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


Rep. Robert Rita

Filed: 3/23/2015





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2    AMENDMENT NO. ______. Amend House Bill 3332 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Regulatory Sunset Act is amended by
5changing Section 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 Acts repealed on January 1, 2016.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8Acts are repealed on January 1, 2016: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.



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1    The Illinois Physical Therapy Act.
2    The Professional Geologist Licensing Act.
3(Source: P.A. 95-331, eff. 8-21-07; 95-876, eff. 8-21-08;
496-1246, eff. 1-1-11.)
5    (5 ILCS 80/4.36 new)
6    Sec. 4.36. Act repealed on January 1, 2026. The following
7Act is repealed on January 1, 2026:
8    The Collection Agency Act.
9    Section 10. The Collection Agency Act is amended by
10changing Sections 2, 2.03, 2.04, 3, 4, 4.5, 5, 7, 8, 8a, 8b 8c,
119, 9.1, 9.2, 9.3, 9.4, 9.7, 9.22, 11, 13.1, 13.2, 14a, 14b, 16,
1217, 18, 19, 20, 21, 22, 23, 24, 26, and 27 and by adding
13Sections 30, 35, 40, 45, 50, and 55 as follows:
14    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
15    (Section scheduled to be repealed on January 1, 2016)
16    Sec. 2. Definitions. In this Act:
17    "Address of record" means the designated address recorded
18by the Department in the applicant's or registrant's
19application file or registration file as maintained by the
20Department's licensure maintenance unit. It is the duty of the
21applicant or registrant to inform the Department of any change
22of address and those changes must be made either through the
23Department's website or by contacting the Department.



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1    "Board" means the Collection Agency Licensing and
2Disciplinary Board.
3    "Charge-off balance" means an account principal and other
4legally collectible costs, expenses, and interest accrued
5prior to the charge-off date, less any payments or settlement.
6    "Charge-off date" means the date on which a receivable is
7treated as a loss or expense.
8    "Credit Consumer credit transaction" means a transaction
9between a natural person and another person in which property,
10service, or money is acquired on credit by that natural person
11from such other person primarily for personal, family, or
12household purposes.
13    "Consumer debt" or "consumer credit" means money,
14property, or their equivalent, due or owing or alleged to be
15due or owing from a natural person by reason of a consumer
16credit transaction.
17    "Creditor" means a person who extends consumer credit to a
19    "Current balance" means the charge-off balance plus any
20legally collectible costs, expenses, and interest, less any
21credits or payments.
22    "Debt" means money, property, or their equivalent which is
23due or owing or alleged to be due or owing from a natural
24person to another person.
25    "Debt buyer" means a person or entity that is engaged in
26the business of purchasing delinquent or charged-off consumer



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1loans or consumer credit accounts or other delinquent consumer
2debt for collection purposes, whether it collects the debt
3itself or hires a third-party for collection or an
4attorney-at-law for litigation in order to collect such debt.
5    "Debt collection" means any act or practice in connection
6with the collection of consumer debts.
7    "Debt collector", "collection agency", or "agency" means
8any person who, in the ordinary course of business, regularly,
9on behalf of himself or herself or others, engages in debt
11    "Debtor" means a natural person from whom a collection
12agency debt collector seeks to collect a consumer or commercial
13debt that is due and owing or alleged to be due and owing from
14such person.
15    "Department" means Division of Professional Regulation
16within the Department of Financial and Professional
18    "Director" means the Director of the Division of
19Professional Regulation within the Department of Financial and
20Professional Regulation.
21    "Person" means a natural person, partnership, corporation,
22limited liability company, trust, estate, cooperative,
23association, or other similar entity.
24    "Registered collection agency" means a person who is
25registered under this Act to engage in the practice of debt
26collection in Illinois.



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1    "Secretary" means the Secretary of Financial and
2Professional Regulation.
3(Source: P.A. 97-1070, eff. 1-1-13.)
4    (225 ILCS 425/2.03)  (from Ch. 111, par. 2005)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 2.03. Exemptions. This Act does not apply to persons
7whose collection activities are confined to and are directly
8related to the operation of a business other than that of a
9collection agency, and specifically does not include the
11        1. Banks, including trust departments, affiliates, and
12    subsidiaries thereof, fiduciaries, and financing and
13    lending institutions (except those who own or operate
14    collection agencies);
15        2. Abstract companies doing an escrow business;
16        3. Real estate brokers when acting in the pursuit of
17    their profession;
18        4. Public officers and judicial officers acting under
19    order of a court;
20        5. Licensed attorneys at law;
21        6. Insurance companies;
22        7. Credit unions, including affiliates and
23    subsidiaries thereof (except those who own or operate
24    collection agencies);
25        8. Loan and finance companies, including entities



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1    licensed pursuant to the Residential Mortgage License Act
2    of 1987;
3        9. Retail stores collecting their own accounts;
4        10. Unit Owner's Associations established under the
5    Condominium Property Act, and their duly authorized
6    agents, when collecting assessments from unit owners; and
7        11. Any person or business under contract with a
8    creditor to notify the creditor's debtors of a debt using
9    only the creditor's name.
10(Source: P.A. 95-437, eff. 1-1-08.)
11    (225 ILCS 425/2.04)  (from Ch. 111, par. 2005.1)
12    (Section scheduled to be repealed on January 1, 2016)
13    Sec. 2.04. Child support debt indebtedness.
14    (a) Collection agencies Persons, associations,
15partnerships, corporations, or other legal entities engaged in
16the business of collecting child support debt indebtedness
17owing under a court order as provided under the Illinois Public
18Aid Code, the Illinois Marriage and Dissolution of Marriage
19Act, the Non-Support of Spouse and Children Act, the
20Non-Support Punishment Act, the Illinois Parentage Act of 1984,
21or similar laws of other states are not restricted (i) in the
22frequency of contact with an obligor who is in arrears, whether
23by phone, mail, or other means, (ii) from contacting the
24employer of an obligor who is in arrears, (iii) from publishing
25or threatening to publish a list of obligors in arrears, (iv)



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1from disclosing or threatening to disclose an arrearage that
2the obligor disputes, but for which a verified notice of
3delinquency has been served under the Income Withholding for
4Support Act (or any of its predecessors, Section 10-16.2 of the
5Illinois Public Aid Code, Section 706.1 of the Illinois
6Marriage and Dissolution of Marriage Act, Section 22 4.1 of the
7Non-Support Punishment of Spouse and Children Act, Section 26.1
8of the Revised Uniform Reciprocal Enforcement of Support Act,
9or Section 20 of the Illinois Parentage Act of 1984), or (v)
10from engaging in conduct that would not cause a reasonable
11person mental or physical illness. For purposes of this
12subsection, "obligor" means an individual who owes a duty to
13make periodic payments, under a court order, for the support of
14a child. "Arrearage" means the total amount of an obligor's
15unpaid child support obligations.
16    (a-5) A collection agency may not impose a fee or charge,
17including costs, for any child support payments collected
18through the efforts of a federal, State, or local government
19agency, including but not limited to child support collected
20from federal or State tax refunds, unemployment benefits, or
21Social Security benefits.
22    No collection agency that collects child support payments
23shall (i) impose a charge or fee, including costs, for
24collection of a current child support payment, (ii) fail to
25apply collections to current support as specified in the order
26for support before applying collection to arrears or other



