Illinois General Assembly - Full Text of HB2783
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Full Text of HB2783  100th General Assembly




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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
5Sections 2, 5, 7, 8a, 8c, 9.22, 13.1, 13.2, 16, 17, 27, and 30
6and by adding Sections 2.5 and 4.6 as follows:
7    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
8    (Section scheduled to be repealed on January 1, 2026)
9    Sec. 2. Definitions. In this Act:
10    "Address of record" means the designated address recorded
11by the Department in the applicant's or licensee's application
12file or license file as maintained by the Department's
13licensure maintenance unit. It is the duty of the applicant or
14licensee to inform the Department of any change of address and
15those changes must be made either through the Department's
16website or by contacting the Department.
17    "Board" means the Collection Agency Licensing and
18Disciplinary Board.
19    "Charge-off balance" means an account principal and other
20legally collectible costs, expenses, and interest accrued
21prior to the charge-off date, less any payments or settlement.
22    "Charge-off date" means the date on which a receivable is
23treated as a loss or expense.



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1    "Collection agency" means any person who, in the ordinary
2course of business, regularly, on behalf of himself or herself
3or others, engages in the collection of a debt.
4    "Consumer debt" or "consumer credit" means money or
5property, or their equivalent, due or owing or alleged to be
6due or owing from a natural person by reason of a consumer
7credit transaction.
8    "Credit transaction" means a transaction between a natural
9person and another person in which property, service, or money
10is acquired on credit by that natural person from such other
11person primarily for personal, family, or household purposes.
12    "Creditor" means a person who extends consumer credit to a
14    "Current balance" means the charge-off balance plus any
15legally collectible costs, expenses, and interest, less any
16credits or payments.
17    "Debt" means money, property, or their equivalent which is
18due or owing or alleged to be due or owing from a person to
19another person.
20    "Debt buyer" means a person or entity that is engaged in
21the business of purchasing delinquent or charged-off consumer
22loans or consumer credit accounts or other delinquent consumer
23debt for collection purposes, whether it collects the debt
24itself or hires a third-party for collection or an
25attorney-at-law for litigation in order to collect such debt.
26    "Debtor" means a person from whom a collection agency seeks



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1to collect a consumer or commercial debt that is due and owing
2or alleged to be due and owing from such person.
3    "Department" means the Department of Financial and
4Professional Regulation.
5    "Email address of record" means the designated email
6address recorded by the Department in the applicant's
7application file or the licensee's license file, as maintained
8by the Department's licensure maintenance unit.
9    "Person" means a natural person, partnership, corporation,
10limited liability company, trust, estate, cooperative,
11association, or other similar entity.
12    "Licensed collection agency" means a person who is licensed
13under this Act to engage in the practice of debt collection in
15    "Multi-state licensing system" means a web-based platform
16that allows licensure applicants to submit their applications
17and renewals to the Department online.
18    "Secretary" means the Secretary of Financial and
19Professional Regulation.
20(Source: P.A. 99-227, eff. 8-3-15; 99-500, eff. 1-29-16.)
21    (225 ILCS 425/2.5 new)
22    Sec. 2.5. Address of record; email address of record. All
23applicants and licensees shall:
24        (1) provide a valid address and email address to the
25    Department, which shall serve as the address of record and



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1    email address or record, respectively, at the time of
2    application for licensure or renewal of a license; and
3        (2) inform the Department of any change of address of
4    record or email address of record within 14 days after such
5    change either through the Department's website or through a
6    multi-state licensing system as designated by the
7    Secretary.
8    (225 ILCS 425/4.6 new)
9    Sec. 4.6. Multi-state licensing system. The Secretary may
10require participation in a third-party, multi-state licensing
11system for licensing under this Act. The multi-state licensing
12system may share regulatory information and maintain records in
13compliance with the provisions of this Act. The multi-state
14licensing system may charge the applicant an administration
16    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
17    (Section scheduled to be repealed on January 1, 2026)
18    Sec. 5. Application for original license. Application for
19an original license shall be made to the Secretary on forms
20provided by the Department or through a multi-state licensing
21system as designated by the Secretary, shall be accompanied by
22the required fee and shall state:
23        (1) the applicant's name and address;
24        (2) the names and addresses of the officers of the



