Public Act 094-0414
HB1177 Enrolled LRB094 05055 RAS 35091 b

    AN ACT concerning regulation.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Regulatory Sunset Act is amended by changing
Section 4.16 and by adding Section 4.26 as follows:
    (5 ILCS 80/4.16)
    Sec. 4.16. Acts repealed January 1, 2006. The following
Acts are repealed January 1, 2006:
    The Respiratory Care Practice Act.
    The Hearing Instrument Consumer Protection Act.
    The Illinois Dental Practice Act.
    The Professional Geologist Licensing Act.
    The Illinois Athletic Trainers Practice Act.
    The Barber, Cosmetology, Esthetics, and Nail Technology
Act of 1985.
    The Collection Agency Act.
    The Illinois Roofing Industry Licensing Act.
    The Illinois Physical Therapy Act.
(Source: P.A. 89-33, eff. 1-1-96; 89-72, eff. 12-31-95; 89-80,
eff. 6-30-95; 89-116, eff. 7-7-95; 89-366, eff. 7-1-96; 89-387,
eff. 8-20-95; 89-626, eff. 8-9-96.)
    (5 ILCS 80/4.26 new)
    Sec. 4.26. Act repealed on January 1, 2016. The following
Act is repealed on January 1, 2016:
    The Collection Agency Act.
    Section 10. The Collection Agency Act is amended by
changing Sections 2.02, 2.04, 3, 4.5, 5, 6a, and 9 as follows:
    (225 ILCS 425/2.02)  (from Ch. 111, par. 2004)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 2.02. "Collection agency" or "agency" means any
person, association, partnership, or corporation, or legal
entity who, for compensation, either contingent or otherwise,
or for other valuable consideration, offers services to collect
an alleged delinquent debt.
(Source: P.A. 89-387, eff. 1-1-96.)
    (225 ILCS 425/2.04)  (from Ch. 111, par. 2005.1)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 2.04. Child support indebtedness.
    (a) Persons, associations, partnerships, or corporations,
or other legal entities engaged in the business of collecting
child support indebtedness owing under a court order as
provided under the Illinois Public Aid Code, the Illinois
Marriage and Dissolution of Marriage Act, the Non-Support of
Spouse and Children Act, the Non-Support Punishment Act, the
Illinois Parentage Act of 1984, or similar laws of other states
are not restricted (i) in the frequency of contact with an
obligor who is in arrears, whether by phone, mail, or other
means, (ii) from contacting the employer of an obligor who is
in arrears, (iii) from publishing or threatening to publish a
list of obligors in arrears, (iv) from disclosing or
threatening to disclose an arrearage that the obligor disputes,
but for which a verified notice of delinquency has been served
under the Income Withholding for Support Act (or any of its
predecessors, Section 10-16.2 of the Illinois Public Aid Code,
Section 706.1 of the Illinois Marriage and Dissolution of
Marriage Act, Section 4.1 of the Non-Support of Spouse and
Children Act, Section 26.1 of the Revised Uniform Reciprocal
Enforcement of Support Act, or Section 20 of the Illinois
Parentage Act of 1984), or (v) from engaging in conduct that
would not cause a reasonable person mental or physical illness.
For purposes of this subsection, "obligor" means an individual
who owes a duty to make periodic payments, under a court order,
for the support of a child. "Arrearage" means the total amount
of an obligor's unpaid child support obligations.
    (a-5) A collection agency may not impose a fee or charge,
including costs, for any child support payments collected
through the efforts of a federal, State, or local government
agency, including but not limited to child support collected
from federal or State tax refunds, unemployment benefits, or
Social Security benefits.
    No collection agency that collects child support payments
shall (i) impose a charge or fee, including costs, for
collection of a current child support payment, (ii) fail to
apply collections to current support as specified in the order
for support before applying collection to arrears or other
amounts, or (iii) designate a current child support payment as
arrears or other amount owed. In all circumstances, the
collection agency shall turn over to the obligee all support
collected in a month up to the amount of current support
required to be paid for that month.
    As to any fees or charges, including costs, retained by the
collection agency, that agency shall provide documentation to
the obligee demonstrating that the child support payments
resulted from the actions of the agency.
