State Codes and Statutes

Statutes > Illinois > Chapter205 > 1203

    (205 ILCS 665/1) (from Ch. 17, par. 5301)
    Sec. 1. Declaration of policy. The business of providing debt management services to individuals is a matter of public interest and concern and is subject to regulation and control in the public interest.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/2)(from Ch. 17, par. 5302)
    Sec. 2. Definitions. As used in this Act:
    "Debt management service" means the planning and management of the financial affairs of a debtor for a fee and the receiving of money from the debtor for the purpose of distributing it, directly or indirectly, to the debtor's creditors in payment or partial payment of the debtor's obligations or soliciting financial contributions from creditors. The business of debt management is conducted in this State if the debt management business, its employees, or its agents are located in this State or if the debt management business solicits or contracts with debtors located in this State.
    This term shall not include the following when engaged in the regular course of their respective businesses and professions:
        (a) Attorneys at law.
        (b) Banks, fiduciaries, credit unions, savings and
     loan associations, and savings banks as duly authorized and admitted to transact business in the State of Illinois and performing credit and financial adjusting service in the regular course of their principal business.
        (c) Title insurers and abstract companies, while
     doing an escrow business.
        (d) Judicial officers or others acting pursuant to
     court order.
        (e) Employers for their employees.
        (f) Bill payment services, as defined in the
     Transmitters of Money Act.
    "Director" means Director of Financial Institutions.
    "Debtor" means the person or persons for whom the debt management service is performed.
    "Person" means an individual, firm, partnership, association, limited liability company, corporation, or not‑for‑profit corporation.
    "Licensee" means a person licensed under this Act.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (205 ILCS 665/3) (from Ch. 17, par. 5303)
    Sec. 3. Requirement of license. It shall be unlawful for any person to operate a debt management service or engage in that business as herein defined except as authorized by this Act and without first having obtained a license as hereinafter provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/4) (from Ch. 17, par. 5304)
    Sec. 4. Application for license. Application for a license to engage in the debt management service business in this State shall be made to the Director and shall be in writing, under oath, and in the form prescribed by the Director.
    Each applicant, at the time of making such application, shall pay to the Director the sum of $30.00 as a fee for investigation of the applicant, and the additional sum of $100.00 as a license fee.
    Every applicant shall submit to the Director, at the time of the application for a license, a bond to be approved by the Director in which the applicant shall be the obligor, in the sum of $25,000 or such additional amount as required by the Director based on the amount of disbursements made by the licensee in the previous year, and in which an insurance company, which is duly authorized by the State of Illinois, to transact the business of fidelity and surety insurance shall be a surety.
    The bond shall run to the Director for the use of the Department or of any person or persons who may have a cause of action against the obligor in said bond arising out of any violation of this Act or rules by a license. Such bond shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this Act and of all rules, regulations and directions lawfully made by the Director and will pay to the Director or to any person or persons any and all money that may become due or owing to the State or to such person or persons, from said obligor under and by virtue of the provisions of this Act.
(Source: P.A. 92‑400, eff. 1‑1‑02.)

    (205 ILCS 665/5) (from Ch. 17, par. 5305)
    Sec. 5. Qualifications for license. Upon the filing of the application and the approval of the bond and the payment of the specified fees, the Director shall issue a license if he finds:
    (1) That the financial responsibility, experience, character and general fitness of the applicant, the managers thereof, if the applicant is a limited liability company, the partners thereof, if the applicant is a partnership, and of the officers and directors thereof, if the applicant is a corporation or a not‑for‑profit corporation, are such as to command the confidence of the community and to warrant belief that the business will be operated fairly, honestly and efficiently within the purposes of this Act, and
    (2) That the applicant, if an individual, the managers thereof, if the applicant is a limited liability company, the partners thereof, if the applicant is a partnership, and the officers and directors thereof, if the applicant is a corporation, have not been convicted of a felony or a misdemeanor involving dishonesty or untrustworthiness, and
    (3) That the person or persons have not had a record of having defaulted in the payment of money collected for others, including the discharge of such debts through bankruptcy proceedings, and
    (4) The applicant, or any officers, directors, partners or managers, have not previously violated any provision of this Act or any rule lawfully made by the Director, and
    (5) The applicant has not made any false statement or representation to the Director in applying for a license hereunder.
    The Director shall deliver a license to the applicant to engage in the debt management service business in accordance with the provisions of this Act at the location specified in the said application, which license shall remain in full force and effect until it is surrendered by the licensee or revoked by the Director as herein provided; provided, however, that each license shall expire by the terms thereof on January 1 next following the issuance thereof unless the same be renewed as hereinafter provided. A license, however, may not be surrendered without the approval of the Director.
    More than one license may be issued to the same person for separate places of business, but separate applications shall be made for each place of business.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/6) (from Ch. 17, par. 5306)
    Sec. 6. Renewal of license. Each licensee under the provisions of this Act may make application to the Director for renewal of its license, which application for renewal shall be on the form prescribed by the Director and shall be accompanied by a fee of $100.00 together with a bond or other surety as required, in a minimum amount of $25,000 or such an amount as required by the Director based on the amount of disbursements made by the licensee in the previous year. The application must be received by the Department no later than December 1 of the year preceding the year for which the application applies.
(Source: P.A. 92‑400, eff. 1‑1‑02.)