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1    collection agency and, if the collection agency is a
2    corporation, the names and addresses of all persons owning
3    10% or more of the stock of such corporation, if the
4    collection agency is a partnership, the names and addresses
5    of all partners of the partnership holding a 10% or more
6    interest in the partnership, if the collection agency is a
7    limited liability company, the names and addresses of all
8    members holding 10% or more interest in the limited
9    liability company, and if the collection agency is any
10    other legal business entity, the names and addresses of all
11    persons owning 10% or more interest in the entity; and
12        (3) such other information as the Department may deem
13    necessary.
14(Source: P.A. 99-227, eff. 8-3-15.)
15    (225 ILCS 425/7)  (from Ch. 111, par. 2010)
16    (Section scheduled to be repealed on January 1, 2026)
17    Sec. 7. Qualifications for license. In order to be
18qualified to obtain a license or a renewal license under this
19Act, a collection agency's officers shall:
20        (a) be of good moral character and of the age of 18
21    years or more;
22        (b) (blank); and
23        (c) have an acceptable credit rating, have no
24    unsatisfied judgments; and not have been officers and
25    owners of 10% or more interest of a former licensee or



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1    registrant under this Act whose license was licenses or
2    certificates were suspended or revoked without subsequent
3    restoration reinstatement.
4(Source: P.A. 99-227, eff. 8-3-15.)
5    (225 ILCS 425/8a)  (from Ch. 111, par. 2011a)
6    (Section scheduled to be repealed on January 1, 2026)
7    Sec. 8a. Fees.
8    (a) The fees for the administration and enforcement of this
9Act, including but not limited to original licensure, renewal,
10and restoration, shall be set by the Department by rule. All
11fees are The fees shall be nonrefundable.
12    (b) All fees collected under this Act by the Department
13shall be deposited into the General Professions Dedicated Fund
14and shall be appropriated to the Department for the ordinary
15and contingent expenses of the Department in the administration
16of this Act.
17    (c) The administration fee charged by the multi-state
18licensing system shall be paid directly to the multi-state
19licensing system.
20(Source: P.A. 99-227, eff. 8-3-15.)
21    (225 ILCS 425/8c)  (from Ch. 111, par. 2011c)
22    (Section scheduled to be repealed on January 1, 2026)
23    Sec. 8c. (a) Each licensed collection agency shall at all
24times maintain a separate bank account in which all monies



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1received on debts shall be deposited, referred to as a "Trust
2Account", except that negotiable instruments received may be
3forwarded directly to a creditor if such procedure is provided
4for by a writing executed by the creditor. Monies received
5shall be so deposited within 5 business days after posting to
6the agency's books of account.
7    There shall be sufficient funds in the trust account at all
8times to pay the creditors the amount due them.
9    (b) The trust account shall be established in a bank,
10savings and loan association, or other recognized depository
11which is federally or State insured or otherwise secured as
12defined by rule. Such account may be interest bearing. The
13licensee shall pay to the creditor interest earned on funds on
14deposit after the sixtieth day.
15    (c) Notwithstanding any contractual arrangement, every
16client of a licensee shall within 60 days after the close of
17each calendar month, account and pay to the licensee collection
18agency all sums owed to the collection agency for payments
19received by the client during that calendar month on debts in
20possession of the collection agency. If a client fails to pay
21the licensee any sum due under this Section, the licensee
22shall, in addition to other remedies provided by law, have the
23right to offset any money due the licensee under this Section
24against any moneys due the client.
25    (d) Each collection agency shall keep on file the name of
26the bank, savings and loan association, or other recognized



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1depository in which each trust account is maintained, the name
2of each trust account, and the names of the persons authorized
3to withdraw funds from each account.
4    The collection agency, within 30 days of the time of a
5change of depository or person authorized to make withdrawal,
6shall update its files to reflect such change.
7    An examination and audit of an agency's trust accounts may
8be made by the Department as the Department deems appropriate.
9    A trust account financial report shall be submitted
10annually on forms provided by the Department.
11(Source: P.A. 99-227, eff. 8-3-15.)
12    (225 ILCS 425/9.22)  (from Ch. 111, par. 2034)
13    (Section scheduled to be repealed on January 1, 2026)
14    Sec. 9.22. Administrative Procedure Act. The Illinois
15Administrative Procedure Act is hereby expressly adopted and
16incorporated herein as if all of the provisions of that Act
17were included in this Act, except that the provision of
18subsection (d) of Section 10-65 of the Illinois Administrative
19Procedure Act that provides that at hearings the licensee has
20the right to show compliance with all lawful requirements for
21retention, continuation or renewal of the license is
22specifically excluded. For the purposes of this Act the notice
23required under Section 10-25 of the Administrative Procedure
24Act is deemed sufficient when mailed or emailed to the
25applicant or licensee at the address of record or email address



