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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 Removes the Collection Agency Act from the list of Acts being repealed under the Act.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. | |
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| | A BILL FOR |
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| | HB3554 | | LRB104 12039 BAB 22134 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Regulatory Sunset Act is amended by |
| 5 | | changing Section 4.36 as follows:
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| 6 | | (5 ILCS 80/4.36) |
| 7 | | Sec. 4.36. Acts repealed on January 1, 2026. The following |
| 8 | | Acts are repealed on January 1, 2026: |
| 9 | | The Barber, Cosmetology, Esthetics, Hair Braiding, and |
| 10 | | Nail Technology Act of 1985. |
| 11 | | The Collection Agency Act. |
| 12 | | The Hearing Instrument Consumer Protection Act. |
| 13 | | The Illinois Athletic Trainers Practice Act. |
| 14 | | The Illinois Dental Practice Act. |
| 15 | | The Illinois Roofing Industry Licensing Act. |
| 16 | | The Illinois Physical Therapy Act. |
| 17 | | The Professional Geologist Licensing Act. |
| 18 | | The Respiratory Care Practice Act. |
| 19 | | (Source: P.A. 99-26, eff. 7-10-15; 99-204, eff. 7-30-15; |
| 20 | | 99-227, eff. 8-3-15; 99-229, eff. 8-3-15; 99-230, eff. 8-3-15; |
| 21 | | 99-427, eff. 8-21-15; 99-469, eff. 8-26-15; 99-492, eff. |
| 22 | | 12-31-15; 99-642, eff. 7-28-16.)
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| 1 | | Section 10. The Collection Agency Act is amended by |
| 2 | | changing Sections 2, 2.03, 2.04, 4, 4.5, 9, 9.1, 11, 13.2, 14b, |
| 3 | | 16, 17, 18, 19, 20, 22, 23, and 35 as follows:
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| 4 | | (205 ILCS 740/2) (was 225 ILCS 425/2) |
| 5 | | (Section scheduled to be repealed on January 1, 2026) |
| 6 | | Sec. 2. Definitions. In this Act: |
| 7 | | "Address of record" means the designated address recorded |
| 8 | | by the Department in the applicant's or licensee's application |
| 9 | | file or license file as maintained by the Department |
| 10 | | Department's licensure maintenance unit. |
| 11 | | "Board" means the Collection Agency Licensing and |
| 12 | | Disciplinary Board. |
| 13 | | "Charge-off balance" means an account principal and other |
| 14 | | legally collectible costs, expenses, and interest accrued |
| 15 | | prior to the charge-off date, less any payments or settlement. |
| 16 | | "Charge-off date" means the date on which a receivable is |
| 17 | | treated as a loss or expense. |
| 18 | | "Collection agency" means any person who: , in the |
| 19 | | ordinary course of business, regularly, (1) engages in the |
| 20 | | business of collection of any debt for others; (2) engages in |
| 21 | | the business of receiving, by assignment or otherwise, debt |
| 22 | | from any person who owns or controls 20% or more of the |
| 23 | | business receiving the assignment with the purpose of |
| 24 | | collecting moneys due on such debt; (3) sells or attempts to |
| 25 | | sell, or gives away or attempts to give away to any other |
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| 1 | | person, other than a person licensed under this Act, any |
| 2 | | system of collection, letters, demand forms, or other printed |
| 3 | | matter where the name of any person, other than that of the |
| 4 | | creditor, appears in such a manner as to indicate, directly or |
| 5 | | indirectly, that a request or demand is being made by any |
| 6 | | person other than the creditor for the payment of the sum or |
| 7 | | sums due or asserted to be due; (4) engages in the business of |
| 8 | | buying debt; (5) engages in the business of using a fictitious |
| 9 | | name in collecting its own accounts, bills, or debts with the |
| 10 | | intention of conveying to the debtor that a third party has |
| 11 | | been employed to make such collection; or (6) engages in the |
| 12 | | business of collection of a check or other payment that is |
| 13 | | returned unpaid by the financial institution upon which it is |
| 14 | | drawn on behalf of himself or herself or others, engages in the |
| 15 | | collection of a debt. |
| 16 | | "Consumer debt" or "consumer credit" means money or |
| 17 | | property, or their equivalent, due or owing or alleged to be |
| 18 | | due or owing from a natural person by reason of a consumer |
| 19 | | credit transaction. |
| 20 | | "Credit transaction" means a transaction between a natural |
| 21 | | person and another person in which property, service, or money |
| 22 | | is acquired on credit by that natural person from such other |
| 23 | | person primarily for personal, family, or household purposes. |
| 24 | | "Creditor" means a person who extends consumer credit to a |
| 25 | | debtor. |
| 26 | | "Current balance" means the charge-off balance plus any |
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| 1 | | legally collectible costs, expenses, and interest, less any |
| 2 | | credits or payments. |
| 3 | | "Debt" means money, property, or their equivalent which is |
| 4 | | due or owing or alleged to be due or owing from a person to |
| 5 | | another person. |
| 6 | | "Debt buyer" means a person or entity that is engaged in |
| 7 | | the business of purchasing delinquent or charged-off consumer |
| 8 | | loans or consumer credit accounts or other delinquent consumer |
| 9 | | debt for collection purposes, whether it collects the debt |
| 10 | | itself or hires a third party to collect third-party for |
| 11 | | collection or hires an attorney-at-law for litigation in order |
| 12 | | to collect such debt. |
| 13 | | "Debtor" means a person from whom a collection agency |
| 14 | | seeks to collect a consumer or commercial debt that is due and |
| 15 | | owing or alleged to be due and owing from such person. |
| 16 | | "Department" means the Department of Financial and |
| 17 | | Professional Regulation. |
| 18 | | "Email address of record" means the designated email |
| 19 | | address recorded by the Department in the applicant's |
| 20 | | application file or the licensee's license file, as maintained |
| 21 | | by the Department Department's licensure maintenance unit. |
| 22 | | "Person" means a natural person, partnership, corporation, |
| 23 | | limited liability company, trust, estate, cooperative, |
| 24 | | association, or other similar entity. |
| 25 | | "Licensed collection agency" means a person who is |
| 26 | | licensed under this Act to act as a collection agency to engage |
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| 1 | | in the practice of debt collection in Illinois. |
| 2 | | "Multi-state licensing system" means a web-based platform |
| 3 | | that allows licensure applicants to submit their applications |
| 4 | | and renewals to the Department online. |
| 5 | | "Person" means a natural person, partnership, corporation, |
| 6 | | limited liability company, trust, estate, cooperative, |
| 7 | | association, or other similar entity. |
| 8 | | "Secretary" means the Secretary of Financial and |
| 9 | | Professional Regulation or the Secretary's his or her |
| 10 | | designee. |
| 11 | | (Source: P.A. 102-975, eff. 1-1-23.)
