HB5220 EnrolledLRB102 25772 BMS 35102 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 Financial Institutions Code is amended by
5changing Sections 4 and 6 as follows:
 
6    (20 ILCS 1205/4)  (from Ch. 17, par. 104)
7    Sec. 4. As used in this Act:
8    (a) "Department" means the Department of Financial and
9Professional Regulation Institutions.
10    (b) "Director" means the Director of the Division of
11Financial Institutions and any authorized representative of
12the Director.
13    "Division" means the Division of Financial Institutions of
14the Department.
15    (c) "Person" means any individual, partnership, joint
16venture, trust, estate, firm, corporation, association or
17cooperative society or association.
18    (d) "Financial institutions" means ambulatory and
19community currency exchanges, credit unions, guaranteed credit
20unions, money transmitters, persons engaged in the business of
21transmitting money to foreign countries or buying and selling
22foreign money, pawners' societies, title insuring or
23guaranteeing companies, consumer installment lenders, payday

 

 

HB5220 Enrolled- 2 -LRB102 25772 BMS 35102 b

1lenders, sales finance agencies, and any other industry or
2business that offers services or products that are regulated
3under any Act administered by the Director and persons engaged
4in the business of making loans of $800 or less, all as
5respectively defined in the laws referred to in Section 6 of
6this Act. The term includes sales finance agencies, as defined
7in the "Sales Finance Agency Act", enacted by the 75th General
8Assembly.
9    "License" means any certificate or authorization issued to
10any person, party, or entity pursuant to any Act administered
11by the Division.
12    "Licensee" means any person, party, or entity who is or
13comes to be certified, chartered, registered, licensed, or
14otherwise authorized by the Division pursuant to any Act
15administered by the Division.
16    (e) "Payday loan" has the meaning ascribed to that term in
17the Payday Loan Reform Act.
18    "Person" means any individual, partnership, joint venture,
19trust, estate, firm, corporation, cooperative society or
20association, or any other form of business association or
21legal entity.
22    "Secretary" means the Secretary of Financial and
23Professional Regulation and any authorized representative of
24the Secretary.
25(Source: P.A. 94-13, eff. 12-6-05.)
 

 

 

HB5220 Enrolled- 3 -LRB102 25772 BMS 35102 b

1    (20 ILCS 1205/6)  (from Ch. 17, par. 106)
2    Sec. 6. General powers and duties. In addition to the
3powers and duties provided by law and imposed elsewhere in
4this Act, the Division Department has the following powers and
5duties:
6    (1) To administer and enforce the Consumer Installment
7Loan Act and its implementing rules. To exercise the rights,
8powers and duties vested by law in the Auditor of Public
9Accounts under "An Act to provide for the incorporation,
10management and regulation of pawners' societies and limiting
11the rate of compensation to be paid for advances, storage and
12insurance on pawns and pledges and to allow the loaning of
13money upon personal property", approved March 29, 1899, as
14amended.
15    (2) To administer and enforce the Currency Exchange Act
16and its implementing rules. To exercise the rights, powers and
17duties vested by law in the Auditor of Public Accounts under
18"An Act in relation to the definition, licensing and
19regulation of community currency exchanges and ambulatory
20currency exchanges, and the operators and employees thereof,
21and to make an appropriation therefor, and to provide
22penalties and remedies for the violation thereof", approved
23June 30, 1943, as amended.
24    (3) To administer and enforce the Debt Management Service
25Act and its implementing rules. To exercise the rights,
26powers, and duties vested by law in the Auditor of Public

 

 

HB5220 Enrolled- 4 -LRB102 25772 BMS 35102 b

1Accounts under "An Act in relation to the buying and selling of
2foreign exchange and the transmission or transfer of money to
3foreign countries", approved June 28, 1923, as amended.
4    (4) To administer and enforce the Debt Settlement Consumer
5Protection Act and its implementing rules. To exercise the
6rights, powers, and duties vested by law in the Auditor of
7Public Accounts under "An Act to provide for and regulate the
8business of guaranteeing titles to real estate by
9corporations", approved May 13, 1901, as amended.
10    (5) To administer and enforce the Illinois Development
11Credit Corporation Act and its implementing rules. To exercise
12the rights, powers and duties vested by law in the Department
13of Insurance under "An Act to define, license, and regulate
14the business of making loans of eight hundred dollars or less,
15permitting an interest charge thereon greater than otherwise
16allowed by law, authorizing and regulating the assignment of
17wages or salary when taken as security for any such loan or as
18consideration for a payment of eight hundred dollars or less,
19providing penalties, and to repeal Acts therein named",
20approved July 11, 1935, as amended.
21    (6) To administer and enforce the Payday Loan Reform Act
22and its implementing rules. To administer and enforce "An Act
23to license and regulate the keeping and letting of safety
24deposit boxes, safes, and vaults, and the opening thereof, and
25to repeal a certain Act therein named", approved June 13,
261945, as amended.