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1amounts, or (iii) designate a current child support payment as
2arrears or other amount owed. In all circumstances, the
3collection agency shall turn over to the obligee all support
4collected in a month up to the amount of current support
5required to be paid for that month.
6    As to any fees or charges, including costs, retained by the
7collection agency, that agency shall provide documentation to
8the obligee demonstrating that the child support payments
9resulted from the actions of the agency.
10    After collection of the total amount or arrearage,
11including statutory interest, due as of the date of execution
12of the collection contract, no further fees may be charged.
13    (a-10) The Department of Professional Regulation shall
14determine a fee rate of not less than 25% but not greater than
1535%, based upon presentation by the licensees as to costs to
16provide the service and a fair rate of return. This rate shall
17be established by administrative rule.
18    Without prejudice to the determination by the Department of
19the appropriate rate through administrative rule, a collection
20agency shall impose a fee of not more than 29% of the amount of
21child support actually collected by the collection agency
22subject to the provisions of subsection (a-5). This interim
23rate is based upon the March 2002 General Account Office report
24"Child Support Enforcement", GAO-02-349. This rate shall apply
25until a fee rate is established by administrative rule.
26    (b) The Department shall adopt rules necessary to



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1administer and enforce the provisions of this Section.
2(Source: P.A. 93-896, eff. 8-10-04; 94-414, eff. 12-31-05.)
3    (225 ILCS 425/3)  (from Ch. 111, par. 2006)
4    (Section scheduled to be repealed on January 1, 2016)
5    Sec. 3. A person, association, partnership, corporation,
6or other legal entity acts as a collection agency when he, she,
7or it:
8        (a) Engages in the business of collection for others of
9    any account, bill or other debt indebtedness;
10        (b) Receives, by assignment or otherwise, accounts,
11    bills, or other debt indebtedness from any person owning or
12    controlling 20% or more of the business receiving the
13    assignment, with the purpose of collecting monies due on
14    such account, bill or other debt indebtedness;
15        (c) Sells or attempts to sell, or gives away or
16    attempts to give away to any other person, other than one
17    registered under this Act, any system of collection,
18    letters, demand forms, or other printed matter where the
19    name of any person, other than that of the creditor,
20    appears in such a manner as to indicate, directly or
21    indirectly, that a request or demand is being made by any
22    person other than the creditor for the payment of the sum
23    or sums due or asserted to be due;
24        (d) Buys accounts, bills or other debt indebtedness and
25    engages in collecting the same; or



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1        (e) Uses a fictitious name in collecting its own
2    accounts, bills, or debts with the intention of conveying
3    to the debtor that a third party has been employed to make
4    such collection; or .
5        (f) Engages in the business of collection of a check or
6    other payment that is returned unpaid by the financial
7    institution upon which it is drawn.
8(Source: P.A. 94-414, eff. 12-31-05; 95-437, eff. 1-1-08.)
9    (225 ILCS 425/4)  (from Ch. 111, par. 2007)
10    (Section scheduled to be repealed on January 1, 2016)
11    Sec. 4. No collection agency shall operate in this State,
12directly or indirectly engage in the business of collecting
13debt, solicit debt claims for others, have a sales office, a
14client, or solicit a client in this State, exercise the right
15to collect, or receive payment for another of any debt account,
16bill or other indebtedness, without registering under this Act
17except that no collection agency shall be required to be
18licensed or maintain an established business address in this
19State if the agency's activities in this State are limited to
20collecting debts from debtors located in this State by means of
21interstate communication, including telephone, mail, or
22facsimile transmission, electronic mail, or any other Internet
23communication from the agency's location in another state
24provided they are licensed in that state and these same
25privileges are permitted in that licensed state to agencies



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1licensed in Illinois.
2(Source: P.A. 88-363; 89-387, eff. 1-1-96.)
3    (225 ILCS 425/4.5)
4    (Section scheduled to be repealed on January 1, 2016)
5    Sec. 4.5. Unlicensed practice; violation; civil penalty.
6    (a) Any person who practices, offers to practice, attempts
7to practice, or holds oneself out to practice as a collection
8agency without being licensed under this Act shall, in addition
9to any other penalty provided by law, pay a civil penalty to
10the Department in an amount not to exceed $10,000 $5,000 for
11each offense as determined by the Department. The civil penalty
12shall be assessed by the Department after a hearing is held in
13accordance with the provisions set forth in this Act regarding
14the provision of a hearing for the discipline of a licensee.
15    (b) The Department has the authority and power to
16investigate any and all unlicensed activity. In addition to
17taking any other action provided under this Act, whenever the
18Department has reason to believe a person, association,
19partnership, corporation, or other legal entity has violated
20any provision of subsection (a) of this Section, the Department
21may issue a rule to show cause why an order to cease and desist
22should not be entered against that person, association,
23partnership, corporation, or other legal entity. The rule shall
24clearly set forth the grounds relied upon by the Department and
25shall provide a period of 7 days from the date of the rule to



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1file an answer to the satisfaction of the Department. Failure
2to answer to the satisfaction of the Department shall cause an
3order to cease and desist to be issued immediately.
4    (c) The civil penalty shall be paid within 60 days after
5the effective date of the order imposing the civil penalty. The
6order shall constitute a judgment and may be filed and
7execution had thereon in the same manner as any judgment from
8any court of record.
9    (d) All moneys collected under this Section shall be
10deposited into the General Professions Dedicated Fund.
11(Source: P.A. 94-414, eff. 12-31-05.)
12    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
13    (Section scheduled to be repealed on January 1, 2016)
14    Sec. 5. Application for original license. Application for
15license registration shall be made to the Secretary Director on
16forms provided by the Department, shall be accompanied by the
17required fee and shall state:
18        (1) the applicant's name and address;
19        (2) the names and addresses of the officers of the
20    collection agency and, if the collection agency is a
21    corporation, the names and addresses of all persons owning
22    10% or more of the stock of such corporation, if the
23    collection agency is a partnership, the names and addresses
24    of all partners of the partnership holding a 10% or more
25    interest in the partnership, and, if the collection agency



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1    is a limited liability company, the names and addresses of
2    all members holding 10% or more interest in the limited
3    liability company, and if the collection agency is any
4    other legal business entity, the names and addresses of all
5    persons owning 10% or more interest in the entity; and
6        (3) such other information as the Department may deem
7    necessary.
8(Source: P.A. 94-414, eff. 12-31-05.)
9    (225 ILCS 425/7)  (from Ch. 111, par. 2010)
10    (Section scheduled to be repealed on January 1, 2016)
11    Sec. 7. Qualifications for license. In order to be
12qualified to obtain a certificate or a renewal certificate
13under this Act, a collection agency's officers shall:
14    (a) be of good moral character and of the age of 18 years
15or more; and
16    (b) (blank); have had at least one year experience working
17in the credit field or a related area, or be qualified for an
18original license under Section 6 (c) of this Act;
19    (c) have an acceptable credit rating, have no unsatisfied
20judgments; and not have been officers and owners of 10% or more
21interest of a former registrant under this Act whose
22certificates were suspended or revoked without subsequent
24(Source: P.A. 89-387, eff. 1-1-96.)