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| 12 | | (205 ILCS 740/2.03) (was 225 ILCS 425/2.03) |
| 13 | | (Section scheduled to be repealed on January 1, 2026) |
| 14 | | Sec. 2.03. Exemptions. This Act does not apply to persons |
| 15 | | whose collection activities are confined to and are directly |
| 16 | | related to the operation of a business other than that of a |
| 17 | | collection agency, and specifically does not include the |
| 18 | | following: |
| 19 | | 1. Banks, including trust departments, affiliates, and |
| 20 | | subsidiaries thereof, and fiduciaries, and financing and |
| 21 | | lending institutions (except those who own or operate |
| 22 | | collection agencies); |
| 23 | | 2. Abstract companies doing an escrow business; |
| 24 | | 3. Real estate brokers when acting in the pursuit of |
| 25 | | their profession; |
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| 1 | | 4. Public officers and judicial officers acting under |
| 2 | | order of a court; |
| 3 | | 5. Licensed attorneys at law; |
| 4 | | 6. Insurance companies; |
| 5 | | 7. Credit unions, including affiliates and |
| 6 | | subsidiaries thereof (except those who own or operate |
| 7 | | collection agencies); |
| 8 | | 8. Persons Loan and finance companies, including |
| 9 | | entities licensed pursuant to the Residential Mortgage |
| 10 | | License Act of 1987 when engaged in activity authorized |
| 11 | | under that Act; |
| 12 | | 9. Retail sellers stores collecting on retail |
| 13 | | installment contracts or retail charge agreements |
| 14 | | originated by the retail seller their own accounts; |
| 15 | | 10. Unit Owner's Associations established under the |
| 16 | | Condominium Property Act, and their duly authorized |
| 17 | | agents, when collecting assessments from unit owners; and |
| 18 | | 11. Any person or business under contract with a |
| 19 | | creditor to notify the creditor's debtors of a debt using |
| 20 | | only the creditor's name.; |
| 21 | | 12. Persons licensed pursuant to the Sales Finance |
| 22 | | Agency Act when engaged in collection of accounts |
| 23 | | purchased or loans made pursuant to that Act; |
| 24 | | 13. Persons licensed pursuant to the Student Loan |
| 25 | | Servicing Act when engaged in activity authorized under |
| 26 | | that Act; |
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| 1 | | 14. Persons licensed pursuant to the Consumer |
| 2 | | Installment Loan Act when engaged in collection of loans |
| 3 | | that were originated under that Act; |
| 4 | | 15. Persons engaged in the business of originating |
| 5 | | loans of money pursuant to the Interest Act when engaged |
| 6 | | in collecting loans that originated under that Act; |
| 7 | | 16. Motor vehicle retail sellers collecting motor |
| 8 | | vehicle retail installment contracts originated by the |
| 9 | | motor vehicle retail seller; |
| 10 | | 17. Any person licensed pursuant to the Consumer Legal |
| 11 | | Funding Act when engaged in activity authorized by that |
| 12 | | Act; |
| 13 | | 18. Any person licensed pursuant to the Pawnbroker |
| 14 | | Regulation Act of 2023 when engaged in activity authorized |
| 15 | | by that Act; and |
| 16 | | 19. Any person identified by the Department by rule. |
| 17 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 18 | | (205 ILCS 740/2.04) (was 225 ILCS 425/2.04) |
| 19 | | (Section scheduled to be repealed on January 1, 2026) |
| 20 | | Sec. 2.04. Child support debt. |
| 21 | | (a) Collection agencies engaged in the business of |
| 22 | | collecting child support debt owing under a court order as |
| 23 | | provided under the Illinois Public Aid Code, the Illinois |
| 24 | | Marriage and Dissolution of Marriage Act, the Non-Support |
| 25 | | Punishment Act, the Illinois Parentage Act of 1984, the |
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| 1 | | Illinois Parentage Act of 2015, or similar laws of other |
| 2 | | states are not restricted (i) in the frequency of contact with |
| 3 | | an obligor who is in arrears, whether by phone, mail, or other |
| 4 | | means, (ii) from contacting the employer of an obligor who is |
| 5 | | in arrears, (iii) from publishing or threatening to publish a |
| 6 | | list of obligors in arrears, (iv) from disclosing or |
| 7 | | threatening to disclose an arrearage that the obligor |
| 8 | | disputes, but for which a verified notice of delinquency has |
| 9 | | been served under the Income Withholding for Support Act (or |
| 10 | | any of its predecessors, Section 10-16.2 of the Illinois |
| 11 | | Public Aid Code, Section 706.1 of the Illinois Marriage and |
| 12 | | Dissolution of Marriage Act, Section 22 of the Non-Support |
| 13 | | Punishment Act, Section 26.1 of the Revised Uniform Reciprocal |
| 14 | | Enforcement of Support Act, or Section 20 of the Illinois |
| 15 | | Parentage Act of 1984), or (v) from engaging in conduct that |
| 16 | | would not cause a reasonable person mental or physical |
| 17 | | illness. For purposes of this subsection, "obligor" means an |
| 18 | | individual who owes a duty to make periodic payments, under a |
| 19 | | court order, for the support of a child. "Arrearage" means the |
| 20 | | total amount of an obligor's unpaid child support obligations. |
| 21 | | (a-5) A collection agency may not impose a fee or charge, |
| 22 | | including costs, for any child support payments collected |
| 23 | | through the efforts of a federal, State, or local government |
| 24 | | agency, including but not limited to child support collected |
| 25 | | from federal or State tax refunds, unemployment benefits, or |
| 26 | | Social Security benefits. |
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| 1 | | No collection agency that collects child support payments |
| 2 | | shall (i) impose a charge or fee, including costs, for |