    (205 ILCS 665/7) (from Ch. 17, par. 5307)
    Sec. 7. License, display and location. Each license issued shall be kept conspicuously posted in the place of business of the licensee. The business location may be changed by any licensee upon 10 days prior written notice to the Director. A license must operate under the name as stated in its original application.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/8.5)
    Sec. 8.5. Temporary location. The Director may approve a temporary additional business location for the purpose of allowing a licensee to conduct business outside the licensed location.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/9) (from Ch. 17, par. 5309)
    Sec. 9. Denial of license. Any application for a license shall be approved or denied within 60 days of the filing of an application with the Director.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/10) (from Ch. 17, par. 5310)
    Sec. 10. Revocation or suspension of license.
    (a) The Director may revoke or suspend any license if he finds that:
        (1) any licensee has failed to pay the annual
     license fee, or to maintain in effect the bond required under the provisions of this Act;
        (2) the licensee has violated any provisions of this
     Act or any rule, lawfully made by the Director within the authority of this Act;
        (3) any fact or condition exists which, if it had
     existed at the time of the original application for a license, would have warranted the Director in refusing its issuance; or
        (4) any applicant has made any false statement or
     representation to the Director in applying for a license hereunder.
    (b) In every case in which a license is suspended or revoked or an application for a license or renewal of a license is denied, the Director shall serve notice of his action, including a statement of the reasons for his actions, either personally or by certified mail, return receipt requested. Service by mail shall be deemed completed if the notice is deposited in the U.S. Mail.
    (c) In the case of a denial of an application or renewal of a license, the applicant or licensee may request in writing, within 30 days after the date of service, a hearing. In the case of a denial of a renewal of a license, the license shall be deemed to continue in force until 30 days after the service of the notice of denial, or if a hearing is requested during that period, until a final administrative order is entered.
    (d) An order of revocation or suspension of a license shall take effect upon service of the order unless the licensee requests, in writing, within 10 days after the date of service, a hearing. In the event a hearing is requested, the order shall be stayed until a final administrative order is entered.
    (e) If the licensee requests a hearing, the Director shall schedule the hearing within 30 days after the request for a hearing unless otherwise agreed to by the parties.
    (f) The hearing shall be held at the time and place designated by the Director. The Director and any administrative law judge designated by him have the power to administer oaths and affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of books, papers, correspondence, and other records or information that he considers relevant or material to the injury.
    (g) The costs for the administrative hearing shall be set by rule.
    (h) The Director shall have the authority to prescribe rules for the administration of this Section.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/11) (from Ch. 17, par. 5311)
    Sec. 11. Contracts, books, records and contract cancellation. Each licensee shall furnish to the Director, when requested, a copy of the contract entered into between the licensee and the debtor. The licensee shall furnish the debtor with a copy of the written contract, at the time of execution, which shall set forth the charges, if any, agreed upon for the services of the licensee.
    Each licensee shall maintain records and accounts which will enable any debtor contracting with the licensee, at any reasonable time, to ascertain the amounts paid to creditors of the debtor. A statement showing the total amount received and the total disbursements to each creditor shall be furnished by the licensee to any individual within seven days of a request therefor by the said debtor. Each licensee shall issue a receipt for each payment made by the debtor at a licensee's office. Each licensee shall prepare and retain in the file of each debtor a written analysis of debtor's income and expenses to substantiate that the plan of payment is feasible and practical.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/11.5)
    Sec. 11.5. Examination of licensee. The Director at any time, either in person or through an appointed representative, may examine the condition and affairs of a licensee. In connection with any examination, the Director may examine on oath any licensee and any director, officer, employee, customer, manager, partner, member, creditor or stockholder of a licensee concerning the affairs and business of the licensee. The Director shall ascertain whether the licensee transacts its business in the manner prescribed by law and the rules issued thereunder. The licensee shall pay the cost of the examination as determined by the Director by administrative rule. Failure to pay the examination fee within 30 days after receipt of demand from the Director may result in the suspension of the license until the fee is paid. The Director shall have the right to investigate and examine any person, whether licensed or not, who is engaged in the debt management service business. The Director shall have the power to subpoena the production of any books and records pertinent to any investigation.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/12) (from Ch. 17, par. 5312)
    Sec. 12. Fees and charges of licensees. A licensee may not charge a debtor any fees or penalties except the following:
    (1) an initial counseling fee not to exceed $50 per debtor counseled, provided the average initial counseling fee does not exceed $30 per debtor for all debtors counseled; and
    (2) additional fees at the completion of the initial counseling services which shall not exceed $50 per month, provided the average monthly fee does not exceed $30 per debtor for all debtors counseled.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/12.1)
    Sec. 12.1. All moneys received by the Department of Financial Institutions under this Act shall be deposited in the Financial Institutions Fund created under Section 6z‑26 of the State Finance Act.
(Source: P.A. 88‑13.)

