Illinois General Assembly - Full Text of HB3332
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Full Text of HB3332  99th General Assembly




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1    AN ACT concerning government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Regulatory Sunset Act is amended by changing
5Section 4.26 and by adding Section 4.36 as follows:
6    (5 ILCS 80/4.26)
7    Sec. 4.26. Acts repealed on January 1, 2016. The following
8Acts are repealed on January 1, 2016:
9    The Illinois Athletic Trainers Practice Act.
10    The Illinois Roofing Industry Licensing Act.
11    The Illinois Dental Practice Act.
12    The Collection Agency Act.
13    The Barber, Cosmetology, Esthetics, Hair Braiding, and
14Nail Technology Act of 1985.
15    The Respiratory Care Practice Act.
16    The Hearing Instrument Consumer Protection Act.
17    The Illinois Physical Therapy Act.
18    The Professional Geologist Licensing Act.
19(Source: P.A. 95-331, eff. 8-21-07; 95-876, eff. 8-21-08;
2096-1246, eff. 1-1-11.)
21    (5 ILCS 80/4.36 new)
22    Sec. 4.36. Act repealed on January 1, 2026. The following



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1Act is repealed on January 1, 2026:
2    The Collection Agency Act.
3    Section 10. The Collection Agency Act is amended by
4changing Sections 2, 2.03, 2.04, 3, 4, 4.5, 5, 7, 8, 8a, 8b 8c,
59, 9.1, 9.2, 9.3, 9.4, 9.7, 9.22, 11, 13.1, 13.2, 14a, 14b, 16,
617, 18, 19, 20, 21, 22, 23, 24, 26, and 27 and by adding
7Sections 30, 35, 40, 45, 50, and 55 as follows:
8    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
9    (Section scheduled to be repealed on January 1, 2016)
10    Sec. 2. Definitions. In this Act:
11    "Address of record" means the designated address recorded
12by the Department in the applicant's or registrant's
13application file or registration file as maintained by the
14Department's licensure maintenance unit. It is the duty of the
15applicant or registrant to inform the Department of any change
16of address and those changes must be made either through the
17Department's website or by contacting the Department.
18    "Board" means the Collection Agency Licensing and
19Disciplinary Board.
20    "Charge-off balance" means an account principal and other
21legally collectible costs, expenses, and interest accrued
22prior to the charge-off date, less any payments or settlement.
23    "Charge-off date" means the date on which a receivable is
24treated as a loss or expense.



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1    "Credit Consumer credit transaction" means a transaction
2between a natural person and another person in which property,
3service, or money is acquired on credit by that natural person
4from such other person primarily for personal, family, or
5household purposes.
6    "Consumer debt" or "consumer credit" means money,
7property, or their equivalent, due or owing or alleged to be
8due or owing from a natural person by reason of a consumer
9credit transaction.
10    "Creditor" means a person who extends consumer credit to a
12    "Current balance" means the charge-off balance plus any
13legally collectible costs, expenses, and interest, less any
14credits or payments.
15    "Debt" means money, property, or their equivalent which is
16due or owing or alleged to be due or owing from a natural
17person to another person.
18    "Debt buyer" means a person or entity that is engaged in
19the business of purchasing delinquent or charged-off consumer
20loans or consumer credit accounts or other delinquent consumer
21debt for collection purposes, whether it collects the debt
22itself or hires a third-party for collection or an
23attorney-at-law for litigation in order to collect such debt.
24    "Debt collection" means any act or practice in connection
25with the collection of consumer debts.
26    "Debt collector", "collection agency", or "agency" means



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1any person who, in the ordinary course of business, regularly,
2on behalf of himself or herself or others, engages in debt
4    "Debtor" means a natural person from whom a collection
5agency debt collector seeks to collect a consumer or commercial
6debt that is due and owing or alleged to be due and owing from
7such person.
8    "Department" means Division of Professional Regulation
9within the Department of Financial and Professional
11    "Director" means the Director of the Division of
12Professional Regulation within the Department of Financial and
13Professional Regulation.
14    "Person" means a natural person, partnership, corporation,
15limited liability company, trust, estate, cooperative,
16association, or other similar entity.
17    "Registered collection agency" means a person who is
18registered under this Act to engage in the practice of debt
19collection in Illinois.
20    "Secretary" means the Secretary of Financial and
21Professional Regulation.
22(Source: P.A. 97-1070, eff. 1-1-13.)
23    (225 ILCS 425/2.03)  (from Ch. 111, par. 2005)
24    (Section scheduled to be repealed on January 1, 2016)
25    Sec. 2.03. Exemptions. This Act does not apply to persons



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1whose collection activities are confined to and are directly
2related to the operation of a business other than that of a
3collection agency, and specifically does not include the
5        1. Banks, including trust departments, affiliates, and
6    subsidiaries thereof, fiduciaries, and financing and
7    lending institutions (except those who own or operate
8    collection agencies);
9        2. Abstract companies doing an escrow business;
10        3. Real estate brokers when acting in the pursuit of
11    their profession;
12        4. Public officers and judicial officers acting under
13    order of a court;
14        5. Licensed attorneys at law;
15        6. Insurance companies;
16        7. Credit unions, including affiliates and
17    subsidiaries thereof (except those who own or operate
18    collection agencies);
19        8. Loan and finance companies, including entities
20    licensed pursuant to the Residential Mortgage License Act
21    of 1987;
22        9. Retail stores collecting their own accounts;
23        10. Unit Owner's Associations established under the
24    Condominium Property Act, and their duly authorized
25    agents, when collecting assessments from unit owners; and
26        11. Any person or business under contract with a



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1    creditor to notify the creditor's debtors of a debt using
2    only the creditor's name.
3(Source: P.A. 95-437, eff. 1-1-08.)
4    (225 ILCS 425/2.04)  (from Ch. 111, par. 2005.1)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 2.04. Child support debt indebtedness.
7    (a) Collection agencies Persons, associations,
8partnerships, corporations, or other legal entities engaged in
9the business of collecting child support debt indebtedness
10owing under a court order as provided under the Illinois Public
11Aid Code, the Illinois Marriage and Dissolution of Marriage
12Act, the Non-Support of Spouse and Children Act, the
13Non-Support Punishment Act, the Illinois Parentage Act of 1984,
14or similar laws of other states are not restricted (i) in the
15frequency of contact with an obligor who is in arrears, whether
16by phone, mail, or other means, (ii) from contacting the
17employer of an obligor who is in arrears, (iii) from publishing
18or threatening to publish a list of obligors in arrears, (iv)
19from disclosing or threatening to disclose an arrearage that
20the obligor disputes, but for which a verified notice of
21delinquency has been served under the Income Withholding for
22Support Act (or any of its predecessors, Section 10-16.2 of the
23Illinois Public Aid Code, Section 706.1 of the Illinois
24Marriage and Dissolution of Marriage Act, Section 22 4.1 of the
25Non-Support Punishment of Spouse and Children Act, Section 26.1



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1of the Revised Uniform Reciprocal Enforcement of Support Act,
2or Section 20 of the Illinois Parentage Act of 1984), or (v)
3from engaging in conduct that would not cause a reasonable
4person mental or physical illness. For purposes of this
5subsection, "obligor" means an individual who owes a duty to
6make periodic payments, under a court order, for the support of
7a child. "Arrearage" means the total amount of an obligor's
8unpaid child support obligations.
9    (a-5) A collection agency may not impose a fee or charge,
10including costs, for any child support payments collected
11through the efforts of a federal, State, or local government
12agency, including but not limited to child support collected
13from federal or State tax refunds, unemployment benefits, or
14Social Security benefits.
15    No collection agency that collects child support payments
16shall (i) impose a charge or fee, including costs, for
17collection of a current child support payment, (ii) fail to
18apply collections to current support as specified in the order
19for support before applying collection to arrears or other
20amounts, or (iii) designate a current child support payment as
21arrears or other amount owed. In all circumstances, the
22collection agency shall turn over to the obligee all support
23collected in a month up to the amount of current support
24required to be paid for that month.
25    As to any fees or charges, including costs, retained by the
26collection agency, that agency shall provide documentation to