 

 

HB5220 Enrolled- 5 -LRB102 25772 BMS 35102 b

1    (7) To administer and enforce the Safety Deposit License
2Act and its implementing rules. Whenever the Department is
3authorized or required by law to consider some aspect of
4criminal history record information for the purpose of
5carrying out its statutory powers and responsibilities, then,
6upon request and payment of fees in conformance with the
7requirements of Section 2605-400 of the Illinois State Police
8Law, the Illinois State Police is authorized to furnish,
9pursuant to positive identification, such information
10contained in State files as is necessary to fulfill the
11request.
12    (8) To administer and enforce the Sales Finance Agency Act
13and its implementing rules. To administer the Payday Loan
14Reform Act, the Consumer Installment Loan Act, the Predatory
15Loan Prevention Act, the Motor Vehicle Retail Installment
16Sales Act, and the Retail Installment Sales Act.
17    (9) To administer and enforce the Title Insurance Act and
18its implementing rules.
19    (10) To administer and enforce the Transmitters of Money
20Act and its implementing rules.
21    (11) To administer and enforce the Predatory Loan
22Prevention Act and its implementing rules.
23    (12) To administer and enforce the Motor Vehicle Retail
24Installment Sales Act and its implementing rules.
25    (13) To administer and enforce the Retail Installment
26Sales Act and its implementing rules.

 

 

HB5220 Enrolled- 6 -LRB102 25772 BMS 35102 b

1    (14) To administer and enforce the Illinois Credit Union
2Act and its implementing rules.
3    (15) To administer and enforce the Collection Agency Act
4and its implementing rules.
5    (16) To administer and enforce any other Act administered
6by the Director or Division.
7    (17) If the Division is authorized or required by law to
8consider some aspect of criminal history record information
9for the purpose of carrying out its statutory powers and
10responsibilities, to obtain from the Illinois State Police,
11upon request and payment of the fees required by the Illinois
12State Police Law of the Civil Administrative Code of Illinois,
13pursuant to positive identification, such information
14contained in State files as is necessary to carry out the
15duties of the Division.
16    (18) To authorize and administer examinations to ascertain
17the qualifications of applicants and licensees for which the
18examination is held.
19    (19) To conduct hearings in proceedings to revoke,
20suspend, refuse to renew, or take other disciplinary action
21regarding licenses, charters, certifications, registrations,
22or authorities of persons as authorized in any Act
23administered by the Division.
24(Source: P.A. 101-658, eff. 3-23-21; 102-538, eff. 8-20-21;
25revised 10-5-21.)
 

 

 

HB5220 Enrolled- 7 -LRB102 25772 BMS 35102 b

1    Section 10. The Collection Agency Act is amended by
2changing Sections 2, 4.5, 5, 7, 8a, 9, 9.2, 11, 13.2, 16, 26,
3and 30 as follows:
 
4    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
5    (Section scheduled to be repealed on January 1, 2026)
6    Sec. 2. Definitions. In this Act:
7    "Address of record" means the designated address recorded
8by the Department in the applicant's or licensee's application
9file or license file as maintained by the Department's
10licensure maintenance unit.
11    "Board" means the Collection Agency Licensing and
12Disciplinary Board.
13    "Charge-off balance" means an account principal and other
14legally collectible costs, expenses, and interest accrued
15prior to the charge-off date, less any payments or settlement.
16    "Charge-off date" means the date on which a receivable is
17treated as a loss or expense.
18    "Collection agency" means any person who, in the ordinary
19course of business, regularly, on behalf of himself or herself
20or others, engages in the collection of a debt.
21    "Consumer debt" or "consumer credit" means money or
22property, or their equivalent, due or owing or alleged to be
23due or owing from a natural person by reason of a consumer
24credit transaction.
25    "Credit transaction" means a transaction between a natural