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1    (225 ILCS 425/8)  (from Ch. 111, par. 2011)
2    (Section scheduled to be repealed on January 1, 2016)
3    Sec. 8. Bond requirement. A Before issuing a certificate or
4renewing one, the Director shall require each collection agency
5shall be required to file and maintain in force a surety bond,
6issued by an insurance company authorized to transact fidelity
7and surety business in the State of Illinois. The bond shall be
8for the benefit of creditors who obtain a judgment from a court
9of competent jurisdiction based on the failure of the agency to
10remit money collected on account and owed to the creditor. No
11action on the bond shall be commenced more than one year after
12the creditor obtains a judgment against the collection agency
13from a court of competent jurisdiction. The bond shall be in
14the form prescribed by the Secretary Director in the sum of
15$25,000. The bond shall be continuous in form and run
16concurrently with the original and each renewal license period
17unless terminated by the insurance company. An insurance
18company may terminate a bond and avoid further liability by
19filing a 60-day notice of termination with the Department and
20at the same time sending the same notice to the agency. A
21certificate of registration shall be cancelled on the
22termination date of the agency's bond unless a new bond is
23filed with the Department to become effective at the
24termination date of the prior bond. If a certificate of
25registration has been cancelled under this Section, the agency
26must file a new application and will be considered a new



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1applicant if it obtains a new bond.
2(Source: P.A. 84-242.)
3    (225 ILCS 425/8a)  (from Ch. 111, par. 2011a)
4    (Section scheduled to be repealed on January 1, 2016)
5    Sec. 8a. Fees.
6    (a) The Department shall provide by rule for a schedule of
7fees for the administration and enforcement of this Act,
8including but not limited to original licensure, renewal, and
9restoration, shall be set by the Department by rule. The fees
10shall be nonrefundable.
11    (b) All fees collected under this Act shall be deposited
12into the General Professions Dedicated Fund and shall be
13appropriated to the Department for the ordinary and contingent
14expenses of the Department in the administration of this Act.
15(Source: P.A. 91-454, eff. 1-1-00.)
16    (225 ILCS 425/8b)  (from Ch. 111, par. 2011b)
17    (Section scheduled to be repealed on January 1, 2016)
18    Sec. 8b. Assignment for collection. An account may be
19assigned to a collection agency for collection with title
20passing to the collection agency to enable collection of the
21account in the agency's name as assignee for the creditor
23    (a) The assignment is manifested by a written agreement,
24separate from and in addition to any document intended for the



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1purpose of listing a debt with a collection agency. The
2document manifesting the assignment shall specifically state
3and include:
4        (i) the effective date of the assignment; and
5        (ii) the consideration for the assignment.
6    (b) The consideration for the assignment may be paid or
7given either before or after the effective date of the
8assignment. The consideration may be contingent upon the
9settlement or outcome of litigation and if the debt claim being
10assigned has been listed with the collection agency as an
11account for collection, the consideration for assignment may be
12the same as the fee for collection.
13    (c) All assignments shall be voluntary and properly
14executed and acknowledged by the corporate authority or
15individual transferring title to the collection agency before
16any action can be taken in the name of the collection agency.
17    (d) No assignment shall be required by any agreement to
18list a debt with a collection agency as an account for
20    (e) No litigation shall commence in the name of the
21licensee as plaintiff unless: (i) there is an assignment of the
22account that satisfies the requirements of this Section and
23(ii) the licensee is represented by a licensed attorney at law.
24    (f) If a collection agency takes assignments of accounts
25from 2 or more creditors against the same debtor and commences
26litigation against that debtor in a single action, in the name



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1of the collection agency, then (i) the complaint must be stated
2in separate counts for each assignment and (ii) the debtor has
3an absolute right to have any count severed from the rest of
4the action.
5(Source: P.A. 89-387, eff. 1-1-96.)
6    (225 ILCS 425/8c)  (from Ch. 111, par. 2011c)
7    (Section scheduled to be repealed on January 1, 2016)
8    Sec. 8c. (a) Each licensed collection agency office shall
9at all times maintain a separate bank account in which all
10monies received on debts claims shall be deposited, referred to
11as a "Trust Account", except that negotiable instruments
12received may be forwarded directly to a creditor if such
13procedure is provided for by a writing executed by the
14creditor. Monies received shall be so deposited within 5
15business days after posting to the agency's books of account.
16    There shall be sufficient funds in the trust account at all
17times to pay the creditors the amount due them.
18    (b) The trust account shall be established in a bank,
19savings and loan association, or other recognized depository
20which is federally or State insured or otherwise secured as
21defined by rule. Such account may be interest bearing. The
22licensee shall pay to the creditor interest earned on funds on
23deposit after the sixtieth day.
24    (c) Notwithstanding any contractual arrangement, every
25client of a licensee shall within 60 days after the close of



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1each calendar month, account and pay to the licensee collection
2agency all sums owed to the collection agency for payments
3received by the client during that calendar month on debts
4claims in possession of the collection agency. If a client
5fails to pay the licensee any sum due under this Section, the
6licensee shall, in addition to other remedies provided by law,
7have the right to offset any money due the licensee under this
8Section against any moneys due the client.
9    (d) Each collection agency shall keep on file the name of
10the bank, savings and loan association, or other recognized
11depository in which each trust account is maintained, the name
12of each trust account, and the names of the persons authorized
13to withdraw funds from each account.
14    The collection agency, within 30 days of the time of a
15change of depository or person authorized to make withdrawal,
16shall update its files to reflect such change.
17    An examination and audit of an agency's trust accounts may
18be made by the Department as the Department deems appropriate.
19    A trust account financial report shall be submitted
20annually on forms provided by the Department.
21(Source: P.A. 89-387, eff. 1-1-96.)
22    (225 ILCS 425/9)  (from Ch. 111, par. 2012)
23    (Section scheduled to be repealed on January 1, 2016)
24    Sec. 9. Disciplinary actions.
25    (a) The Department may refuse to issue or renew, or may



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1revoke, suspend, place on probation, reprimand or take other
2disciplinary or non-disciplinary action as the Department may
3deem proper, including fines not to exceed $5,000 for a first
4violation and not to $10,000 for each violation with regard to
5any collection agency license exceed $10,000 for a second or
6subsequent violation, for any one or any combination of the
7following causes:
8        (1) Material misstatement in furnishing information to
9    the Department.
10        (2) (1) Violations of this Act or of the rules
11    promulgated hereunder.
12        (3) (2) Conviction by plea of guilty or nolo
13    contendere, finding of guilt, jury verdict, or entry of
14    judgment or by sentencing of any crime, including, but not
15    limited to, convictions, preceding sentences of
16    supervision, conditional discharge, or first offender
17    probation of the collection agency or any of the officers
18    or owners of more than 10% interest principals of the
19    agency of any crime under the laws of any U.S. jurisdiction
20    that (i) is a felony, (ii) is a misdemeanor, an essential
21    element of which is dishonesty, or (iii) is directly
22    related to the practice of a collection agency any U.S.
23    jurisdiction which is a felony, a misdemeanor an essential
24    element of which is dishonesty, or of any crime which
25    directly relates to the practice of the profession.
26        (4) Fraud or (3) Making any misrepresentation in



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1    applying for, or procuring, a license under this Act or in
2    connection with applying for renewal of for the purpose of
3    obtaining a license under this Act or certificate.
4        (5) Aiding or assisting another person in violating any
5    provision of this Act or rules adopted under this Act.
6        (6) Failing, within 60 days, to provide information in
7    response to a written request made by the Department.
8        (7) (4) Habitual or excessive use or addiction to
9    alcohol, narcotics, stimulants or any other chemical agent
10    or drug which results in the inability to practice with
11    reasonable judgment, skill, or safety by any of the
12    officers or owners of 10% or more interest principals of a
13    collection agency.
14        (8) (5) Discipline by another state, the District of
15    Columbia, a territory of the United States, U.S.
16    jurisdiction or a foreign nation, if at least one of the
17    grounds for the discipline is the same or substantially
18    equivalent to those set forth in this Act.
19        (9) (6) A finding by the Department that the licensee,
20    after having his license placed on probationary status, has
21    violated the terms of probation.
22        (10) Willfully making or filing false records or
23    reports in his or her practice, including, but not limited
24    to, false records filed with State agencies or departments.
25        (11) (7) Practicing or attempting to practice under a
26    false or, except as provided by law, an assumed name a name