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1the obligee demonstrating that the child support payments
2resulted from the actions of the agency.
3    After collection of the total amount or arrearage,
4including statutory interest, due as of the date of execution
5of the collection contract, no further fees may be charged.
6    (a-10) The Department of Professional Regulation shall
7determine a fee rate of not less than 25% but not greater than
835%, based upon presentation by the licensees as to costs to
9provide the service and a fair rate of return. This rate shall
10be established by administrative rule.
11    Without prejudice to the determination by the Department of
12the appropriate rate through administrative rule, a collection
13agency shall impose a fee of not more than 29% of the amount of
14child support actually collected by the collection agency
15subject to the provisions of subsection (a-5). This interim
16rate is based upon the March 2002 General Account Office report
17"Child Support Enforcement", GAO-02-349. This rate shall apply
18until a fee rate is established by administrative rule.
19    (b) The Department shall adopt rules necessary to
20administer and enforce the provisions of this Section.
21(Source: P.A. 93-896, eff. 8-10-04; 94-414, eff. 12-31-05.)
22    (225 ILCS 425/3)  (from Ch. 111, par. 2006)
23    (Section scheduled to be repealed on January 1, 2016)
24    Sec. 3. A person, association, partnership, corporation,
25or other legal entity acts as a collection agency when he, she,



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1or it:
2        (a) Engages in the business of collection for others of
3    any account, bill or other debt indebtedness;
4        (b) Receives, by assignment or otherwise, accounts,
5    bills, or other debt indebtedness from any person owning or
6    controlling 20% or more of the business receiving the
7    assignment, with the purpose of collecting monies due on
8    such account, bill or other debt indebtedness;
9        (c) Sells or attempts to sell, or gives away or
10    attempts to give away to any other person, other than one
11    registered under this Act, any system of collection,
12    letters, demand forms, or other printed matter where the
13    name of any person, other than that of the creditor,
14    appears in such a manner as to indicate, directly or
15    indirectly, that a request or demand is being made by any
16    person other than the creditor for the payment of the sum
17    or sums due or asserted to be due;
18        (d) Buys accounts, bills or other debt indebtedness and
19    engages in collecting the same; or
20        (e) Uses a fictitious name in collecting its own
21    accounts, bills, or debts with the intention of conveying
22    to the debtor that a third party has been employed to make
23    such collection; or .
24        (f) Engages in the business of collection of a check or
25    other payment that is returned unpaid by the financial
26    institution upon which it is drawn.



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1(Source: P.A. 94-414, eff. 12-31-05; 95-437, eff. 1-1-08.)
2    (225 ILCS 425/4)  (from Ch. 111, par. 2007)
3    (Section scheduled to be repealed on January 1, 2016)
4    Sec. 4. No collection agency shall operate in this State,
5directly or indirectly engage in the business of collecting
6debt, solicit debt claims for others, have a sales office, a
7client, or solicit a client in this State, exercise the right
8to collect, or receive payment for another of any debt account,
9bill or other indebtedness, without registering under this Act
10except that no collection agency shall be required to be
11licensed or maintain an established business address in this
12State if the agency's activities in this State are limited to
13collecting debts from debtors located in this State by means of
14interstate communication, including telephone, mail, or
15facsimile transmission, electronic mail, or any other Internet
16communication from the agency's location in another state
17provided they are licensed in that state and these same
18privileges are permitted in that licensed state to agencies
19licensed in Illinois.
20(Source: P.A. 88-363; 89-387, eff. 1-1-96.)
21    (225 ILCS 425/4.5)
22    (Section scheduled to be repealed on January 1, 2016)
23    Sec. 4.5. Unlicensed practice; violation; civil penalty.
24    (a) Any person who practices, offers to practice, attempts



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1to practice, or holds oneself out to practice as a collection
2agency without being licensed under this Act shall, in addition
3to any other penalty provided by law, pay a civil penalty to
4the Department in an amount not to exceed $10,000 $5,000 for
5each offense as determined by the Department. The civil penalty
6shall be assessed by the Department after a hearing is held in
7accordance with the provisions set forth in this Act regarding
8the provision of a hearing for the discipline of a licensee.
9    (b) The Department has the authority and power to
10investigate any and all unlicensed activity. In addition to
11taking any other action provided under this Act, whenever the
12Department has reason to believe a person, association,
13partnership, corporation, or other legal entity has violated
14any provision of subsection (a) of this Section, the Department
15may issue a rule to show cause why an order to cease and desist
16should not be entered against that person, association,
17partnership, corporation, or other legal entity. The rule shall
18clearly set forth the grounds relied upon by the Department and
19shall provide a period of 7 days from the date of the rule to
20file an answer to the satisfaction of the Department. Failure
21to answer to the satisfaction of the Department shall cause an
22order to cease and desist to be issued immediately.
23    (c) The civil penalty shall be paid within 60 days after
24the effective date of the order imposing the civil penalty. The
25order shall constitute a judgment and may be filed and
26execution had thereon in the same manner as any judgment from



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1any court of record.
2    (d) All moneys collected under this Section shall be
3deposited into the General Professions Dedicated Fund.
4(Source: P.A. 94-414, eff. 12-31-05.)
5    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
6    (Section scheduled to be repealed on January 1, 2016)
7    Sec. 5. Application for original license. Application for
8license registration shall be made to the Secretary Director on
9forms provided by the Department, shall be accompanied by the
10required fee and shall state:
11        (1) the applicant's name and address;
12        (2) the names and addresses of the officers of the
13    collection agency and, if the collection agency is a
14    corporation, the names and addresses of all persons owning
15    10% or more of the stock of such corporation, if the
16    collection agency is a partnership, the names and addresses
17    of all partners of the partnership holding a 10% or more
18    interest in the partnership, and, if the collection agency
19    is a limited liability company, the names and addresses of
20    all members holding 10% or more interest in the limited
21    liability company, and if the collection agency is any
22    other legal business entity, the names and addresses of all
23    persons owning 10% or more interest in the entity; and
24        (3) such other information as the Department may deem
25    necessary.



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1(Source: P.A. 94-414, eff. 12-31-05.)
2    (225 ILCS 425/7)  (from Ch. 111, par. 2010)
3    (Section scheduled to be repealed on January 1, 2016)
4    Sec. 7. Qualifications for license. In order to be
5qualified to obtain a certificate or a renewal certificate
6under this Act, a collection agency's officers shall:
7    (a) be of good moral character and of the age of 18 years
8or more; and
9    (b) (blank); have had at least one year experience working
10in the credit field or a related area, or be qualified for an
11original license under Section 6 (c) of this Act;
12    (c) have an acceptable credit rating, have no unsatisfied
13judgments; and not have been officers and owners of 10% or more
14interest of a former registrant under this Act whose
15certificates were suspended or revoked without subsequent
17(Source: P.A. 89-387, eff. 1-1-96.)
18    (225 ILCS 425/8)  (from Ch. 111, par. 2011)
19    (Section scheduled to be repealed on January 1, 2016)
20    Sec. 8. Bond requirement. A Before issuing a certificate or
21renewing one, the Director shall require each collection agency
22shall be required to file and maintain in force a surety bond,
23issued by an insurance company authorized to transact fidelity
24and surety business in the State of Illinois. The bond shall be



