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Public Act 100-0132


 

Public Act 0132 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0132
 
HB2783 EnrolledLRB100 08668 SMS 18803 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    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:
 
    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
    (Section scheduled to be repealed on January 1, 2026)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'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
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
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.
    "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.)
 
    (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.
 
    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
    (Section scheduled to be repealed on January 1, 2026)
    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:
        (1) the applicant's name and address;
        (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
        (3) such other information as the Department may deem
    necessary.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/7)  (from Ch. 111, par. 2010)
    (Section scheduled to be repealed on January 1, 2026)
    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:
        (a) be of good moral character and of the age of 18
    years or more;
        (b) (blank); and
        (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.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/8a)  (from Ch. 111, par. 2011a)
    (Section scheduled to be repealed on January 1, 2026)
    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.
    (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.
    (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.)
 
    (225 ILCS 425/8c)  (from Ch. 111, par. 2011c)
    (Section scheduled to be repealed on January 1, 2026)
    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.
    There shall be sufficient funds in the trust account at all
times to pay the creditors the amount due them.
    (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.
    (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.
    (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.
    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.
    An examination and audit of an agency's trust accounts may
be made by the Department as the Department deems appropriate.
    A trust account financial report shall be submitted
annually on forms provided by the Department.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/9.22)  (from Ch. 111, par. 2034)
    (Section scheduled to be repealed on January 1, 2026)
    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
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.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/13.1)  (from Ch. 111, par. 2038.1)
    (Section scheduled to be repealed on January 1, 2026)
    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
collection agency licensed under this Act, and shall have no
family or business connection with the practice of collection
agencies.
    (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
compensation for their services, but shall be reimbursed for
their necessary expenses as authorized by the Department while
engaged in their duties.
    (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.
    (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.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/13.2)  (from Ch. 111, par. 2038.2)
    (Section scheduled to be repealed on January 1, 2026)
    Sec. 13.2. Powers and duties of Department. The Department
shall exercise the powers and duties prescribed by the Civil
Administrative Code of Illinois for the administration of
licensing Acts and shall exercise such other powers and duties
necessary for effectuating the purposes of this Act.
    Subject to the provisions of this Act, the Department may:
        (1) Conduct hearings on proceedings to refuse to issue
    or renew or to revoke licenses or suspend, place on
    probation, or reprimand persons licensed under this Act.
        (2) 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.
        (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.)
 
    (225 ILCS 425/16)
    (Section scheduled to be repealed on January 1, 2026)
    Sec. 16. Investigation; notice and hearing. The Department
may investigate the actions or qualifications of any applicant
or of any person rendering or offering to render collection
agency services or any person holding or claiming to hold a
license as a collection agency. The Department shall, before
refusing to issue or renew, revoking, suspending, placing on
probation, reprimanding, or taking any other disciplinary
action under Section 9 of this Act, at least 30 days before the
date set for the hearing, (i) notify the accused in writing of
the charges made and the time and place for the hearing on the
charges, (ii) direct him or her to file his or her written
answer to the charges with the Department under oath within 20
days after the service on him or her of the notice, and (iii)
inform the accused that if he or she fails to file an answer
default will be taken against him or her or his or her license
may be suspended, revoked, or placed on probation, or other
disciplinary action may be taken with regard to the license,
including limiting the scope, nature, or extent of his or her
practice, as the Department may consider proper. At the time
and place fixed in the notice, the Department shall proceed to
hear the charges. The parties or their counsel shall be
accorded ample opportunity to present any pertinent
statements, testimony, evidence, and arguments. The Department
may continue the hearing from time to time. Nothing in this
Section shall be construed to require that a hearing be
commenced and completed in one day. At the discretion of the
Secretary, after having first received the recommendation of
the Board, the accused person's license may be suspended or
revoked, if the evidence constitutes sufficient grounds for
such action under this Act. If the person fails to file an
answer after receiving notice, his or her license may, in the
discretion of the Department, be suspended, revoked, or placed
on probation, or the Department may take whatever disciplinary
action it considers proper, including limiting the scope,
nature, or extent of the person's practice or the imposition of
a fine, without a hearing, if the act or acts charged
constitute sufficient grounds for such action under this Act.
Written or electronic 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.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (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. 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.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/27)
    (Section scheduled to be repealed on January 1, 2026)
    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.
Failure on the part of the plaintiff to file a receipt in court
shall be grounds for dismissal of the action.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    (225 ILCS 425/30)
    (Section scheduled to be repealed on January 1, 2026)
    Sec. 30. Expiration, renewal, and restoration of license.
The expiration date and renewal period for each license shall
be set by rule. A collection agency whose license has expired
may restore 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.
(Source: P.A. 99-227, eff. 8-3-15.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
    225 ILCS 425/2from Ch. 111, par. 2002
    225 ILCS 425/2.5 new
    225 ILCS 425/4.6 new
    225 ILCS 425/5from Ch. 111, par. 2008
    225 ILCS 425/7from Ch. 111, par. 2010
    225 ILCS 425/8afrom Ch. 111, par. 2011a
    225 ILCS 425/8cfrom Ch. 111, par. 2011c
    225 ILCS 425/9.22from Ch. 111, par. 2034
    225 ILCS 425/13.1from Ch. 111, par. 2038.1
    225 ILCS 425/13.2from Ch. 111, par. 2038.2
    225 ILCS 425/16
    225 ILCS 425/17
    225 ILCS 425/27
    225 ILCS 425/30

Effective Date: 8/18/2017