| 3 | | collection of a current child support payment, (ii) fail to |
| 4 | | apply collections to current support as specified in the order |
| 5 | | for support before applying collection to arrears or other |
| 6 | | amounts, or (iii) designate a current child support payment as |
| 7 | | arrears or other amount owed. In all circumstances, the |
| 8 | | collection agency shall turn over to the obligee all support |
| 9 | | collected in a month up to the amount of current support |
| 10 | | required to be paid for that month. |
| 11 | | As to any fees or charges, including costs, retained by |
| 12 | | the collection agency, that agency shall provide documentation |
| 13 | | to the obligee demonstrating that the child support payments |
| 14 | | resulted from the actions of the agency. |
| 15 | | After collection of the total amount or arrearage, |
| 16 | | including statutory interest, due as of the date of execution |
| 17 | | of the collection contract, no further fees may be charged. |
| 18 | | (a-10) A The Department shall determine a fee rate of not |
| 19 | | less than 25% but not greater than 35%, based upon |
| 20 | | presentation by the licensees as to costs to provide the |
| 21 | | service and a fair rate of return. This rate shall be |
| 22 | | established by administrative rule. Without prejudice to the |
| 23 | | determination by the Department of the appropriate rate |
| 24 | | through administrative rule, a collection agency shall impose |
| 25 | | a fee of not more than 29% of the amount of child support |
| 26 | | actually collected by the collection agency subject to the |
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| 1 | | provisions of subsection (a-5). This rate may be modified by |
| 2 | | rule to a fee rate of not less than 25% but not greater than |
| 3 | | 35% This interim rate is based upon the March 2002 General |
| 4 | | Account Office report "Child Support Enforcement", GAO-02-349. |
| 5 | | This rate shall apply until a fee rate is established by |
| 6 | | administrative rule. |
| 7 | | (b) The Department shall adopt rules necessary to |
| 8 | | administer and enforce the provisions of this Section. |
| 9 | | (Source: P.A. 99-85, eff. 1-1-16; 99-227, eff. 8-3-15; 99-642, |
| 10 | | eff. 7-28-16.)
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| 11 | | (205 ILCS 740/4) (was 225 ILCS 425/4) |
| 12 | | (Section scheduled to be repealed on January 1, 2026) |
| 13 | | Sec. 4. No collection agency shall operate in this State, |
| 14 | | directly or indirectly engage in the business of collecting |
| 15 | | debt, solicit debt claims for others, have a sales office, a |
| 16 | | client, or solicit a client in this State, exercise the right |
| 17 | | to collect, or receive payment for another of any debt, |
| 18 | | without obtaining a license under this Act. Notwithstanding |
| 19 | | any other provision of this Section, except that no collection |
| 20 | | agency shall be required to be licensed if the agency's |
| 21 | | activities in this State are limited to collecting debts from |
| 22 | | debtors located in this State by means of interstate |
| 23 | | communication, including telephone, mail, or facsimile |
| 24 | | transmission, electronic mail, or any other Internet |
| 25 | | communication from the agency's location in another state |
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| 1 | | provided they are licensed in that state and these same |
| 2 | | privileges are permitted in that licensed state to agencies |
| 3 | | licensed in Illinois. |
| 4 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 5 | | (205 ILCS 740/4.5) (was 225 ILCS 425/4.5) |
| 6 | | (Section scheduled to be repealed on January 1, 2026) |
| 7 | | Sec. 4.5. Unlicensed practice; violation; civil penalty. |
| 8 | | (a) Any person who practices, offers to practice, attempts |
| 9 | | to practice, or holds oneself out to practice as a collection |
| 10 | | agency without being licensed under this Act shall, in |
| 11 | | addition to any other penalty provided by law, pay a civil |
| 12 | | penalty to the Department in an amount not to exceed $10,000 |
| 13 | | for each offense as determined by the Department. The civil |
| 14 | | penalty shall be assessed by the Department after an |
| 15 | | opportunity for a hearing a hearing is held in accordance with |
| 16 | | the provisions set forth in this Act regarding the provision |
| 17 | | of a hearing for the discipline of a licensee. |
| 18 | | (b) The Department has the authority and power to |
| 19 | | investigate any and all unlicensed activity. In addition to |
| 20 | | taking any other action provided under this Act, whenever the |
| 21 | | Department has reason to believe a person has violated any |
| 22 | | provision of subsection (a) of this Section, the Department |
| 23 | | may issue a rule to show cause why an order to cease and desist |
| 24 | | should not be entered against that person. The rule shall |
| 25 | | clearly set forth the grounds relied upon by the Department |
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| 1 | | and shall provide a period of 7 days from the date of the rule |
| 2 | | to file an answer to the satisfaction of the Department. |
| 3 | | Failure to answer to the satisfaction of the Department shall |
| 4 | | provide the Department authority to issue an order to cease |
| 5 | | and desist immediately. |
| 6 | | (c) The civil penalty shall be paid within 30 60 days after |
| 7 | | the effective date of the order imposing the civil penalty. |
| 8 | | The order shall constitute a judgment and may be filed and |
| 9 | | executed in the same manner as any judgment from any court of |
| 10 | | record. |
| 11 | | (d) All moneys collected under this Section shall be |
| 12 | | deposited into the Financial Institution Fund. |
| 13 | | (Source: P.A. 102-205, eff. 7-30-21; 102-975, eff. 1-1-23.)