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1for the benefit of creditors who obtain a judgment from a court
2of competent jurisdiction based on the failure of the agency to
3remit money collected on account and owed to the creditor. No
4action on the bond shall be commenced more than one year after
5the creditor obtains a judgment against the collection agency
6from a court of competent jurisdiction. The bond shall be in
7the form prescribed by the Secretary Director in the sum of
8$25,000. The bond shall be continuous in form and run
9concurrently with the original and each renewal license period
10unless terminated by the insurance company. An insurance
11company may terminate a bond and avoid further liability by
12filing a 60-day notice of termination with the Department and
13at the same time sending the same notice to the agency. A
14certificate of registration shall be cancelled on the
15termination date of the agency's bond unless a new bond is
16filed with the Department to become effective at the
17termination date of the prior bond. If a certificate of
18registration has been cancelled under this Section, the agency
19must file a new application and will be considered a new
20applicant if it obtains a new bond.
21(Source: P.A. 84-242.)
22    (225 ILCS 425/8a)  (from Ch. 111, par. 2011a)
23    (Section scheduled to be repealed on January 1, 2016)
24    Sec. 8a. Fees.
25    (a) The Department shall provide by rule for a schedule of



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1fees for the administration and enforcement of this Act,
2including but not limited to original licensure, renewal, and
3restoration, shall be set by the Department by rule. The fees
4shall be nonrefundable.
5    (b) All fees collected under this Act shall be deposited
6into the General Professions Dedicated Fund and shall be
7appropriated to the Department for the ordinary and contingent
8expenses of the Department in the administration of this Act.
9(Source: P.A. 91-454, eff. 1-1-00.)
10    (225 ILCS 425/8b)  (from Ch. 111, par. 2011b)
11    (Section scheduled to be repealed on January 1, 2016)
12    Sec. 8b. Assignment for collection. An account may be
13assigned to a collection agency for collection with title
14passing to the collection agency to enable collection of the
15account in the agency's name as assignee for the creditor
17    (a) The assignment is manifested by a written agreement,
18separate from and in addition to any document intended for the
19purpose of listing a debt with a collection agency. The
20document manifesting the assignment shall specifically state
21and include:
22        (i) the effective date of the assignment; and
23        (ii) the consideration for the assignment.
24    (b) The consideration for the assignment may be paid or
25given either before or after the effective date of the



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1assignment. The consideration may be contingent upon the
2settlement or outcome of litigation and if the debt claim being
3assigned has been listed with the collection agency as an
4account for collection, the consideration for assignment may be
5the same as the fee for collection.
6    (c) All assignments shall be voluntary and properly
7executed and acknowledged by the corporate authority or
8individual transferring title to the collection agency before
9any action can be taken in the name of the collection agency.
10    (d) No assignment shall be required by any agreement to
11list a debt with a collection agency as an account for
13    (e) No litigation shall commence in the name of the
14licensee as plaintiff unless: (i) there is an assignment of the
15account that satisfies the requirements of this Section and
16(ii) the licensee is represented by a licensed attorney at law.
17    (f) If a collection agency takes assignments of accounts
18from 2 or more creditors against the same debtor and commences
19litigation against that debtor in a single action, in the name
20of the collection agency, then (i) the complaint must be stated
21in separate counts for each assignment and (ii) the debtor has
22an absolute right to have any count severed from the rest of
23the action.
24(Source: P.A. 89-387, eff. 1-1-96.)
25    (225 ILCS 425/8c)  (from Ch. 111, par. 2011c)



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1    (Section scheduled to be repealed on January 1, 2016)
2    Sec. 8c. (a) Each licensed collection agency office shall
3at all times maintain a separate bank account in which all
4monies received on debts claims shall be deposited, referred to
5as a "Trust Account", except that negotiable instruments
6received may be forwarded directly to a creditor if such
7procedure is provided for by a writing executed by the
8creditor. Monies received shall be so deposited within 5
9business days after posting to the agency's books of account.
10    There shall be sufficient funds in the trust account at all
11times to pay the creditors the amount due them.
12    (b) The trust account shall be established in a bank,
13savings and loan association, or other recognized depository
14which is federally or State insured or otherwise secured as
15defined by rule. Such account may be interest bearing. The
16licensee shall pay to the creditor interest earned on funds on
17deposit after the sixtieth day.
18    (c) Notwithstanding any contractual arrangement, every
19client of a licensee shall within 60 days after the close of
20each calendar month, account and pay to the licensee collection
21agency all sums owed to the collection agency for payments
22received by the client during that calendar month on debts
23claims in possession of the collection agency. If a client
24fails to pay the licensee any sum due under this Section, the
25licensee shall, in addition to other remedies provided by law,
26have the right to offset any money due the licensee under this



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1Section against any moneys due the client.
2    (d) Each collection agency shall keep on file the name of
3the bank, savings and loan association, or other recognized
4depository in which each trust account is maintained, the name
5of each trust account, and the names of the persons authorized
6to withdraw funds from each account.
7    The collection agency, within 30 days of the time of a
8change of depository or person authorized to make withdrawal,
9shall update its files to reflect such change.
10    An examination and audit of an agency's trust accounts may
11be made by the Department as the Department deems appropriate.
12    A trust account financial report shall be submitted
13annually on forms provided by the Department.
14(Source: P.A. 89-387, eff. 1-1-96.)
15    (225 ILCS 425/9)  (from Ch. 111, par. 2012)
16    (Section scheduled to be repealed on January 1, 2016)
17    Sec. 9. Disciplinary actions.
18    (a) The Department may refuse to issue or renew, or may
19revoke, suspend, place on probation, reprimand or take other
20disciplinary or non-disciplinary action as the Department may
21deem proper, including fines not to exceed $5,000 for a first
22violation and not to $10,000 for each violation with regard to
23any collection agency license exceed $10,000 for a second or
24subsequent violation, for any one or any combination of the
25following causes:



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1        (1) Material misstatement in furnishing information to
2    the Department.
3        (2) (1) Violations of this Act or of the rules
4    promulgated hereunder.
5        (3) (2) Conviction by plea of guilty or nolo
6    contendere, finding of guilt, jury verdict, or entry of
7    judgment or by sentencing of any crime, including, but not
8    limited to, convictions, preceding sentences of
9    supervision, conditional discharge, or first offender
10    probation of the collection agency or any of the officers
11    or owners of more than 10% interest principals of the
12    agency of any crime under the laws of any U.S. jurisdiction
13    that (i) is a felony, (ii) is a misdemeanor, an essential
14    element of which is dishonesty, or (iii) is directly
15    related to the practice of a collection agency any U.S.
16    jurisdiction which is a felony, a misdemeanor an essential
17    element of which is dishonesty, or of any crime which
18    directly relates to the practice of the profession.
19        (4) Fraud or (3) Making any misrepresentation in
20    applying for, or procuring, a license under this Act or in
21    connection with applying for renewal of for the purpose of
22    obtaining a license under this Act or certificate.
23        (5) Aiding or assisting another person in violating any
24    provision of this Act or rules adopted under this Act.
25        (6) Failing, within 60 days, to provide information in
26    response to a written request made by the Department.



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1        (7) (4) Habitual or excessive use or addiction to
2    alcohol, narcotics, stimulants or any other chemical agent
3    or drug which results in the inability to practice with
4    reasonable judgment, skill, or safety by any of the
5    officers or owners of 10% or more interest principals of a
6    collection agency.
7        (8) (5) Discipline by another state, the District of
8    Columbia, a territory of the United States, U.S.
9    jurisdiction or a foreign nation, if at least one of the
10    grounds for the discipline is the same or substantially
11    equivalent to those set forth in this Act.
12        (9) (6) A finding by the Department that the licensee,
13    after having his license placed on probationary status, has
14    violated the terms of probation.
15        (10) Willfully making or filing false records or
16    reports in his or her practice, including, but not limited
17    to, false records filed with State agencies or departments.
18        (11) (7) Practicing or attempting to practice under a
19    false or, except as provided by law, an assumed name a name
20    other than the name as shown on his or her license or any
21    other legally authorized name.
22        (12) (8) A finding by the Federal Trade Commission that
23    a registrant licensee violated the federal Federal Fair
24    Debt and Collection Practices Act or its rules.
25        (13) (9) Failure to file a return, or to pay the tax,
26    penalty or interest shown in a filed return, or to pay any