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1    other than the name as shown on his or her license or any
2    other legally authorized name.
3        (12) (8) A finding by the Federal Trade Commission that
4    a registrant licensee violated the federal Federal Fair
5    Debt and Collection Practices Act or its rules.
6        (13) (9) Failure to file a return, or to pay the tax,
7    penalty or interest shown in a filed return, or to pay any
8    final assessment of tax, penalty or interest, as required
9    by any tax Act administered by the Illinois Department of
10    Revenue until such time as the requirements of any such tax
11    Act are satisfied.
12        (14) (10) Using or threatening to use force or violence
13    to cause physical harm to a debtor, his or her family or
14    his or her property.
15        (15) (11) Threatening to instigate an arrest or
16    criminal prosecution where no basis for a criminal
17    complaint lawfully exists.
18        (16) (12) Threatening the seizure, attachment or sale
19    of a debtor's property where such action can only be taken
20    pursuant to court order without disclosing that prior court
21    proceedings are required.
22        (17) (13) Disclosing or threatening to disclose
23    information adversely affecting a debtor's reputation for
24    credit worthiness with knowledge the information is false.
25        (18) (14) Initiating or threatening to initiate
26    communication with a debtor's employer unless there has



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



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1        except to a consumer reporting agency.
2            (C) The threat of advertisement or advertisement
3        for sale of any debt to coerce payment of the debt.
4            (D) Causing a telephone to ring or engaging any
5        person in telephone conversation repeatedly or
6        continuously with intent to annoy, abuse, or harass any
7        person at the called number.
8        (20) (16) Using profane, obscene or abusive language in
9    communicating with a debtor, his or her family or others.
10        (21) (17) Disclosing or threatening to disclose
11    information relating to a debtor's debt indebtedness to any
12    other person except where such other person has a
13    legitimate business need for the information or except
14    where such disclosure is permitted regulated by law.
15        (22) (18) Disclosing or threatening to disclose
16    information concerning the existence of a debt which the
17    collection agency debt collector knows to be reasonably
18    disputed by the debtor without disclosing the fact that the
19    debtor disputes the debt.
20        (23) (19) Engaging in any conduct that is which the
21    Director finds was intended to cause and did cause mental
22    or physical illness to the debtor or his or her family.
23        (24) (20) Attempting or threatening to enforce a right
24    or remedy with knowledge or reason to know that the right
25    or remedy does not exist.
26        (25) (21) Failing to disclose to the debtor or his or



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



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1    increased by the addition of attorney's fees,
2    investigation fees or any other fees or charges when such
3    fees or charges may not legally be added to the existing
4    debt.
5        (32) (28) Representing that the collection agency debt
6    collector is an attorney at law or an agent for an attorney
7    if he or she is not.
8        (33) (29) Collecting or attempting to collect any
9    interest or other charge or fee in excess of the actual
10    debt or claim unless such interest or other charge or fee
11    is expressly authorized by the agreement creating the debt
12    or claim unless expressly authorized by law or unless in a
13    commercial transaction such interest or other charge or fee
14    is expressly authorized in a subsequent agreement. If a
15    contingency or hourly fee arrangement (i) is established
16    under an agreement between a collection agency and a
17    creditor to collect a debt and (ii) is paid by a debtor
18    pursuant to a contract between the debtor and the creditor,
19    then that fee arrangement does not violate this Section
20    unless the fee is unreasonable. The Department shall
21    determine what constitutes a reasonable collection fee.
22        (34) (30) Communicating or threatening to communicate
23    with a debtor when the collection agency debt collector is
24    informed in writing by an attorney that the attorney
25    represents the debtor concerning the debt claim, unless
26    authorized by the attorney. If the attorney fails to



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1    respond within a reasonable period of time, the collector
2    may communicate with the debtor. The collector may
3    communicate with the debtor when the attorney gives his or
4    her consent.
5        (35) (31) Engaging in dishonorable, unethical, or
6    unprofessional conduct of a character likely to deceive,
7    defraud, or harm the public.
8    (b) The Department shall deny any license or renewal
9authorized by this Act to any person who has defaulted on an
10educational loan guaranteed by the Illinois State Scholarship
11Commission; however, the Department may issue a license or
12renewal if the person in default has established a satisfactory
13repayment record as determined by the Illinois State
14Scholarship Commission.
15    No collection agency debt collector while collecting or
16attempting to collect a debt shall engage in any of the Acts
17specified in this Section, each of which shall be unlawful
19(Source: P.A. 94-414, eff. 12-31-05.)
20    (225 ILCS 425/9.1)
21    (Section scheduled to be repealed on January 1, 2016)
22    Sec. 9.1. Communication with persons other than debtor. Any
23debt collector or collection agency communicating with any
24person other than the debtor for the purpose of acquiring
25location information about the debtor shall:



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1        (1) identify himself or herself, state that he or she
2    is confirming or correcting location information
3    concerning the consumer, and, only if expressly requested,
4    identify his or her employer;
5        (2) not state that the consumer owes any debt;
6        (3) not communicate with any person more than once
7    unless requested to do so by the person or unless the debt
8    collector or collection agency reasonably believes that
9    the earlier response of the person is erroneous or
10    incomplete and that the person now has correct or complete
11    location information;
12        (4) not communicate by postcard;
13        (5) not use any language or symbol on any envelope or
14    in the contents of any communication effected by mail or
15    telegram that indicates that the debt collector or
16    collection agency is in the debt collection business or
17    that the communication relates to the collection of a debt;
18    and
19        (6) not communicate with any person other than the
20    attorney after the debt collector or collection agency
21    knows the debtor is represented by an attorney with regard
22    to the subject debt and has knowledge of or can readily
23    ascertain the attorney's name and address, not communicate
24    with any person other than the attorney, unless the
25    attorney fails to respond within a reasonable period of
26    time, not less than 30 days, to communication from the debt



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1    collector or collection agency.
2(Source: P.A. 95-437, eff. 1-1-08; 95-876, eff. 8-21-08.)
3    (225 ILCS 425/9.2)
4    (Section scheduled to be repealed on January 1, 2016)
5    Sec. 9.2. Communication in connection with debt
7    (a) Without the prior consent of the debtor given directly
8to the debt collector or collection agency or the express
9permission of a court of competent jurisdiction, a debt
10collector or collection agency may not communicate with a
11debtor in connection with the collection of any debt in any of
12the following circumstances:
13        (1) At any unusual time, place, or manner that is known
14    or should be known to be inconvenient to the debtor. In the
15    absence of knowledge of circumstances to the contrary, a
16    debt collector or collection agency shall assume that the
17    convenient time for communicating with a debtor is after
18    8:00 8 o'clock a.m. and before 9:00 9 o'clock p.m. local
19    time at the debtor's location.
20        (2) If the debt collector or collection agency knows
21    the debtor is represented by an attorney with respect to
22    such debt and has knowledge of or can readily ascertain,
23    the attorney's name and address, unless the attorney fails
24    to respond within a reasonable period of time to a
25    communication from the debt collector or collection agency



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1    or unless the attorney consents to direct communication
2    with the debtor.
3        (3) At the debtor's place of employment, if the debt
4    collector or collection agency knows or has reason to know
5    that the debtor's employer prohibits the debtor from
6    receiving such communication.
7    (b) Except as provided in Section 9.1 of this Act, without
8the prior consent of the debtor given directly to the debt
9collector or collection agency, or the express permission of a
10court of competent jurisdiction, or as reasonably necessary to
11effectuate a post judgment judicial remedy, a debt collector or
12collection agency may not communicate, in connection with the
13collection of any debt, with any person other than the debtor,
14the debtor's attorney, a consumer reporting agency if otherwise
15permitted by law, the creditor, the attorney of the creditor,
16or the attorney of the collection agency.
17    (c) If a debtor notifies a debt collector or collection
18agency in writing that the debtor refuses to pay a debt or that
19the debtor wishes the debt collector or collection agency to
20cease further communication with the debtor, the debt collector
21or collection agency may not communicate further with the
22debtor with respect to such debt, except to perform any of the
23following tasks:
24        (1) Advise the debtor that the debt collector's or
25    collection agency's further efforts are being terminated.
26        (2) Notify the debtor that the collection agency or