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1of record of a party.
2(Source: P.A. 99-227, eff. 8-3-15.)
3    (225 ILCS 425/13.1)  (from Ch. 111, par. 2038.1)
4    (Section scheduled to be repealed on January 1, 2026)
5    Sec. 13.1. Collection Agency Licensing and Disciplinary
6Board; members; qualifications; duties.
7    (a) There is created in the Department the Collection
8Agency Licensing and Disciplinary Board composed of 7 members
9appointed by the Secretary. Five members of the Board shall be
10employed in a collection agency licensed under this Act and 2
11members of the Board shall represent the general public, shall
12not be employed by or possess an ownership interest in any
13collection agency licensed under this Act, and shall have no
14family or business connection with the practice of collection
16    (b) Each of the members appointed to the Board, except for
17the public members, shall have at least 5 years of active
18collection agency experience.
19    (c) The Board shall annually elect a chairperson from among
20its members. The members of the Board shall receive no
21compensation for their services, but shall be reimbursed for
22their necessary expenses as authorized by the Department while
23engaged in their duties.
24    (d) Members shall serve for a term of 4 years and until
25their successors are appointed and qualified. No Board member



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1shall be appointed to more than 2 full consecutive terms. A
2partial term of more than 2 years shall be considered a full
3term. Appointments to fill vacancies for the unexpired portion
4of a vacated term shall be made in the same manner as original
5appointments. All members shall serve until their successors
6are appointed and qualified.
7    (e) The Secretary may remove any member of the Board for
8cause at any time before the expiration of his or her term. The
9Secretary shall be the sole arbiter of cause.
10    (f) The majority of the Board shall constitute a quorum. A
11vacancy in the membership of the Board shall not impair the
12right of a quorum to exercise all the duties of the Board.
13    (g) Members of the Board shall have no liability in any
14action based upon any disciplinary proceeding or other activity
15performed in good faith as a member of the Board. Members of
16the Board shall be immune from suit in any action based upon
17disciplinary proceedings or other acts performed in good faith
18as members of the Board.
19(Source: P.A. 99-227, eff. 8-3-15.)
20    (225 ILCS 425/13.2)  (from Ch. 111, par. 2038.2)
21    (Section scheduled to be repealed on January 1, 2026)
22    Sec. 13.2. Powers and duties of Department. The Department
23shall exercise the powers and duties prescribed by the Civil
24Administrative Code of Illinois for the administration of
25licensing Acts and shall exercise such other powers and duties



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1necessary for effectuating 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) Formulate rules required for the administration of
7    this Act.
8        (3) Obtain written recommendations from the Board
9    regarding standards of professional conduct, formal
10    disciplinary actions and the formulation of rules
11    affecting these matters. Notice of proposed rulemaking
12    shall be transmitted to the Board and the Department shall
13    review the response of the Board Board's responses and any
14    recommendations made in the response therein. The
15    Department may solicit the advice of the Board on any
16    matter relating to the administration and enforcement of
17    this Act.
18        (4) (Blank). Maintain rosters of the names and
19    addresses of all licensees and all persons whose licenses
20    have been suspended, revoked, or denied renewal for cause
21    within the previous calendar year. These rosters shall be
22    available upon written request and payment of the required
23    fee as established by rule.
24(Source: P.A. 99-227, eff. 8-3-15.)
25    (225 ILCS 425/16)



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1    (Section scheduled to be repealed on January 1, 2026)
2    Sec. 16. Investigation; notice and hearing. The Department
3may investigate the actions or qualifications of any applicant
4or of any person rendering or offering to render collection
5agency services or any person holding or claiming to hold a
6license as a collection agency. The Department shall, before
7refusing to issue or renew, revoking, suspending, placing on
8probation, reprimanding, or taking any other disciplinary
9action under Section 9 of this Act, at least 30 days before the
10date set for the hearing, (i) notify the accused in writing of
11the charges made and the time and place for the hearing on the
12charges, (ii) direct him or her to file his or her written
13answer to the charges with the Department under oath within 20
14days after the service on him or her of the notice, and (iii)
15inform the accused that if he or she fails to file an answer
16default will be taken against him or her or his or her license
17may be suspended, revoked, or placed on probation, or other
18disciplinary action may be taken with regard to the license,
19including limiting the scope, nature, or extent of his or her
20practice, as the Department may consider proper. At the time
21and place fixed in the notice, the Department shall proceed to
22hear the charges. The parties or their counsel shall be
23accorded ample opportunity to present any pertinent
24statements, testimony, evidence, and arguments. The Department
25may continue the hearing from time to time. Nothing in this
26Section shall be construed to require that a hearing be