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1    final assessment of tax, penalty or interest, as required
2    by any tax Act administered by the Illinois Department of
3    Revenue until such time as the requirements of any such tax
4    Act are satisfied.
5        (14) (10) Using or threatening to use force or violence
6    to cause physical harm to a debtor, his or her family or
7    his or her property.
8        (15) (11) Threatening to instigate an arrest or
9    criminal prosecution where no basis for a criminal
10    complaint lawfully exists.
11        (16) (12) Threatening the seizure, attachment or sale
12    of a debtor's property where such action can only be taken
13    pursuant to court order without disclosing that prior court
14    proceedings are required.
15        (17) (13) Disclosing or threatening to disclose
16    information adversely affecting a debtor's reputation for
17    credit worthiness with knowledge the information is false.
18        (18) (14) Initiating or threatening to initiate
19    communication with a debtor's employer unless there has
20    been a default of the payment of the obligation for at
21    least 30 days and at least 5 days prior written notice, to
22    the last known address of the debtor, of the intention to
23    communicate with the employer has been given to the
24    employee, except as expressly permitted by law or court
25    order.
26         (19) (15) Communicating with the debtor or any member



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1    of the debtor's family at such a time of day or night and
2    with such frequency as to constitute harassment of the
3    debtor or any member of the debtor's family. For purposes
4    of this Section the following conduct shall constitute
5    harassment:
6             (A) Communicating with the debtor or any member of
7        his or her family in connection with the collection of
8        any debt without the prior consent of the debtor given
9        directly to the debt collector, or the express
10        permission of a court of competent jurisdiction, at any
11        unusual time or place or a time or place known or which
12        should be known to be inconvenient to the debtor. In
13        the absence of knowledge of circumstances to the
14        contrary, a debt collector shall assume that the
15        convenient time for communicating with a consumer is
16        after 8 o'clock a.m. and before 9 o'clock p.m. local
17        time at the debtor's location.
18             (B) The threat of publication or publication of a
19        list of consumers who allegedly refuse to pay debts,
20        except to a consumer reporting agency.
21            (C) The threat of advertisement or advertisement
22        for sale of any debt to coerce payment of the debt.
23            (D) Causing a telephone to ring or engaging any
24        person in telephone conversation repeatedly or
25        continuously with intent to annoy, abuse, or harass any
26        person at the called number.



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1        (20) (16) Using profane, obscene or abusive language in
2    communicating with a debtor, his or her family or others.
3        (21) (17) Disclosing or threatening to disclose
4    information relating to a debtor's debt indebtedness to any
5    other person except where such other person has a
6    legitimate business need for the information or except
7    where such disclosure is permitted regulated by law.
8        (22) (18) Disclosing or threatening to disclose
9    information concerning the existence of a debt which the
10    collection agency debt collector knows to be reasonably
11    disputed by the debtor without disclosing the fact that the
12    debtor disputes the debt.
13        (23) (19) Engaging in any conduct that is which the
14    Director finds was intended to cause and did cause mental
15    or physical illness to the debtor or his or her family.
16        (24) (20) Attempting or threatening to enforce a right
17    or remedy with knowledge or reason to know that the right
18    or remedy does not exist.
19        (25) (21) Failing to disclose to the debtor or his or
20    her family the corporate, partnership or proprietary name,
21    or other trade or business name, under which the collection
22    agency debt collector is engaging in debt collections and
23    which he or she is legally authorized to use.
24        (26) (22) Using any form of communication which
25    simulates legal or judicial process or which gives the
26    appearance of being authorized, issued or approved by a



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1    governmental agency or official or by an attorney at law
2    when it is not.
3        (27) (23) Using any badge, uniform, or other indicia of
4    any governmental agency or official except as authorized by
5    law.
6        (28) (24) Conducting business under any name or in any
7    manner which suggests or implies that the collection agency
8    a debt collector is bonded if such collector is or is a
9    branch of or is affiliated in with any way with a
10    governmental agency or court if such collection agency
11    collector is not.
12        (29) (25) Failing to disclose, at the time of making
13    any demand for payment, the name of the person to whom the
14    debt claim is owed and at the request of the debtor, the
15    address where payment is to be made and the address of the
16    person to whom the debt claim is owed.
17        (30) (26) Misrepresenting the amount of the claim or
18    debt alleged to be owed.
19        (31) (27) Representing that an existing debt may be
20    increased by the addition of attorney's fees,
21    investigation fees or any other fees or charges when such
22    fees or charges may not legally be added to the existing
23    debt.
24        (32) (28) Representing that the collection agency debt
25    collector is an attorney at law or an agent for an attorney
26    if he or she is not.



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1        (33) (29) Collecting or attempting to collect any
2    interest or other charge or fee in excess of the actual
3    debt or claim unless such interest or other charge or fee
4    is expressly authorized by the agreement creating the debt
5    or claim unless expressly authorized by law or unless in a
6    commercial transaction such interest or other charge or fee
7    is expressly authorized in a subsequent agreement. If a
8    contingency or hourly fee arrangement (i) is established
9    under an agreement between a collection agency and a
10    creditor to collect a debt and (ii) is paid by a debtor
11    pursuant to a contract between the debtor and the creditor,
12    then that fee arrangement does not violate this Section
13    unless the fee is unreasonable. The Department shall
14    determine what constitutes a reasonable collection fee.
15        (34) (30) Communicating or threatening to communicate
16    with a debtor when the collection agency debt collector is
17    informed in writing by an attorney that the attorney
18    represents the debtor concerning the debt claim, unless
19    authorized by the attorney. If the attorney fails to
20    respond within a reasonable period of time, the collector
21    may communicate with the debtor. The collector may
22    communicate with the debtor when the attorney gives his or
23    her consent.
24        (35) (31) Engaging in dishonorable, unethical, or
25    unprofessional conduct of a character likely to deceive,
26    defraud, or harm the public.



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1    (b) The Department shall deny any license or renewal
2authorized by this Act to any person who has defaulted on an
3educational loan guaranteed by the Illinois State Scholarship
4Commission; however, the Department may issue a license or
5renewal if the person in default has established a satisfactory
6repayment record as determined by the Illinois State
7Scholarship Commission.
8    No collection agency debt collector while collecting or
9attempting to collect a debt shall engage in any of the Acts
10specified in this Section, each of which shall be unlawful
12(Source: P.A. 94-414, eff. 12-31-05.)
13    (225 ILCS 425/9.1)
14    (Section scheduled to be repealed on January 1, 2016)
15    Sec. 9.1. Communication with persons other than debtor. Any
16debt collector or collection agency communicating with any
17person other than the debtor for the purpose of acquiring
18location information about the debtor shall:
19        (1) identify himself or herself, state that he or she
20    is confirming or correcting location information
21    concerning the consumer, and, only if expressly requested,
22    identify his or her employer;
23        (2) not state that the consumer owes any debt;
24        (3) not communicate with any person more than once
25    unless requested to do so by the person or unless the debt



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1    collector or collection agency reasonably believes that
2    the earlier response of the person is erroneous or
3    incomplete and that the person now has correct or complete
4    location information;
5        (4) not communicate by postcard;
6        (5) not use any language or symbol on any envelope or
7    in the contents of any communication effected by mail or
8    telegram that indicates that the debt collector or
9    collection agency is in the debt collection business or
10    that the communication relates to the collection of a debt;
11    and
12        (6) not communicate with any person other than the
13    attorney after the debt collector or collection agency
14    knows the debtor is represented by an attorney with regard
15    to the subject debt and has knowledge of or can readily
16    ascertain the attorney's name and address, not communicate
17    with any person other than the attorney, unless the
18    attorney fails to respond within a reasonable period of
19    time, not less than 30 days, to communication from the debt
20    collector or collection agency.
21(Source: P.A. 95-437, eff. 1-1-08; 95-876, eff. 8-21-08.)
22    (225 ILCS 425/9.2)
23    (Section scheduled to be repealed on January 1, 2016)
24    Sec. 9.2. Communication in connection with debt



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



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



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1debtor's spouse, parent (if the debtor is a minor), guardian,
2executor, or administrator.
3(Source: P.A. 95-437, eff. 1-1-08.)
4    (225 ILCS 425/9.3)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 9.3. Validation of debts.
7    (a) Within 5 days after the initial communication with a
8debtor in connection with the collection of any debt, a debt
9collector or collection agency shall, unless the following
10information is contained in the initial communication or the
11debtor has paid the debt, send the debtor a written notice with
12each of the following disclosures:
13        (1) The amount of the debt.
14        (2) The name of the creditor to whom the debt is owed.
15        (3) That, unless the debtor, within 30 days after
16    receipt of the notice, disputes the validity of the debt,
17    or any portion thereof, the debt will be assumed to be
18    valid by the debt collector or collection agency.
19        (4) That, if the debtor notifies the debt collector or
20    collection agency in writing within the 30-day period that
21    the debt, or any portion thereof, is disputed, the debt
22    collector or collection agency will obtain verification of
23    the debt or a copy of a judgment against the debtor and a
24    copy of the verification or judgment will be mailed to the
25    debtor by the debt collector or collection agency.