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1    creditor may invoke specified remedies that are ordinarily
2    invoked by such collection agency or creditor.
3        (3) Notify the debtor that the collection agency or
4    creditor intends to invoke a specified remedy.
5    If such notice from the debtor is made by mail,
6notification shall be complete upon receipt.
7    (d) For the purposes of this Section, "debtor" includes the
8debtor's spouse, parent (if the debtor is a minor), guardian,
9executor, or administrator.
10(Source: P.A. 95-437, eff. 1-1-08.)
11    (225 ILCS 425/9.3)
12    (Section scheduled to be repealed on January 1, 2016)
13    Sec. 9.3. Validation of debts.
14    (a) Within 5 days after the initial communication with a
15debtor in connection with the collection of any debt, a debt
16collector or collection agency shall, unless the following
17information is contained in the initial communication or the
18debtor has paid the debt, send the debtor a written notice with
19each of the following disclosures:
20        (1) The amount of the debt.
21        (2) The name of the creditor to whom the debt is owed.
22        (3) That, unless the debtor, within 30 days after
23    receipt of the notice, disputes the validity of the debt,
24    or any portion thereof, the debt will be assumed to be
25    valid by the debt collector or collection agency.



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1        (4) That, if the debtor notifies the debt collector or
2    collection agency in writing within the 30-day period that
3    the debt, or any portion thereof, is disputed, the debt
4    collector or collection agency will obtain verification of
5    the debt or a copy of a judgment against the debtor and a
6    copy of the verification or judgment will be mailed to the
7    debtor by the debt collector or collection agency.
8        (5) The That upon the debtor's written request within
9    the 30-day period, the debt collector or collection agency
10    will provide the debtor with the name and address of the
11    original creditor, if different from the current creditor.
12    If the disclosures required under this subsection (a) are
13    placed on the back of the notice, the front of the notice
14    shall contain a statement notifying debtors of that fact.
15    (b) If the debtor notifies the debt collector or collection
16agency in writing within the 30-day period set forth in
17paragraph (3) of subsection (a) of this Section that the debt,
18or any portion thereof, is disputed or that the debtor requests
19the name and address of the original creditor, the debt
20collector or collection agency shall cease collection of the
21debt, or any disputed portion thereof, until the debt collector
22or collection agency obtains verification of the debt or a copy
23of a judgment or the name and address of the original creditor
24and mails a copy of the verification or judgment or name and
25address of the original creditor to the debtor.
26    (c) The failure of a debtor to dispute the validity of a



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1debt under this Section shall not be construed by any court as
2an admission of liability by the debtor.
3(Source: P.A. 95-437, eff. 1-1-08.)
4    (225 ILCS 425/9.4)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 9.4. Debt collection as a result of identity theft.
7    (a) Upon receipt from a debtor of all of the following
8information, a debt collector or collection agency must cease
9collection activities until completion of the review provided
10in subsection (d) of this Section:
11        (1) A copy of a police report filed by the debtor
12    alleging that the debtor is the victim of an identity theft
13    crime for the specific debt being collected by the
14    collection agency debt collector.
15        (2) The debtor's written statement that the debtor
16    claims to be the victim of identity theft with respect to
17    the specific debt being collected by the collection agency
18    debt collector, including (i) a Federal Trade Commission's
19    Affidavit of Identity Theft, (ii) an Illinois Attorney
20    General ID Theft Affidavit, or (iii) a written statement
21    that certifies that the representations are true, correct,
22    and contain no material omissions of fact to the best
23    knowledge and belief of the person submitting the
24    certification. This written statement must contain or be
25    accompanied by, each of the following, to the extent that



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1    an item listed below is relevant to the debtor's allegation
2    of identity theft with respect to the debt in question:
3            (A) A statement that the debtor is a victim of
4        identity theft.
5            (B) A copy of the debtor's driver's license or
6        identification card, as issued by this State.
7            (C) Any other identification document that
8        supports the statement of identity theft.
9            (D) Specific facts supporting the claim of
10        identity theft, if available.
11            (E) Any explanation showing that the debtor did not
12        incur the debt.
13            (F) Any available correspondence disputing the
14        debt after transaction information has been provided
15        to the debtor.
16            (G) Documentation of the residence of the debtor at
17        the time of the alleged debt, which may include copies
18        of bills and statements, such as utility bills, tax
19        statements, or other statements from businesses sent
20        to the debtor and showing that the debtor lived at
21        another residence at the time the debt was incurred.
22            (H) A telephone number for contacting the debtor
23        concerning any additional information or questions or
24        direction that further communications to the debtor be
25        in writing only, with the mailing address specified in
26        the statement.



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1            (I) To the extent the debtor has information
2        concerning who may have incurred the debt, the
3        identification of any person whom the debtor believes
4        is responsible.
5            (J) An express statement that the debtor did not
6        authorize the use of the debtor's name or personal
7        information for incurring the debt.
8    (b) A written certification submitted pursuant to item
9(iii) of paragraph (2) of subsection (a) of this Section shall
10be sufficient if it is in substantially the following form:
11    "I certify that the representations made are true, correct,
12    and contain no material omissions of fact known to me.
13            (Signature)
14            (Date)"
15    (c) If a debtor notifies a debt collector or collection
16agency orally that he or she is a victim of identity theft, the
17debt collector or collection agency shall notify the debtor
18orally or in writing, that the debtor's claim must be in
19writing. If a debtor notifies a debt collector or collection
20agency in writing that he or she is a victim of identity theft,
21but omits information required pursuant to this Section, and if
22the debt collector or collection agency continues does not
23cease collection activities, the debt collector or collection



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1agency must provide written notice to the debtor of the
2additional information that is required or send the debtor a
3copy of the Federal Trade Commission's Affidavit of Identity
4Theft Affidavit form.
5    (d) Upon receipt of the complete statement and information
6described in subsection (a) of this Section, the collection
7agency debt collector shall review and consider all of the
8information provided by the debtor and other information
9available to the debt collector or collection agency in its
10file or from the creditor. The debt collector or collection
11agency may recommence debt collection activities only upon
12making a good faith determination that the information does not
13establish that the debtor is not responsible for the specific
14debt in question. The debt collector or collection agency must
15notify the debtor consumer in writing of that determination and
16the basis for that determination before proceeding with any
17further collection activities. The debt collector's or
18collection agency's determination shall be based on all of the
19information provided by the debtor and other information
20available to the debt collector or collection agency in its
21file or from the creditor.
22    (e) No inference or presumption that the debt is valid or
23invalid or that the debtor is liable or not liable for the debt
24may arise if the debt collector or collection agency decides
25after the review described in subsection (d) to cease or
26recommence the debt collection activities. The exercise or



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1non-exercise of rights under this Section is not a waiver of
2any other right or defense of the debtor or collection agency
3debt collector.
4    (f) A debt collector or collection agency that (i) ceases
5collection activities under this Section, (ii) does not
6recommence those collection activities, and (iii) furnishes
7adverse information to a consumer credit reporting agency, must
8notify the consumer credit reporting agency to delete that
9adverse information.
10(Source: P.A. 95-437, eff. 1-1-08.)
11    (225 ILCS 425/9.7)
12    (Section scheduled to be repealed on January 1, 2016)
13    Sec. 9.7. Enforcement under the Consumer Fraud and
14Deceptive Business Practices Act. The Attorney General may
15enforce the knowing violation of Section 9 (except for items
16(2) through (4), (7) through (9), (11) through (13), and (23)
17(1) through (9) and (19) of subsection (a)), 9.1, 9.2, 9.3, or
189.4 of this Act as an unlawful practice under the Consumer
19Fraud and Deceptive Business Practices Act.
20(Source: P.A. 95-437, eff. 1-1-08.)
21    (225 ILCS 425/9.22)  (from Ch. 111, par. 2034)
22    (Section scheduled to be repealed on January 1, 2016)
23    Sec. 9.22. Administrative Procedure Act. The Illinois
24Administrative Procedure Act is hereby expressly adopted and



