Illinois General Assembly - -

(205 ILCS 740/1) (was 225 ILCS 425/1))

Sec. 1. This Act shall be known and may be cited as the "Collection Agency Act".

(Source: P.A. 78-1248.)

(205 ILCS 740/1a) (was 225 ILCS 425/1a)

Sec. 1a. Declaration of public policy. The practice as a collection agency by any entity in the State of Illinois is hereby declared to affect the public health, safety and welfare and to be subject to regulation and control in the public interest. It is further declared to be a matter of public interest and concern that the collection agency profession merit and receive the confidence of the public and that only qualified entities be permitted to practice as a collection agency in the State of Illinois. This Act shall be liberally construed to carry out these objects and purposes.

It is further declared to be the public policy of this State to protect consumers against debt collection abuse.

(Source: P.A. 89-387, eff. 1-1-96.)

(205 ILCS 740/2) (was 225 ILCS 425/2)

(Text of Section from P.A. 104-149)

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.

"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 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.

"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 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 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 or hires an attorney-at-law for litigation 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.

"Licensed collection agency" means a person who is licensed under this Act to act as a collection agency 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 designee.

(Source: P.A. 104-149, eff. 1-1-26.)

(Text of Section from P.A. 104-297)

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.

"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.

"Coerced debt" means any debt as defined by this Act or a portion of the debt, except for debt secured by real property, that was incurred by the debtor because of fraud, duress, intimidation, threat, force, coercion, undue influence, or the non-consensual use of the debtor's personal identifying information between family or household members as defined in Section 103 of the Illinois Domestic Violence Act of 1986, as a result of abuse or exploitation as defined in Section 103 of the Illinois Domestic Violence Act of 1986, or due to human trafficking as defined in subsections (b), (c), and (d) of Section 10-9 of the Criminal Code of 2012.

"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.

"Perpetrator of coerced debt" or "perpetrator" means an individual who caused coerced debt to be incurred by another.

"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 or his or her designee.

(Source: P.A. 104-297, eff. 1-1-26.)

(205 ILCS 740/2.01) (was 225 ILCS 425/2.01)

Sec. 2.01. (Repealed).

(Source: P.A. 85-1209. Repealed by P.A. 95-437, eff. 1-1-08.)

(205 ILCS 740/2.02) (was 225 ILCS 425/2.02)

Sec. 2.02. (Repealed).

(Source: P.A. 94-414, eff. 12-31-05. Repealed by P.A. 95-437, eff. 1-1-08.)

(205 ILCS 740/2.03) (was 225 ILCS 425/2.03)

Sec. 2.03. Exemptions. This Act does not apply to the following:

1. Banks, including trust departments, affiliates, and subsidiaries thereof, and fiduciaries (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;

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 licensed pursuant to the Residential Mortgage License Act of 1987 when engaged in activity authorized under that Act;

9. Retail sellers collecting on retail installment contracts or retail charge agreements originated by the retail seller;

10. Unit Owner's Associations established under the Condominium Property Act, and their duly authorized agents, when collecting assessments from unit owners;

11. Any person 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 they made pursuant to that Act;

13. Persons licensed pursuant to the Student Loan Servicing Act when engaged in activity authorized under that Act;

14. Persons licensed pursuant to the Consumer Installment Loan Act when engaged in collection of loans that they 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 they 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/2.04) (was 225 ILCS 425/2.04)

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 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.

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 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 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%.

(b) The Department shall adopt rules necessary to administer and enforce the provisions of this Section.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/2.5) (was 225 ILCS 425/2.5)

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.

(Source: P.A. 100-132, eff. 8-18-17.)

(205 ILCS 740/3) (was 225 ILCS 425/3)

Sec. 3. (Repealed).

(Source: P.A. 99-227, eff. 8-3-15. Repealed by P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/4) (was 225 ILCS 425/4)

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, 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 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/4.5) (was 225 ILCS 425/4.5)

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 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 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 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/4.6) (was 225 ILCS 425/4.6)

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.

(Source: P.A. 100-132, eff. 8-18-17.)

(205 ILCS 740/5) (was 225 ILCS 425/5)

Sec. 5. Application for original license. Application for an original license shall be made to the Secretary on forms provided by the Department or through a multi-state licensing system as designated by the Secretary. The application shall be accompanied by the required fee and shall state:

(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. 102-975, eff. 1-1-23.)

(205 ILCS 740/6) (was 225 ILCS 425/6)

Sec. 6. (Repealed).

(Source: P.A. 89-387, eff. 1-1-96. Repealed by P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/6a) (was 225 ILCS 425/6a)

Sec. 6a. (Repealed).