    (205 ILCS 665/13) (from Ch. 17, par. 5313)
    Sec. 13. Prohibitions.
    (1) No licensee shall advertise, in any manner whatsoever, any statement or representation with regard to the rates, terms or conditions of debt management service which is false, misleading, or deceptive.
    (2) No licensee shall require as a part of the agreement between the licensee and any debtor, the purchase of any stock, insurance, commodity, service or other property or any interest therein.
    (3) No licensee shall, directly or indirectly, accept payment or any other consideration, whether in cash or in kind, from any entity for referring applicants to that entity. The licensee shall not, directly or indirectly, make payments in any form, whether in cash or in kind, to any person, corporation, or other entity for referring applicants or clients to the licensee.
    (4) No licensee shall make any loans.
    (5) No licensee shall issue credit cards or act as an agent in procuring customers for a credit card company or any financial institution.
    (6) No licensee shall act as a loan broker.
    (7) No licensee shall operate any other business at the licensed location without another business authorization from the Director, pursuant to Section 13.5.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/13.5)
    Sec. 13.5. Other business. Upon application by the licensee, and approval by the Director, the Director may approve the conduct of other businesses in the licensee's place of business. The approval shall be in writing and shall describe the other businesses that may be conducted in the licensed office. The Director shall make and enforce reasonable rules to prevent evasions or violations of this Act. The Director may investigate any business conducted in the licensed office to determine whether any evasion or violation of this Act has occurred.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/14) (from Ch. 17, par. 5314)
    Sec. 14. Trust funds; requirements and restrictions.
    (a) All funds received by a licensee or his agent from and for the purpose of paying bills, invoices, or accounts of a debtor shall constitute trust funds owned by and belonging to the debtor from whom they were received. All such funds received by a licensee shall be separated from the funds of the licensee not later than the end of the business day following receipt by the licensee. All such funds shall be kept separate and apart at all times from funds belonging to the licensee or any of its officers, employees or agents and may be used for no purpose other than paying bills, invoices, or accounts of the debtor. All such trust funds received at the main or branch offices of a licensee shall be deposited in a bank in an account in the name of the licensee designated "trust account", or by some other appropriate name indicating that the funds are not the funds of the licensee or its officers, employees, or agents, on or before the close of the business day following receipt.
    (b) Prior to separation and deposit by the licensee, such funds may be used by the licensee only for the making of change or the cashing of checks in the normal course of its business. Such funds are not subject to attachment, lien, levy of execution, or sequestration by order of court except by a debtor for whom a licensee is acting as an agent in paying bills, invoices, or accounts.
    (c) Each licensee shall make remittances within 30 days after initial receipt of funds, and thereafter remittances shall be made within 15 days of receipt, less fees and costs, unless the reasonable payment of one or more of the debtor's obligations requires that the funds be held for a longer period so as to accumulate a sum certain.
    (d) At least once every quarter, the licensee shall render an accounting to the debtor which shall itemize the total amount received from the debtor, the total amount paid each creditor, the amount of charges deducted, and any amount held in reserve. A licensee shall, in addition thereto, provide such an accounting to a debtor within 7 days after written demand, but not more than 3 times per 6 month period.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/15) (from Ch. 17, par. 5315)
    Sec. 15. Rules.) The Director shall make and enforce all reasonable rules as shall be necessary for the administration of this Act. Such rulemaking shall be subject to the provisions of the Illinois Administrative Procedure Act.
(Source: P.A. 81‑1403.)