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1        (5) The That upon the debtor's written request within
2    the 30-day period, the debt collector or collection agency
3    will provide the debtor with the name and address of the
4    original creditor, if different from the current creditor.
5    If the disclosures required under this subsection (a) are
6    placed on the back of the notice, the front of the notice
7    shall contain a statement notifying debtors of that fact.
8    (b) If the debtor notifies the debt collector or collection
9agency in writing within the 30-day period set forth in
10paragraph (3) of subsection (a) of this Section that the debt,
11or any portion thereof, is disputed or that the debtor requests
12the name and address of the original creditor, the debt
13collector or collection agency shall cease collection of the
14debt, or any disputed portion thereof, until the debt collector
15or collection agency obtains verification of the debt or a copy
16of a judgment or the name and address of the original creditor
17and mails a copy of the verification or judgment or name and
18address of the original creditor to the debtor.
19    (c) The failure of a debtor to dispute the validity of a
20debt under this Section shall not be construed by any court as
21an admission of liability by the debtor.
22(Source: P.A. 95-437, eff. 1-1-08.)
23    (225 ILCS 425/9.4)
24    (Section scheduled to be repealed on January 1, 2016)
25    Sec. 9.4. Debt collection as a result of identity theft.



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1    (a) Upon receipt from a debtor of all of the following
2information, a debt collector or collection agency must cease
3collection activities until completion of the review provided
4in subsection (d) of this Section:
5        (1) A copy of a police report filed by the debtor
6    alleging that the debtor is the victim of an identity theft
7    crime for the specific debt being collected by the
8    collection agency debt collector.
9        (2) The debtor's written statement that the debtor
10    claims to be the victim of identity theft with respect to
11    the specific debt being collected by the collection agency
12    debt collector, including (i) a Federal Trade Commission's
13    Affidavit of Identity Theft, (ii) an Illinois Attorney
14    General ID Theft Affidavit, or (iii) a written statement
15    that certifies that the representations are true, correct,
16    and contain no material omissions of fact to the best
17    knowledge and belief of the person submitting the
18    certification. This written statement must contain or be
19    accompanied by, each of the following, to the extent that
20    an item listed below is relevant to the debtor's allegation
21    of identity theft with respect to the debt in question:
22            (A) A statement that the debtor is a victim of
23        identity theft.
24            (B) A copy of the debtor's driver's license or
25        identification card, as issued by this State.
26            (C) Any other identification document that



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1        supports the statement of identity theft.
2            (D) Specific facts supporting the claim of
3        identity theft, if available.
4            (E) Any explanation showing that the debtor did not
5        incur the debt.
6            (F) Any available correspondence disputing the
7        debt after transaction information has been provided
8        to the debtor.
9            (G) Documentation of the residence of the debtor at
10        the time of the alleged debt, which may include copies
11        of bills and statements, such as utility bills, tax
12        statements, or other statements from businesses sent
13        to the debtor and showing that the debtor lived at
14        another residence at the time the debt was incurred.
15            (H) A telephone number for contacting the debtor
16        concerning any additional information or questions or
17        direction that further communications to the debtor be
18        in writing only, with the mailing address specified in
19        the statement.
20            (I) To the extent the debtor has information
21        concerning who may have incurred the debt, the
22        identification of any person whom the debtor believes
23        is responsible.
24            (J) An express statement that the debtor did not
25        authorize the use of the debtor's name or personal
26        information for incurring the debt.



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1    (b) A written certification submitted pursuant to item
2(iii) of paragraph (2) of subsection (a) of this Section shall
3be sufficient if it is in substantially the following form:
4    "I certify that the representations made are true, correct,
5    and contain no material omissions of fact known to me.
6            (Signature)
7            (Date)"
8    (c) If a debtor notifies a debt collector or collection
9agency orally that he or she is a victim of identity theft, the
10debt collector or collection agency shall notify the debtor
11orally or in writing, that the debtor's claim must be in
12writing. If a debtor notifies a debt collector or collection
13agency in writing that he or she is a victim of identity theft,
14but omits information required pursuant to this Section, and if
15the debt collector or collection agency continues does not
16cease collection activities, the debt collector or collection
17agency must provide written notice to the debtor of the
18additional information that is required or send the debtor a
19copy of the Federal Trade Commission's Affidavit of Identity
20Theft Affidavit form.
21    (d) Upon receipt of the complete statement and information
22described in subsection (a) of this Section, the collection
23agency debt collector shall review and consider all of the



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1information provided by the debtor and other information
2available to the debt collector or collection agency in its
3file or from the creditor. The debt collector or collection
4agency may recommence debt collection activities only upon
5making a good faith determination that the information does not
6establish that the debtor is not responsible for the specific
7debt in question. The debt collector or collection agency must
8notify the debtor consumer in writing of that determination and
9the basis for that determination before proceeding with any
10further collection activities. The debt collector's or
11collection agency's determination shall be based on all of the
12information provided by the debtor and other information
13available to the debt collector or collection agency in its
14file or from the creditor.
15    (e) No inference or presumption that the debt is valid or
16invalid or that the debtor is liable or not liable for the debt
17may arise if the debt collector or collection agency decides
18after the review described in subsection (d) to cease or
19recommence the debt collection activities. The exercise or
20non-exercise of rights under this Section is not a waiver of
21any other right or defense of the debtor or collection agency
22debt collector.
23    (f) A debt collector or collection agency that (i) ceases
24collection activities under this Section, (ii) does not
25recommence those collection activities, and (iii) furnishes
26adverse information to a consumer credit reporting agency, must



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1notify the consumer credit reporting agency to delete that
2adverse information.
3(Source: P.A. 95-437, eff. 1-1-08.)
4    (225 ILCS 425/9.7)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 9.7. Enforcement under the Consumer Fraud and
7Deceptive Business Practices Act. The Attorney General may
8enforce the knowing violation of Section 9 (except for items
9(2) through (4), (7) through (9), (11) through (13), and (23)
10(1) through (9) and (19) of subsection (a)), 9.1, 9.2, 9.3, or
119.4 of this Act as an unlawful practice under the Consumer
12Fraud and Deceptive Business Practices Act.
13(Source: P.A. 95-437, eff. 1-1-08.)
14    (225 ILCS 425/9.22)  (from Ch. 111, par. 2034)
15    (Section scheduled to be repealed on January 1, 2016)
16    Sec. 9.22. Administrative Procedure Act. The Illinois
17Administrative Procedure Act is hereby expressly adopted and
18incorporated herein as if all of the provisions of that Act
19were included in this Act, except that the provision of
20subsection (d) of Section 10-65 of the Illinois Administrative
21Procedure Act that provides that at hearings the licensee has
22the right to show compliance with all lawful requirements for
23retention, continuation or renewal of the license is
24specifically excluded. For the purposes of this Act the notice