    After collection of the total amount or arrearage,
including statutory interest, due as of the date of execution
of the collection contract, no further fees may be charged.
    (a-10) The Department of Professional Regulation shall
determine a fee rate of not less than 25% but not greater than
35%, based upon presentation by the licensees as to costs to
provide the service and a fair rate of return. This rate shall
be established by administrative rule.
    Without prejudice to the determination by the Department of
the appropriate rate through administrative rule, a collection
agency shall impose a fee of not more than 29% of the amount of
child support actually collected by the collection agency
subject to the provisions of subsection (a-5). This interim
rate is based upon the March 2002 General Account Office report
"Child Support Enforcement", GAO-02-349. This rate shall apply
until a fee rate is established by administrative rule.
    (b) The Department shall adopt rules necessary to
administer and enforce the provisions of this Section.
(Source: P.A. 93-896, eff. 8-10-04.)
    (225 ILCS 425/3)  (from Ch. 111, par. 2006)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 3. A person, association, partnership, or
corporation, or other legal entity acts as a collection agency
when he or it:
    (a) Engages in the business of collection for others of any
account, bill or other indebtedness;
    (b) Receives, by assignment or otherwise, accounts, bills,
or other indebtedness from any person owning or controlling 20%
or more of the business receiving the assignment, with the
purpose of collecting monies due on such account, bill or other
    (c) Sells or attempts to sell, or gives away or attempts to
give away to any other person, other than one registered under
this Act, any system of collection, letters, demand forms, or
other printed matter where the name of any person, other than
that of the creditor, appears in such a manner as to indicate,
directly or indirectly, that a request or demand is being made
by any person other than the creditor for the payment of the
sum or sums due or asserted to be due;
    (d) Buys accounts, bills or other indebtedness with
recourse and engages in collecting the same; or
    (e) Uses a fictitious name in collecting its own accounts,
bills, or debts with the intention of conveying to the debtor
that a third party has been employed to make such collection.
(Source: P.A. 83-1539.)
    (225 ILCS 425/4.5)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 4.5. Unlicensed practice; violation; civil penalty.
    (a) Any person who practices, offers to practice, attempts
to practice, or holds oneself out to practice as a collection
agency without being licensed under this Act shall, in addition
to any other penalty provided by law, pay a civil penalty to
the Department in an amount not to exceed $5,000 for each
offense as determined by the Department. The civil penalty
shall be assessed by the Department after a hearing is held in
accordance with the provisions set forth in this Act regarding
the provision of a hearing for the discipline of a licensee.
    (b) The Department has the authority and power to
investigate any and all unlicensed activity. In addition to
taking any other action provided under this Act, whenever the
Department has reason to believe a person, association,
partnership, corporation, or other legal entity has violated
any provision of subsection (a) of this Section, the Department
may issue a rule to show cause why an order to cease and desist
should not be entered against that person, association,
partnership, corporation, or other legal entity. The rule shall
clearly set forth the grounds relied upon by the Department and
shall provide a period of 7 days from the date of the rule to
file an answer to the satisfaction of the Department. Failure
to answer to the satisfaction of the Department shall cause an
order to cease and desist to be issued immediately.
    (c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
(Source: P.A. 89-474, eff. 6-18-96.)
    (225 ILCS 425/5)  (from Ch. 111, par. 2008)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 5. Application for registration shall be made to the
Director on forms provided by the Department, shall be
accompanied by the required fee and shall state:
    (1) The applicant's name and address;
    (2) the names and addresses of the officers of the
collection agency and, if the collection agency is a
corporation, the names and addresses of all persons owning 10%
or more of the stock of such corporation, if the collection
agency is a partnership, the names and addresses of all
partners of the partnership holding a 10% or more interest in
the partnership, and, if the collection agency is a limited
liability company, the names and addresses of all members
holding 10% or more interest in the limited liability company;
    (3) Such other information as the Department may deem
(Source: P.A. 81-1381.)
    (225 ILCS 425/6a)  (from Ch. 111, par. 2009a)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 6a. Any registered collection agency whose
certificate of registration has expired may have the
certificate of registration restored by making application to
the Department and filing proof acceptable to the Department of
fitness to have the certificate of registration restored, and
by paying the required restoration fee.