 

 

HB5220 Enrolled- 8 -LRB102 25772 BMS 35102 b

1person and another person in which property, service, or money
2is acquired on credit by that natural person from such other
3person primarily for personal, family, or household purposes.
4    "Creditor" means a person who extends consumer credit to a
5debtor.
6    "Current balance" means the charge-off balance plus any
7legally collectible costs, expenses, and interest, less any
8credits or payments.
9    "Debt" means money, property, or their equivalent which is
10due or owing or alleged to be due or owing from a person to
11another person.
12    "Debt buyer" means a person or entity that is engaged in
13the business of purchasing delinquent or charged-off consumer
14loans or consumer credit accounts or other delinquent consumer
15debt for collection purposes, whether it collects the debt
16itself or hires a third-party for collection or an
17attorney-at-law for litigation in order to collect such debt.
18    "Debtor" means a person from whom a collection agency
19seeks to collect a consumer or commercial debt that is due and
20owing or alleged to be due and owing from such person.
21    "Department" means the Department of Financial and
22Professional Regulation.
23    "Email address of record" means the designated email
24address recorded by the Department in the applicant's
25application file or the licensee's license file, as maintained
26by the Department's licensure maintenance unit.

 

 

HB5220 Enrolled- 9 -LRB102 25772 BMS 35102 b

1    "Person" means a natural person, partnership, corporation,
2limited liability company, trust, estate, cooperative,
3association, or other similar entity.
4    "Licensed collection agency" means a person who is
5licensed under this Act to engage in the practice of debt
6collection in Illinois.
7    "Multi-state licensing system" means a web-based platform
8that allows licensure applicants to submit their applications
9and renewals to the Department online.
10    "Secretary" means the Secretary of Financial and
11Professional Regulation or his or her designee.
12(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16;
13100-132, eff. 8-18-17.)
 
14    (225 ILCS 425/4.5)
15    (Section scheduled to be repealed on January 1, 2026)
16    Sec. 4.5. Unlicensed practice; violation; civil penalty.
17    (a) Any person who practices, offers to practice, attempts
18to practice, or holds oneself out to practice as a collection
19agency without being licensed under this Act shall, in
20addition to any other penalty provided by law, pay a civil
21penalty to the Department in an amount not to exceed $10,000
22for each offense as determined by the Department. The civil
23penalty shall be assessed by the Department after a hearing is
24held in accordance with the provisions set forth in this Act
25regarding the provision of a hearing for the discipline of a

 

 

HB5220 Enrolled- 10 -LRB102 25772 BMS 35102 b

1licensee.
2    (b) The Department has the authority and power to
3investigate any and all unlicensed activity. In addition to
4taking any other action provided under this Act, whenever the
5Department has reason to believe a person has violated any
6provision of subsection (a) of this Section, the Department
7may issue a rule to show cause why an order to cease and desist
8should not be entered against that person. The rule shall
9clearly set forth the grounds relied upon by the Department
10and shall provide a period of 7 days from the date of the rule
11to file an answer to the satisfaction of the Department.
12Failure to answer to the satisfaction of the Department shall
13provide the Department authority to issue cause an order to
14cease and desist to be issued immediately.
15    (c) The civil penalty shall be paid within 60 days after
16the effective date of the order imposing the civil penalty.
17The order shall constitute a judgment and may be filed and
18executed execution had thereon in the same manner as any
19judgment from any court of record.
20    (d) All moneys collected under this Section shall be
21deposited into the Financial Institution Fund.
22(Source: P.A. 102-205, eff. 7-30-21.)
 
23    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
24    (Section scheduled to be repealed on January 1, 2026)
25    Sec. 5. Application for original license. Application for

 

 

