Bill Text: IL HB3554 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Regulatory Sunset Act. Removes the Collection Agency Act from the list of Acts being repealed under the Act. Amends the Collection Agency Act. Makes changes concerning defined terms; exempt persons and entities under the Act; unlicensed practice; disciplinary actions; communication; informal conferences; penalties; investigations; the record of hearing; oaths; findings and recommendations; hearings; orders; and returned payments. Provides that the fee rate a collection agency can charge may be modified by rule to not less than 25% of the amount of child support actually collected by the collection agency but not greater than 35%. Repeals provisions concerning the Collection Agency Licensing and Disciplinary Board and provisions concerning when a person acts as a collection agency. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3554 Detail]

Download: Illinois-2025-HB3554-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3554 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
5 ILCS 80/4.36
205 ILCS 740/2 was 225 ILCS 425/2
205 ILCS 740/2.03 was 225 ILCS 425/2.03
205 ILCS 740/2.04 was 225 ILCS 425/2.04
205 ILCS 740/4 was 225 ILCS 425/4
205 ILCS 740/4.5 was 225 ILCS 425/4.5
205 ILCS 740/9 was 225 ILCS 425/9
205 ILCS 740/9.1 was 225 ILCS 425/9.1
205 ILCS 740/13.2 was 225 ILCS 425/13.2
205 ILCS 740/14b was 225 ILCS 425/14b
205 ILCS 740/16 was 225 ILCS 425/16
205 ILCS 740/17 was 225 ILCS 425/17
205 ILCS 740/18 was 225 ILCS 425/18
205 ILCS 740/19 was 225 ILCS 425/19
205 ILCS 740/20 was 225 ILCS 425/20
205 ILCS 740/22 was 225 ILCS 425/22
205 ILCS 740/23 was 225 ILCS 425/23
205 ILCS 740/35 was 225 ILCS 425/35
205 ILCS 740/3 rep.
205 ILCS 740/13.1 rep.
Amends the Regulatory Sunset Act. Removes the Collection Agency Act from the list of Acts being repealed under the Act. Amends the Collection Agency Act. Makes changes concerning defined terms; exempt persons and entities under the Act; unlicensed practice; disciplinary actions; communication; informal conferences; penalties; investigations; the record of hearing; oaths; findings and recommendations; hearings; orders; and returned payments. Provides that the fee rate a collection agency can charge may be modified by rule to not less than 25% of the amount of child support actually collected by the collection agency but not greater than 35%. Repeals provisions concerning the Collection Agency Licensing and Disciplinary Board and provisions concerning when a person acts as a collection agency. Makes other changes.
LRB104 12039 BAB 22134 b
A BILL FOR
HB3554 LRB104 12039 BAB 22134 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Regulatory Sunset Act is amended by
changing Section 4.36 as follows:
(5 ILCS 80/4.36)
Sec. 4.36. Acts repealed on January 1, 2026. The following
Acts are repealed on January 1, 2026:
The Barber, Cosmetology, Esthetics, Hair Braiding, and
Nail Technology Act of 1985.
The Collection Agency Act.
The Hearing Instrument Consumer Protection Act.
The Illinois Athletic Trainers Practice Act.
The Illinois Dental Practice Act.
The Illinois Roofing Industry Licensing Act.
The Illinois Physical Therapy Act.
The Professional Geologist Licensing Act.
The Respiratory Care Practice Act.
(Source: P.A. 99-26, eff. 7-10-15; 99-204, eff. 7-30-15;
99-227, eff. 8-3-15; 99-229, eff. 8-3-15; 99-230, eff. 8-3-15;
99-427, eff. 8-21-15; 99-469, eff. 8-26-15; 99-492, eff.
12-31-15; 99-642, eff. 7-28-16.)

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Section 10. The Collection Agency Act is amended by
changing Sections 2, 2.03, 2.04, 4, 4.5, 9, 9.1, 11, 13.2, 14b,
16, 17, 18, 19, 20, 22, 23, and 35 as follows:
(205 ILCS 740/2) (was 225 ILCS 425/2)
(Section scheduled to be repealed on January 1, 2026)
Sec. 2. Definitions. In this Act:
"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
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, (1) engages in the
business of collection of any debt for others; (2) engages in
the business of receiving, by assignment or otherwise, debt
from any person who owns or controls 20% or more of the
business receiving the assignment with the purpose of
collecting moneys due on such debt; (3) sells or attempts to
sell, or gives away or attempts to give away to any other