    However, any registered collection agency whose
certificate of registration has expired while the individual
registered or while a shareholder, partner, or member owning
50% or more of the shares of stock in a registered corporation
has expired while he has been engaged (1) in federal service on
active duty with the Army of the United States, the United
States Navy, the Marine Corps, the Air Force, the Coast Guard,
or the State Militia called into the service or training of the
United States of America, or (2) in training or education under
the supervision of the United States preliminary to induction
into the military service, may have his certificate of
registration restored or reinstated without paying any lapsed
renewal fees, restoration fee or reinstatement fee if within 2
years after termination of such service, training or education
other than by dishonorable discharge he furnishes the
Department with an affidavit to the effect that he has been so
engaged and that his service, training or education has been so
(Source: P.A. 84-1299.)
    (225 ILCS 425/9)  (from Ch. 111, par. 2012)
    (Section scheduled to be repealed on January 1, 2006)
    Sec. 9. (a) The Department may refuse to issue or renew, or
may revoke, suspend, place on probation, reprimand or take
other disciplinary action as the Department may deem proper,
including fines not to exceed $5,000 for a first violation and
not to exceed $10,000 for a second or subsequent violation
$1,000 per licensee per complaint, for any one or any
combination of the following causes:
        (1) Violations of this Act or of the rules promulgated
        (2) Conviction of the collection agency or the
    principals of the agency of any crime under the laws of any
    U.S. jurisdiction which is a felony, a misdemeanor an
    essential element of which is dishonesty, or of any crime
    which directly relates to the practice of the profession.
        (3) Making any misrepresentation for the purpose of
    obtaining a license or certificate.
        (4) Habitual or excessive use or addiction to alcohol,
    narcotics, stimulants or any other chemical agent or drug
    which results in the inability to practice with reasonable
    judgment, skill, or safety by any of the principals of a
    collection agency.
        (5) Discipline by another U.S. jurisdiction or foreign
    nation, if at least one of the grounds for the discipline
    is the same or substantially equivalent to those set forth
    in this Act.
        (6) A finding by the Department that the licensee,
    after having his license placed on probationary status, has
    violated the terms of probation.
        (7) Practicing or attempting to practice under a name
    other than the name as shown on his or her license or any
    other legally authorized name.
        (8) A finding by the Federal Trade Commission that a
    licensee violated the Federal Fair Debt and Collection Act
    or its rules.
        (9) Failure to file a return, or to pay the tax,
    penalty or interest shown in a filed return, or to pay any
    final assessment of tax, penalty or interest, as required
    by any tax Act administered by the Illinois Department of
    Revenue until such time as the requirements of any such tax
    Act are satisfied.
        (10) Using or threatening to use force or violence to
    cause physical harm to a debtor, his family or his
        (11) Threatening to instigate an arrest or criminal
    prosecution where no basis for a criminal complaint
    lawfully exists.
        (12) Threatening the seizure, attachment or sale of a
    debtor's property where such action can only be taken
    pursuant to court order without disclosing that prior court
    proceedings are required.
        (13) Disclosing or threatening to disclose information
    adversely affecting a debtor's reputation for credit
    worthiness with knowledge the information is false.
        (14) Initiating or threatening to initiate
    communication with a debtor's employer unless there has
    been a default of the payment of the obligation for at
    least 30 days and at least 5 days prior written notice, to
    the last known address of the debtor, of the intention to
    communicate with the employer has been given to the
    employee, except as expressly permitted by law or court
        (15) Communicating with the debtor or any member of the
    debtor's family at such a time of day or night and with
    such frequency as to constitute harassment of the debtor or
    any member of the debtor's family. For purposes of this
    Section the following conduct shall constitute harassment:
            (A) Communicating with the debtor or any member of
        his or her family in connection with the collection of
        any debt without the prior consent of the debtor given
        directly to the debt collector, or the express
        permission of a court of competent jurisdiction, at any
        unusual time or place or a time or place known or which
        should be known to be inconvenient to the debtor. In
        the absence of knowledge of circumstances to the
        contrary, a debt collector shall assume that the
        convenient time for communicating with a consumer is
        after 8 o'clock a.m. and before 9 o'clock p.m. local
        time at the debtor's location.
