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Public Act 100-0132 | ||||
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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 Collection Agency Act is amended by changing | ||||
Sections 2, 5, 7, 8a, 8c, 9.22, 13.1, 13.2, 16, 17, 27, and 30 | ||||
and by adding Sections 2.5 and 4.6 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(Section scheduled to be repealed on January 1, 2026)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. It is the duty of the applicant or | ||||
licensee to inform the Department of any change of address and | ||||
those changes must be made either through the Department's | ||||
website or by contacting the Department. | ||||
"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. | ||
(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
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(225 ILCS 425/2.5 new) | ||
Sec. 2.5. Address of record; email address of record. All | ||
applicants and licensees shall: | ||
(1) provide a valid address and email address to the | ||
Department, which shall serve as the address of record and |
email address or record, respectively, at the time of | ||
application for licensure or renewal of a license; and | ||
(2) inform the Department of any change of address of | ||
record or email address of record within 14 days after such | ||
change either through the Department's website or through a | ||
multi-state licensing system as designated by the | ||
Secretary. | ||
(225 ILCS 425/4.6 new) | ||
Sec. 4.6. Multi-state licensing system. The Secretary may | ||
require participation in a third-party, multi-state licensing | ||
system for licensing under this Act. The multi-state licensing | ||
system may share regulatory information and maintain records in | ||
compliance with the provisions of this Act. The multi-state | ||
licensing system may charge the applicant an administration | ||
fee.
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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 , 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.)
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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 officers shall:
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(a) be of
good moral character and of the age of 18 | ||
years or more;
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(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 or |
registrant under this Act whose license was licenses or | ||
certificates
were suspended or revoked without subsequent | ||
restoration reinstatement .
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(Source: P.A. 99-227, eff. 8-3-15.)
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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 The fees shall be
nonrefundable.
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(b) All fees collected under this Act by the Department | ||
shall be deposited into the General
Professions Dedicated Fund | ||
and shall be appropriated to the Department for the
ordinary | ||
and contingent expenses of the Department in the administration | ||
of
this Act.
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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. 99-227, eff. 8-3-15.)
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(225 ILCS 425/8c) (from Ch. 111, par. 2011c)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 8c.
(a) Each licensed collection agency shall at all | ||
times maintain a
separate bank account in which all monies |
received on debts shall
be deposited, referred to as a "Trust | ||
Account", except that
negotiable instruments received may be | ||
forwarded directly to a creditor if
such procedure is provided | ||
for by a writing executed by the creditor.
Monies received | ||
shall be so deposited within 5 business days after
posting to | ||
the agency's books of account.
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There shall be sufficient funds in the trust account at all | ||
times to pay
the creditors the amount due them.
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(b) The trust account shall be established in a bank, | ||
savings and loan
association, or other recognized depository | ||
which is federally or State
insured or otherwise secured as | ||
defined by rule. Such account may be
interest bearing. The | ||
licensee shall pay to the creditor interest earned
on funds on | ||
deposit after the sixtieth day.
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(c) Notwithstanding any contractual arrangement, every | ||
client of a
licensee shall within 60 days after the close of | ||
each calendar month, account
and pay to the licensee collection | ||
agency all sums owed to the collection
agency for payments | ||
received by the client during that calendar month on debts
in | ||
possession of the collection agency. If a client fails to pay | ||
the licensee
any sum due under this Section, the licensee | ||
shall, in addition to other
remedies provided by law, have the | ||
right to offset any money due the licensee
under this Section | ||
against any moneys due the client.
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(d) Each collection agency shall keep on file the name of | ||
the
bank,
savings and loan association, or other recognized |
depository in which each
trust account is maintained, the name | ||
of each trust account, and the names
of the persons authorized | ||
to withdraw funds from each account.
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The collection agency, within 30 days of the time of a | ||
change of
depository or person authorized to make withdrawal, | ||
shall update its files
to reflect such change.
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An examination and audit of an agency's trust accounts may | ||
be made by the
Department as the Department deems appropriate.
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A trust account financial report shall be submitted | ||
annually on forms
provided by the Department.
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(Source: P.A. 99-227, eff. 8-3-15.)
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(225 ILCS 425/9.22) (from Ch. 111, par. 2034)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 9.22. Administrative Procedure Act. The Illinois | ||
Administrative
Procedure Act is hereby expressly adopted and | ||
incorporated herein as if all of
the provisions of that Act | ||
were included in this Act, except that the provision
of | ||
subsection (d) of Section 10-65 of the Illinois Administrative | ||
Procedure Act
that provides that at hearings the licensee has | ||
the right to show compliance
with all lawful requirements for | ||
retention, continuation or renewal of the
license is | ||
specifically excluded. For the purposes of this Act the notice
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required under Section 10-25 of the Administrative Procedure | ||
Act is deemed
sufficient when mailed or emailed to the | ||
applicant or licensee at the address of record or email address |
of record of a party .
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(Source: P.A. 99-227, eff. 8-3-15.)