(Source: P.A. 94-414, eff. 12-31-05. Repealed by P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/7) (was 225 ILCS 425/7)

Sec. 7. Qualifications for license. In order to be qualified to obtain a license or a renewal license under this Act, a collection agency's owners or officers shall:

(a) have the financial responsibility, financial condition, business experience, character, and general fitness such as to merit the confidence and trust of the public that an applicant, licensee, or regulated person is fit, willing, and able to carry on his or her proposed business in a lawful and fair manner;

(a-5) be 18 years of age 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 under this Act whose license was suspended or revoked without subsequent restoration.

(Source: P.A. 102-975, eff. 1-1-23.)

(205 ILCS 740/8) (was 225 ILCS 425/8)

Sec. 8. Bond requirement. A collection agency shall be required to file and maintain in force a surety bond, issued by an insurance company authorized to transact fidelity and surety business in the State of Illinois. The bond shall be for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor. No action on the bond shall be commenced more than one year after the creditor obtains a judgment against the collection agency from a court of competent jurisdiction. The bond shall be in the form prescribed by the Secretary in the sum of $25,000. The bond shall be continuous in form and run concurrently with the original and each renewal license period unless terminated by the insurance company. An insurance company may terminate a bond and avoid further liability by filing a 60-day notice of termination with the Department and at the same time sending the same notice to the agency. A license shall be cancelled on the termination date of the agency's bond unless a new bond is filed with the Department to become effective at the termination date of the prior bond. If a license has been cancelled under this Section, the agency must file a new application and will be considered a new applicant if it obtains a new bond.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/8a) (was 225 ILCS 425/8a)

Sec. 8a. Fees.

(a) The fees for the administration and enforcement of this Act, including but not limited to original licensure, renewal, and restoration, shall be set by the Department by rule. All fees are nonrefundable.

(b) All fees collected under this Act by the Department shall be deposited into the Financial Institution Fund and shall be appropriated to the Department for the ordinary and contingent expenses of the Department in the administration of this Act. After the effective date of this amendatory Act of the 102nd General Assembly, the Department may transfer any funds collected under this Act from the General Professions Dedicated Fund to the Financial Institution Fund.

(c) The administration fee charged by the multi-state licensing system shall be paid directly to the multi-state licensing system.

(Source: P.A. 102-205, eff. 7-30-21; 102-975, eff. 1-1-23.)

(205 ILCS 740/8a-1) (was 225 ILCS 425/8a-1)

Sec. 8a-1. (a) No account may be referred by a collection agency to an attorney unless, prior to placing an account with an attorney for further collection action, each account creditor is notified in writing by the collection agency of the collection agency's intent to refer the account to an attorney. The account may not be referred to an attorney if a creditor notifies the collection agency within 5 days after receiving the notice that the creditor is withholding authorization for the account to be referred to an attorney. The notice requirement under this subsection may, in the alternative, be satisfied if the creditor signs the complaint that will be filed in the circuit court seeking judgment on the debt owed. A collection agency shall not take any action that in fact or in appearance interferes with the professional relationship between the attorney and the creditor.

(b) Court costs expended by the agency or the creditor for filing a complaint are recoverable by the agency or the creditor if the principal on the debt is paid before the judgment is issued.

(Source: P.A. 89-387, eff. 1-1-96.)

(205 ILCS 740/8b) (was 225 ILCS 425/8b)

Sec. 8b. Assignment for collection. An account may be assigned to a collection agency for collection with title passing to the collection agency to enable collection of the account in the agency's name as assignee for the creditor provided:

(a) The assignment is manifested by a written agreement, separate from and in addition to any document intended for the purpose of listing a debt with a collection agency. The document manifesting the assignment shall specifically state and include:

(i) the effective date of the assignment; and

(ii) the consideration for the assignment.

(b) The consideration for the assignment may be paid or given either before or after the effective date of the assignment. The consideration may be contingent upon the settlement or outcome of litigation and if the debt being assigned has been listed with the collection agency as an account for collection, the consideration for assignment may be the same as the fee for collection.

(c) All assignments shall be voluntary and properly executed and acknowledged by the corporate authority or individual transferring title to the collection agency before any action can be taken in the name of the collection agency.

(d) No assignment shall be required by any agreement to list a debt with a collection agency as an account for collection.

(e) No litigation shall commence in the name of the licensee as plaintiff unless: (i) there is an assignment of the account that satisfies the requirements of this Section and (ii) the licensee is represented by a licensed attorney at law.

(f) If a collection agency takes assignments of accounts from 2 or more creditors against the same debtor and commences litigation against that debtor in a single action, in the name of the collection agency, then (i) the complaint must be stated in separate counts for each assignment and (ii) the debtor has an absolute right to have any count severed from the rest of the action.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/8c) (was 225 ILCS 425/8c)

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.

(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)

(205 ILCS 740/8.5) (was 225 ILCS 425/8.5)

Sec. 8.5. Debt buyers. A debt buyer shall be subject to all of the terms, conditions, and requirements of this Act, except as otherwise provided for in subsection (b) of Section 8.6 of this Act.

(Source: P.A. 97-1070, eff. 1-1-13.)