HB5220 Enrolled- 11 -LRB102 25772 BMS 35102 b

1an original license shall be made to the Secretary on forms
2provided by the Department or through a multi-state licensing
3system as designated by the Secretary. The application , shall
4be accompanied by the required fee and shall state:
5        (1) the applicant's name and address;
6        (2) the names and addresses of the officers of the
7    collection agency and, if the collection agency is a
8    corporation, the names and addresses of all persons owning
9    10% or more of the stock of such corporation, if the
10    collection agency is a partnership, the names and
11    addresses of all partners of the partnership holding a 10%
12    or more interest in the partnership, if the collection
13    agency is a limited liability company, the names and
14    addresses of all members holding 10% or more interest in
15    the limited liability company, and if the collection
16    agency is any other legal business entity, the names and
17    addresses of all persons owning 10% or more interest in
18    the entity; and
19        (3) such other information as the Department may deem
20    necessary.
21(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
22    (225 ILCS 425/7)  (from Ch. 111, par. 2010)
23    (Section scheduled to be repealed on January 1, 2026)
24    Sec. 7. Qualifications for license. In order to be
25qualified to obtain a license or a renewal license under this

 

 

HB5220 Enrolled- 12 -LRB102 25772 BMS 35102 b

1Act, a collection agency's owners or officers shall:
2        (a) have the financial responsibility, financial
3    condition, business experience, character, and general
4    fitness such as to merit the confidence and trust of the
5    public that an applicant, licensee, or regulated person is
6    fit, willing, and able to carry on his or her proposed
7    business in a lawful and fair manner be of good moral
8    character and of the age of 18 years or more;
9        (a-5) be 18 years of age or more;
10        (b) (blank); and
11        (c) have an acceptable credit rating, have no
12    unsatisfied judgments; and not have been officers and
13    owners of 10% or more interest of a former licensee under
14    this Act whose license was suspended or revoked without
15    subsequent restoration.
16(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
17    (225 ILCS 425/8a)  (from Ch. 111, par. 2011a)
18    (Section scheduled to be repealed on January 1, 2026)
19    Sec. 8a. Fees.
20    (a) The fees for the administration and enforcement of
21this Act, including but not limited to original licensure,
22renewal, and restoration, shall be set by the Department by
23rule. All fees are nonrefundable.
24    (b) All fees collected under this Act by the Department
25shall be deposited into the Financial Institution Fund and

 

 

HB5220 Enrolled- 13 -LRB102 25772 BMS 35102 b

1shall be appropriated to the Department for the ordinary and
2contingent expenses of the Department in the administration of
3this Act. After the effective date of this amendatory Act of
4the 102nd General Assembly, the Department may transfer any
5funds fees collected under this Act from the General
6Professions Dedicated Fund to the Financial Institution Fund.
7    (c) The administration fee charged by the multi-state
8licensing system shall be paid directly to the multi-state
9licensing system.
10(Source: P.A. 102-205, eff. 7-30-21.)
 
11    (225 ILCS 425/9)  (from Ch. 111, par. 2012)
12    (Section scheduled to be repealed on January 1, 2026)
13    Sec. 9. Disciplinary actions.
14    (a) The Department may refuse to issue or renew, or may
15revoke, suspend, place on probation, reprimand or take other
16disciplinary or non-disciplinary action as the Department may
17deem proper, including fines not to exceed $10,000 per
18violation, for any one or any combination of the following
19causes:
20        (1) Material misstatement in furnishing information to
21    the Department.
22        (2) Violations of this Act or of the rules promulgated
23    hereunder.
24        (3) Conviction by plea of guilty or nolo contendere,
25    finding of guilt, jury verdict, or entry of judgment or by

 

 

HB5220 Enrolled- 14 -LRB102 25772 BMS 35102 b

1    sentencing of any crime, including, but not limited to,
2    convictions, preceding sentences of supervision,
3    conditional discharge, or first offender probation of the
4    collection agency or any of the officers or owners of more
5    than 10% interest of the agency of any crime under the laws
6    of any U.S. jurisdiction that (i) is a felony, (ii) is a
7    misdemeanor, an essential element of which is dishonesty,
8    or (iii) is directly related to the practice of a
9    collection agency.
10        (4) Fraud or misrepresentation in applying for, or
11    procuring, a license under this Act or in connection with
12    applying for renewal of a license under this Act.
13        (5) Aiding or assisting another person in violating
14    any provision of this Act or rules adopted under this Act.
15        (6) Failing, within 60 days, to provide information in
16    response to a written request made by the Department.
17        (7) Habitual or excessive use or addiction to alcohol,
18    narcotics, stimulants or any other chemical agent or drug
19    which results in the inability to practice with reasonable
20    judgment, skill, or safety by any of the officers or
21    owners of 10% or more interest of a collection agency.
22        (8) Discipline by another state, the District of
23    Columbia, a territory of the United States, or a foreign
24    nation, if at least one of the grounds for the discipline
25    is the same or substantially equivalent to those set forth
26    in this Act.