    (205 ILCS 665/15.1) (from Ch. 17, par. 5316)
    Sec. 15.1. Advisory Board; appointment. There is created a Board of Debt Management Service Advisors composed of 5 persons appointed by the Governor. The majority of members shall be active in a debt management or consumer credit counseling service. Each Board member shall serve without compensation, but shall be reimbursed for necessary expenses. Initially, the Board shall consist of members appointed for terms beginning on July 1, 1965, and one member shall serve until July 1, 1966, 2 members shall serve until July 1, 1967, and 2 members shall serve until July 1, 1968, as designated by the Governor at the time of the initial appointments. As terms of appointment expire, successors shall be appointed for terms to expire on July 1, 3 years subsequent to the date of appointment. Each member of the board shall serve until his respective successor is appointed.
(Source: P.A. 89‑400, eff. 8‑20‑95; 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/15.2) (from Ch. 17, par. 5317)
    Sec. 15.2. Advisory board ‑ Organization and meetings. The Board shall elect a chairman, vice‑chairman and secretary, adopt regulations for the holding and conducting of meetings and for holding hearings concerning all matters within its powers and shall keep a record of all meetings and transactions. Regular meetings shall be held as provided in the regulations, and special meetings may be called by the Director or upon the request of any 4 members of the Board.
(Source: Laws 1965, p. 2494.)

    (205 ILCS 665/15.3) (from Ch. 17, par. 5318)
    Sec. 15.3. Advisory Board; powers. The Board shall have the following powers:
    1. To make recommendations to the Director concerning matters which he may refer to the Board for consideration;
    2. To recommend on its own initiative policies and practices to the Director, the Governor and the General Assembly;
    3. To make recommendations to the Director for the purpose of preventing unsound practices in the field of debt management service;
    4. To foster the interest and cooperation of persons rendering debt management service in improvement of their services to the people of the State of Illinois.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/16) (from Ch. 17, par. 5319)
    Sec. 16. Penalties.
    (a) Any person who engages in the business of debt management service without a license shall be guilty of a Class 4 felony.
    (b) Any contract of debt management service as defined in this Act, made by an unlicensed person, shall be null and void and of no legal effect.
    (c) The Director may set by rule monetary penalties for violation of this Act.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/17) (from Ch. 17, par. 5320)
    Sec. 17. Injunction. To engage in debt management service, render financial service, or accept debtors' funds, as defined in this Act, without a valid license so to do, is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may, in the name of the people of the State of Illinois, through the Attorney General of the State of Illinois, file a complaint for an injunction in the circuit court to enjoin such person, from engaging in said business. Such injunction proceeding shall be in addition to, and not in lieu of, penalties and remedies otherwise in this Act provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/18) (from Ch. 17, par. 5321)
    Sec. 18. Review. All final administrative decisions of the Director hereunder shall be subject to judicial review pursuant to the provisions of the Administrative Review Law, and all amendments and modifications thereof and the rules adopted pursuant thereto.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/19) (from Ch. 17, par. 5322)
    Sec. 19. If any clause, sentence, section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not impair, affect or invalidate the remainder of this Act which shall be in full force and effect thereafter.
(Source: Laws 1957, p. 2164.)

    (205 ILCS 665/20) (from Ch. 17, par. 5323)
    Sec. 20. Cease and desist orders.
    (a) The Director may issue a cease and desist order to any licensee, or other person doing business without the required license, when in the opinion of the Director, the licensee, or other person, is violating or is about to violate any provision of the Act or any rule or condition imposed in writing by the Department.
    (b) The Director may issue a cease and desist order prior to a hearing.
    (c) The Director shall serve notice of his action, including a statement of the reasons for his action either personally or by certified mail, return receipt requested. Service by mail shall be deemed completed if the notice is deposited in the U.S. Mail.
    (d) Within 10 days after service of the cease and desist order, the licensee or other person may request, in writing, a hearing.
    

