101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4218

 

Introduced 1/22/2020, by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 425/9  from Ch. 111, par. 2012

    Amends the Collection Agency Act. Provides that the Department of Financial and Professional Regulation may discipline a licensee if a finding is made by the Consumer Financial Protection Bureau or Bureau of Consumer Financial Protection that a licensee violated the federal Fair Debt Collection Practices Act or its rules.


LRB101 16406 SPS 65785 b

 

 

A BILL FOR

 

HB4218LRB101 16406 SPS 65785 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Collection Agency Act is amended by changing
5Section 9 as follows:
 
6    (225 ILCS 425/9)  (from Ch. 111, par. 2012)
7    (Section scheduled to be repealed on January 1, 2026)
8    Sec. 9. Disciplinary actions.
9    (a) The Department may refuse to issue or renew, or may
10revoke, suspend, place on probation, reprimand or take other
11disciplinary or non-disciplinary action as the Department may
12deem proper, including fines not to exceed $10,000 per
13violation, for any one or any combination of the following
14causes:
15        (1) Material misstatement in furnishing information to
16    the Department.
17        (2) Violations of this Act or of the rules promulgated
18    hereunder.
19        (3) Conviction by plea of guilty or nolo contendere,
20    finding of guilt, jury verdict, or entry of judgment or by
21    sentencing of any crime, including, but not limited to,
22    convictions, preceding sentences of supervision,
23    conditional discharge, or first offender probation of the

 

 

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1    collection agency or any of the officers or owners of more
2    than 10% interest of the agency of any crime under the laws
3    of any U.S. jurisdiction that (i) is a felony, (ii) is a
4    misdemeanor, an essential element of which is dishonesty,
5    or (iii) is directly related to the practice of a
6    collection agency.
7        (4) Fraud or misrepresentation in applying for, or
8    procuring, a license under this Act or in connection with
9    applying for renewal of a license under this Act.
10        (5) Aiding or assisting another person in violating any
11    provision of this Act or rules adopted under this Act.
12        (6) Failing, within 60 days, to provide information in
13    response to a written request made by the Department.
14        (7) Habitual or excessive use or addiction to alcohol,
15    narcotics, stimulants or any other chemical agent or drug
16    which results in the inability to practice with reasonable
17    judgment, skill, or safety by any of the officers or owners
18    of 10% or more interest of a collection agency.
19        (8) Discipline by another state, the District of
20    Columbia, a territory of the United States, or a foreign
21    nation, if at least one of the grounds for the discipline
22    is the same or substantially equivalent to those set forth
23    in this Act.
24        (9) A finding by the Department that the licensee,
25    after having his license placed on probationary status, has
26    violated the terms of probation.

 

 

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1        (10) Willfully making or filing false records or
2    reports in his or her practice, including, but not limited
3    to, false records filed with State agencies or departments.
4        (11) Practicing or attempting to practice under a false
5    or, except as provided by law, an assumed name.
6        (12) A finding by the Federal Trade Commission,
7    Consumer Financial Protection Bureau, or Bureau of
8    Consumer Financial Protection that a licensee violated the
9    federal Fair Debt Collection Practices Act or its rules.
10        (13) Failure to file a return, or to pay the tax,
11    penalty or interest shown in a filed return, or to pay any
12    final assessment of tax, penalty or interest, as required
13    by any tax Act administered by the Illinois Department of
14    Revenue until such time as the requirements of any such tax
15    Act are satisfied.
16        (14) Using or threatening to use force or violence to
17    cause physical harm to a debtor, his or her family or his
18    or her property.
19        (15) Threatening to instigate an arrest or criminal
20    prosecution where no basis for a criminal complaint
21    lawfully exists.
22        (16) Threatening the seizure, attachment or sale of a
23    debtor's property where such action can only be taken
24    pursuant to court order without disclosing that prior court
25    proceedings are required.
26        (17) Disclosing or threatening to disclose information

 

 

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1    adversely affecting a debtor's reputation for credit
2    worthiness with knowledge the information is false.
3        (18) Initiating or threatening to initiate
4    communication with a debtor's employer unless there has
5    been a default of the payment of the obligation for at
6    least 30 days and at least 5 days prior written notice, to
7    the last known address of the debtor, of the intention to
8    communicate with the employer has been given to the
9    employee, except as expressly permitted by law or court
10    order.
11         (19) Communicating with the debtor or any member of
12    the debtor's family at such a time of day or night and with
13    such frequency as to constitute harassment of the debtor or
14    any member of the debtor's family. For purposes of this
15    Section the following conduct shall constitute harassment:
16            (A) Communicating with the debtor or any member of
17        his or her family in connection with the collection of
18        any debt without the prior consent of the debtor given
19        directly to the debt collector, or the express
20        permission of a court of competent jurisdiction, at any
21        unusual time or place or a time or place known or which
22        should be known to be inconvenient to the debtor. In
23        the absence of knowledge of circumstances to the
24        contrary, a debt collector shall assume that the
25        convenient time for communicating with a consumer is
26        after 8 o'clock a.m. and before 9 o'clock p.m. local