(205 ILCS 740/8.6) (was 225 ILCS 425/8.6)

Sec. 8.6. Debt buyer activities.

(a) Debt buyers initiating actions upon an obligation arising out of a consumer debt shall be commenced within the applicable statute of limitations period.

(b) With respect to its activities as a debt buyer in pursuing the collection of accounts it owns, a debt buyer shall be subject to all of the terms, conditions, and requirements of this Act, except that a debt buyer shall not be required to (i) file and maintain in force a surety bond under Section 8 of this Act; (ii) maintain a trust account under Section 8c of this Act; (iii) procure written authorization to refer the account to an attorney for suit under Section 8a-1 of this Act; or (iv) adhere to the assignment for collection criteria under Section 8b of this Act.

(c) The Attorney General may enforce against debt buyers the provisions identified in Section 9.7 of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

(Source: P.A. 97-1070, eff. 1-1-13.)

(205 ILCS 740/9) (was 225 ILCS 425/9)

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 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 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 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 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.

(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 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 that the collection agency is an attorney at law or an agent for an attorney.

(33) Collecting or attempting to collect any interest or other charge or fee in excess of the actual debt unless such interest or other charge or fee is expressly authorized by the agreement creating the debt unless expressly authorized by law or unless in a commercial transaction such interest or other charge or fee is expressly authorized in a subsequent agreement. If a contingency or hourly fee arrangement (i) is established under an agreement between a collection agency and a creditor to collect a debt and (ii) is paid by a debtor pursuant to a contract between the debtor and the creditor, then that fee arrangement does not violate this Section unless the fee is unreasonable. The Department shall determine what constitutes a reasonable collection fee.

(34) Communicating or threatening to communicate with a debtor when the collection agency is informed in writing by an attorney that the attorney represents the debtor concerning the debt. If the attorney fails to respond within a reasonable period of time, the collector may communicate with the debtor. The collector may communicate with the debtor when the debtor's attorney gives 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/9.1) (was 225 ILCS 425/9.1)

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, 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/9.2) (was 225 ILCS 425/9.2)

Sec. 9.2. Communication in connection with debt collection.

(a) Without the prior consent of the debtor given directly to the collection agency or the express permission of a court of competent jurisdiction, a collection agency may not communicate with a debtor in connection with the collection of any debt in any of the following circumstances:

(1) At any unusual time, place, or manner that is known or should be known to be inconvenient to the debtor. In the absence of knowledge of circumstances to the contrary, a collection agency shall assume that the convenient time for communicating with a debtor is after 8:00 a.m. and before 9:00 p.m. in the debtor's local time.

(2) If the collection agency knows the debtor is represented by an attorney with respect to such debt and has knowledge of or can readily ascertain, the attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the collection agency or unless the attorney consents to direct communication with the debtor.

(3) At the debtor's place of employment, if the collection agency knows or has reason to know that the debtor's employer prohibits the debtor from receiving such communication.

(b) Except as provided in Section 9.1 of this Act, a collection agency may not communicate, in connection with the collection of any debt, with any person other than the debtor, the debtor's attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the collection agency without the prior consent of the debtor given directly to the collection agency, the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a post-judgment judicial remedy.

(c) If a debtor notifies a collection agency in writing that the debtor refuses to pay a debt or that the debtor wishes the collection agency to cease further communication with the debtor, the collection agency may not communicate further with the debtor with respect to such debt, except to perform any of the following tasks:

(1) Advise the debtor that the collection agency's further efforts are being terminated.

(2) Notify the debtor that the collection agency or creditor may invoke specified remedies that are ordinarily invoked by such collection agency or creditor.

(3) Notify the debtor that the collection agency or creditor intends to invoke a specified remedy.

If such notice from the debtor is made by mail, notification shall be complete upon receipt.

(d) For the purposes of this Section, "debtor" includes the debtor's spouse, parent (if the debtor is a minor), guardian, executor, or administrator.

(e) This Section applies to a collection agency or debt buyer only when engaged in the collection of consumer debt.

(Source: P.A. 102-975, eff. 1-1-23.)

(205 ILCS 740/9.3) (was 225 ILCS 425/9.3)

Sec. 9.3. Validation of debts.

(a) Within 5 days after the initial communication with a debtor in connection with the collection of any debt, a collection agency shall, unless the following information is contained in the initial communication or the debtor has paid the debt, send the debtor a written notice with each of the following disclosures:

(1) The amount of the debt.

(2) The name of the creditor to whom the debt is owed.

(3) That, unless the debtor, within 30 days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the collection agency.

(4) That, if the debtor notifies the collection agency in writing within the 30-day period that the debt, or any portion thereof, is disputed, the collection agency will obtain verification of the debt or a copy of a judgment against the debtor and a copy of the verification or judgment will be mailed to the debtor by the collection agency.