State Codes and Statutes

Statutes > Illinois > Chapter205 > 1203

    (205 ILCS 665/1) (from Ch. 17, par. 5301)
    Sec. 1. Declaration of policy. The business of providing debt management services to individuals is a matter of public interest and concern and is subject to regulation and control in the public interest.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/2)(from Ch. 17, par. 5302)
    Sec. 2. Definitions. As used in this Act:
    "Debt management service" means the planning and management of the financial affairs of a debtor for a fee and the receiving of money from the debtor for the purpose of distributing it, directly or indirectly, to the debtor's creditors in payment or partial payment of the debtor's obligations or soliciting financial contributions from creditors. The business of debt management is conducted in this State if the debt management business, its employees, or its agents are located in this State or if the debt management business solicits or contracts with debtors located in this State.
    This term shall not include the following when engaged in the regular course of their respective businesses and professions:
        (a) Attorneys at law.
        (b) Banks, fiduciaries, credit unions, savings and
     loan associations, and savings banks as duly authorized and admitted to transact business in the State of Illinois and performing credit and financial adjusting service in the regular course of their principal business.
        (c) Title insurers and abstract companies, while
     doing an escrow business.
        (d) Judicial officers or others acting pursuant to
     court order.
        (e) Employers for their employees.
        (f) Bill payment services, as defined in the
     Transmitters of Money Act.
    "Director" means Director of Financial Institutions.
    "Debtor" means the person or persons for whom the debt management service is performed.
    "Person" means an individual, firm, partnership, association, limited liability company, corporation, or not‑for‑profit corporation.
    "Licensee" means a person licensed under this Act.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (205 ILCS 665/3) (from Ch. 17, par. 5303)
    Sec. 3. Requirement of license. It shall be unlawful for any person to operate a debt management service or engage in that business as herein defined except as authorized by this Act and without first having obtained a license as hereinafter provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/4) (from Ch. 17, par. 5304)
    Sec. 4. Application for license. Application for a license to engage in the debt management service business in this State shall be made to the Director and shall be in writing, under oath, and in the form prescribed by the Director.
    Each applicant, at the time of making such application, shall pay to the Director the sum of $30.00 as a fee for investigation of the applicant, and the additional sum of $100.00 as a license fee.
    Every applicant shall submit to the Director, at the time of the application for a license, a bond to be approved by the Director in which the applicant shall be the obligor, in the sum of $25,000 or such additional amount as required by the Director based on the amount of disbursements made by the licensee in the previous year, and in which an insurance company, which is duly authorized by the State of Illinois, to transact the business of fidelity and surety insurance shall be a surety.
    The bond shall run to the Director for the use of the Department or of any person or persons who may have a cause of action against the obligor in said bond arising out of any violation of this Act or rules by a license. Such bond shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this Act and of all rules, regulations and directions lawfully made by the Director and will pay to the Director or to any person or persons any and all money that may become due or owing to the State or to such person or persons, from said obligor under and by virtue of the provisions of this Act.
(Source: P.A. 92‑400, eff. 1‑1‑02.)

    (205 ILCS 665/5) (from Ch. 17, par. 5305)
    Sec. 5. Qualifications for license. Upon the filing of the application and the approval of the bond and the payment of the specified fees, the Director shall issue a license if he finds:
    (1) That the financial responsibility, experience, character and general fitness of the applicant, the managers thereof, if the applicant is a limited liability company, the partners thereof, if the applicant is a partnership, and of the officers and directors thereof, if the applicant is a corporation or a not‑for‑profit corporation, are such as to command the confidence of the community and to warrant belief that the business will be operated fairly, honestly and efficiently within the purposes of this Act, and
    (2) That the applicant, if an individual, the managers thereof, if the applicant is a limited liability company, the partners thereof, if the applicant is a partnership, and the officers and directors thereof, if the applicant is a corporation, have not been convicted of a felony or a misdemeanor involving dishonesty or untrustworthiness, and
    (3) That the person or persons have not had a record of having defaulted in the payment of money collected for others, including the discharge of such debts through bankruptcy proceedings, and
    (4) The applicant, or any officers, directors, partners or managers, have not previously violated any provision of this Act or any rule lawfully made by the Director, and
    (5) The applicant has not made any false statement or representation to the Director in applying for a license hereunder.
    The Director shall deliver a license to the applicant to engage in the debt management service business in accordance with the provisions of this Act at the location specified in the said application, which license shall remain in full force and effect until it is surrendered by the licensee or revoked by the Director as herein provided; provided, however, that each license shall expire by the terms thereof on January 1 next following the issuance thereof unless the same be renewed as hereinafter provided. A license, however, may not be surrendered without the approval of the Director.
    More than one license may be issued to the same person for separate places of business, but separate applications shall be made for each place of business.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/6) (from Ch. 17, par. 5306)
    Sec. 6. Renewal of license. Each licensee under the provisions of this Act may make application to the Director for renewal of its license, which application for renewal shall be on the form prescribed by the Director and shall be accompanied by a fee of $100.00 together with a bond or other surety as required, in a minimum amount of $25,000 or such an amount as required by the Director based on the amount of disbursements made by the licensee in the previous year. The application must be received by the Department no later than December 1 of the year preceding the year for which the application applies.
(Source: P.A. 92‑400, eff. 1‑1‑02.)

