | ||
any provisions concerning the conduct of hearings and
| ||
recommendations for disciplinary actions, the Department has | ||
the authority to
negotiate agreements with licensees and | ||
applicants resulting in disciplinary or non-disciplinary
| ||
consent orders. The consent orders may provide for any of the | ||
forms of
discipline provided in this Act. The consent orders | ||
shall provide that they
were not entered into as a result of | ||
any coercion by the Department.
| ||
(Source: P.A. 99-227, eff. 8-3-15.)
| ||
(225 ILCS 425/13.2) (from Ch. 111, par. 2038.2)
| ||
(Section scheduled to be repealed on January 1, 2026)
| ||
Sec. 13.2. Powers and duties of Department. The Department | ||
shall
exercise the powers and duties prescribed by the | ||
Financial Institutions Code Civil Administrative Code
of | ||
Illinois for the administration of licensing Acts and shall | ||
exercise
such other powers and duties necessary for |
effectuating the purposes of
this Act.
| ||
Subject to the provisions of this Act, the Department may: | ||
(1) Conduct hearings on proceedings to refuse to issue | ||
or renew or to revoke licenses or suspend, place on | ||
probation, or reprimand persons licensed under this Act. | ||
(2) To adopt rules consistent with the purposes of | ||
this Act, including, but not limited to: (i) rules in | ||
connection with the activities of collection agencies as | ||
may be necessary and appropriate for the protection of | ||
consumers in this State; (ii) rules as may be necessary | ||
and appropriate to define and enforce against improper or | ||
fraudulent business practices in connection with the | ||
activities of collection agencies; (iii) rules that define | ||
the terms used in this Act and as may be necessary and | ||
appropriate to interpret and implement the provisions of | ||
this Act; and (iv) rules as may be necessary for the | ||
enforcement of this Act Formulate rules required for the | ||
administration of this Act . | ||
(3) Obtain written recommendations from the Board | ||
regarding standards of professional conduct, formal | ||
disciplinary actions and the formulation of rules | ||
affecting these matters. Notice of proposed rulemaking | ||
shall be transmitted to the Board and the
Department shall | ||
review the response of the Board and any recommendations | ||
made in the response.
The Department may solicit the | ||
advice of the Board on any matter relating
to the |
administration and enforcement of this Act.
| ||
(4) (Blank). | ||
(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| ||
(225 ILCS 425/16)
| ||
(Section scheduled to be repealed on January 1, 2026)
| ||
Sec. 16. Investigation; notice and hearing. The Department | ||
may
investigate the actions or qualifications of any applicant | ||
or of any person rendering or offering to render collection | ||
agency services or any person holding or
claiming to hold a | ||
license as a collection agency. The Department shall, before
| ||
refusing to issue or renew, revoking, suspending, placing on | ||
probation, reprimanding, or taking any other disciplinary | ||
action under Section 9 of this Act, serve notice on any person, | ||
including a statement of the reasons for the Department's | ||
action, and notify the person that they may file a Petition for | ||
a Hearing with the Department within 30 days of service. All | ||
hearings shall be conducted in accordance with 38 Ill. Adm. | ||
Code 100 at least 30 days before
the date set for the hearing, | ||
(i) notify the accused in writing of the charges made and the | ||
time and place for the hearing on the charges, (ii) direct him | ||
or her
to
file his or her written answer to the charges with | ||
the Department under oath within 20 days after the
service
on | ||
him or her of the notice, and (iii) inform the accused that if | ||
he or she fails to
file an answer
default will be taken against | ||
him or her or his or her license may be
suspended, revoked, or |
placed on probation, or other disciplinary action may be taken | ||
with regard to the license, including limiting the scope, | ||
nature, or extent of his or her practice, as the Department may | ||
consider proper. At the time and place fixed in
the notice, the | ||
Department shall proceed to hear the charges. The parties or
| ||
their counsel shall be accorded ample opportunity to present | ||
any pertinent statements,
testimony, evidence, and arguments. | ||
The Department may continue the hearing from time to time. | ||
Nothing in this
Section
shall be construed to require that a | ||
hearing be commenced and completed in one
day . At the | ||
discretion of the Secretary, after having first received the
| ||
recommendation of the Board, the accused person's license
may | ||
be suspended or revoked, if the evidence constitutes | ||
sufficient grounds for
such action under this Act. If the | ||
person fails to file an answer after receiving notice, his or | ||
her license may, in the discretion of the Department, be | ||
suspended, revoked, or placed on probation, or the Department | ||
may take whatever disciplinary action it considers proper, | ||
including limiting the scope, nature, or extent of the | ||
person's practice or the imposition of a fine, without a | ||
hearing, if the act or acts charged constitute sufficient | ||
grounds for such action under this Act. Written or electronic | ||
notice may be served by personal delivery, mail, or email to | ||
the applicant or licensee at the address of record or email | ||
address of record. Service by mail is completed when the | ||
notice is deposited in the U.S. Mail. Service to the email |
address of record is completed when the email is sent.
| ||
(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| ||
(225 ILCS 425/26)
| ||
(Section scheduled to be repealed on January 1, 2026)
| ||
Sec. 26. Administrative review; venue. | ||
(a) All final administrative decisions of
the Department | ||
are subject to judicial review under the Administrative Review
| ||
Law and its rules. The term "administrative decision" is | ||
defined as in Section
3-101 of the Code of Civil Procedure.
| ||
(b) Proceedings for judicial review shall be commenced in | ||
the circuit court of
the county in which the party applying for | ||
review resides, but if the party is
not a resident of Illinois, | ||
the venue shall be in Cook County or Sangamon County.
| ||
(Source: P.A. 99-227, eff. 8-3-15.)
| ||
(225 ILCS 425/30) | ||
(Section scheduled to be repealed on January 1, 2026) | ||
Sec. 30. Expiration, renewal, and restoration of license. | ||
The expiration date and renewal period for each license shall | ||
be set by rule. A collection agency whose license has expired | ||
may restore its license at any time within one year 5 years | ||
after the expiration thereof , by making a renewal application | ||
and by paying the required fee. | ||
However, any licensed collection agency whose license has | ||
expired while the individual licensed person or while a |
shareholder, partner, or member owning 50% or more of the | ||
interest in the collection agency whose license has expired | ||
while he or she was (i) on active duty with the Armed Forces of | ||
the United States or called into service or training by the | ||
State militia; or (ii) in training or education under the | ||
supervision of the United States preliminary to induction into | ||
the military service, may have his or her license renewed or | ||
restored without paying any lapsed renewal fee or restoration | ||
fee if, within 2 years after termination of the service, | ||
training, or education, he or she furnishes the Department | ||
with satisfactory evidence of service, training, or education | ||
and it has been terminated under honorable conditions. | ||
Any collection agency whose license has expired for more | ||
than one year 5 years may have it restored by applying to the | ||
Department, paying the required fee, and filing acceptable | ||
proof of fitness to have the license restored as set by rule.
| ||
(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
| ||
(225 ILCS 425/25 rep.)
| ||
Section 15. The Collection Agency Act is amended by | ||
repealing Section 25. | ||
Section 95. Illinois Compiled Statutes reassignment. The | ||
Legislative Reference Bureau shall reassign the following Act | ||
to the specified location in the Illinois Compiled Statutes | ||
and file appropriate documents with the Index Division of the |
Office of the Secretary of State in accordance with subsection | ||
(c) of Section 5.04 of the Legislative Reference Bureau Act: | ||
Collection Agency Act, reassigned from 225 ILCS 425/ to | ||
205 ILCS 740/.
| ||
Section 99. Effective date. This Act takes effect January | ||
1, 2023.
|