(5) That upon the debtor's written request within the 30-day period, the collection agency will provide the debtor with the name and address of the original creditor, if different from the current creditor. If the disclosures required under this subsection (a) are placed on the back of the notice, the front of the notice shall contain a statement notifying debtors of that fact.

(b) If the debtor notifies the collection agency in writing within the 30-day period set forth in paragraph (3) of subsection (a) of this Section that the debt, or any portion thereof, is disputed or that the debtor requests the name and address of the original creditor, the collection agency shall cease collection of the debt, or any disputed portion thereof, until the collection agency obtains verification of the debt or a copy of a judgment or the name and address of the original creditor and mails a copy of the verification or judgment or name and address of the original creditor to the debtor.

(c) The failure of a debtor to dispute the validity of a debt under this Section shall not be construed by any court as an admission of liability by the debtor.

(d) 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 740/9.4) (was 225 ILCS 425/9.4)

Sec. 9.4. Debt collection as a result of identity theft.

(a) Upon receipt from a debtor of all of the following information, a collection agency must cease collection activities until completion of the review provided in subsection (d) of this Section:

(1) A copy of a police report filed by the debtor alleging that the debtor is the victim of an identity theft crime for the specific debt being collected by the collection agency.

(2) The debtor's written statement that the debtor claims to be the victim of identity theft with respect to the specific debt being collected by the collection agency, including (i) a Federal Trade Commission's Affidavit of Identity Theft, (ii) an Illinois Attorney General ID Theft Affidavit, or (iii) a written statement that certifies that the representations are true, correct, and contain no material omissions of fact to the best knowledge and belief of the person submitting the certification. This written statement must contain or be accompanied by, each of the following, to the extent that an item listed below is relevant to the debtor's allegation of identity theft with respect to the debt in question:

(A) A statement that the debtor is a victim of identity theft.

(B) A copy of the debtor's driver's license or identification card, as issued by this State.

(C) Any other identification document that supports the statement of identity theft.

(D) Specific facts supporting the claim of identity theft, if available.

(E) Any explanation showing that the debtor did not incur the debt.

(F) Any available correspondence disputing the debt after transaction information has been provided to the debtor.

(G) Documentation of the residence of the debtor at the time of the alleged debt, which may include copies of bills and statements, such as utility bills, tax statements, or other statements from businesses sent to the debtor and showing that the debtor lived at another residence at the time the debt was incurred.

(H) A telephone number for contacting the debtor concerning any additional information or questions or direction that further communications to the debtor be in writing only, with the mailing address specified in the statement.

(I) To the extent the debtor has information concerning who may have incurred the debt, the identification of any person whom the debtor believes is responsible.

(J) An express statement that the debtor did not authorize the use of the debtor's name or personal information for incurring the debt.

(b) A written certification submitted pursuant to item (iii) of paragraph (2) of subsection (a) of this Section shall be sufficient if it is in substantially the following form:

"I certify that the representations made are true, correct,

and contain no material omissions of fact known to me.

(Signature)

(Date)"

(c) If a debtor notifies a collection agency orally that he or she is a victim of identity theft, the collection agency shall notify the debtor orally or in writing, that the debtor's claim must be in writing. If a debtor notifies a collection agency in writing that he or she is a victim of identity theft, but omits information required pursuant to this Section, and if the collection agency continues collection activities, the collection agency must provide written notice to the debtor of the additional information that is required or send the debtor a copy of the Federal Trade Commission's Identity Theft Affidavit form.

(d) Upon receipt of the complete statement and information described in subsection (a) of this Section, the collection agency shall review and consider all of the information provided by the debtor and other information available to the collection agency in its file or from the creditor. The collection agency may recommence debt collection activities only upon making a good faith determination that the information does not establish that the debtor is not responsible for the specific debt in question. The collection agency must notify the debtor in writing of that determination and the basis for that determination before proceeding with any further collection activities. The collection agency's determination shall be based on all of the information provided by the debtor and other information available to the collection agency in its file or from the creditor.

(e) No inference or presumption that the debt is valid or invalid or that the debtor is liable or not liable for the debt may arise if the collection agency decides after the review described in subsection (d) to cease or recommence the debt collection activities. The exercise or non-exercise of rights under this Section is not a waiver of any other right or defense of the debtor or collection agency.

(f) A collection agency that (i) ceases collection activities under this Section, (ii) does not recommence those collection activities, and (iii) furnishes adverse information to a consumer credit reporting agency, must notify the consumer credit reporting agency to delete that adverse information.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/9.5) (was 225 ILCS 425/9.5)

Sec. 9.5. Statute of limitations. No action may be filed against any licensee for violation of the terms of this Act or its rules unless the action is commenced within 5 years after the occurrence of the alleged violation. A continuing violation will be deemed to have occurred on the date when the circumstances first existed which gave rise to the alleged continuing violation.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/9.6)

Sec. 9.6. Coerced debt.