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| 14 | | (205 ILCS 740/9) (was 225 ILCS 425/9) |
| 15 | | (Section scheduled to be repealed on January 1, 2026) |
| 16 | | Sec. 9. Disciplinary actions. |
| 17 | | (a) The Department may refuse to issue or renew, or may |
| 18 | | revoke, suspend, place on probation, reprimand, or take other |
| 19 | | disciplinary or non-disciplinary action as the Department may |
| 20 | | deem proper, including fines not to exceed $10,000 per |
| 21 | | violation, for any one or any combination of the following |
| 22 | | causes: |
| 23 | | (1) Material misstatement in furnishing information to |
| 24 | | the Department. |
| 25 | | (2) Violations of this Act or of the rules promulgated |
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| 1 | | hereunder. |
| 2 | | (3) Conviction by plea of guilty or nolo contendere, |
| 3 | | finding of guilt, jury verdict, or entry of judgment or by |
| 4 | | sentencing of any crime, including, but not limited to, |
| 5 | | convictions, preceding sentences of supervision, |
| 6 | | conditional discharge, or first offender probation of the |
| 7 | | collection agency or any of the officers or owners of more |
| 8 | | than 10% interest of the agency of any crime under the laws |
| 9 | | of any U.S. jurisdiction that (i) is a felony, (ii) is a |
| 10 | | misdemeanor, an essential element of which is dishonesty, |
| 11 | | or (iii) is directly related to the practice of a |
| 12 | | collection agency. |
| 13 | | (4) Fraud or misrepresentation in applying for, or |
| 14 | | procuring, a license under this Act or in connection with |
| 15 | | applying for renewal of a license under this Act. |
| 16 | | (5) Aiding or assisting another person in violating |
| 17 | | any provision of this Act or rules adopted under this Act. |
| 18 | | (6) Failing, within 60 days, to provide information in |
| 19 | | response to a written request made by the Department. |
| 20 | | (7) Habitual or excessive use or addiction to alcohol, |
| 21 | | narcotics, stimulants or any other chemical agent or drug |
| 22 | | which results in the inability to practice with reasonable |
| 23 | | judgment, skill, or safety by any of the officers or |
| 24 | | owners of 10% or more interest of a collection agency. |
| 25 | | (8) Discipline by another agency of this State, |
| 26 | | another state, the District of Columbia, a territory of |
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| 1 | | the United States, or a foreign nation, if at least one of |
| 2 | | the grounds for the discipline is the same or |
| 3 | | substantially equivalent to those set forth in this Act. |
| 4 | | (9) A finding by the Department that the licensee, |
| 5 | | after having his or her license placed on probationary |
| 6 | | status, has violated the terms of probation. |
| 7 | | (10) Willfully making or filing false records or |
| 8 | | reports in his or her practice, including, but not limited |
| 9 | | to, false records filed with State agencies or |
| 10 | | departments. |
| 11 | | (11) Practicing or attempting to practice under a |
| 12 | | false or, except as provided by law, an assumed name. |
| 13 | | (12) An adjudicated finding by the Federal Trade |
| 14 | | Commission or other federal or State agency that a |
| 15 | | licensee violated the federal Fair Debt Collection |
| 16 | | Practices Act or its rules. |
| 17 | | (13) Failure to file a return, or to pay the tax, |
| 18 | | penalty or interest shown in a filed return, or to pay any |
| 19 | | final assessment of tax, penalty or interest, as required |
| 20 | | by any tax Act administered by the Illinois Department of |
| 21 | | Revenue until such time as the requirements of any such |
| 22 | | tax Act are satisfied. |
| 23 | | (14) Using or threatening to use force or violence to |
| 24 | | cause physical harm to a debtor, his or her family or his |
| 25 | | or her property. |
| 26 | | (15) Threatening to instigate an arrest or criminal |
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| 1 | | prosecution where no basis for a criminal complaint |
| 2 | | lawfully exists. |
| 3 | | (16) Threatening the seizure, attachment or sale of a |
| 4 | | debtor's property where such action can only be taken |
| 5 | | pursuant to court order without disclosing that prior |
| 6 | | court proceedings are required. |
| 7 | | (17) Disclosing or threatening to disclose information |
| 8 | | adversely affecting a debtor's reputation for credit |
| 9 | | worthiness with knowledge the information is false. |
| 10 | | (18) Threatening to initiate communication with a |
| 11 | | debtor's employer unless there has been a default of the |
| 12 | | payment of the obligation for at least 30 days and the |
| 13 | | licensee has given at least 5 days prior written notice of |
| 14 | | the intention to communicate with the employer to the |
| 15 | | employee to the last known address of the debtor. |
| 16 | | (19) Communicating with the debtor or any member of |
| 17 | | the debtor's family at such a time of day or night and with |
| 18 | | such frequency as to constitute harassment of the debtor |
| 19 | | or any member of the debtor's family. For purposes of this |
| 20 | | Section the following conduct shall constitute harassment: |
| 21 | | (A) Communicating with the debtor or any member of |
| 22 | | his or her family in connection with the collection of |
| 23 | | any debt without the prior consent of the debtor given |
| 24 | | directly to the debt collector, or the express |
| 25 | | permission of a court of competent jurisdiction, at |
| 26 | | any unusual time or place or a time or place known or |