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1incorporated herein as if all of the provisions of that Act
2were included in this Act, except that the provision of
3subsection (d) of Section 10-65 of the Illinois Administrative
4Procedure Act that provides that at hearings the licensee has
5the right to show compliance with all lawful requirements for
6retention, continuation or renewal of the license is
7specifically excluded. For the purposes of this Act the notice
8required under Section 10-25 of the Administrative Procedure
9Act is deemed sufficient when mailed to the last known address
10of record of a party.
11(Source: P.A. 88-45.)
12    (225 ILCS 425/11)  (from Ch. 111, par. 2036)
13    (Section scheduled to be repealed on January 1, 2016)
14    Sec. 11. Informal conferences. Informal conferences shall
15be conducted with at least one member of the Licensing and
16Disciplinary Board in attendance. Notwithstanding any
17provisions concerning the conduct of hearings and
18recommendations for disciplinary actions, the Department has
19the authority to negotiate agreements with licensees
20registrants and applicants resulting in disciplinary or
21non-disciplinary consent orders. The consent orders may
22provide for any of the forms of discipline provided in this
23Act. The consent orders shall provide that they were not
24entered into as a result of any coercion by the Department.
25(Source: P.A. 89-387, eff. 1-1-96.)



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1    (225 ILCS 425/13.1)  (from Ch. 111, par. 2038.1)
2    (Section scheduled to be repealed on January 1, 2016)
3    Sec. 13.1. Collection Agency Licensing and Disciplinary
4Board; members; qualifications; duties.
5    (a) There is created in the Department the Collection
6Agency Licensing and Disciplinary Board composed of 7 members
7appointed by the Secretary Director. Five members of the Board
8shall be employed in a collection agency registered under this
9Act and 2 members of the Board shall represent the general
10public, and shall not be employed by or possess an ownership
11interest in any collection agency registered under this Act,
12and shall have no family or business connection with the
13practice of collection agencies.
14    (b) Each of the members appointed to the Board, except for
15the public members, shall have at least 5 years of active
16collection agency experience.
17    (c) The Board shall annually elect a chairperson chairman
18from among its members and shall meet at least twice each year.
19The members of the Board shall receive no compensation for
20their services, but shall be reimbursed for their necessary
21actual expenses as authorized by the Department while engaged
22in incurred in the performance of their duties.
23    (d) Members shall serve for a term of 4 years and until
24their successors are appointed and qualified. No Board member,
25after the effective date of this amendatory Act of 1995, shall



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



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1    and
2        (4) two members shall be appointed to serve for 4
3    years.
4All members shall serve until their successors are appointed
5and qualified.
6    The Board members appointed to terms by this amendatory Act
7of 1995 shall be appointed as soon as possible after the
8effective date of this amendatory Act of 1995.
9(Source: P.A. 89-387, eff. 1-1-96.)
10    (225 ILCS 425/13.2)  (from Ch. 111, par. 2038.2)
11    (Section scheduled to be repealed on January 1, 2016)
12    Sec. 13.2. Powers and duties of Department. The Department
13shall exercise the powers and duties prescribed by the Civil
14Administrative Code of Illinois for the administration of
15licensing Acts and shall exercise such other powers and duties
16necessary for effectuating the purposes of this Act.
17    The Director shall promulgate rules consistent with the
18provisions of this Act, for its administration and enforcement,
19and may prescribe forms which shall be issued in connection
20therewith. The rules shall include standards and criteria for
21licensure and certification, and professional conduct and
23    The Department shall consult with the Board in promulgating
25    Subject to the provisions of this Act, the Department may:



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1        (1) Conduct hearings on proceedings to refuse to issue
2    or renew or to revoke registrations or suspend, place on
3    probation, or reprimand persons registered under this Act.
4        (2) Formulate rules required for the administration of
5    this Act.
6        (3) Obtain written recommendations from the Board
7    regarding standards of professional conduct, formal
8    disciplinary actions and the formulation of rules
9    affecting these matters. Notice of proposed rulemaking
10    shall be transmitted to the Board and the Department shall
11    review the Board's responses and any recommendations made
12    therein. The Department shall notify the Board in writing
13    with explanations of deviations from the Board's
14    recommendations and responses. The Department may shall
15    solicit the advice of the Board on any matter relating to
16    the administration and enforcement of this Act.
17        (4) Maintain rosters of the names and addresses of all
18    registrants, and all persons whose registrations have been
19    suspended, revoked, or denied renewal for cause within the
20    previous calendar year. These rosters shall be available
21    upon written request and payment of the required fee as
22    established by rule.
23(Source: P.A. 86-615.)
24    (225 ILCS 425/14a)  (from Ch. 111, par. 2039a)
25    (Section scheduled to be repealed on January 1, 2016)



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1    Sec. 14a. Unlicensed practice; Injunctions. The practice
2as a collection agency by any person entity not holding a valid
3and current license under this Act is declared to be inimical
4to the public welfare, to constitute a public nuisance, and to
5cause irreparable harm to the public welfare. The Secretary
6Director, the Attorney General, the State's Attorney of any
7county in the State, or any person may maintain an action in
8the name of the People of the State of Illinois, and may apply
9for injunctive relief in any circuit court to enjoin such
10entity from engaging in such practice. Upon the filing of a
11verified petition in such court, the court, if satisfied by
12affidavit or otherwise that such entity has been engaged in
13such practice without a valid and current license, may enter a
14temporary restraining order without notice or bond, enjoining
15the defendant from such further practice. Only the showing of
16non-licensure nonlicensure, by affidavit or otherwise, is
17necessary in order for a temporary injunction to issue. A copy
18of the verified complaint shall be served upon the defendant
19and the proceedings shall thereafter be conducted as in other
20civil cases except as modified by this Section. If it is
21established that the defendant has been or is engaged in such
22unlawful practice, the court may enter an order or judgment
23perpetually enjoining the defendant from further practice. In
24all proceedings hereunder, the court, in its discretion, may
25apportion the costs among the parties interested in the action,
26including cost of filing the complaint, service of process,



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1witness fees and expenses, court reporter charges and
2reasonable attorneys' fees. In case of violation of any
3injunctive order entered under the provisions of this Section,
4the court may summarily try and punish the offender for
5contempt of court. Such injunction proceedings shall be in
6addition to, and not in lieu of, all penalties and other
7remedies provided in this Act.
8(Source: P.A. 86-615.)
9    (225 ILCS 425/14b)  (from Ch. 111, par. 2039b)
10    (Section scheduled to be repealed on January 1, 2016)
11    Sec. 14b. Penalty of unlawful practice; Second and
12subsequent offenses. Any entity that practices or offers to
13practice as a collection agency in this State without being
14licensed for that purpose, or whose license is has been
15suspended, or revoked, or expired, or that violates any of the
16provisions of this Act for which no specific penalty has been
17provided herein, is guilty of a Class A misdemeanor.
18    Any entity that has been previously convicted under any of
19the provisions of this Act and that subsequently violates any
20of the provisions of this Act is guilty of a Class 4 felony. In
21addition, whenever any entity is punished as a subsequent
22offender under this Section, the Secretary Director shall
23proceed to obtain a permanent injunction against such entity
24under Section 14a of this Act.
25(Source: P.A. 86-615.)