 

 

HB5220 Enrolled- 15 -LRB102 25772 BMS 35102 b

1        (9) A finding by the Department that the licensee,
2    after having his or her license placed on probationary
3    status, has violated the terms of probation.
4        (10) Willfully making or filing false records or
5    reports in his or her practice, including, but not limited
6    to, false records filed with State agencies or
7    departments.
8        (11) Practicing or attempting to practice under a
9    false or, except as provided by law, an assumed name.
10        (12) An adjudicated A finding by the Federal Trade
11    Commission or other federal or State agency that a
12    licensee violated the federal Fair Debt Collection
13    Practices Act or its rules.
14        (13) Failure to file a return, or to pay the tax,
15    penalty or interest shown in a filed return, or to pay any
16    final assessment of tax, penalty or interest, as required
17    by any tax Act administered by the Illinois Department of
18    Revenue until such time as the requirements of any such
19    tax Act are satisfied.
20        (14) Using or threatening to use force or violence to
21    cause physical harm to a debtor, his or her family or his
22    or her property.
23        (15) Threatening to instigate an arrest or criminal
24    prosecution where no basis for a criminal complaint
25    lawfully exists.
26        (16) Threatening the seizure, attachment or sale of a

 

 

HB5220 Enrolled- 16 -LRB102 25772 BMS 35102 b

1    debtor's property where such action can only be taken
2    pursuant to court order without disclosing that prior
3    court proceedings are required.
4        (17) Disclosing or threatening to disclose information
5    adversely affecting a debtor's reputation for credit
6    worthiness with knowledge the information is false.
7        (18) Threatening Initiating or threatening to initiate
8    communication with a debtor's employer unless there has
9    been a default of the payment of the obligation for at
10    least 30 days and the licensee has given at least 5 days
11    prior written notice, to the last known address of the
12    debtor, of the intention to communicate with the employer
13    has been given to the employee to the last known address of
14    the debtor , except as expressly permitted by law or court
15    order.
16         (19) Communicating with the debtor or any member of
17    the debtor's family at such a time of day or night and with
18    such frequency as to constitute harassment of the debtor
19    or any member of the debtor's family. For purposes of this
20    Section the following conduct shall constitute harassment:
21            (A) Communicating with the debtor or any member of
22        his or her family in connection with the collection of
23        any debt without the prior consent of the debtor given
24        directly to the debt collector, or the express
25        permission of a court of competent jurisdiction, at
26        any unusual time or place or a time or place known or

 

 

HB5220 Enrolled- 17 -LRB102 25772 BMS 35102 b

1        which should be known to be inconvenient to the
2        debtor. In the absence of knowledge of circumstances
3        to the contrary, a debt collector shall assume that
4        the convenient time for communicating with a consumer
5        is after 8 o'clock a.m. and before 9 o'clock p.m. in
6        the debtor's local time at the debtor's location.
7            (B) The threat of publication or publication of a
8        list of consumers who allegedly refuse to pay debts,
9        except to a consumer reporting agency.
10            (C) The threat of advertisement or advertisement
11        for sale of any debt to coerce payment of the debt.
12            (D) Causing a telephone to ring or engaging any
13        person in telephone conversation repeatedly or
14        continuously with intent to annoy, abuse, or harass
15        any person at the called number.
16        (20) Using profane, obscene or abusive language in
17    communicating with a debtor, his or her family or others.
18        (21) Disclosing or threatening to disclose information
19    relating to a debtor's debt to any other person except
20    where such other person has a legitimate business need for
21    the information or except where such disclosure is
22    permitted by law.
23        (22) Disclosing or threatening to disclose information
24    concerning the existence of a debt which the collection
25    agency knows to be disputed by the debtor without
26    disclosing the fact that the debtor disputes the debt.