HB3332 Engrossed- 37 -LRB099 00381 MGM 20387 b

1required under Section 10-25 of the Administrative Procedure
2Act is deemed sufficient when mailed to the last known address
3of record of a party.
4(Source: P.A. 88-45.)
5    (225 ILCS 425/11)  (from Ch. 111, par. 2036)
6    (Section scheduled to be repealed on January 1, 2016)
7    Sec. 11. Informal conferences. Informal conferences shall
8be conducted with at least one member of the Licensing and
9Disciplinary Board in attendance. Notwithstanding any
10provisions concerning the conduct of hearings and
11recommendations for disciplinary actions, the Department has
12the authority to negotiate agreements with licensees
13registrants and applicants resulting in disciplinary or
14non-disciplinary consent orders. The consent orders may
15provide for any of the forms of discipline provided in this
16Act. The consent orders shall provide that they were not
17entered into as a result of any coercion by the Department.
18(Source: P.A. 89-387, eff. 1-1-96.)
19    (225 ILCS 425/13.1)  (from Ch. 111, par. 2038.1)
20    (Section scheduled to be repealed on January 1, 2016)
21    Sec. 13.1. Collection Agency Licensing and Disciplinary
22Board; members; qualifications; duties.
23    (a) There is created in the Department the Collection
24Agency Licensing and Disciplinary Board composed of 7 members



HB3332 Engrossed- 38 -LRB099 00381 MGM 20387 b

1appointed by the Secretary Director. Five members of the Board
2shall be employed in a collection agency registered under this
3Act and 2 members of the Board shall represent the general
4public, and shall not be employed by or possess an ownership
5interest in any collection agency registered under this Act,
6and shall have no family or business connection with the
7practice of collection agencies.
8    (b) Each of the members appointed to the Board, except for
9the public members, shall have at least 5 years of active
10collection agency experience.
11    (c) The Board shall annually elect a chairperson chairman
12from among its members and shall meet at least twice each year.
13The members of the Board shall receive no compensation for
14their services, but shall be reimbursed for their necessary
15actual expenses as authorized by the Department while engaged
16in incurred in the performance of their duties.
17    (d) Members shall serve for a term of 4 years and until
18their successors are appointed and qualified. No Board member,
19after the effective date of this amendatory Act of 1995, shall
20be appointed to more than 2 full consecutive terms. A partial
21term of more than 2 years shall be considered a full term The
22initial terms created by this amendatory Act of 1995 shall
23count as full terms for the purposes of reappointment to the
24Board. Appointments to fill vacancies for the unexpired portion
25of a vacated term shall be made in the same manner as original
26appointments. All members shall serve until their successors



HB3332 Engrossed- 39 -LRB099 00381 MGM 20387 b

1are appointed and qualified.
2    (e) The Secretary may remove any member of the Board for
3cause at any time before the expiration of his or her term. The
4Secretary shall be the sole arbiter of cause.
5    (f) The majority of the Board shall constitute a quorum. A
6vacancy in the membership of the Board shall not impair the
7right of a quorum to exercise all the duties of the Board.
8    (g) Members of the Board shall be immune from suit in any
9action based upon disciplinary proceedings or other acts
10performed in good faith as members of the Board.
11    The appointments of those Board members currently
12appointed shall end upon the effective date of this amendatory
13Act of 1995, and those Board members currently sitting at the
14effective date of this amendatory Act of 1995, shall be
15reappointed to the following terms by and in the discretion of
16the Director:
17        (1) one member shall be appointed for one year;
18        (2) two members shall be appointed to serve 2 years;
19        (3) two members shall be appointed to serve 3 years;
20    and
21        (4) two members shall be appointed to serve for 4
22    years.
23All members shall serve until their successors are appointed
24and qualified.
25    The Board members appointed to terms by this amendatory Act
26of 1995 shall be appointed as soon as possible after the



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1effective date of this amendatory Act of 1995.
2(Source: P.A. 89-387, eff. 1-1-96.)
3    (225 ILCS 425/13.2)  (from Ch. 111, par. 2038.2)
4    (Section scheduled to be repealed on January 1, 2016)
5    Sec. 13.2. Powers and duties of Department. The Department
6shall exercise the powers and duties prescribed by the Civil
7Administrative Code of Illinois for the administration of
8licensing Acts and shall exercise such other powers and duties
9necessary for effectuating the purposes of this Act.
10    The Director shall promulgate rules consistent with the
11provisions of this Act, for its administration and enforcement,
12and may prescribe forms which shall be issued in connection
13therewith. The rules shall include standards and criteria for
14licensure and certification, and professional conduct and
16    The Department shall consult with the Board in promulgating
18    Subject to the provisions of this Act, the Department may:
19        (1) Conduct hearings on proceedings to refuse to issue
20    or renew or to revoke registrations or suspend, place on
21    probation, or reprimand persons registered under this Act.
22        (2) Formulate rules required for the administration of
23    this Act.
24        (3) Obtain written recommendations from the Board
25    regarding standards of professional conduct, formal



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1    disciplinary actions and the formulation of rules
2    affecting these matters. Notice of proposed rulemaking
3    shall be transmitted to the Board and the Department shall
4    review the Board's responses and any recommendations made
5    therein. The Department shall notify the Board in writing
6    with explanations of deviations from the Board's
7    recommendations and responses. The Department may shall
8    solicit the advice of the Board on any matter relating to
9    the administration and enforcement of this Act.
10        (4) Maintain rosters of the names and addresses of all
11    registrants, and all persons whose registrations have been
12    suspended, revoked, or denied renewal for cause within the
13    previous calendar year. These rosters shall be available
14    upon written request and payment of the required fee as
15    established by rule.
16(Source: P.A. 86-615.)
17    (225 ILCS 425/14a)  (from Ch. 111, par. 2039a)
18    (Section scheduled to be repealed on January 1, 2016)
19    Sec. 14a. Unlicensed practice; Injunctions. The practice
20as a collection agency by any person entity not holding a valid
21and current license under this Act is declared to be inimical
22to the public welfare, to constitute a public nuisance, and to
23cause irreparable harm to the public welfare. The Secretary
24Director, the Attorney General, the State's Attorney of any
25county in the State, or any person may maintain an action in



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1the name of the People of the State of Illinois, and may apply
2for injunctive relief in any circuit court to enjoin such
3entity from engaging in such practice. Upon the filing of a
4verified petition in such court, the court, if satisfied by
5affidavit or otherwise that such entity has been engaged in
6such practice without a valid and current license, may enter a
7temporary restraining order without notice or bond, enjoining
8the defendant from such further practice. Only the showing of
9non-licensure nonlicensure, by affidavit or otherwise, is
10necessary in order for a temporary injunction to issue. A copy
11of the verified complaint shall be served upon the defendant
12and the proceedings shall thereafter be conducted as in other
13civil cases except as modified by this Section. If it is
14established that the defendant has been or is engaged in such
15unlawful practice, the court may enter an order or judgment
16perpetually enjoining the defendant from further practice. In
17all proceedings hereunder, the court, in its discretion, may
18apportion the costs among the parties interested in the action,
19including cost of filing the complaint, service of process,
20witness fees and expenses, court reporter charges and
21reasonable attorneys' fees. In case of violation of any
22injunctive order entered under the provisions of this Section,
23the court may summarily try and punish the offender for
24contempt of court. Such injunction proceedings shall be in
25addition to, and not in lieu of, all penalties and other
26remedies provided in this Act.