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| 1 | | which should be known to be inconvenient to the |
| 2 | | debtor. In the absence of knowledge of circumstances |
| 3 | | to the contrary, a debt collector shall assume that |
| 4 | | the convenient time for communicating with a consumer |
| 5 | | is after 8 o'clock a.m. and before 9 o'clock p.m. in |
| 6 | | the debtor's local time. |
| 7 | | (B) The threat of publication or publication of a |
| 8 | | list of consumers who allegedly refuse to pay debts, |
| 9 | | except to a consumer reporting agency. |
| 10 | | (C) The threat of advertisement or advertisement |
| 11 | | for sale of any debt to coerce payment of the debt. |
| 12 | | (D) Causing a telephone to ring or engaging any |
| 13 | | person in telephone conversation repeatedly or |
| 14 | | continuously with intent to annoy, abuse, or harass |
| 15 | | any person at the called number. |
| 16 | | (20) Using profane, obscene, or abusive language in |
| 17 | | communicating with a debtor, his or her family, or others. |
| 18 | | (21) Disclosing or threatening to disclose information |
| 19 | | relating to a debtor's debt to any other person except |
| 20 | | where such other person has a legitimate business need for |
| 21 | | the information or except where such disclosure is |
| 22 | | permitted by law. |
| 23 | | (22) Disclosing or threatening to disclose information |
| 24 | | concerning the existence of a debt which the collection |
| 25 | | agency knows to be disputed by the debtor without |
| 26 | | disclosing the fact that the debtor disputes the debt. |
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| 1 | | (23) Engaging in any conduct that is intended to cause |
| 2 | | and did cause mental or physical illness to the debtor or |
| 3 | | his or her family. |
| 4 | | (24) Attempting or threatening to enforce a right or |
| 5 | | remedy with knowledge or reason to know that the right or |
| 6 | | remedy does not exist. |
| 7 | | (25) Failing to disclose to the debtor or his or her |
| 8 | | family the legally authorized corporate, partnership or |
| 9 | | proprietary name, or other trade or business name, under |
| 10 | | which the collection agency is engaging in debt |
| 11 | | collections. |
| 12 | | (26) Using any form of communication which simulates |
| 13 | | legal or judicial process or which gives the appearance of |
| 14 | | being authorized, issued, or approved by a governmental |
| 15 | | agency or official or by an attorney at law when it is not. |
| 16 | | (27) Using any badge, uniform, or other indicia of any |
| 17 | | governmental agency or official except as authorized by |
| 18 | | law. |
| 19 | | (28) Conducting business under any name or in any |
| 20 | | manner which suggests or implies that the collection |
| 21 | | agency is a branch of or is affiliated in any way with a |
| 22 | | governmental agency or court if such collection agency is |
| 23 | | not. |
| 24 | | (29) Failing to disclose, at the time of making any |
| 25 | | demand for payment, the name of the person to whom the debt |
| 26 | | is owed and at the request of the debtor, the address where |
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| 1 | | payment is to be made and the address of the person to whom |
| 2 | | the debt is owed. |
| 3 | | (30) Misrepresenting the amount of the debt alleged to |
| 4 | | be owed. |
| 5 | | (31) Representing that an existing debt may be |
| 6 | | increased by the addition of attorney's fees, |
| 7 | | investigation fees or any other fees or charges when such |
| 8 | | fees or charges may not legally be added to the existing |
| 9 | | debt. |
| 10 | | (32) Falsely representing Representing that the |
| 11 | | collection agency is an attorney at law or an agent for an |
| 12 | | attorney if he or she is not. |
| 13 | | (33) Collecting or attempting to collect any interest |
| 14 | | or other charge or fee in excess of the actual debt unless |
| 15 | | such interest or other charge or fee is expressly |
| 16 | | authorized by the agreement creating the debt unless |
| 17 | | expressly authorized by law or unless in a commercial |
| 18 | | transaction such interest or other charge or fee is |
| 19 | | expressly authorized in a subsequent agreement. If a |
| 20 | | contingency or hourly fee arrangement (i) is established |
| 21 | | under an agreement between a collection agency and a |
| 22 | | creditor to collect a debt and (ii) is paid by a debtor |
| 23 | | pursuant to a contract between the debtor and the |
| 24 | | creditor, then that fee arrangement does not violate this |
| 25 | | Section unless the fee is unreasonable. The Department |
| 26 | | shall determine what constitutes a reasonable collection |
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| 1 | | fee. |
| 2 | | (34) Communicating or threatening to communicate with |
| 3 | | a debtor when the collection agency is informed in writing |
| 4 | | by an attorney that the attorney represents the debtor |
| 5 | | concerning the debt. If the attorney fails to respond |
| 6 | | within a reasonable period of time, the collector may |
| 7 | | communicate with the debtor. The collector may communicate |
| 8 | | with the debtor when the debtor's attorney gives his or |
| 9 | | her consent. |
| 10 | | (35) Engaging in dishonorable, unethical, or |
| 11 | | unprofessional conduct of a character likely to deceive, |
| 12 | | defraud, or harm the public. |
| 13 | | (b) No collection agency while collecting or attempting to |
| 14 | | collect a debt shall engage in any of the Acts specified in |
| 15 | | this Section, each of which shall be unlawful practice. |
| 16 | | (Source: P.A. 102-975, eff. 1-1-23.)