 

 

HB5220 Enrolled- 18 -LRB102 25772 BMS 35102 b

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

 

 

HB5220 Enrolled- 19 -LRB102 25772 BMS 35102 b

1    is owed and at the request of the debtor, the address where
2    payment is to be made and the address of the person to whom
3    the debt is owed.
4        (30) Misrepresenting the amount of the debt alleged to
5    be owed.
6        (31) Representing that an existing debt may be
7    increased by the addition of attorney's fees,
8    investigation fees or any other fees or charges when such
9    fees or charges may not legally be added to the existing
10    debt.
11        (32) Representing that the collection agency is an
12    attorney at law or an agent for an attorney if he or she is
13    not.
14        (33) Collecting or attempting to collect any interest
15    or other charge or fee in excess of the actual debt unless
16    such interest or other charge or fee is expressly
17    authorized by the agreement creating the debt unless
18    expressly authorized by law or unless in a commercial
19    transaction such interest or other charge or fee is
20    expressly authorized in a subsequent agreement. If a
21    contingency or hourly fee arrangement (i) is established
22    under an agreement between a collection agency and a
23    creditor to collect a debt and (ii) is paid by a debtor
24    pursuant to a contract between the debtor and the
25    creditor, then that fee arrangement does not violate this
26    Section unless the fee is unreasonable. The Department

 

 

HB5220 Enrolled- 20 -LRB102 25772 BMS 35102 b

1    shall determine what constitutes a reasonable collection
2    fee.
3        (34) Communicating or threatening to communicate with
4    a debtor when the collection agency is informed in writing
5    by an attorney that the attorney represents the debtor
6    concerning the debt. If the attorney fails to respond
7    within a reasonable period of time, the collector may
8    communicate with the debtor. The collector may communicate
9    with the debtor when the attorney gives his or her
10    consent.
11        (35) Engaging in dishonorable, unethical, or
12    unprofessional conduct of a character likely to deceive,
13    defraud, or harm the public.
14    (b) No collection agency while collecting or attempting to
15collect a debt shall engage in any of the Acts specified in
16this Section, each of which shall be unlawful practice.
17(Source: P.A. 99-227, eff. 8-3-15; 100-872, eff. 8-14-18.)
 
18    (225 ILCS 425/9.2)
19    (Section scheduled to be repealed on January 1, 2026)
20    Sec. 9.2. Communication in connection with debt
21collection.
22    (a) Without the prior consent of the debtor given directly
23to the collection agency or the express permission of a court
24of competent jurisdiction, a collection agency may not
25communicate with a debtor in connection with the collection of

 

 

HB5220 Enrolled- 21 -LRB102 25772 BMS 35102 b

1any debt in any of the following circumstances:
2        (1) At any unusual time, place, or manner that is
3    known or should be known to be inconvenient to the debtor.
4    In the absence of knowledge of circumstances to the
5    contrary, a collection agency shall assume that the
6    convenient time for communicating with a debtor is after
7    8:00 a.m. and before 9:00 p.m. in the debtor's local time
8    at the debtor's location.
9        (2) If the collection agency knows the debtor is
10    represented by an attorney with respect to such debt and
11    has knowledge of or can readily ascertain, the attorney's
12    name and address, unless the attorney fails to respond
13    within a reasonable period of time to a communication from
14    the collection agency or unless the attorney consents to
15    direct communication with the debtor.
16        (3) At the debtor's place of employment, if the
17    collection agency knows or has reason to know that the
18    debtor's employer prohibits the debtor from receiving such
19    communication.
20    (b) Except as provided in Section 9.1 of this Act, a
21collection agency may not communicate, in connection with the
22collection of any debt, with any person other than the debtor,
23the debtor's attorney, a consumer reporting agency if
24otherwise permitted by law, the creditor, the attorney of the
25creditor, or the attorney of the collection agency without the
26prior consent of the debtor given directly to the collection

 

 

HB5220 Enrolled- 22 -LRB102 25772 BMS 35102 b

1agency, the express permission of a court of competent
2jurisdiction, or as reasonably necessary to effectuate a
3post-judgment judicial remedy, a collection agency may not
4communicate, in connection with the collection of any debt,
5with any person other than the debtor, the debtor's attorney,
6a consumer reporting agency if otherwise permitted by law, the
7creditor, the attorney of the creditor, or the attorney of the
8collection agency.
9    (c) If a debtor notifies a collection agency in writing
10that the debtor refuses to pay a debt or that the debtor wishes
11the collection agency to cease further communication with the
12debtor, the collection agency may not communicate further with
13the debtor with respect to such debt, except to perform any of
14the following tasks:
15        (1) Advise the debtor that the collection agency's
16    further efforts are being terminated.
17        (2) Notify the debtor that the collection agency or
18    creditor may invoke specified remedies that are ordinarily
19    invoked by such collection agency or creditor.
20        (3) Notify the debtor that the collection agency or
21    creditor intends to invoke a specified remedy.
22    If such notice from the debtor is made by mail,
23notification shall be complete upon receipt.
24    (d) For the purposes of this Section, "debtor" includes
25the debtor's spouse, parent (if the debtor is a minor),
26guardian, executor, or administrator.