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person, other than a person licensed under this Act, any
system of collection, letters, demand forms, or other printed
matter where the name of any person, other than that of the
creditor, appears in such a manner as to indicate, directly or
indirectly, that a request or demand is being made by any
person other than the creditor for the payment of the sum or
sums due or asserted to be due; (4) engages in the business of
buying debt; (5) engages in the business of using a fictitious
name in collecting its own accounts, bills, or debts with the
intention of conveying to the debtor that a third party has
been employed to make such collection; or (6) engages in the
business of collection of a check or other payment that is
returned unpaid by the financial institution upon which it is
drawn on behalf of himself or herself or others, engages in the
collection of a debt.
"Consumer debt" or "consumer credit" means money or
property, or their equivalent, due or owing or alleged to be
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

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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 to collect third-party for
collection or hires 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 Department's licensure maintenance unit.
"Person" means a natural person, partnership, corporation,
limited liability company, trust, estate, cooperative,
association, or other similar entity.
"Licensed collection agency" means a person who is
licensed under this Act to act as a collection agency to engage

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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.
"Person" means a natural person, partnership, corporation,
limited liability company, trust, estate, cooperative,
association, or other similar entity.
"Secretary" means the Secretary of Financial and
Professional Regulation or the Secretary's his or her
designee.
(Source: P.A. 102-975, eff. 1-1-23.)
(205 ILCS 740/2.03) (was 225 ILCS 425/2.03)
(Section scheduled to be repealed on January 1, 2026)
Sec. 2.03. Exemptions. This Act does not apply to persons
whose collection activities are confined to and are directly
related to the operation of a business other than that of a
collection agency, and specifically does not include the
following:
1. Banks, including trust departments, affiliates, and
subsidiaries thereof, and fiduciaries, and financing and
lending institutions (except those who own or operate
collection agencies);
2. Abstract companies doing an escrow business;
3. Real estate brokers when acting in the pursuit of
their profession;

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4. Public officers and judicial officers acting under
order of a court;
5. Licensed attorneys at law;
6. Insurance companies;
7. Credit unions, including affiliates and
subsidiaries thereof (except those who own or operate
collection agencies);
8. Persons Loan and finance companies, including
entities licensed pursuant to the Residential Mortgage
License Act of 1987 when engaged in activity authorized
under that Act;
9. Retail sellers stores collecting on retail
installment contracts or retail charge agreements
originated by the retail seller their own accounts;
10. Unit Owner's Associations established under the
Condominium Property Act, and their duly authorized
agents, when collecting assessments from unit owners; and
11. Any person or business under contract with a
creditor to notify the creditor's debtors of a debt using
only the creditor's name. ;
12. Persons licensed pursuant to the Sales Finance
Agency Act when engaged in collection of accounts
purchased or loans made pursuant to that Act;
13. Persons licensed pursuant to the Student Loan
Servicing Act when engaged in activity authorized under
that Act;

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14. Persons licensed pursuant to the Consumer
Installment Loan Act when engaged in collection of loans
that were originated under that Act;
15. Persons engaged in the business of originating
loans of money pursuant to the Interest Act when engaged
in collecting loans that originated under that Act;
16. Motor vehicle retail sellers collecting motor
vehicle retail installment contracts originated by the
motor vehicle retail seller;
17. Any person licensed pursuant to the Consumer Legal
Funding Act when engaged in activity authorized by that
Act;
18. Any person licensed pursuant to the Pawnbroker
Regulation Act of 2023 when engaged in activity authorized
by that Act; and
19. Any person identified by the Department by rule.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/2.04) (was 225 ILCS 425/2.04)
(Section scheduled to be repealed on January 1, 2026)
Sec. 2.04. Child support debt.
(a) Collection agencies engaged in the business of
collecting child support debt owing under a court order as
provided under the Illinois Public Aid Code, the Illinois
Marriage and Dissolution of Marriage Act, the Non-Support
Punishment Act, the Illinois Parentage Act of 1984, the