(a) A debtor is not liable for any coerced debt, as defined in this Act, and may assert that the debtor has incurred a coerced debt by providing to a collection agency a written statement of coerced debt. The statement of coerced debt shall:

(1) contain enough information about the debt or portion of the debt to allow a collection agency to identify any account associated with the debt;

(2) inform the collection agency that the debtor did not willingly authorize the use of the debtor's name, account, or personal information for incurring the debt or portion of the debt or to claim that a debt or portion of the debt is a coerced debt;

(3) provide facts describing how the debt was incurred;

(4) include the debtor's preferred contact methods and information such as a phone number, email address, physical address, or safe address for either the debtor or a qualified third party whom the debtor designates to receive information about the coerced debt;

(5) be supported by at least one of the following:

(A) a police report that identifies the coerced debt, or a portion of the debt, and describes the circumstances under which the coerced debt was incurred;

(B) an order from a court setting forth findings of coerced debt;

(C) written verification on letterhead or on a form published by the Department, verified by certification under Section 1-109 of the Code of Civil Procedure of 1963, from a qualified third party to whom the debtor reported the coerced debt that identifies the name, organization, address, and telephone number of the qualified third party, identifies the coerced debt or a portion of the debt, and attests that the debtor sought the qualified third party's assistance related to the coerced debt, abuse or exploitation under the Illinois Domestic Violence Act of 1986, or because they are a victim of human trafficking under Section 10-9 of the Criminal Code of 2012. Provision of a written verification under this Section does not waive any privilege or confidentiality between the third party and the debtor under federal, State, or local law; or

(D) any other document that individually, or in combination with other documents, demonstrates that a person was subject to coerced debt, including, but not limited to, text messages, email messages, phone records, voicemail messages, social media posts, letters, credit card applications, or orders of protection under Article 2 of the Illinois Domestic Violence Act of 1986 or protective orders under Section 112A of the Code of Criminal Procedure of 1963.

(6) be verified by signing the following attestation: "By signing below, I am certifying that the information provided on this form is true and correct to the best of my knowledge and recollection, and that one or more members of my household is or has been a victim of human trafficking, domestic violence, dating violence, sexual assault, or stalking.".

As used in this Section, "qualified third party" means any law enforcement officer; attorney; physician, physician assistant, psychiatrist, psychologist, social worker, nurse, therapist, clinical professional counselor, or other medical professional; person who advises or provides services to persons regarding domestic violence, family violence, sexual assault, human trafficking, or abuse of children, the elderly, or dependent adults; or member of the clergy of a church, religious society, or denomination.

(b) A debtor shall submit a statement of coerced debt and accompanying materials either electronically or by certified mail, overnight delivery, completion of an online form, or by any other delivery method that confirms the date on which the documentation was delivered.

(1) A statement of coerced debt and accompanying materials submitted by first class mail, certified mail, or overnight delivery must be sent to the address published by the collection agency on its materials as the address at which the collection agency receives correspondence.

(2) A statement of coerced debt and accompanying materials submitted electronically must be sent to the email address provided by the collection agency on its collection letters, emails, or website and a hard copy of the emailed materials must also be sent to the collection agency by first class mail.

(3) A statement of coerced debt and accompanying materials may be submitted by completing an online form on the website provided by the collection agency on its collection letters or emails. The collection agency is not required to offer an online form on its website for the submission of a statement of coerced debt.

(c) If a debtor notifies a collection agency orally that the debt it is pursuing is coerced debt or is partially coerced debt, the collection agency shall notify the debtor orally or in writing, within 14 days after receiving oral notice, that the debtor's claim must be in writing and refer the debtor to any model statement that is posted by the Department on its website. A collection agency receiving an oral notice of coerced debt must notify any consumer reporting agency to which the collection agency furnished adverse information about the debtor that the debtor disputes the adverse information.

(d) If the statement of coerced debt is incomplete in any respect, the collection agency shall notify the debtor using the debtor's preferred contact method within 21 days after receipt that the statement is incomplete and the type of additional information needed to complete the statement of coerced debt. If the collection agency provides this notice orally, the collection agency shall also provide notice to the debtor in writing via email or first-class mail if the debtor identifies an email address or mailing address as a preferred contact method on the statement of coerced debt. A debtor shall have 21 days after receipt that the statement is incomplete to respond with the additional information required. The collection agency may resume collection activities if a complete statement of coerced debt has not been provided by the debtor to the collection agency on or before 30 days after notice of an incomplete statement of coerced debt was provided to the debtor.

(e) Upon receiving the debtor's complete statement of coerced debt and supporting information described in subsection (a), the collection agency shall review and consider all the information received from the debtor as well as any other information available in the collection agency's file or from the creditor related to the alleged coerced debt within 90 days after receipt.