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(225 ILCS 425/13.1) (from Ch. 111, par. 2038.1)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 13.1. Collection Agency Licensing and Disciplinary | ||
Board; members; qualifications; duties. | ||
(a) There
is created in the Department the Collection | ||
Agency Licensing and
Disciplinary Board composed of 7 members | ||
appointed by the Secretary. Five
members of the Board shall be | ||
employed in a collection agency licensed
under this Act and 2 | ||
members of the Board shall represent the general
public, shall | ||
not be employed by or possess an ownership interest in any
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collection agency licensed under this Act, and shall have no | ||
family or business connection with the practice of collection | ||
agencies.
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(b) Each of the members appointed to the Board, except for | ||
the public members, shall have at least 5 years of active | ||
collection agency experience. | ||
(c) The Board shall annually elect a chairperson from among | ||
its members. The members of the Board shall receive no
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compensation for their services, but shall be reimbursed for | ||
their necessary
expenses as authorized by the Department while | ||
engaged in their duties.
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(d) Members shall serve for a term of 4 years and until | ||
their successors are
appointed and qualified. No Board member |
shall be appointed to more than 2 full consecutive
terms. A | ||
partial term of more than 2 years shall be considered a full | ||
term. Appointments to
fill vacancies for the unexpired portion | ||
of a vacated term shall be made in the
same manner as original | ||
appointments. All members shall serve until their successors | ||
are appointed and qualified.
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(e) The Secretary may remove any member of the Board for | ||
cause at any time before the expiration of his or her term. The | ||
Secretary shall be the sole arbiter of cause. | ||
(f) The majority of the Board shall constitute a quorum. A | ||
vacancy in the membership of the Board shall not impair the | ||
right of a quorum to exercise all the duties of the Board. | ||
(g) Members of the Board shall have no liability in any | ||
action based upon any disciplinary proceeding or other activity | ||
performed in good faith as a member of the Board. Members of | ||
the Board shall be immune from suit in any action based upon | ||
disciplinary proceedings or other acts performed in good faith | ||
as members of the Board.
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(Source: P.A. 99-227, eff. 8-3-15.)
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(225 ILCS 425/13.2) (from Ch. 111, par. 2038.2)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 13.2. Powers and duties of Department. The Department | ||
shall
exercise the powers and duties prescribed by the 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.
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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) 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 Board's responses and any | ||
recommendations made in the response
therein .
The | ||
Department may solicit the advice of the Board on any | ||
matter relating
to the administration and enforcement of | ||
this Act.
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(4) (Blank). Maintain rosters of the names and | ||
addresses of all licensees and all persons whose licenses | ||
have been suspended, revoked, or denied renewal for cause | ||
within the previous calendar year. These rosters shall be | ||
available upon written request and payment of the required | ||
fee as established by rule. | ||
(Source: P.A. 99-227, eff. 8-3-15.)
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(225 ILCS 425/16)
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(Section scheduled to be repealed on January 1, 2026)
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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
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refusing to issue or renew, revoking, suspending, placing on | ||
probation, reprimanding, or taking any other disciplinary | ||
action under Section 9 of this Act, 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
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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
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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
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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 This written notice may be served by | ||
personal delivery , or certified mail , or email to the applicant | ||
or licensee respondent at the address of record or email | ||
address of record .
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(Source: P.A. 99-227, eff. 8-3-15.)
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(225 ILCS 425/17)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 17. Record of hearing; transcript. The Department, at | ||
its expense, shall
preserve
a record of all proceedings at the | ||
formal hearing of any case. The notice of
hearing, complaint, | ||
all other documents in the nature of pleadings, written
motions | ||
filed in the proceedings, the transcript of testimony, the | ||
report of
the Board, and orders of the Department shall be in |
the record of the
proceedings. If the respondent orders from | ||
the reporting service and pays for a transcript of the record | ||
within the time for filing a motion for rehearing under Section | ||
20, the 20 calendar day period within which a motion may be | ||
filed shall commence upon the delivery of the transcript to the | ||
respondent.
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(Source: P.A. 99-227, eff. 8-3-15.)
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(225 ILCS 425/27)
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(Section scheduled to be repealed on January 1, 2026)
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Sec. 27. Certifications of record; costs. The Department | ||
shall not be
required to certify any record to the court or | ||
file any answer in court or
otherwise appear in any court in a | ||
judicial review proceeding, unless and until the Department has | ||
received from the plaintiff
payment of the costs of furnishing | ||
and certifying the record, which costs shall be determined by | ||
the Department. Exhibits shall be certified without cost.
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Failure on the part of the plaintiff to file a receipt in court | ||
shall be
grounds for dismissal of the action.
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(Source: P.A. 99-227, eff. 8-3-15.)
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(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 reinstate its license at any time within 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 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 , or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
reinstated without paying any lapsed renewal fee or , | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
restoration fee , or reinstatement 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 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.
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(Source: P.A. 99-227, eff. 8-3-15.)
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Section 99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
becoming law.
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