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Illinois Parentage Act of 2015, or similar laws of other
states are not restricted (i) in the frequency of contact with
an obligor who is in arrears, whether by phone, mail, or other
means, (ii) from contacting the employer of an obligor who is
in arrears, (iii) from publishing or threatening to publish a
list of obligors in arrears, (iv) from disclosing or
threatening to disclose an arrearage that the obligor
disputes, but for which a verified notice of delinquency has
been served under the Income Withholding for Support Act (or
any of its predecessors, Section 10-16.2 of the Illinois
Public Aid Code, Section 706.1 of the Illinois Marriage and
Dissolution of Marriage Act, Section 22 of the Non-Support
Punishment Act, Section 26.1 of the Revised Uniform Reciprocal
Enforcement of Support Act, or Section 20 of the Illinois
Parentage Act of 1984), or (v) from engaging in conduct that
would not cause a reasonable person mental or physical
illness. For purposes of this subsection, "obligor" means an
individual who owes a duty to make periodic payments, under a
court order, for the support of a child. "Arrearage" means the
total amount of an obligor's unpaid child support obligations.
(a-5) A collection agency may not impose a fee or charge,
including costs, for any child support payments collected
through the efforts of a federal, State, or local government
agency, including but not limited to child support collected
from federal or State tax refunds, unemployment benefits, or
Social Security benefits.

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No collection agency that collects child support payments
shall (i) impose a charge or fee, including costs, for
collection of a current child support payment, (ii) fail to
apply collections to current support as specified in the order
for support before applying collection to arrears or other
amounts, or (iii) designate a current child support payment as
arrears or other amount owed. In all circumstances, the
collection agency shall turn over to the obligee all support
collected in a month up to the amount of current support
required to be paid for that month.
As to any fees or charges, including costs, retained by
the collection agency, that agency shall provide documentation
to the obligee demonstrating that the child support payments
resulted from the actions of the agency.
After collection of the total amount or arrearage,
including statutory interest, due as of the date of execution
of the collection contract, no further fees may be charged.
(a-10) A The Department shall determine a fee rate of not
less than 25% but not greater than 35%, based upon
presentation by the licensees as to costs to provide the
service and a fair rate of return. This rate shall be
established by administrative rule. Without prejudice to the
determination by the Department of the appropriate rate
through administrative rule, a collection agency shall impose
a fee of not more than 29% of the amount of child support
actually collected by the collection agency subject to the

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provisions of subsection (a-5). This rate may be modified by
rule to a fee rate of not less than 25% but not greater than
35% This interim rate is based upon the March 2002 General
Account Office report "Child Support Enforcement", GAO-02-349.
This rate shall apply until a fee rate is established by
administrative rule.
(b) The Department shall adopt rules necessary to
administer and enforce the provisions of this Section.
(Source: P.A. 99-85, eff. 1-1-16; 99-227, eff. 8-3-15; 99-642,
eff. 7-28-16.)
(205 ILCS 740/4) (was 225 ILCS 425/4)
(Section scheduled to be repealed on January 1, 2026)
Sec. 4. No collection agency shall operate in this State,
directly or indirectly engage in the business of collecting
debt, solicit debt claims for others, have a sales office, a
client, or solicit a client in this State, exercise the right
to collect, or receive payment for another of any debt,
without obtaining a license under this Act. Notwithstanding
any other provision of this Section, except that no collection
agency shall be required to be licensed if the agency's
activities in this State are limited to collecting debts from
debtors located in this State by means of interstate
communication, including telephone, mail, or facsimile
transmission, electronic mail, or any other Internet
communication from the agency's location in another state

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provided they are licensed in that state and these same
privileges are permitted in that licensed state to agencies
licensed in Illinois.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/4.5) (was 225 ILCS 425/4.5)
(Section scheduled to be repealed on January 1, 2026)
Sec. 4.5. Unlicensed practice; violation; civil penalty.
(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
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 an
opportunity for a hearing a hearing is held in accordance with
the provisions set forth in this Act regarding the provision
of a hearing for the discipline of a licensee.
(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

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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 an order to cease
and desist immediately.
(c) The civil penalty shall be paid within 30 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 in the same manner as any judgment from any court of
record.
(d) All moneys collected under this Section shall be
deposited into the Financial Institution Fund.
(Source: P.A. 102-205, eff. 7-30-21; 102-975, eff. 1-1-23.)
(205 ILCS 740/9) (was 225 ILCS 425/9)
(Section scheduled to be repealed on January 1, 2026)
Sec. 9. Disciplinary actions.
(a) The Department may refuse to issue or renew, or may
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:
(1) Material misstatement in furnishing information to
the Department.
(2) Violations of this Act or of the rules promulgated

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hereunder.
(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.
(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.
(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.
(8) Discipline by another agency of this State,
another state, the District of Columbia, a territory of

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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.
(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.
(11) Practicing or attempting to practice under a
false or, except as provided by law, an assumed name.
(12) An adjudicated 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.
(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.
(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.
(15) Threatening to instigate an arrest or criminal