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1(Source: P.A. 86-615.)
2    (225 ILCS 425/14b)  (from Ch. 111, par. 2039b)
3    (Section scheduled to be repealed on January 1, 2016)
4    Sec. 14b. Penalty of unlawful practice; Second and
5subsequent offenses. Any entity that practices or offers to
6practice as a collection agency in this State without being
7licensed for that purpose, or whose license is has been
8suspended, or revoked, or expired, or that violates any of the
9provisions of this Act for which no specific penalty has been
10provided herein, is guilty of a Class A misdemeanor.
11    Any entity that has been previously convicted under any of
12the provisions of this Act and that subsequently violates any
13of the provisions of this Act is guilty of a Class 4 felony. In
14addition, whenever any entity is punished as a subsequent
15offender under this Section, the Secretary Director shall
16proceed to obtain a permanent injunction against such entity
17under Section 14a of this Act.
18(Source: P.A. 86-615.)
19    (225 ILCS 425/16)
20    (Section scheduled to be repealed on January 1, 2016)
21    Sec. 16. Investigation; notice and hearing. The Department
22may investigate the actions or qualifications of any applicant
23or of any person rendering or offering to render collection
24agency services or any person or persons holding or claiming to



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1hold a license as a collection agency certificate of
2registration. The Department shall, before refusing to issue or
3renew, suspending or revoking, suspending, placing on
4probation, reprimanding, or taking any other disciplinary
5action under Section 9 of this Act any certificate of
6registration, at least 30 days before the date set for the
7hearing, (i) notify the accused in writing of the charges made
8and the time and place for the hearing on the charges, (ii) of
9the charges before the Board, direct him or her to file his or
10her written answer thereto to the charges with the Department
11under oath Board within 20 days after the service on him or her
12of the notice, and (iii) inform the accused him or her that if
13he or she fails to file an answer default will be taken against
14him or her or and his or her license certificate of
15registration may be suspended, or revoked, or placed on
16probation, or other disciplinary action may be taken with
17regard to the registration, including limiting the scope,
18nature, or extent of his or her practice, as the Department may
19consider proper. This written notice may be served by personal
20delivery or certified mail to the respondent at the address of
21his or her last notification to the Department. In case the
22person fails to file an answer after receiving notice, his or
23her license or certificate may, in the discretion of the
24Department, be suspended, revoked, or placed on probationary
25status, or the Department may take whatever disciplinary action
26is considered proper, including limiting the scope, nature, or



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



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1delivery or certified mail to the respondent at the address of
3(Source: P.A. 89-387, eff. 1-1-96.)
4    (225 ILCS 425/17)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 17. Record of hearing; transcript. The Department, at
7its expense, shall preserve a record of all proceedings at the
8formal hearing of any case. The notice of hearing, complaint,
9all and other documents in the nature of pleadings, and written
10motions filed in the proceedings, the transcript of testimony,
11the report of the Board, and orders of the Department shall be
12in the record of the proceedings. If the respondent orders from
13the reporting service and pays for a transcript of the record
14within the time for filing a motion for rehearing under Section
1520, the 20 calendar day period within which a motion may be
16filed shall commence upon the delivery of the transcript to the
17respondent The Department shall furnish a transcript of the
18record to any person interested in the hearing upon payment of
19the fee required under Section 2105-115 of the Department of
20Professional Regulation Law (20 ILCS 2105/2105-115).
21(Source: P.A. 91-239, eff. 1-1-00.)
22    (225 ILCS 425/18)
23    (Section scheduled to be repealed on January 1, 2016)
24    Sec. 18. Subpoenas; oaths; attendance of witnesses.



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1    (a) The Department has shall have the power to subpoena
2documents, books, records, or other materials and to bring
3before it any person and to take testimony either orally or by
4deposition, or both, with the same fees and mileage and in the
5same manner as prescribed in civil cases in the courts of this
7    (b) The Secretary Director, the designated hearing
8officer, and every member of the Board has shall have power to
9administer oaths to witnesses at any hearing that the
10Department is authorized to conduct and any other oaths
11authorized in any Act administered by the Department.
12    (c) Any circuit court may, upon application of the
13Department or designee or of the applicant or licensee ,
14registrant, or person holding a certificate of registration
15against whom proceedings under this Act are pending, enter an
16order requiring the attendance of witnesses and their
17testimony, and the production of documents, papers, files,
18books, and records in connection with any hearing or
19investigations. The court may compel obedience to its order by
20proceedings for contempt.
21(Source: P.A. 89-387, eff. 1-1-96.)
22    (225 ILCS 425/19)
23    (Section scheduled to be repealed on January 1, 2016)
24    Sec. 19. Findings and recommendations Board report. At the
25conclusion of the hearing, the Board shall present to the



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1Secretary Director a written report of its findings of fact,
2conclusions of law, and recommendations. The report shall
3contain a finding whether or not the accused person violated
4this Act or the rules adopted under this Act or failed to
5comply with the conditions required in this Act or those rules.
6The Board shall specify the nature of the violation or failure
7to comply and shall make its recommendations to the Secretary
9    The report of findings of fact, conclusions of law, and
10recommendation of the Board shall be the basis for the
11Department's order for refusing to issue, restore, or renew a
12license, or otherwise disciplining a licensee, refusal or for
13the granting of a license certificate of registration. If the
14Secretary Director disagrees in any regard with the report,
15findings of fact, conclusions of law, and recommendations
16report of the Board, the Secretary Director may issue an order
17in contravention of the Board's recommendations report. The
18Director shall provide a written report to the Board on any
19deviation and shall specify with particularity the reasons for
20that action in the final order. The finding is not admissible
21in evidence against the person in a criminal prosecution
22brought for the violation of this Act, but the hearing and
23finding are is not a bar to a criminal prosecution brought for
24the violation of this Act.
25(Source: P.A. 89-387, eff. 1-1-96.)



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1    (225 ILCS 425/20)
2    (Section scheduled to be repealed on January 1, 2016)
3    Sec. 20. Board; rehearing Motion for rehearing. At the
4conclusion of the hearing In any hearing involving the
5discipline of a registrant, a copy of the Board's report shall
6be served upon the applicant or licensee respondent by the
7Department, either personally or as provided in this Act for
8the service of the notice of hearing. Within 20 calendar days
9after the service, the applicant or licensee respondent may
10present to the Department a motion in writing for a rehearing
11which shall specify the particular grounds for rehearing. The
12Department may respond to the motion for rehearing within 20
13days after its service on the Department, and the applicant or
14licensee may reply within 7 days thereafter. If no motion for
15rehearing is filed, then upon the expiration of the time
16specified for filing a motion, or if a motion for rehearing is
17denied, then upon denial, the Secretary Director may enter an
18order in accordance with the recommendations of the Board,
19except as provided for in Section 19. If the applicant or
20licensee respondent orders a transcript of the record from the
21reporting service and pays for it within the time for filing a
22motion for rehearing, the 20 calendar day period within which a
23motion for rehearing may be filed shall commence upon the
24delivery of the transcript to the applicant or licensee
26(Source: P.A. 89-387, eff. 1-1-96.)



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1    (225 ILCS 425/21)
2    (Section scheduled to be repealed on January 1, 2016)
3    Sec. 21. Secretary; rehearing Rehearing. Whenever the
4Secretary Director is not satisfied that substantial justice
5has been done in the revocation, suspension, or refusal to
6issue, restore, or renew a license, or other discipline of an
7applicant or licensee a certificate of registration, the
8Secretary Director may order a rehearing by the same or other
10(Source: P.A. 89-387, eff. 1-1-96.)
11    (225 ILCS 425/22)
12    (Section scheduled to be repealed on January 1, 2016)
13    Sec. 22. Appointment of a hearing Hearing officer. The
14Secretary has Director shall have the authority to appoint any
15attorney duly licensed to practice law in the State of Illinois
16to serve as the hearing officer in any action for refusal to
17issue, restore, or renew a certificate of registration or to
18discipline a licensee registrant or person holding a
19certificate of registration. The hearing officer shall have
20full authority to conduct the hearing. A Board member or
21members may, but are not required to, attend hearings. The
22hearing officer shall report his or her findings of fact,
23conclusions of law, and recommendations to the Board and the
24Director. The Board shall have 60 calendar days from receipt of