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1    (225 ILCS 425/16)
2    (Section scheduled to be repealed on January 1, 2016)
3    Sec. 16. Investigation; notice and hearing. The Department
4may investigate the actions or qualifications of any applicant
5or of any person rendering or offering to render collection
6agency services or any person or persons holding or claiming to
7hold a license as a collection agency certificate of
8registration. The Department shall, before refusing to issue or
9renew, suspending or revoking, suspending, placing on
10probation, reprimanding, or taking any other disciplinary
11action under Section 9 of this Act any certificate of
12registration, at least 30 days before the date set for the
13hearing, (i) notify the accused in writing of the charges made
14and the time and place for the hearing on the charges, (ii) of
15the charges before the Board, direct him or her to file his or
16her written answer thereto to the charges with the Department
17under oath Board within 20 days after the service on him or her
18of the notice, and (iii) inform the accused him or her that if
19he or she fails to file an answer default will be taken against
20him or her or and his or her license certificate of
21registration may be suspended, or revoked, or placed on
22probation, or other disciplinary action may be taken with
23regard to the registration, including limiting the scope,
24nature, or extent of his or her practice, as the Department may
25consider proper. This written notice may be served by personal



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



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1in the discretion of the Department, be suspended, revoked, or
2placed on probation, or the Department may take whatever
3disciplinary action it considers proper, including limiting
4the scope, nature, or extent of the person's practice or the
5imposition of a fine, without a hearing, if the act or acts
6charged constitute sufficient grounds for such action under
7this Act. This written notice may be served by personal
8delivery or certified mail to the respondent at the address of
10(Source: P.A. 89-387, eff. 1-1-96.)
11    (225 ILCS 425/17)
12    (Section scheduled to be repealed on January 1, 2016)
13    Sec. 17. Record of hearing; transcript. The Department, at
14its expense, shall preserve a record of all proceedings at the
15formal hearing of any case. The notice of hearing, complaint,
16all and other documents in the nature of pleadings, and written
17motions filed in the proceedings, the transcript of testimony,
18the report of the Board, and orders of the Department shall be
19in the record of the proceedings. If the respondent orders from
20the reporting service and pays for a transcript of the record
21within the time for filing a motion for rehearing under Section
2220, the 20 calendar day period within which a motion may be
23filed shall commence upon the delivery of the transcript to the
24respondent The Department shall furnish a transcript of the
25record to any person interested in the hearing upon payment of



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1the fee required under Section 2105-115 of the Department of
2Professional Regulation Law (20 ILCS 2105/2105-115).
3(Source: P.A. 91-239, eff. 1-1-00.)
4    (225 ILCS 425/18)
5    (Section scheduled to be repealed on January 1, 2016)
6    Sec. 18. Subpoenas; oaths; attendance of witnesses.
7    (a) The Department has shall have the power to subpoena
8documents, books, records, or other materials and to bring
9before it any person and to take testimony either orally or by
10deposition, or both, with the same fees and mileage and in the
11same manner as prescribed in civil cases in the courts of this
13    (b) The Secretary Director, the designated hearing
14officer, and every member of the Board has shall have power to
15administer oaths to witnesses at any hearing that the
16Department is authorized to conduct and any other oaths
17authorized in any Act administered by the Department.
18    (c) Any circuit court may, upon application of the
19Department or designee or of the applicant or licensee ,
20registrant, or person holding a certificate of registration
21against whom proceedings under this Act are pending, enter an
22order requiring the attendance of witnesses and their
23testimony, and the production of documents, papers, files,
24books, and records in connection with any hearing or
25investigations. The court may compel obedience to its order by



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1proceedings for contempt.
2(Source: P.A. 89-387, eff. 1-1-96.)
3    (225 ILCS 425/19)
4    (Section scheduled to be repealed on January 1, 2016)
5    Sec. 19. Findings and recommendations Board report. At the
6conclusion of the hearing, the Board shall present to the
7Secretary Director a written report of its findings of fact,
8conclusions of law, and recommendations. The report shall
9contain a finding whether or not the accused person violated
10this Act or the rules adopted under this Act or failed to
11comply with the conditions required in this Act or those rules.
12The Board shall specify the nature of the violation or failure
13to comply and shall make its recommendations to the Secretary
15    The report of findings of fact, conclusions of law, and
16recommendation of the Board shall be the basis for the
17Department's order for refusing to issue, restore, or renew a
18license, or otherwise disciplining a licensee, refusal or for
19the granting of a license certificate of registration. If the
20Secretary Director disagrees in any regard with the report,
21findings of fact, conclusions of law, and recommendations
22report of the Board, the Secretary Director may issue an order
23in contravention of the Board's recommendations report. The
24Director shall provide a written report to the Board on any
25deviation and shall specify with particularity the reasons for



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1that action in the final order. The finding is not admissible
2in evidence against the person in a criminal prosecution
3brought for the violation of this Act, but the hearing and
4finding are is not a bar to a criminal prosecution brought for
5the violation of this Act.
6(Source: P.A. 89-387, eff. 1-1-96.)
7    (225 ILCS 425/20)
8    (Section scheduled to be repealed on January 1, 2016)
9    Sec. 20. Board; rehearing Motion for rehearing. At the
10conclusion of the hearing In any hearing involving the
11discipline of a registrant, a copy of the Board's report shall
12be served upon the applicant or licensee respondent by the
13Department, either personally or as provided in this Act for
14the service of the notice of hearing. Within 20 calendar days
15after the service, the applicant or licensee respondent may
16present to the Department a motion in writing for a rehearing
17which shall specify the particular grounds for rehearing. The
18Department may respond to the motion for rehearing within 20
19days after its service on the Department, and the applicant or
20licensee may reply within 7 days thereafter. If no motion for
21rehearing is filed, then upon the expiration of the time
22specified for filing a motion, or if a motion for rehearing is
23denied, then upon denial, the Secretary Director may enter an
24order in accordance with the recommendations of the Board,
25except as provided for in Section 19. If the applicant or



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1licensee respondent orders a transcript of the record from the
2reporting service and pays for it within the time for filing a
3motion for rehearing, the 20 calendar day period within which a
4motion for rehearing may be filed shall commence upon the
5delivery of the transcript to the applicant or licensee
7(Source: P.A. 89-387, eff. 1-1-96.)
8    (225 ILCS 425/21)
9    (Section scheduled to be repealed on January 1, 2016)
10    Sec. 21. Secretary; rehearing Rehearing. Whenever the
11Secretary Director is not satisfied that substantial justice
12has been done in the revocation, suspension, or refusal to
13issue, restore, or renew a license, or other discipline of an
14applicant or licensee a certificate of registration, the
15Secretary Director may order a rehearing by the same or other
17(Source: P.A. 89-387, eff. 1-1-96.)
18    (225 ILCS 425/22)
19    (Section scheduled to be repealed on January 1, 2016)
20    Sec. 22. Appointment of a hearing Hearing officer. The
21Secretary has Director shall have the authority to appoint any
22attorney duly licensed to practice law in the State of Illinois
23to serve as the hearing officer in any action for refusal to
24issue, restore, or renew a certificate of registration or to



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1discipline a licensee registrant or person holding a
2certificate of registration. The hearing officer shall have
3full authority to conduct the hearing. A Board member or
4members may, but are not required to, attend hearings. The
5hearing officer shall report his or her findings of fact,
6conclusions of law, and recommendations to the Board and the
7Director. The Board shall have 60 calendar days from receipt of
8the report to review the report of the hearing officer and
9present its findings of fact, conclusions of law, and
10recommendations to the Secretary and to all parties to the
11proceeding Director. If the Board fails to present its report
12within the 60 calendar day period, the Director may issue an
13order based on the report of the hearing officer. If the
14Secretary Director disagrees with the recommendation of the
15Board or of the hearing officer, the Secretary Director may
16issue an order in contravention of the recommendation.
17(Source: P.A. 89-387, eff. 1-1-96.)
18    (225 ILCS 425/23)
19    (Section scheduled to be repealed on January 1, 2016)
20    Sec. 23. Order or ; certified copy; prima facie proof. An
21order or a certified copy thereof of an order, over the seal of
22the Department and purporting to be signed by the Secretary
23Director, shall be prima facie proof that of the following:
24    (1) That the signature is the genuine signature of the
25Secretary; Director.