    (205 ILCS 665/7) (from Ch. 17, par. 5307)
    Sec. 7. License, display and location. Each license issued shall be kept conspicuously posted in the place of business of the licensee. The business location may be changed by any licensee upon 10 days prior written notice to the Director. A license must operate under the name as stated in its original application.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/8.5)
    Sec. 8.5. Temporary location. The Director may approve a temporary additional business location for the purpose of allowing a licensee to conduct business outside the licensed location.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/9) (from Ch. 17, par. 5309)
    Sec. 9. Denial of license. Any application for a license shall be approved or denied within 60 days of the filing of an application with the Director.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/10) (from Ch. 17, par. 5310)
    Sec. 10. Revocation or suspension of license.
    (a) The Director may revoke or suspend any license if he finds that:
        (1) any licensee has failed to pay the annual
     license fee, or to maintain in effect the bond required under the provisions of this Act;
        (2) the licensee has violated any provisions of this
     Act or any rule, lawfully made by the Director within the authority of this Act;
        (3) any fact or condition exists which, if it had
     existed at the time of the original application for a license, would have warranted the Director in refusing its issuance; or
        (4) any applicant has made any false statement or
     representation to the Director in applying for a license hereunder.
    (b) In every case in which a license is suspended or revoked or an application for a license or renewal of a license is denied, the Director shall serve notice of his action, including a statement of the reasons for his actions, either personally or by certified mail, return receipt requested. Service by mail shall be deemed completed if the notice is deposited in the U.S. Mail.
    (c) In the case of a denial of an application or renewal of a license, the applicant or licensee may request in writing, within 30 days after the date of service, a hearing. In the case of a denial of a renewal of a license, the license shall be deemed to continue in force until 30 days after the service of the notice of denial, or if a hearing is requested during that period, until a final administrative order is entered.
    (d) An order of revocation or suspension of a license shall take effect upon service of the order unless the licensee requests, in writing, within 10 days after the date of service, a hearing. In the event a hearing is requested, the order shall be stayed until a final administrative order is entered.
    (e) If the licensee requests a hearing, the Director shall schedule the hearing within 30 days after the request for a hearing unless otherwise agreed to by the parties.
    (f) The hearing shall be held at the time and place designated by the Director. The Director and any administrative law judge designated by him have the power to administer oaths and affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of books, papers, correspondence, and other records or information that he considers relevant or material to the injury.
    (g) The costs for the administrative hearing shall be set by rule.
    (h) The Director shall have the authority to prescribe rules for the administration of this Section.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/11) (from Ch. 17, par. 5311)
    Sec. 11. Contracts, books, records and contract cancellation. Each licensee shall furnish to the Director, when requested, a copy of the contract entered into between the licensee and the debtor. The licensee shall furnish the debtor with a copy of the written contract, at the time of execution, which shall set forth the charges, if any, agreed upon for the services of the licensee.
    Each licensee shall maintain records and accounts which will enable any debtor contracting with the licensee, at any reasonable time, to ascertain the amounts paid to creditors of the debtor. A statement showing the total amount received and the total disbursements to each creditor shall be furnished by the licensee to any individual within seven days of a request therefor by the said debtor. Each licensee shall issue a receipt for each payment made by the debtor at a licensee's office. Each licensee shall prepare and retain in the file of each debtor a written analysis of debtor's income and expenses to substantiate that the plan of payment is feasible and practical.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/11.5)
    Sec. 11.5. Examination of licensee. The Director at any time, either in person or through an appointed representative, may examine the condition and affairs of a licensee. In connection with any examination, the Director may examine on oath any licensee and any director, officer, employee, customer, manager, partner, member, creditor or stockholder of a licensee concerning the affairs and business of the licensee. The Director shall ascertain whether the licensee transacts its business in the manner prescribed by law and the rules issued thereunder. The licensee shall pay the cost of the examination as determined by the Director by administrative rule. Failure to pay the examination fee within 30 days after receipt of demand from the Director may result in the suspension of the license until the fee is paid. The Director shall have the right to investigate and examine any person, whether licensed or not, who is engaged in the debt management service business. The Director shall have the power to subpoena the production of any books and records pertinent to any investigation.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/12) (from Ch. 17, par. 5312)
    Sec. 12. Fees and charges of licensees. A licensee may not charge a debtor any fees or penalties except the following:
    (1) an initial counseling fee not to exceed $50 per debtor counseled, provided the average initial counseling fee does not exceed $30 per debtor for all debtors counseled; and
    (2) additional fees at the completion of the initial counseling services which shall not exceed $50 per month, provided the average monthly fee does not exceed $30 per debtor for all debtors counseled.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/12.1)
    Sec. 12.1. All moneys received by the Department of Financial Institutions under this Act shall be deposited in the Financial Institutions Fund created under Section 6z‑26 of the State Finance Act.
(Source: P.A. 88‑13.)