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1the report to review the report of the hearing officer and
2present its findings of fact, conclusions of law, and
3recommendations to the Secretary and to all parties to the
4proceeding Director. If the Board fails to present its report
5within the 60 calendar day period, the Director may issue an
6order based on the report of the hearing officer. If the
7Secretary Director disagrees with the recommendation of the
8Board or of the hearing officer, the Secretary Director may
9issue an order in contravention of the recommendation.
10(Source: P.A. 89-387, eff. 1-1-96.)
11    (225 ILCS 425/23)
12    (Section scheduled to be repealed on January 1, 2016)
13    Sec. 23. Order or ; certified copy; prima facie proof. An
14order or a certified copy thereof of an order, over the seal of
15the Department and purporting to be signed by the Secretary
16Director, shall be prima facie proof that of the following:
17    (1) That the signature is the genuine signature of the
18Secretary; Director.
19    (2) That the Secretary Director is duly appointed and
20qualified; and .
21    (3) That the Board and its the Board members are qualified
22to act.
23(Source: P.A. 89-387, eff. 1-1-96.)
24    (225 ILCS 425/24)



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1    (Section scheduled to be repealed on January 1, 2016)
2    Sec. 24. Restoration of certificate of registration from
3discipline. At any time after the successful completion of a
4term of indefinite probation, suspension or revocation of any
5certificate of registration, the Department may restore the
6certificate of registration to the registrant, accused person
7upon the written recommendation of the Board, unless after an
8investigation and a hearing the Secretary Board determines that
9restoration is not in the public interest. No person whose
10certificate of registration or authority has been revoked as
11authorized in this Act may apply for restoration of that
12certificate or authority until such time as provided for in the
13Civil Administrative Code of Illinois.
14(Source: P.A. 89-387, eff. 1-1-96.)
15    (225 ILCS 425/26)
16    (Section scheduled to be repealed on January 1, 2016)
17    Sec. 26. Administrative review; venue Review Law.
18    (a) All final administrative decisions of the Department
19are subject to judicial review under the Administrative Review
20Law and its rules. The term "administrative decision" is
21defined as in Section 3-101 of the Code of Civil Procedure.
22    (b) Proceedings for judicial review shall be commenced in
23the circuit court of the county in which the party applying for
24review resides, but if the party is not a resident of Illinois
25this State, the venue shall be in Sangamon County.



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1(Source: P.A. 89-387, eff. 1-1-96.)
2    (225 ILCS 425/27)
3    (Section scheduled to be repealed on January 1, 2016)
4    Sec. 27. Certifications Certification of record; costs
5receipt. The Department shall not be required to certify any
6record to the court or file any answer in court or otherwise
7appear in any court in a judicial review proceeding, unless and
8until there is filed in the court, with the complaint, a
9receipt from the Department has received from the plaintiff
10acknowledging payment of the costs of furnishing and certifying
11the record, which costs shall be determined by the Department.
12Failure on the part of the plaintiff to file a receipt in court
13shall be grounds for dismissal of the action.
14(Source: P.A. 89-387, eff. 1-1-96.)
15    (225 ILCS 425/30 new)
16    Sec. 30. Expiration, renewal and restoration of
17registration. The expiration date and renewal period for each
18registration shall be set by rule. A collection agency whose
19registration has expired may reinstate its registration at any
20time within 5 years after the expiration thereof, by making a
21renewal application and by paying the required fee.
22    However, any registered collection agency whose
23certificate of registration has expired while the individual
24registered or while a shareholder, partner, or member owning



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150% or more of the interest in the collection agency has
2expired while he or she was (i) on active duty with the Armed
3Forces of the United States or called into service or training
4by the State militia; or (ii) in training or education under
5the supervision of the United States preliminary to induction
6into the military service, may have his or her certificate of
7registration renewed, restored, or reinstated without paying
8any lapsed renewal fee, restoration fee, or reinstatement fee
9if, within 2 years after termination of the service, training
10or education, he or she furnishes the Department with
11satisfactory evidence of service, training or education and it
12has been terminated under honorable conditions.
13    Any collection agency whose registration has expired for
14more than 5 years may have it restored by applying to the
15Department, paying the required fee, and filing acceptable
16proof of fitness to have the registration restored as set by
18    (225 ILCS 425/35 new)
19    Sec. 35. Returned checks; fines. Any person who delivers a
20check or other payment to the Department that is returned to
21the Department unpaid by the financial institution upon which
22it is drawn shall pay to the Department, in addition to the
23amount already owed to the Department, a fine of $50. The fines
24imposed by this Section are in addition to any other discipline
25provided under this Act for unregistered practice or practice



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1on a non-renewed registration. The Department shall notify the
2entity that payment of fees and fines shall be paid to the
3Department by certified check or money order within 30 calendar
4days of the notification. If, after the expiration of 30 days
5from the date of notification, the person has failed to submit
6the necessary remittance, the Department shall automatically
7terminate the registration or deny the application, without
8hearing. If, after termination or denial, the entity seeks a
9registration, it shall apply to the Department for restoration
10or issuance of the registration and pay all fees and fines due
11to the Department. The Department may establish a fee for the
12processing of an application for restoration of a registration
13to pay all expenses of processing this application. The
14Secretary may waive the fines due under this Section in
15individual cases where the Secretary finds that the fines would
16be unreasonable or unnecessarily burdensome.
17    (225 ILCS 425/40 new)
18    Sec. 40. Unregistered practice; cease and desist.
19Whenever, in the opinion of the Department, a person violates
20any provision of this Act, the Department may issue a rule to
21show cause why an order to cease and desist should not be
22entered against that person. The rule shall clearly set forth
23the grounds relied upon by the Department and shall allow at
24least 7 days from the date of the rule to file an answer
25satisfactory to the Department. Failure to answer to the



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1satisfaction of the Department shall cause an order to cease
2and desist to be issued.
3    (225 ILCS 425/45 new)
4    Sec. 45. Summary suspension of certificate of
5registration. The Secretary may summarily suspend the
6certificate of registration of a certified collection agency
7without a hearing, simultaneously with the institution of
8proceedings for a hearing provided for in Section 16 of this
9Act, if the Secretary finds that evidence in the Secretary's
10possession indicates that the continuation of practice by a
11registered collection agency would constitute an imminent
12danger to the public. In the event that the Secretary summarily
13suspends the registration of a certified collection agency
14without a hearing, a hearing must be commenced within 30 days
15after the suspension has occurred and concluded as
16expeditiously as practical.
17    (225 ILCS 425/50 new)
18    Sec. 50. Consent order. At any point in the proceedings as
19provided in Sections 9.5, 11, 14a, 16, and 45, both parties may
20agree to a negotiated consent order. The consent order shall be
21final upon signature of the Secretary.
22    (225 ILCS 425/55 new)
23    Sec. 55. Confidentiality. All information collected by the



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1Department in the course of an examination or investigation of
2a registrant or applicant, including, but not limited to, any
3complaint against a registrant filed with the Department and
4information collected to investigate any such complaint, shall
5be maintained for the confidential use of the Department and
6shall not be disclosed other than in the course of a formal
7hearing as determined by the Department. The Department may not
8disclose the information to anyone other than law enforcement
9officials, other regulatory agencies that have an appropriate
10regulatory interest as determined by the Secretary, or a party
11presenting a lawful subpoena to the Department. Information and
12documents disclosed to a federal, State, county, or local law
13enforcement agency shall not be disclosed by the agency for any
14purpose to any other agency or person. A formal complaint filed
15against the registrant by the Department or any order issued by
16the Department against a registrant or applicant shall be a
17public record, except as otherwise prohibited by law.
18    (225 ILCS 425/6 rep.)
19    (225 ILCS 425/6a rep.)
20    (225 ILCS 425/10 rep.)
21    (225 ILCS 425/13 rep.)
22    (225 ILCS 425/13.3 rep.)
23    (225 ILCS 425/14 rep.)
24    Section 15. The Collection Agency Act is amended by
25repealing Sections 6, 6a, 10, 13, 13.3, and 14.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.