(1) Within 10 days after receipt of the complete statement of coerced debt and supporting information, the collection agency shall (i) cease any pre-judgment attempts to collect the coerced debt from the debtor, including refraining from filing any lawsuit or arbitration to collect the coerced debt; and (ii) notify any consumer reporting agency to which the collection agency or creditor furnished adverse information about the debtor that the debtor disputes the adverse information.

(2) If, after review, the collection agency makes a good faith determination that the debt or any portion of the debt does not qualify as coerced debt, the collection agency shall provide the debtor with a written statement setting forth the determination, along with any evidence relied upon in forming this determination. A collection agency may only resume collection activities after providing debtor with a copy of this written statement and supporting evidence at the debtor's preferred email or mailing address from the statement of coerced debt or, if not provided as part of the statement, at their last known mailing address.

(3) If, after its review of the statement of coerced debt and accompanying materials, the collection agency makes a good faith determination that the debt qualifies as coerced debt, it shall: (i) refrain from any further collection activities, including the filing of any lawsuit or arbitration, to collect the coerced debt from the debtor who submitted the statement of coerced debt; (ii) notify the debtor through their preferred contact method that it is ceasing all attempts to collect the debt from the debtor based on the debtor's claim of coerced debt; and (iii) contact any consumer reporting agency to which it furnished information about the coerced debt and request they delete such information.

(4) Upon the collection agency's request, the debtor shall provide the identity of the alleged perpetrator and the individual's contact information to the collection agency, if known.

(5) A collection agency shall not provide the contact information of debtor or a copy of the statement of coerced debt or supporting information to an alleged perpetrator of coerced debt or another person but may summarize the allegations about how the coerced debt was incurred in order to collect the debt from the perpetrator.

(f) In any lawsuit or arbitration to collect a debt, it shall be an affirmative defense that the debt is or is partially coerced debt. A debtor establishes a prima facie affirmative defense to any action by a collection agency to collect a debt by submitting a complete statement of coerced debt as set forth in subsection (a) to the collection agency and the court or arbitrator. A collection agency has the burden to disprove the debtor's defense by a preponderance of the evidence.

(g) A person found by a court or arbitrator to be a perpetrator of coerced debt shall be civilly liable to (1) the collection agency for the full amount of the debt, less any portion that has been satisfied by the debtor or otherwise, and (2) the debtor for any actual damages incurred for payments, garnishments, or any other costs related to the coerced debt.

(h) A qualified third party who fraudulently certifies that the debtor sought assistance from the qualified third party related to the coerced debt, abuse, exploitation, or human trafficking shall be liable to the collection agency for actual damages, court costs, and reasonable attorney's fees.

(i) Any statute of limitation that may apply to a debt that is alleged to be coerced debt shall be tolled for the duration of any time period during which the collection agency is temporarily prevented from commencing legal action related to the debt or any portion of the debt.

(j) During any court action or arbitration under subsections (f) and (g), the presiding official shall take appropriate steps necessary to protect the debtor or any immediate family member or household member of the debtor from an alleged perpetrator of coerced debt, including, but not limited to, sealing court records, redacting personally identifiable information about the debtor and any immediate family member or household member of the debtor, and directing that any deposition or evidentiary hearing be conducted remotely.

(k) A debtor who receives a good faith determination under paragraph (2) of subsection (e) that the debt or portion of the debt does not constitute coerced debt may not submit a second or subsequent statement of coerced debt to the collection agency for the same debt or portion of the debt prior to any lawsuit or arbitration to collect that debt and the collection agency is not required to respond to the debtor regarding such second or subsequent statement of coerced debt.

(l) No agreement between a debtor and any other person may contain any provision that constitutes a waiver of any right conferred or cause of action created by this Section, and any such waiver is void.

(m) Any collection agency who fails to comply with any provision of this Section is liable to the debtor for the greater of actual damages or damages of up to $2,500 as the court may allow for each debt, court costs, and reasonable attorney's fees.

(n) Within 180 days after the effective date of this amendatory Act of the 104th General Assembly, the Department shall design and publish a model statement of coerced debt and a model third-party written verification form in English and any other language it determines, within its discretion, is the first language of a significant number of consumers in the State. The model statement of coerced debt shall include the verification language required under paragraph (6) of subsection (a). The model third-party verification form shall require verification under Section 1-109 of the Code of Civil Procedure. The design and publication of the model statement of coerced debt and third-party written verification form is a prescription of a standardized form and shall not constitute a rule subject to the Illinois Administrative Procedure Act.

(o) Nothing in this Section shall reduce or eliminate any other rights or defenses available at law.

(p) The provisions of this Section are severable under Section 1.31 of the Statute on Statutes.

(Source: P.A. 104-297, eff. 1-1-26.)

(205 ILCS 740/9.7) (was 225 ILCS 425/9.7)

Sec. 9.7. Enforcement under the Consumer Fraud and Deceptive Business Practices Act. The Attorney General may enforce the knowing violation of Section 9 (except for items (2) through (4), (7) through (9), (11) through (13), and (23) of subsection (a)), 9.1, 9.2, 9.3, or 9.4 of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/9.22) (was 225 ILCS 425/9.22)

Sec. 9.22. Illinois 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 Illinois 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.