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1commenced and completed in one day. At the discretion of the
2Secretary, after having first received the recommendation of
3the Board, the accused person's license may be suspended or
4revoked, if the evidence constitutes sufficient grounds for
5such action under this Act. If the person fails to file an
6answer after receiving notice, his or her license may, in the
7discretion of the Department, be suspended, revoked, or placed
8on probation, or the Department may take whatever disciplinary
9action it considers proper, including limiting the scope,
10nature, or extent of the person's practice or the imposition of
11a fine, without a hearing, if the act or acts charged
12constitute sufficient grounds for such action under this Act.
13Written or electronic This written notice may be served by
14personal delivery, or certified mail, or email to the applicant
15or licensee respondent at the address of record or email
16address of record.
17(Source: P.A. 99-227, eff. 8-3-15.)
18    (225 ILCS 425/17)
19    (Section scheduled to be repealed on January 1, 2026)
20    Sec. 17. Record of hearing; transcript. The Department, at
21its expense, shall preserve a record of all proceedings at the
22formal hearing of any case. The notice of hearing, complaint,
23all other documents in the nature of pleadings, written motions
24filed in the proceedings, the transcript of testimony, the
25report of the Board, and orders of the Department shall be in



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1the record of the proceedings. If the respondent orders from
2the reporting service and pays for a transcript of the record
3within the time for filing a motion for rehearing under Section
420, the 20 calendar day period within which a motion may be
5filed shall commence upon the delivery of the transcript to the
7(Source: P.A. 99-227, eff. 8-3-15.)
8    (225 ILCS 425/27)
9    (Section scheduled to be repealed on January 1, 2026)
10    Sec. 27. Certifications of record; costs. The Department
11shall not be required to certify any record to the court or
12file any answer in court or otherwise appear in any court in a
13judicial review proceeding, unless and until the Department has
14received from the plaintiff payment of the costs of furnishing
15and certifying the record, which costs shall be determined by
16the Department. Exhibits shall be certified without cost.
17Failure on the part of the plaintiff to file a receipt in court
18shall be grounds for dismissal of the action.
19(Source: P.A. 99-227, eff. 8-3-15.)
20    (225 ILCS 425/30)
21    (Section scheduled to be repealed on January 1, 2026)
22    Sec. 30. Expiration, renewal, and restoration of license.
23The expiration date and renewal period for each license shall
24be set by rule. A collection agency whose license has expired



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1may restore reinstate its license at any time within 5 years
2after the expiration thereof, by making a renewal application
3and by paying the required fee.
4    However, any licensed collection agency whose license has
5expired while the individual licensed or while a shareholder,
6partner, or member owning 50% or more of the interest in the
7collection agency whose license has expired while he or she was
8(i) on active duty with the Armed Forces of the United States
9or called into service or training by the State militia; or
10(ii) in training or education under the supervision of the
11United States preliminary to induction into the military
12service, may have his or her license renewed or , restored, or
13reinstated without paying any lapsed renewal fee or ,
14restoration fee, or reinstatement fee if, within 2 years after
15termination of the service, training, or education, he or she
16furnishes the Department with satisfactory evidence of
17service, training, or education and it has been terminated
18under honorable conditions.
19    Any collection agency whose license has expired for more
20than 5 years may have it restored by applying to the
21Department, paying the required fee, and filing acceptable
22proof of fitness to have the license restored as set by rule.
23(Source: P.A. 99-227, eff. 8-3-15.)
24    Section 99. Effective date. This Act takes effect upon
25becoming law.



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2 Statutes amended in order of appearance
3    225 ILCS 425/2from Ch. 111, par. 2002
4    225 ILCS 425/2.5 new
5    225 ILCS 425/4.6 new
6    225 ILCS 425/5from Ch. 111, par. 2008
7    225 ILCS 425/7from Ch. 111, par. 2010
8    225 ILCS 425/8afrom Ch. 111, par. 2011a
9    225 ILCS 425/8cfrom Ch. 111, par. 2011c
10    225 ILCS 425/9.22from Ch. 111, par. 2034
11    225 ILCS 425/13.1from Ch. 111, par. 2038.1
12    225 ILCS 425/13.2from Ch. 111, par. 2038.2
13    225 ILCS 425/16
14    225 ILCS 425/17
15    225 ILCS 425/27
16    225 ILCS 425/30