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1    (2) That the Secretary Director is duly appointed and
2qualified; and .
3    (3) That the Board and its the Board members are qualified
4to act.
5(Source: P.A. 89-387, eff. 1-1-96.)
6    (225 ILCS 425/24)
7    (Section scheduled to be repealed on January 1, 2016)
8    Sec. 24. Restoration of certificate of registration from
9discipline. At any time after the successful completion of a
10term of indefinite probation, suspension or revocation of any
11certificate of registration, the Department may restore the
12certificate of registration to the registrant, accused person
13upon the written recommendation of the Board, unless after an
14investigation and a hearing the Secretary Board determines that
15restoration is not in the public interest. No person whose
16certificate of registration or authority has been revoked as
17authorized in this Act may apply for restoration of that
18certificate or authority until such time as provided for in the
19Civil Administrative Code of Illinois.
20(Source: P.A. 89-387, eff. 1-1-96.)
21    (225 ILCS 425/26)
22    (Section scheduled to be repealed on January 1, 2016)
23    Sec. 26. Administrative review; venue Review Law.
24    (a) All final administrative decisions of the Department



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1are subject to judicial review under the Administrative Review
2Law and its rules. The term "administrative decision" is
3defined as in Section 3-101 of the Code of Civil Procedure.
4    (b) Proceedings for judicial review shall be commenced in
5the circuit court of the county in which the party applying for
6review resides, but if the party is not a resident of Illinois
7this State, the venue shall be in Sangamon County.
8(Source: P.A. 89-387, eff. 1-1-96.)
9    (225 ILCS 425/27)
10    (Section scheduled to be repealed on January 1, 2016)
11    Sec. 27. Certifications Certification of record; costs
12receipt. The Department shall not be required to certify any
13record to the court or file any answer in court or otherwise
14appear in any court in a judicial review proceeding, unless and
15until there is filed in the court, with the complaint, a
16receipt from the Department has received from the plaintiff
17acknowledging payment of the costs of furnishing and certifying
18the record, which costs shall be determined by the Department.
19Failure on the part of the plaintiff to file a receipt in court
20shall be grounds for dismissal of the action.
21(Source: P.A. 89-387, eff. 1-1-96.)
22    (225 ILCS 425/30 new)
23    Sec. 30. Expiration, renewal and restoration of
24registration. The expiration date and renewal period for each



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1registration shall be set by rule. A collection agency whose
2registration has expired may reinstate its registration at any
3time within 5 years after the expiration thereof, by making a
4renewal application and by paying the required fee.
5    However, any registered collection agency whose
6certificate of registration has expired while the individual
7registered or while a shareholder, partner, or member owning
850% or more of the interest in the collection agency has
9expired while he or she was (i) on active duty with the Armed
10Forces of the United States or called into service or training
11by the State militia; or (ii) in training or education under
12the supervision of the United States preliminary to induction
13into the military service, may have his or her certificate of
14registration renewed, restored, or reinstated without paying
15any lapsed renewal fee, restoration fee, or reinstatement fee
16if, within 2 years after termination of the service, training
17or education, he or she furnishes the Department with
18satisfactory evidence of service, training or education and it
19has been terminated under honorable conditions.
20    Any collection agency whose registration has expired for
21more than 5 years may have it restored by applying to the
22Department, paying the required fee, and filing acceptable
23proof of fitness to have the registration restored as set by
25    (225 ILCS 425/35 new)



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1    Sec. 35. Returned checks; fines. Any person who delivers a
2check or other payment to the Department that is returned to
3the Department unpaid by the financial institution upon which
4it is drawn shall pay to the Department, in addition to the
5amount already owed to the Department, a fine of $50. The fines
6imposed by this Section are in addition to any other discipline
7provided under this Act for unregistered practice or practice
8on a non-renewed registration. The Department shall notify the
9entity that payment of fees and fines shall be paid to the
10Department by certified check or money order within 30 calendar
11days of the notification. If, after the expiration of 30 days
12from the date of notification, the person has failed to submit
13the necessary remittance, the Department shall automatically
14terminate the registration or deny the application, without
15hearing. If, after termination or denial, the entity seeks a
16registration, it shall apply to the Department for restoration
17or issuance of the registration and pay all fees and fines due
18to the Department. The Department may establish a fee for the
19processing of an application for restoration of a registration
20to pay all expenses of processing this application. The
21Secretary may waive the fines due under this Section in
22individual cases where the Secretary finds that the fines would
23be unreasonable or unnecessarily burdensome.
24    (225 ILCS 425/40 new)
25    Sec. 40. Unregistered practice; cease and desist.



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1Whenever, in the opinion of the Department, a person violates
2any provision of this Act, the Department may issue a rule to
3show cause why an order to cease and desist should not be
4entered against that person. The rule shall clearly set forth
5the grounds relied upon by the Department and shall allow at
6least 7 days from the date of the rule to file an answer
7satisfactory to the Department. Failure to answer to the
8satisfaction of the Department shall cause an order to cease
9and desist to be issued.
10    (225 ILCS 425/45 new)
11    Sec. 45. Summary suspension of certificate of
12registration. The Secretary may summarily suspend the
13certificate of registration of a certified collection agency
14without a hearing, simultaneously with the institution of
15proceedings for a hearing provided for in Section 16 of this
16Act, if the Secretary finds that evidence in the Secretary's
17possession indicates that the continuation of practice by a
18registered collection agency would constitute an imminent
19danger to the public. In the event that the Secretary summarily
20suspends the registration of a certified collection agency
21without a hearing, a hearing must be commenced within 30 days
22after the suspension has occurred and concluded as
23expeditiously as practical.
24    (225 ILCS 425/50 new)



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1    Sec. 50. Consent order. At any point in the proceedings as
2provided in Sections 9.5, 11, 14a, 16, and 45, both parties may
3agree to a negotiated consent order. The consent order shall be
4final upon signature of the Secretary.
5    (225 ILCS 425/55 new)
6    Sec. 55. Confidentiality. All information collected by the
7Department in the course of an examination or investigation of
8a registrant or applicant, including, but not limited to, any
9complaint against a registrant filed with the Department and
10information collected to investigate any such complaint, shall
11be maintained for the confidential use of the Department and
12shall not be disclosed other than in the course of a formal
13hearing as determined by the Department. The Department may not
14disclose the information to anyone other than law enforcement
15officials, other regulatory agencies that have an appropriate
16regulatory interested as determined by the Secretary, or a
17party presenting a lawful subpoena to the Department.
18Information and documents disclosed to a federal, State,
19county, or local law enforcement agency shall not be disclosed
20by the agency for any purpose to any other agency or person. A
21formal complaint filed against the registrant by the Department
22or any order issued by the Department against a registrant or
23applicant shall be a public record, except as otherwise
24prohibited by law.



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1    (225 ILCS 425/6 rep.)
2    (225 ILCS 425/6a rep.)
3    (225 ILCS 425/10 rep.)
4    (225 ILCS 425/13 rep.)
5    (225 ILCS 425/13.3 rep.)
6    (225 ILCS 425/14 rep.)
7    Section 15. The Collection Agency Act is amended by
8repealing Sections 6, 6a, 10, 13, 13.3, and 14.
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".