    (205 ILCS 665/13) (from Ch. 17, par. 5313)
    Sec. 13. Prohibitions.
    (1) No licensee shall advertise, in any manner whatsoever, any statement or representation with regard to the rates, terms or conditions of debt management service which is false, misleading, or deceptive.
    (2) No licensee shall require as a part of the agreement between the licensee and any debtor, the purchase of any stock, insurance, commodity, service or other property or any interest therein.
    (3) No licensee shall, directly or indirectly, accept payment or any other consideration, whether in cash or in kind, from any entity for referring applicants to that entity. The licensee shall not, directly or indirectly, make payments in any form, whether in cash or in kind, to any person, corporation, or other entity for referring applicants or clients to the licensee.
    (4) No licensee shall make any loans.
    (5) No licensee shall issue credit cards or act as an agent in procuring customers for a credit card company or any financial institution.
    (6) No licensee shall act as a loan broker.
    (7) No licensee shall operate any other business at the licensed location without another business authorization from the Director, pursuant to Section 13.5.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/13.5)
    Sec. 13.5. Other business. Upon application by the licensee, and approval by the Director, the Director may approve the conduct of other businesses in the licensee's place of business. The approval shall be in writing and shall describe the other businesses that may be conducted in the licensed office. The Director shall make and enforce reasonable rules to prevent evasions or violations of this Act. The Director may investigate any business conducted in the licensed office to determine whether any evasion or violation of this Act has occurred.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/14) (from Ch. 17, par. 5314)
    Sec. 14. Trust funds; requirements and restrictions.
    (a) All funds received by a licensee or his agent from and for the purpose of paying bills, invoices, or accounts of a debtor shall constitute trust funds owned by and belonging to the debtor from whom they were received. All such funds received by a licensee shall be separated from the funds of the licensee not later than the end of the business day following receipt by the licensee. All such funds shall be kept separate and apart at all times from funds belonging to the licensee or any of its officers, employees or agents and may be used for no purpose other than paying bills, invoices, or accounts of the debtor. All such trust funds received at the main or branch offices of a licensee shall be deposited in a bank in an account in the name of the licensee designated "trust account", or by some other appropriate name indicating that the funds are not the funds of the licensee or its officers, employees, or agents, on or before the close of the business day following receipt.
    (b) Prior to separation and deposit by the licensee, such funds may be used by the licensee only for the making of change or the cashing of checks in the normal course of its business. Such funds are not subject to attachment, lien, levy of execution, or sequestration by order of court except by a debtor for whom a licensee is acting as an agent in paying bills, invoices, or accounts.
    (c) Each licensee shall make remittances within 30 days after initial receipt of funds, and thereafter remittances shall be made within 15 days of receipt, less fees and costs, unless the reasonable payment of one or more of the debtor's obligations requires that the funds be held for a longer period so as to accumulate a sum certain.
    (d) At least once every quarter, the licensee shall render an accounting to the debtor which shall itemize the total amount received from the debtor, the total amount paid each creditor, the amount of charges deducted, and any amount held in reserve. A licensee shall, in addition thereto, provide such an accounting to a debtor within 7 days after written demand, but not more than 3 times per 6 month period.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/15) (from Ch. 17, par. 5315)
    Sec. 15. Rules.) The Director shall make and enforce all reasonable rules as shall be necessary for the administration of this Act. Such rulemaking shall be subject to the provisions of the Illinois Administrative Procedure Act.
(Source: P.A. 81‑1403.)

    (205 ILCS 665/15.1) (from Ch. 17, par. 5316)
    Sec. 15.1. Advisory Board; appointment. There is created a Board of Debt Management Service Advisors composed of 5 persons appointed by the Governor. The majority of members shall be active in a debt management or consumer credit counseling service. Each Board member shall serve without compensation, but shall be reimbursed for necessary expenses. Initially, the Board shall consist of members appointed for terms beginning on July 1, 1965, and one member shall serve until July 1, 1966, 2 members shall serve until July 1, 1967, and 2 members shall serve until July 1, 1968, as designated by the Governor at the time of the initial appointments. As terms of appointment expire, successors shall be appointed for terms to expire on July 1, 3 years subsequent to the date of appointment. Each member of the board shall serve until his respective successor is appointed.
(Source: P.A. 89‑400, eff. 8‑20‑95; 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/15.2) (from Ch. 17, par. 5317)
    Sec. 15.2. Advisory board ‑ Organization and meetings. The Board shall elect a chairman, vice‑chairman and secretary, adopt regulations for the holding and conducting of meetings and for holding hearings concerning all matters within its powers and shall keep a record of all meetings and transactions. Regular meetings shall be held as provided in the regulations, and special meetings may be called by the Director or upon the request of any 4 members of the Board.
(Source: Laws 1965, p. 2494.)