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| 17 | | (205 ILCS 740/9.1) (was 225 ILCS 425/9.1) |
| 18 | | (Section scheduled to be repealed on January 1, 2026) |
| 19 | | Sec. 9.1. Communication with persons other than debtor. |
| 20 | | Any collection agency communicating with any person other than |
| 21 | | the debtor for the purpose of acquiring location information |
| 22 | | about the debtor shall: |
| 23 | | (1) identify himself or herself, state that he or she |
| 24 | | is confirming or correcting location information |
| 25 | | concerning the consumer, and, only if expressly requested, |
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| 1 | | identify his or her employer; |
| 2 | | (2) not state that the consumer owes any debt; |
| 3 | | (3) not communicate with any person more than once |
| 4 | | unless requested to do so by the person or unless the |
| 5 | | collection agency reasonably believes that the earlier |
| 6 | | response of the person is erroneous or incomplete and that |
| 7 | | the person now has correct or complete location |
| 8 | | information; |
| 9 | | (4) not communicate by postcard; |
| 10 | | (5) not use any language or symbol on any envelope or |
| 11 | | in the contents of any communication effected by mail or |
| 12 | | telegram that indicates that the collection agency is in |
| 13 | | the debt collection business or that the communication |
| 14 | | relates to the collection of a debt; and |
| 15 | | (6) not communicate with any person other than the |
| 16 | | debtor's attorney after the collection agency knows the |
| 17 | | debtor is represented by an attorney with regard to the |
| 18 | | subject debt and has knowledge of or can readily ascertain |
| 19 | | the attorney's name and address, unless the attorney fails |
| 20 | | to respond within a reasonable period of time, not less |
| 21 | | than 30 days, to communication from the collection agency. |
| 22 | | This Section applies to a collection agency or debt buyer |
| 23 | | only when engaged in the collection of consumer debt. |
| 24 | | (Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
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| 25 | | (205 ILCS 740/13.2) (was 225 ILCS 425/13.2) |
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| 1 | | (Section scheduled to be repealed on January 1, 2026) |
| 2 | | Sec. 13.2. Powers and duties of Department. The Department |
| 3 | | shall exercise the powers and duties prescribed by the |
| 4 | | Financial Institutions Act for the administration of licensing |
| 5 | | Acts and shall exercise such other powers and duties necessary |
| 6 | | for effectuating the purposes of this Act. |
| 7 | | Subject to the provisions of this Act, the Department may: |
| 8 | | (1) Conduct hearings on proceedings to refuse to issue |
| 9 | | or renew or to revoke licenses or suspend, place on |
| 10 | | probation, or reprimand persons licensed under this Act. |
| 11 | | (2) To adopt rules consistent with the purposes of |
| 12 | | this Act, including, but not limited to: (i) rules in |
| 13 | | connection with the activities of collection agencies as |
| 14 | | may be necessary and appropriate for the protection of |
| 15 | | consumers in this State; (ii) rules as may be necessary |
| 16 | | and appropriate to define and enforce against improper or |
| 17 | | fraudulent business practices in connection with the |
| 18 | | activities of collection agencies; (iii) rules that define |
| 19 | | the terms used in this Act and as may be necessary and |
| 20 | | appropriate to interpret and implement the provisions of |
| 21 | | this Act; and (iv) rules as may be necessary for the |
| 22 | | enforcement of this Act. |
| 23 | | (3) Obtain written recommendations from the Board |
| 24 | | regarding standards of professional conduct, formal |
| 25 | | disciplinary actions and the formulation of rules |
| 26 | | affecting these matters. Notice of proposed rulemaking |
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| 1 | | shall be transmitted to the Board and the Department shall |
| 2 | | review the response of the Board and any recommendations |
| 3 | | made in the response. The Department may solicit the |
| 4 | | advice of the Board on any matter relating to the |
| 5 | | administration and enforcement of this Act. |
| 6 | | (4) (Blank). |
| 7 | | (Source: P.A. 102-975, eff. 1-1-23; 103-1014, eff. 8-9-24.)