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prosecution where no basis for a criminal complaint
lawfully exists.
(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.
(17) Disclosing or threatening to disclose information
adversely affecting a debtor's reputation for credit
worthiness with knowledge the information is false.
(18) 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 of
the intention to communicate with the employer to the
employee to the last known address of the debtor.
(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:
(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

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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.
(B) The threat of publication or publication of a
list of consumers who allegedly refuse to pay debts,
except to a consumer reporting agency.
(C) The threat of advertisement or advertisement
for sale of any debt to coerce payment of the debt.
(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.
(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.
(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.
(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

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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.
(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) Falsely representing Representing that the
collection agency is an attorney at law or an agent for an
attorney if he or she is not.
(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

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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 debtor's 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. 102-975, eff. 1-1-23.)
(205 ILCS 740/9.1) (was 225 ILCS 425/9.1)
(Section scheduled to be repealed on January 1, 2026)
Sec. 9.1. Communication with persons other than debtor.
Any collection agency communicating with any person other than
the debtor for the purpose of acquiring location information
about the debtor shall:
(1) identify himself or herself, state that he or she
is confirming or correcting location information
concerning the consumer, and, only if expressly requested,

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identify his or her employer;
(2) not state that the consumer owes any debt;
(3) not communicate with any person more than once
unless requested to do so by the person or unless the
collection agency reasonably believes that the earlier
response of the person is erroneous or incomplete and that
the person now has correct or complete location
information;
(4) not communicate by postcard;
(5) not use any language or symbol on any envelope or
in the contents of any communication effected by mail or
telegram that indicates that the collection agency is in
the debt collection business or that the communication
relates to the collection of a debt; and
(6) not communicate with any person other than the
debtor's attorney after the collection agency knows the
debtor is represented by an attorney with regard to the
subject 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, not less
than 30 days, to communication from the collection agency.
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.)
(205 ILCS 740/13.2) (was 225 ILCS 425/13.2)

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(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 Act 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.
(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

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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. 102-975, eff. 1-1-23; 103-1014, eff. 8-9-24.)
(205 ILCS 740/14b) (was 225 ILCS 425/14b)
(Section scheduled to be repealed on January 1, 2026)
Sec. 14b. Penalty of unlawful practice; second and
subsequent offenses. Any person entity that practices or
offers to practice as a collection agency in this State
without being licensed for that purpose, or whose license is
suspended, revoked, or expired, or that violates any of the
provisions of this Act for which no specific penalty has been
provided herein, is guilty of a Class A misdemeanor.
Any person entity that has been previously convicted under
any of the provisions of this Act and that subsequently
violates any of the provisions of this Act is guilty of a Class
4 felony. In addition, whenever any person entity is punished
as a subsequent offender under this Section, the Secretary
shall proceed to obtain a permanent injunction against that
person such entity under Section 14a of this Act.
(Source: P.A. 99-227, eff. 8-3-15.)

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(205 ILCS 740/16) (was 225 ILCS 425/16)
(Section scheduled to be repealed on January 1, 2026)
Sec. 16. Investigation; notice and hearing. The Department
may investigate and conduct periodic examinations of 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
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. 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. 102-975, eff. 1-1-23.)

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(205 ILCS 740/17) (was 225 ILCS 425/17)
(Section scheduled to be repealed on January 1, 2026)
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.
(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
(205 ILCS 740/18) (was 225 ILCS 425/18)
(Section scheduled to be repealed on January 1, 2026)
Sec. 18. Subpoenas; oaths; attendance of witnesses.
(a) The Department has the power to subpoena documents,
books, records, or other materials and to bring before it any
person and to take testimony either orally or by deposition,
or both, with the same fees and mileage and in the same manner
as prescribed in civil cases in the courts of this State.
(b) The Secretary, and the designated hearing officer have
, and every member of the Board has power to administer oaths
to witnesses at any hearing that the Department is authorized
to conduct and any other oaths authorized in any Act
administered by the Department.
(c) Any circuit court may, upon application of the
Department or designee or of the applicant or licensee against

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whom proceedings under this Act are pending, enter an order
requiring the attendance of witnesses and their testimony, and
the production of documents, papers, files, books, and records
in connection with any hearing or investigations. The court
may compel obedience to its order by proceedings for contempt.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/19) (was 225 ILCS 425/19)
(Section scheduled to be repealed on January 1, 2026)
Sec. 19. Findings and recommendations. At the conclusion
of the hearing, the hearing officer Board shall present to the
Secretary a written report of its findings of fact,
conclusions of law, and recommendations. The report shall
contain a finding whether or not the accused person violated
this Act or the rules adopted under this Act or failed to
comply with the conditions required in this Act or those
rules. The hearing officer Board shall specify the nature of
the violation or failure to comply and shall make its
recommendations to the Secretary.
The report of findings of fact and , conclusions of law,
and recommendation of the Board shall be the basis for the
Department's order for refusing to issue, restore, or renew a
license, or otherwise disciplining a licensee, or for the
granting of a license. If the Secretary disagrees with the
report, findings of fact, and conclusions of law, and
recommendations of the Board, the Secretary may issue an order