(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17; 100-863, eff. 8-14-18.)

(205 ILCS 740/10) (was 225 ILCS 425/10)

Sec. 10. (Repealed).

(Source: P.A. 89-387, eff. 1-1-96. Repealed by P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/11) (was 225 ILCS 425/11)

Sec. 11. Consent orders. Notwithstanding any provisions concerning the conduct of hearings and recommendations for disciplinary actions, the Department has the authority to negotiate agreements with licensees and applicants resulting in disciplinary or non-disciplinary consent orders. The consent orders may provide for any of the forms of discipline provided in this Act. The consent orders shall provide that they were not entered into as a result of any coercion by the Department.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/13) (was 225 ILCS 425/13)

Sec. 13. (Repealed).

(Source: P.A. 84-242. Repealed by P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/13.1) (was 225 ILCS 425/13.1)

Sec. 13.1. Annual meeting between debt collection industry and the Department. The Department shall, if requested to do so by at least 20 interested persons or an association representing at least 20 interested persons, meet at least once per calendar year with representatives of the debt collection industry to discuss developments in the lawful collection of debt and issues confronting the Department in its regulation and discipline of collection agencies.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/13.2) (was 225 ILCS 425/13.2)

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.

(4) (Blank).

(Source: P.A. 103-1014, eff. 8-9-24; 104-149, eff. 1-1-26.)

(205 ILCS 740/13.3) (was 225 ILCS 425/13.3)

Sec. 13.3. (Repealed).

(Source: P.A. 86-615. Repealed by P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/14) (was 225 ILCS 425/14)

Sec. 14. (Repealed).

(Source: P.A. 78-1248. Repealed by P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/14a) (was 225 ILCS 425/14a)

Sec. 14a. Unlicensed practice; Injunctions. The practice as a collection agency by any person not holding a valid and current license under this Act is declared to be inimical to the public welfare, to constitute a public nuisance, and to cause irreparable harm to the public welfare. The Secretary, the Attorney General, the State's Attorney of any county in the State, or any person may maintain an action in the name of the People of the State of Illinois, and may apply for injunctive relief in any circuit court to enjoin such entity from engaging in such practice. Upon the filing of a verified petition in such court, the court, if satisfied by affidavit or otherwise that such entity has been engaged in such practice without a valid and current license, may enter a temporary restraining order without notice or bond, enjoining the defendant from such further practice. Only the showing of non-licensure, by affidavit or otherwise, is necessary in order for a temporary injunction to issue. A copy of the verified complaint shall be served upon the defendant and the proceedings shall thereafter be conducted as in other civil cases except as modified by this Section. If it is established that the defendant has been or is engaged in such unlawful practice, the court may enter an order or judgment perpetually enjoining the defendant from further practice. In all proceedings hereunder, the court, in its discretion, may apportion the costs among the parties interested in the action, including cost of filing the complaint, service of process, witness fees and expenses, court reporter charges and reasonable attorneys' fees. In case of violation of any injunctive order entered under the provisions of this Section, the court may summarily try and punish the offender for contempt of court. Such injunction proceedings shall be in addition to, and not in lieu of, all penalties and other remedies provided in this Act.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/14b) (was 225 ILCS 425/14b)

Sec. 14b. Penalty of unlawful practice; second and subsequent offenses. Any person 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 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 is punished as a subsequent offender under this Section, the Secretary shall proceed to obtain a permanent injunction against that person under Section 14a of this Act.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/15) (was 225 ILCS 425/15)

Sec. 15. If any clause, sentence, Section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason, such judgment shall not impair, affect or invalidate the remainder of this Act, which shall be in full force and effect thereafter.

(Source: P.A. 78-1248.)

(205 ILCS 740/16) (was 225 ILCS 425/16)

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, 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/17) (was 225 ILCS 425/17)

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, and orders of the Department shall be in the record of the proceedings.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/18) (was 225 ILCS 425/18)

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 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 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/19) (was 225 ILCS 425/19)

Sec. 19. Findings and recommendations. At the conclusion of the hearing, the hearing officer 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 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 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, the Secretary may issue an order in contravention of the hearing officer'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. 104-149, eff. 1-1-26.)