            (B) The threat of publication or publication of a
        list of consumers who allegedly refuse to pay debts,
        except to a consumer reporting agency.
            (C) The threat of advertisement or advertisement
        for sale of any debt to coerce payment of the debt.
            (D) Causing a telephone to ring or engaging any
        person in telephone conversation repeatedly or
        continuously with intent to annoy, abuse, or harass any
        person at the called number.
        (16) Using profane, obscene or abusive language in
    communicating with a debtor, his or her family or others.
        (17) Disclosing or threatening to disclose information
    relating to a debtor's indebtedness to any other person
    except where such other person has a legitimate business
    need for the information or except where such disclosure is
    regulated by law.
        (18) Disclosing or threatening to disclose information
    concerning the existence of a debt which the debt collector
    knows to be reasonably disputed by the debtor without
    disclosing the fact that the debtor disputes the debt.
        (19) Engaging in any conduct which the Director finds
    was intended to cause and did cause mental or physical
    illness to the debtor or his or her family.
        (20) Attempting or threatening to enforce a right or
    remedy with knowledge or reason to know that the right or
    remedy does not exist.
        (21) Failing to disclose to the debtor or his or her
    family the corporate, partnership or proprietary name, or
    other trade or business name, under which the debt
    collector is engaging in debt collections and which he or
    she is legally authorized to use.
        (22) Using any form of communication which simulates
    legal or judicial process or which gives the appearance of
    being authorized, issued or approved by a governmental
    agency or official or by an attorney at law when it is not.
        (23) Using any badge, uniform, or other indicia of any
    governmental agency or official except as authorized by
        (24) Conducting business under any name or in any
    manner which suggests or implies that a debt collector is
    bonded if such collector is or is a branch of or is
    affiliated with any governmental agency or court if such
    collector is not.
        (25) Failing to disclose, at the time of making any
    demand for payment, the name of the person to whom the
    claim is owed and at the request of the debtor, the address
    where payment is to be made and the address of the person
    to whom the claim is owed.
        (26) Misrepresenting the amount of the claim or debt
    alleged to be owed.
        (27) Representing that an existing debt may be
    increased by the addition of attorney's fees,
    investigation fees or any other fees or charges when such
    fees or charges may not legally be added to the existing
        (28) Representing that the debt collector is an
    attorney at law or an agent for an attorney if he is not.
        (29) Collecting or attempting to collect any interest
    or other charge or fee in excess of the actual debt or
    claim unless such interest or other charge or fee is
    expressly authorized by the agreement creating the debt or
    claim unless expressly authorized by law or unless in a
    commercial transaction such interest or other charge or fee
    is expressly authorized in a subsequent agreement. If a
    contingency or hourly fee arrangement (i) is established
    under an agreement between a collection agency and a
    creditor to collect a debt and (ii) is paid by a debtor
    pursuant to a contract between the debtor and the creditor,
    then that fee arrangement does not violate this Section
    unless the fee is unreasonable. The Department shall
    determine what constitutes a reasonable collection fee.
        (30) Communicating or threatening to communicate with
    a debtor when the debt collector is informed in writing by
    an attorney that the attorney represents the debtor
    concerning the claim, unless authorized by the attorney. If
    the attorney fails to respond within a reasonable period of
    time, the collector may communicate with the debtor. The
    collector may communicate with the debtor when the attorney
    gives his consent.
        (31) Engaging in dishonorable, unethical, or
    unprofessional conduct of a character likely to deceive,
    defraud, or harm the public.
    (b) The Department shall deny any license or renewal
authorized by this Act to any person who has defaulted on an
educational loan guaranteed by the Illinois State Scholarship
Commission; however, the Department may issue a license or
renewal if the person in default has established a satisfactory
repayment record as determined by the Illinois State
Scholarship Commission.
    No debt collector while collecting or attempting to collect
a debt shall engage in any of the Acts specified in this
Section, each of which shall be unlawful practice.
(Source: P.A. 91-768, eff. 1-1-01.)
    Section 99. Effective date. This Act takes effect December
31, 2005.

Effective Date: 12/31/2005