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| 8 | | (205 ILCS 740/14b) (was 225 ILCS 425/14b) |
| 9 | | (Section scheduled to be repealed on January 1, 2026) |
| 10 | | Sec. 14b. Penalty of unlawful practice; second and |
| 11 | | subsequent offenses. Any person entity that practices or |
| 12 | | offers to practice as a collection agency in this State |
| 13 | | without being licensed for that purpose, or whose license is |
| 14 | | suspended, revoked, or expired, or that violates any of the |
| 15 | | provisions of this Act for which no specific penalty has been |
| 16 | | provided herein, is guilty of a Class A misdemeanor. |
| 17 | | Any person entity that has been previously convicted under |
| 18 | | any of the provisions of this Act and that subsequently |
| 19 | | violates any of the provisions of this Act is guilty of a Class |
| 20 | | 4 felony. In addition, whenever any person entity is punished |
| 21 | | as a subsequent offender under this Section, the Secretary |
| 22 | | shall proceed to obtain a permanent injunction against that |
| 23 | | person such entity under Section 14a of this Act. |
| 24 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 1 | | (205 ILCS 740/16) (was 225 ILCS 425/16) |
| 2 | | (Section scheduled to be repealed on January 1, 2026) |
| 3 | | Sec. 16. Investigation; notice and hearing. The Department |
| 4 | | may investigate and conduct periodic examinations of the |
| 5 | | actions or qualifications of any applicant or of any person |
| 6 | | rendering or offering to render collection agency services or |
| 7 | | any person holding or claiming to hold a license as a |
| 8 | | collection agency. The Department shall, before refusing to |
| 9 | | issue or renew, revoking, suspending, placing on probation, |
| 10 | | reprimanding, or taking any other disciplinary action under |
| 11 | | Section 9 of this Act, serve notice on any person, including a |
| 12 | | statement of the reasons for the Department's action, and |
| 13 | | notify the person that they may file a Petition for a Hearing |
| 14 | | with the Department within 30 days of service. All hearings |
| 15 | | shall be conducted in accordance with 38 Ill. Adm. Code 100. At |
| 16 | | the discretion of the Secretary, after having first received |
| 17 | | the recommendation of the Board, the accused person's license |
| 18 | | may be suspended or revoked, if the evidence constitutes |
| 19 | | sufficient grounds for such action under this Act. Written or |
| 20 | | electronic notice may be served by personal delivery, mail, or |
| 21 | | email to the applicant or licensee at the address of record or |
| 22 | | email address of record. Service by mail is completed when the |
| 23 | | notice is deposited in the U.S. Mail. Service to the email |
| 24 | | address of record is completed when the email is sent. |
| 25 | | (Source: P.A. 102-975, eff. 1-1-23.)
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| 1 | | (205 ILCS 740/17) (was 225 ILCS 425/17) |
| 2 | | (Section scheduled to be repealed on January 1, 2026) |
| 3 | | Sec. 17. Record of hearing; transcript. The Department, at |
| 4 | | its expense, shall preserve a record of all proceedings at the |
| 5 | | formal hearing of any case. The notice of hearing, complaint, |
| 6 | | all other documents in the nature of pleadings, written |
| 7 | | motions filed in the proceedings, the transcript of testimony, |
| 8 | | the report of the Board, and orders of the Department shall be |
| 9 | | in the record of the proceedings. |
| 10 | | (Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
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| 11 | | (205 ILCS 740/18) (was 225 ILCS 425/18) |
| 12 | | (Section scheduled to be repealed on January 1, 2026) |
| 13 | | Sec. 18. Subpoenas; oaths; attendance of witnesses. |
| 14 | | (a) The Department has the power to subpoena documents, |
| 15 | | books, records, or other materials and to bring before it any |
| 16 | | person and to take testimony either orally or by deposition, |
| 17 | | or both, with the same fees and mileage and in the same manner |
| 18 | | as prescribed in civil cases in the courts of this State. |
| 19 | | (b) The Secretary, and the designated hearing officer have |
| 20 | | , and every member of the Board has power to administer oaths |
| 21 | | to witnesses at any hearing that the Department is authorized |
| 22 | | to conduct and any other oaths authorized in any Act |
| 23 | | administered by the Department. |
| 24 | | (c) Any circuit court may, upon application of the |
| 25 | | Department or designee or of the applicant or licensee against |
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| 1 | | whom proceedings under this Act are pending, enter an order |
| 2 | | requiring the attendance of witnesses and their testimony, and |
| 3 | | the production of documents, papers, files, books, and records |
| 4 | | in connection with any hearing or investigations. The court |
| 5 | | may compel obedience to its order by proceedings for contempt. |
| 6 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 7 | | (205 ILCS 740/19) (was 225 ILCS 425/19) |
| 8 | | (Section scheduled to be repealed on January 1, 2026) |
| 9 | | Sec. 19. Findings and recommendations. At the conclusion |
| 10 | | of the hearing, the hearing officer Board shall present to the |
| 11 | | Secretary a written report of its findings of fact, |
| 12 | | conclusions of law, and recommendations. The report shall |
| 13 | | contain a finding whether or not the accused person violated |
| 14 | | this Act or the rules adopted under this Act or failed to |
| 15 | | comply with the conditions required in this Act or those |
| 16 | | rules. The hearing officer Board shall specify the nature of |
| 17 | | the violation or failure to comply and shall make its |
| 18 | | recommendations to the Secretary. |
| 19 | | The report of findings of fact and , conclusions of law, |
| 20 | | and recommendation of the Board shall be the basis for the |
| 21 | | Department's order for refusing to issue, restore, or renew a |
| 22 | | license, or otherwise disciplining a licensee, or for the |
| 23 | | granting of a license. If the Secretary disagrees with the |