(205 ILCS 740/20) (was 225 ILCS 425/20)

Sec. 20. Rehearing. At the conclusion of the hearing, a copy of the hearing officer'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, except as provided for in Section 19. If the applicant or licensee 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/21) (was 225 ILCS 425/21)

Sec. 21. Secretary; rehearing. Whenever the Secretary is not satisfied that substantial justice has been done in the revocation, suspension, or refusal to issue, restore, or renew a license, or other discipline of an applicant or licensee, the Secretary may order a rehearing by the same or other examiners.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/22) (was 225 ILCS 425/22)

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. The hearing officer shall report findings of fact, conclusions of law, and recommendations to the Secretary and to all the parties to the proceeding. If the Secretary disagrees with the recommendation of the hearing officer, the Secretary may issue an order in contravention of the recommendation.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/23) (was 225 ILCS 425/23)

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.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/24) (was 225 ILCS 425/24)

Sec. 24. Restoration of license from discipline. At any time after the successful completion of a term of indefinite probation, suspension, or revocation of any license, the Department may restore the license to the licensee unless after an investigation and a hearing the Secretary determines that restoration is not in the public interest. No person whose license or authority has been revoked as authorized in this Act may apply for restoration of that license or authority until such time as provided for in the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.

(Source: P.A. 104-149, eff. 1-1-26.)

(205 ILCS 740/25) (was 225 ILCS 425/25)

Sec. 25. (Repealed).

(Source: P.A. 99-227, eff. 8-3-15. Repealed by P.A. 102-975, eff. 1-1-23.)

(205 ILCS 740/26) (was 225 ILCS 425/26)

Sec. 26. Administrative review; venue.

(a) All final administrative decisions of the Department are subject to judicial review under the Administrative Review Law and its rules. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.

(b) Proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review resides, but if the party is not a resident of Illinois, the venue shall be in Cook County or Sangamon County.

(Source: P.A. 102-975, eff. 1-1-23.)

(205 ILCS 740/27) (was 225 ILCS 425/27)

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; 100-132, eff. 8-18-17.)

(205 ILCS 740/30) (was 225 ILCS 425/30)

Sec. 30. Expiration, renewal, and restoration of license. The expiration date and renewal period for each license shall be set by rule. A collection agency whose license has expired may restore its license at any time within one year 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 licensed person or a shareholder, partner, or member owning 50% or more of the interest in the collection agency was (i) on active duty with the Armed Forces of the United States or called into service or training by the State militia; or (ii) in training or education under the supervision of the United States preliminary to induction into the military service, may have his or her license renewed or restored without paying any lapsed renewal fee or restoration fee if, within 2 years after termination of the service, training, or education, he or she furnishes the Department with satisfactory evidence of service, training, or education and it has been terminated under honorable conditions.

Any collection agency whose license has expired for more than one year 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. 102-975, eff. 1-1-23.)

(205 ILCS 740/35) (was 225 ILCS 425/35)

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 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 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 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. 104-149, eff. 1-1-26.)

(205 ILCS 740/40) (was 225 ILCS 425/40)

Sec. 40. Unlicensed practice; cease and desist. Whenever, in the opinion of the Department, a person violates any provision of this Act, the Department may issue a rule to show cause why an order to cease and desist should not be entered against that person. The rule shall clearly set forth the grounds relied upon by the Department and shall allow at least 7 days from the date of the rule to file an answer satisfactory to the Department. Failure to answer to the satisfaction of the Department shall cause an order to cease and desist to be issued.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/45) (was 225 ILCS 425/45)

Sec. 45. Summary suspension of license. The Secretary may summarily suspend the license of a licensed collection agency without a hearing, simultaneously with the institution of proceedings for a hearing provided for in Section 16 of this Act, if the Secretary finds that evidence in the Secretary's possession indicates that the continuation of practice by a licensed collection agency would constitute an imminent danger to the public. In the event that the Secretary summarily suspends the license of a licensed collection agency without a hearing, a hearing must be commenced within 30 days after the suspension has occurred and concluded as expeditiously as practical.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/50) (was 225 ILCS 425/50)

Sec. 50. Consent order. At any point in the proceedings as provided in Sections 9.5, 11, 14a, 16, and 45, both parties may agree to a negotiated consent order. The consent order shall be final upon signature of the Secretary.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/55) (was 225 ILCS 425/55)

Sec. 55. Confidentiality. All information collected by the Department in the course of an examination or investigation of a licensee or applicant, including, but not limited to, any complaint against a licensee filed with the Department and information collected to investigate any such complaint, shall be maintained for the confidential use of the Department and shall not be disclosed other than in the course of a formal hearing as determined by the Department. The Department may not disclose the information to anyone other than law enforcement officials, other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by the agency for any purpose to any other agency or person. A formal complaint filed against the licensee by the Department or any order issued by the Department against a licensee or applicant shall be a public record, except as otherwise prohibited by law.

(Source: P.A. 99-227, eff. 8-3-15.)

(205 ILCS 740/60) (was 225 ILCS 425/60)

Sec. 60. Liability; federal compliance. A collection agency or a debt buyer shall not be subject to civil liability for its failure to comply with Section 2, 9.1, 9.2, or 9.3 of this Act, as amended by Public Act 99-227, if the collection agency or the debt buyer can demonstrate compliance with comparable provisions of the federal Fair Debt Collection Practices Act.

(Source: P.A. 99-500, eff. 1-29-16.)