 

 

HB5220 Enrolled- 23 -LRB102 25772 BMS 35102 b

1    (e) This Section applies to a collection agency or debt
2buyer only when engaged in the collection of consumer debt.
3(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
 
4    (225 ILCS 425/11)  (from Ch. 111, par. 2036)
5    (Section scheduled to be repealed on January 1, 2026)
6    Sec. 11. Informal conferences. Informal conferences, after
7a formal hearing is requested, shall be conducted with at
8least one member of the Board in attendance. Notwithstanding
9any provisions concerning the conduct of hearings and
10recommendations for disciplinary actions, the Department has
11the authority to negotiate agreements with licensees and
12applicants resulting in disciplinary or non-disciplinary
13consent orders. The consent orders may provide for any of the
14forms of discipline provided in this Act. The consent orders
15shall provide that they were not entered into as a result of
16any coercion by the Department.
17(Source: P.A. 99-227, eff. 8-3-15.)
 
18    (225 ILCS 425/13.2)  (from Ch. 111, par. 2038.2)
19    (Section scheduled to be repealed on January 1, 2026)
20    Sec. 13.2. Powers and duties of Department. The Department
21shall exercise the powers and duties prescribed by the
22Financial Institutions Code Civil Administrative Code of
23Illinois for the administration of licensing Acts and shall
24exercise such other powers and duties necessary for

 

 

HB5220 Enrolled- 24 -LRB102 25772 BMS 35102 b

1effectuating the purposes of this Act.
2    Subject to the provisions of this Act, the Department may:
3        (1) Conduct hearings on proceedings to refuse to issue
4    or renew or to revoke licenses or suspend, place on
5    probation, or reprimand persons licensed under this Act.
6        (2) To adopt rules consistent with the purposes of
7    this Act, including, but not limited to: (i) rules in
8    connection with the activities of collection agencies as
9    may be necessary and appropriate for the protection of
10    consumers in this State; (ii) rules as may be necessary
11    and appropriate to define and enforce against improper or
12    fraudulent business practices in connection with the
13    activities of collection agencies; (iii) rules that define
14    the terms used in this Act and as may be necessary and
15    appropriate to interpret and implement the provisions of
16    this Act; and (iv) rules as may be necessary for the
17    enforcement of this Act Formulate rules required for the
18    administration of this Act.
19        (3) Obtain written recommendations from the Board
20    regarding standards of professional conduct, formal
21    disciplinary actions and the formulation of rules
22    affecting these matters. Notice of proposed rulemaking
23    shall be transmitted to the Board and the Department shall
24    review the response of the Board and any recommendations
25    made in the response. The Department may solicit the
26    advice of the Board on any matter relating to the

 

 

HB5220 Enrolled- 25 -LRB102 25772 BMS 35102 b

1    administration and enforcement of this Act.
2        (4) (Blank).
3(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
4    (225 ILCS 425/16)
5    (Section scheduled to be repealed on January 1, 2026)
6    Sec. 16. Investigation; notice and hearing. The Department
7may investigate the actions or qualifications of any applicant
8or of any person rendering or offering to render collection
9agency services or any person holding or claiming to hold a
10license as a collection agency. The Department shall, before
11refusing to issue or renew, revoking, suspending, placing on
12probation, reprimanding, or taking any other disciplinary
13action under Section 9 of this Act, serve notice on any person,
14including a statement of the reasons for the Department's
15action, and notify the person that they may file a Petition for
16a Hearing with the Department within 30 days of service. All
17hearings shall be conducted in accordance with 38 Ill. Adm.
18Code 100 at least 30 days before the date set for the hearing,
19(i) notify the accused in writing of the charges made and the
20time and place for the hearing on the charges, (ii) direct him
21or her to file his or her written answer to the charges with
22the Department under oath within 20 days after the service on
23him or her of the notice, and (iii) inform the accused that if
24he or she fails to file an answer default will be taken against
25him or her or his or her license may be suspended, revoked, or

