Illinois General Assembly - Full Text of SB1369
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Full Text of SB1369  99th General Assembly


Rep. Robert Rita

Filed: 10/16/2015





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2    AMENDMENT NO. ______. Amend Senate Bill 1369 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Collection Agency Act is amended by
5changing Sections 2, 9.1, 9.2, and 9.3 and by adding Section 60
6as follows:
7    (225 ILCS 425/2)  (from Ch. 111, par. 2002)
8    (Section scheduled to be repealed on January 1, 2026)
9    Sec. 2. Definitions. In this Act:
10    "Address of record" means the designated address recorded
11by the Department in the applicant's or licensee's application
12file or license file as maintained by the Department's
13licensure maintenance unit. It is the duty of the applicant or
14licensee to inform the Department of any change of address and
15those changes must be made either through the Department's
16website or by contacting the Department.



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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    "Collection agency" means any person who, in the ordinary
9course of business, regularly, on behalf of himself or herself
10or others, engages in the collection of a debt.
11    "Consumer debt" or "consumer credit" means money or
12property, or their equivalent, due or owing or alleged to be
13due or owing from a natural person by reason of a consumer
14credit transaction.
15    "Credit transaction" means a transaction between a natural
16person and another person in which property, service, or money
17is acquired on credit by that natural person from such other
18person primarily for personal, family, or household purposes.
19    "Creditor" means a person who extends consumer credit to a
21    "Current balance" means the charge-off balance plus any
22legally collectible costs, expenses, and interest, less any
23credits or payments.
24    "Debt" means money, property, or their equivalent which is
25due or owing or alleged to be due or owing from a person to
26another person.



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1    "Debt buyer" means a person or entity that is engaged in
2the business of purchasing delinquent or charged-off consumer
3loans or consumer credit accounts or other delinquent consumer
4debt for collection purposes, whether it collects the debt
5itself or hires a third-party for collection or an
6attorney-at-law for litigation in order to collect such debt.
7    "Debtor" means a person from whom a collection agency seeks
8to collect a consumer or commercial debt that is due and owing
9or alleged to be due and owing from such person.
10    "Department" means the Department of Financial and
11Professional Regulation.
12    "Person" means a natural person, partnership, corporation,
13limited liability company, trust, estate, cooperative,
14association, or other similar entity.
15    "Licensed collection agency" means a person who is licensed
16under this Act to engage in the practice of debt collection in
18    "Secretary" means the Secretary of Financial and
19Professional Regulation.
20(Source: P.A. 99-227, eff. 8-3-15.)
21    (225 ILCS 425/9.1)
22    (Section scheduled to be repealed on January 1, 2026)
23    Sec. 9.1. Communication with persons other than debtor. Any
24collection agency communicating with any person other than the
25debtor for the purpose of acquiring location information about



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



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1only when engaged in the collection of consumer debt.
2(Source: P.A. 99-227, eff. 8-3-15.)
3    (225 ILCS 425/9.2)
4    (Section scheduled to be repealed on January 1, 2026)
5    Sec. 9.2. Communication in connection with debt
7    (a) Without the prior consent of the debtor given directly
8to the collection agency or the express permission of a court
9of competent jurisdiction, a collection agency may not
10communicate with a debtor in connection with the collection of
11any debt in any of the following circumstances:
12        (1) At any unusual time, place, or manner that is known
13    or should be known to be inconvenient to the debtor. In the
14    absence of knowledge of circumstances to the contrary, a
15    collection agency shall assume that the convenient time for
16    communicating with a debtor is after 8:00 a.m. and before
17    9:00 p.m. local time at the debtor's location.
18        (2) If the collection agency knows the debtor is
19    represented by an attorney with respect to such debt and
20    has knowledge of or can readily ascertain, the attorney's
21    name and address, unless the attorney fails to respond
22    within a reasonable period of time to a communication from
23    the collection agency or unless the attorney consents to
24    direct communication with the debtor.
25        (3) At the debtor's place of employment, if the



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



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1    If such notice from the debtor is made by mail,
2notification shall be complete upon receipt.
3    (d) For the purposes of this Section, "debtor" includes the
4debtor's spouse, parent (if the debtor is a minor), guardian,
5executor, or administrator.
6    (e) This Section applies to a collection agency or debt
7buyer only when engaged in the collection of consumer debt.
8(Source: P.A. 99-227, eff. 8-3-15.)
9    (225 ILCS 425/9.3)
10    (Section scheduled to be repealed on January 1, 2026)
11    Sec. 9.3. Validation of debts.
12    (a) Within 5 days after the initial communication with a
13debtor in connection with the collection of any debt, a
14collection agency shall, unless the following information is
15contained in the initial communication or the debtor has paid
16the debt, send the debtor a written notice with each of the
17following disclosures:
18        (1) The amount of the debt.
19        (2) The name of the creditor to whom the debt is owed.
20        (3) That, unless the debtor, within 30 days after
21    receipt of the notice, disputes the validity of the debt,
22    or any portion thereof, the debt will be assumed to be
23    valid by the collection agency.
24        (4) That, if the debtor notifies the collection agency
25    in writing within the 30-day period that the debt, or any



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1    portion thereof, is disputed, the collection agency will
2    obtain verification of the debt or a copy of a judgment
3    against the debtor and a copy of the verification or
4    judgment will be mailed to the debtor by the collection
5    agency.
6        (5) That upon the debtor's written request within the
7    30-day period, the The collection agency will provide the
8    debtor with the name and address of the original creditor,
9    if different from the current creditor. If the disclosures
10    required under this subsection (a) are placed on the back
11    of the notice, the front of the notice shall contain a
12    statement notifying debtors of that fact.
13    (b) If the debtor notifies the collection agency in writing
14within the 30-day period set forth in paragraph (3) of
15subsection (a) of this Section that the debt, or any portion
16thereof, is disputed or that the debtor requests the name and
17address of the original creditor, the collection agency shall
18cease collection of the debt, or any disputed portion thereof,
19until the collection agency obtains verification of the debt or
20a copy of a judgment or the name and address of the original
21creditor and mails a copy of the verification or judgment or
22name and address of the original creditor to the debtor.
23    (c) The failure of a debtor to dispute the validity of a
24debt under this Section shall not be construed by any court as
25an admission of liability by the debtor.
26    (d) This Section applies to a collection agency or debt



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1buyer only when engaged in the collection of consumer debt.
2(Source: P.A. 99-227, eff. 8-3-15.)
3    (225 ILCS 425/60 new)
4    Sec. 60. Liability; federal compliance. A collection
5agency or a debt buyer shall not be subject to civil liability
6for its failure to comply with Section 2, 9.1, 9.2, or 9.3 of
7this Act, as amended by Public Act 99-227, if the collection
8agency or the debt buyer can demonstrate compliance with
9comparable provisions of the federal Fair Debt Collection
10Practices Act.
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".