| 24 | | report, findings of fact, and conclusions of law, and |
| 25 | | recommendations of the Board, the Secretary may issue an order |
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| 1 | | in contravention of the hearing officer's Board's |
| 2 | | recommendations. The finding is not admissible in evidence |
| 3 | | against the person in a criminal prosecution brought for the |
| 4 | | violation of this Act, but the hearing and finding are not a |
| 5 | | bar to a criminal prosecution brought for the violation of |
| 6 | | this Act. |
| 7 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 8 | | (205 ILCS 740/20) (was 225 ILCS 425/20) |
| 9 | | (Section scheduled to be repealed on January 1, 2026) |
| 10 | | Sec. 20. Rehearing Board; rehearing. At the conclusion of |
| 11 | | the hearing, a copy of the hearing officer's Board's report |
| 12 | | shall be served upon the applicant or licensee by the |
| 13 | | Department, either personally or as provided in this Act for |
| 14 | | the service of the notice of hearing. Within 20 calendar days |
| 15 | | after the service, the applicant or licensee may present to |
| 16 | | the Department a motion in writing for a rehearing which shall |
| 17 | | specify the particular grounds for rehearing. The Department |
| 18 | | may respond to the motion for rehearing within 20 days after |
| 19 | | its service on the Department, and the applicant or licensee |
| 20 | | may reply within 7 days thereafter. If no motion for rehearing |
| 21 | | is filed, then upon the expiration of the time specified for |
| 22 | | filing a motion, or if a motion for rehearing is denied, then |
| 23 | | upon denial, the Secretary may enter an order in accordance |
| 24 | | with the recommendations of the hearing officer Board, except |
| 25 | | as provided for in Section 19. If the applicant or licensee |
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| 1 | | orders a transcript of the record from the reporting service |
| 2 | | and pays for it within the time for filing a motion for |
| 3 | | rehearing, the 20 day period within which a motion for |
| 4 | | rehearing may be filed shall commence upon the delivery of the |
| 5 | | transcript to the applicant or licensee. |
| 6 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 7 | | (205 ILCS 740/22) (was 225 ILCS 425/22) |
| 8 | | (Section scheduled to be repealed on January 1, 2026) |
| 9 | | Sec. 22. Appointment of a hearing officer. The Secretary |
| 10 | | has the authority to appoint any attorney duly licensed to |
| 11 | | practice law in the State of Illinois to serve as the hearing |
| 12 | | officer in any action for refusal to issue, restore, or renew a |
| 13 | | license or to discipline a licensee. The hearing officer shall |
| 14 | | have full authority to conduct the hearing. A Board member or |
| 15 | | members may, but are not required to, attend hearings. The |
| 16 | | hearing officer shall report his or her findings of fact, |
| 17 | | conclusions of law, and recommendations to the Board. The |
| 18 | | Board shall review the report of the hearing officer and |
| 19 | | present its findings of fact, conclusions of law, and |
| 20 | | recommendations to the Secretary and to all parties to the |
| 21 | | proceeding. If the Secretary disagrees with the recommendation |
| 22 | | of the Board or of the hearing officer, the Secretary may issue |
| 23 | | an order in contravention of the recommendation. |
| 24 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 1 | | (205 ILCS 740/23) (was 225 ILCS 425/23) |
| 2 | | (Section scheduled to be repealed on January 1, 2026) |
| 3 | | Sec. 23. Order or certified copy; prima facie proof. An |
| 4 | | order or a certified copy thereof, over the seal of the |
| 5 | | Department and purporting to be signed by the Secretary, shall |
| 6 | | be prima facie proof that: |
| 7 | | (1) the signature is the genuine signature of the |
| 8 | | Secretary; and |
| 9 | | (2) the Secretary is duly appointed and qualified. ; |
| 10 | | and |
| 11 | | (3) the Board and its members are qualified to act. |
| 12 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 13 | | (205 ILCS 740/35) (was 225 ILCS 425/35) |
| 14 | | (Section scheduled to be repealed on January 1, 2026) |
| 15 | | Sec. 35. Returned checks; fines. Any person who delivers a |
| 16 | | check or other payment to the Department that is returned to |
| 17 | | the Department unpaid by the financial institution upon which |
| 18 | | it is drawn shall pay to the Department, in addition to the |
| 19 | | amount already owed to the Department, a fine of $50. The fines |
| 20 | | imposed by this Section are in addition to any other |
| 21 | | discipline provided under this Act for unlicensed practice or |
| 22 | | practice on a non-renewed license. The Department shall notify |
| 23 | | the person entity that payment of fees and fines shall be paid |
| 24 | | to the Department by certified check or money order within 30 |
| 25 | | calendar days of the notification. If, after the expiration of |
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| 1 | | 30 days from the date of notification, the person has failed to |
| 2 | | submit the necessary remittance, the Department shall |
| 3 | | automatically terminate the license or deny the application, |
| 4 | | without hearing. If, after the termination or denial, the |
| 5 | | person entity seeks a license, it shall apply to the |
| 6 | | Department for restoration or issuance of the license and pay |
| 7 | | all fees and fines due to the Department. The Department may |
| 8 | | establish a fee for the processing of an application for |
| 9 | | restoration of a license to pay all expenses of processing |
| 10 | | this application. The Secretary may waive the fines due under |
| 11 | | this Section in individual cases where the Secretary finds |
| 12 | | that the fines would be unreasonable or unnecessarily |
| 13 | | burdensome. |
| 14 | | (Source: P.A. 99-227, eff. 8-3-15.)
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| 15 | | (205 ILCS 740/3 rep.) |
| 16 | | (205 ILCS 740/13.1 rep.) |
| 17 | | Section 15. The Collection Agency Act is amended by |
| 18 | | repealing Sections 3 and 13.1. |