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in contravention of the hearing officer's Board's
recommendations. The finding is not admissible in evidence
against the person in a criminal prosecution brought for the
violation of this Act, but the hearing and finding are not a
bar to a criminal prosecution brought for the violation of
this Act.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/20) (was 225 ILCS 425/20)
(Section scheduled to be repealed on January 1, 2026)
Sec. 20. Rehearing Board; rehearing. At the conclusion of
the hearing, a copy of the hearing officer's Board's report
shall be served upon the applicant or licensee by the
Department, either personally or as provided in this Act for
the service of the notice of hearing. Within 20 calendar days
after the service, the applicant or licensee may present to
the Department a motion in writing for a rehearing which shall
specify the particular grounds for rehearing. The Department
may respond to the motion for rehearing within 20 days after
its service on the Department, and the applicant or licensee
may reply within 7 days thereafter. If no motion for rehearing
is filed, then upon the expiration of the time specified for
filing a motion, or if a motion for rehearing is denied, then
upon denial, the Secretary may enter an order in accordance
with the recommendations of the hearing officer Board, except
as provided for in Section 19. If the applicant or licensee

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orders a transcript of the record from the reporting service
and pays for it within the time for filing a motion for
rehearing, the 20 day period within which a motion for
rehearing may be filed shall commence upon the delivery of the
transcript to the applicant or licensee.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/22) (was 225 ILCS 425/22)
(Section scheduled to be repealed on January 1, 2026)
Sec. 22. Appointment of a hearing officer. The Secretary
has the authority to appoint any attorney duly licensed to
practice law in the State of Illinois to serve as the hearing
officer in any action for refusal to issue, restore, or renew a
license or to discipline a licensee. The hearing officer shall
have full authority to conduct the hearing. A Board member or
members may, but are not required to, attend hearings. The
hearing officer shall report his or her findings of fact,
conclusions of law, and recommendations to the Board. The
Board shall review the report of the hearing officer and
present its findings of fact, conclusions of law, and
recommendations to the Secretary and to all parties to the
proceeding. If the Secretary disagrees with the recommendation
of the Board or of the hearing officer, the Secretary may issue
an order in contravention of the recommendation.
(Source: P.A. 99-227, eff. 8-3-15.)

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(205 ILCS 740/23) (was 225 ILCS 425/23)
(Section scheduled to be repealed on January 1, 2026)
Sec. 23. Order or certified copy; prima facie proof. An
order or a certified copy thereof, over the seal of the
Department and purporting to be signed by the Secretary, shall
be prima facie proof that:
(1) the signature is the genuine signature of the
Secretary; and
(2) the Secretary is duly appointed and qualified. ;
and
(3) the Board and its members are qualified to act.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/35) (was 225 ILCS 425/35)
(Section scheduled to be repealed on January 1, 2026)
Sec. 35. Returned checks; fines. Any person who delivers a
check or other payment to the Department that is returned to
the Department unpaid by the financial institution upon which
it is drawn shall pay to the Department, in addition to the
amount already owed to the Department, a fine of $50. The fines
imposed by this Section are in addition to any other
discipline provided under this Act for unlicensed practice or
practice on a non-renewed license. The Department shall notify
the person entity that payment of fees and fines shall be paid
to the Department by certified check or money order within 30
calendar days of the notification. If, after the expiration of

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30 days from the date of notification, the person has failed to
submit the necessary remittance, the Department shall
automatically terminate the license or deny the application,
without hearing. If, after the termination or denial, the
person entity seeks a license, it shall apply to the
Department for restoration or issuance of the license and pay
all fees and fines due to the Department. The Department may
establish a fee for the processing of an application for
restoration of a license to pay all expenses of processing
this application. The Secretary may waive the fines due under
this Section in individual cases where the Secretary finds
that the fines would be unreasonable or unnecessarily
burdensome.
(Source: P.A. 99-227, eff. 8-3-15.)
(205 ILCS 740/3 rep.)
(205 ILCS 740/13.1 rep.)
Section 15. The Collection Agency Act is amended by
repealing Sections 3 and 13.1.