 

 

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1        time at the debtor's location.
2            (B) The threat of publication or publication of a
3        list of consumers who allegedly refuse to pay debts,
4        except to a consumer reporting agency.
5            (C) The threat of advertisement or advertisement
6        for sale of any debt to coerce payment of the debt.
7            (D) Causing a telephone to ring or engaging any
8        person in telephone conversation repeatedly or
9        continuously with intent to annoy, abuse, or harass any
10        person at the called number.
11        (20) Using profane, obscene or abusive language in
12    communicating with a debtor, his or her family or others.
13        (21) Disclosing or threatening to disclose information
14    relating to a debtor's debt to any other person except
15    where such other person has a legitimate business need for
16    the information or except where such disclosure is
17    permitted by law.
18        (22) Disclosing or threatening to disclose information
19    concerning the existence of a debt which the collection
20    agency knows to be disputed by the debtor without
21    disclosing the fact that the debtor disputes the debt.
22        (23) Engaging in any conduct that is intended to cause
23    and did cause mental or physical illness to the debtor or
24    his or her family.
25        (24) Attempting or threatening to enforce a right or
26    remedy with knowledge or reason to know that the right or

 

 

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1    remedy does not exist.
2        (25) Failing to disclose to the debtor or his or her
3    family the corporate, partnership or proprietary name, or
4    other trade or business name, under which the collection
5    agency is engaging in debt collections and which he or she
6    is legally authorized to use.
7        (26) Using any form of communication which simulates
8    legal or judicial process or which gives the appearance of
9    being authorized, issued or approved by a governmental
10    agency or official or by an attorney at law when it is not.
11        (27) Using any badge, uniform, or other indicia of any
12    governmental agency or official except as authorized by
13    law.
14        (28) Conducting business under any name or in any
15    manner which suggests or implies that the collection agency
16    is a branch of or is affiliated in any way with a
17    governmental agency or court if such collection agency is
18    not.
19        (29) Failing to disclose, at the time of making any
20    demand for payment, the name of the person to whom the debt
21    is owed and at the request of the debtor, the address where
22    payment is to be made and the address of the person to whom
23    the debt is owed.
24        (30) Misrepresenting the amount of the debt alleged to
25    be owed.
26        (31) Representing that an existing debt may be

 

 

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1    increased by the addition of attorney's fees,
2    investigation fees or any other fees or charges when such
3    fees or charges may not legally be added to the existing
4    debt.
5        (32) Representing that the collection agency is an
6    attorney at law or an agent for an attorney if he or she is
7    not.
8        (33) Collecting or attempting to collect any interest
9    or other charge or fee in excess of the actual debt unless
10    such interest or other charge or fee is expressly
11    authorized by the agreement creating the debt unless
12    expressly authorized by law or unless in a commercial
13    transaction such interest or other charge or fee is
14    expressly authorized in a subsequent agreement. If a
15    contingency or hourly fee arrangement (i) is established
16    under an agreement between a collection agency and a
17    creditor to collect a debt and (ii) is paid by a debtor
18    pursuant to a contract between the debtor and the creditor,
19    then that fee arrangement does not violate this Section
20    unless the fee is unreasonable. The Department shall
21    determine what constitutes a reasonable collection fee.
22        (34) Communicating or threatening to communicate with
23    a debtor when the collection agency is informed in writing
24    by an attorney that the attorney represents the debtor
25    concerning the debt. If the attorney fails to respond
26    within a reasonable period of time, the collector may

 

 

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1    communicate with the debtor. The collector may communicate
2    with the debtor when the attorney gives his or her consent.
3        (35) Engaging in dishonorable, unethical, or
4    unprofessional conduct of a character likely to deceive,
5    defraud, or harm the public.
6    (b) No collection agency while collecting or attempting to
7collect a debt shall engage in any of the Acts specified in
8this Section, each of which shall be unlawful practice.
9(Source: P.A. 99-227, eff. 8-3-15; 100-872, eff. 8-14-18.)