 

 

HB5220 Enrolled- 26 -LRB102 25772 BMS 35102 b

1placed on probation, or other disciplinary action may be taken
2with regard to the license, including limiting the scope,
3nature, or extent of his or her practice, as the Department may
4consider proper. At the time and place fixed in the notice, the
5Department shall proceed to hear the charges. The parties or
6their counsel shall be accorded ample opportunity to present
7any pertinent statements, testimony, evidence, and arguments.
8The Department may continue the hearing from time to time.
9Nothing in this Section shall be construed to require that a
10hearing be commenced and completed in one day. At the
11discretion of the Secretary, after having first received the
12recommendation of the Board, the accused person's license may
13be suspended or revoked, if the evidence constitutes
14sufficient grounds for such action under this Act. If the
15person fails to file an answer after receiving notice, his or
16her license may, in the discretion of the Department, be
17suspended, revoked, or placed on probation, or the Department
18may take whatever disciplinary action it considers proper,
19including limiting the scope, nature, or extent of the
20person's practice or the imposition of a fine, without a
21hearing, if the act or acts charged constitute sufficient
22grounds for such action under this Act. Written or electronic
23notice may be served by personal delivery, mail, or email to
24the applicant or licensee at the address of record or email
25address of record. Service by mail is completed when the
26notice is deposited in the U.S. Mail. Service to the email

 

 

HB5220 Enrolled- 27 -LRB102 25772 BMS 35102 b

1address of record is completed when the email is sent.
2(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
3    (225 ILCS 425/26)
4    (Section scheduled to be repealed on January 1, 2026)
5    Sec. 26. Administrative review; venue.
6    (a) All final administrative decisions of the Department
7are subject to judicial review under the Administrative Review
8Law and its rules. The term "administrative decision" is
9defined as in Section 3-101 of the Code of Civil Procedure.
10    (b) Proceedings for judicial review shall be commenced in
11the circuit court of the county in which the party applying for
12review resides, but if the party is not a resident of Illinois,
13the venue shall be in Cook County or Sangamon County.
14(Source: P.A. 99-227, eff. 8-3-15.)
 
15    (225 ILCS 425/30)
16    (Section scheduled to be repealed on January 1, 2026)
17    Sec. 30. Expiration, renewal, and restoration of license.
18The expiration date and renewal period for each license shall
19be set by rule. A collection agency whose license has expired
20may restore its license at any time within one year 5 years
21after the expiration thereof, by making a renewal application
22and by paying the required fee.
23    However, any licensed collection agency whose license has
24expired while the individual licensed person or while a

 

 

HB5220 Enrolled- 28 -LRB102 25772 BMS 35102 b

1shareholder, partner, or member owning 50% or more of the
2interest in the collection agency whose license has expired
3while he or she was (i) on active duty with the Armed Forces of
4the United States or called into service or training by the
5State militia; or (ii) in training or education under the
6supervision of the United States preliminary to induction into
7the military service, may have his or her license renewed or
8restored without paying any lapsed renewal fee or restoration
9fee if, within 2 years after termination of the service,
10training, or education, he or she furnishes the Department
11with satisfactory evidence of service, training, or education
12and it has been terminated under honorable conditions.
13    Any collection agency whose license has expired for more
14than one year 5 years may have it restored by applying to the
15Department, paying the required fee, and filing acceptable
16proof of fitness to have the license restored as set by rule.
17(Source: P.A. 99-227, eff. 8-3-15; 100-132, eff. 8-18-17.)
 
18    (225 ILCS 425/25 rep.)
19    Section 15. The Collection Agency Act is amended by
20repealing Section 25.
 
21    Section 95. Illinois Compiled Statutes reassignment. The
22Legislative Reference Bureau shall reassign the following Act
23to the specified location in the Illinois Compiled Statutes
24and file appropriate documents with the Index Division of the

 

 

HB5220 Enrolled- 29 -LRB102 25772 BMS 35102 b

1Office of the Secretary of State in accordance with subsection
2(c) of Section 5.04 of the Legislative Reference Bureau Act:
3    Collection Agency Act, reassigned from 225 ILCS 425/ to
4205 ILCS 740/.
 
5    Section 99. Effective date. This Act takes effect January
61, 2023.