    (205 ILCS 665/15.3) (from Ch. 17, par. 5318)
    Sec. 15.3. Advisory Board; powers. The Board shall have the following powers:
    1. To make recommendations to the Director concerning matters which he may refer to the Board for consideration;
    2. To recommend on its own initiative policies and practices to the Director, the Governor and the General Assembly;
    3. To make recommendations to the Director for the purpose of preventing unsound practices in the field of debt management service;
    4. To foster the interest and cooperation of persons rendering debt management service in improvement of their services to the people of the State of Illinois.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/16) (from Ch. 17, par. 5319)
    Sec. 16. Penalties.
    (a) Any person who engages in the business of debt management service without a license shall be guilty of a Class 4 felony.
    (b) Any contract of debt management service as defined in this Act, made by an unlicensed person, shall be null and void and of no legal effect.
    (c) The Director may set by rule monetary penalties for violation of this Act.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/17) (from Ch. 17, par. 5320)
    Sec. 17. Injunction. To engage in debt management service, render financial service, or accept debtors' funds, as defined in this Act, without a valid license so to do, is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may, in the name of the people of the State of Illinois, through the Attorney General of the State of Illinois, file a complaint for an injunction in the circuit court to enjoin such person, from engaging in said business. Such injunction proceeding shall be in addition to, and not in lieu of, penalties and remedies otherwise in this Act provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/18) (from Ch. 17, par. 5321)
    Sec. 18. Review. All final administrative decisions of the Director hereunder shall be subject to judicial review pursuant to the provisions of the Administrative Review Law, and all amendments and modifications thereof and the rules adopted pursuant thereto.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/19) (from Ch. 17, par. 5322)
    Sec. 19. If any clause, sentence, section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not impair, affect or invalidate the remainder of this Act which shall be in full force and effect thereafter.
(Source: Laws 1957, p. 2164.)

    (205 ILCS 665/20) (from Ch. 17, par. 5323)
    Sec. 20. Cease and desist orders.
    (a) The Director may issue a cease and desist order to any licensee, or other person doing business without the required license, when in the opinion of the Director, the licensee, or other person, is violating or is about to violate any provision of the Act or any rule or condition imposed in writing by the Department.
    (b) The Director may issue a cease and desist order prior to a hearing.
    (c) The Director shall serve notice of his action, including a statement of the reasons for his action either personally or by certified mail, return receipt requested. Service by mail shall be deemed completed if the notice is deposited in the U.S. Mail.
    (d) Within 10 days after service of the cease and desist order, the licensee or other person may request, in writing, a hearing.
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State Codes and Statutes

State Codes and Statutes

Statutes > Illinois > Chapter205 > 1203

    (205 ILCS 665/1) (from Ch. 17, par. 5301)
    Sec. 1. Declaration of policy. The business of providing debt management services to individuals is a matter of public interest and concern and is subject to regulation and control in the public interest.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/2)(from Ch. 17, par. 5302)
    Sec. 2. Definitions. As used in this Act:
    "Debt management service" means the planning and management of the financial affairs of a debtor for a fee and the receiving of money from the debtor for the purpose of distributing it, directly or indirectly, to the debtor's creditors in payment or partial payment of the debtor's obligations or soliciting financial contributions from creditors. The business of debt management is conducted in this State if the debt management business, its employees, or its agents are located in this State or if the debt management business solicits or contracts with debtors located in this State.
    This term shall not include the following when engaged in the regular course of their respective businesses and professions:
        (a) Attorneys at law.
        (b) Banks, fiduciaries, credit unions, savings and
     loan associations, and savings banks as duly authorized and admitted to transact business in the State of Illinois and performing credit and financial adjusting service in the regular course of their principal business.
        (c) Title insurers and abstract companies, while
     doing an escrow business.
        (d) Judicial officers or others acting pursuant to
     court order.
        (e) Employers for their employees.
        (f) Bill payment services, as defined in the
     Transmitters of Money Act.
    "Director" means Director of Financial Institutions.
    "Debtor" means the person or persons for whom the debt management service is performed.
    "Person" means an individual, firm, partnership, association, limited liability company, corporation, or not‑for‑profit corporation.
    "Licensee" means a person licensed under this Act.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (205 ILCS 665/3) (from Ch. 17, par. 5303)
    Sec. 3. Requirement of license. It shall be unlawful for any person to operate a debt management service or engage in that business as herein defined except as authorized by this Act and without first having obtained a license as hereinafter provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/4) (from Ch. 17, par. 5304)
    Sec. 4. Application for license. Application for a license to engage in the debt management service business in this State shall be made to the Director and shall be in writing, under oath, and in the form prescribed by the Director.
    Each applicant, at the time of making such application, shall pay to the Director the sum of $30.00 as a fee for investigation of the applicant, and the additional sum of $100.00 as a license fee.
    Every applicant shall submit to the Director, at the time of the application for a license, a bond to be approved by the Director in which the applicant shall be the obligor, in the sum of $25,000 or such additional amount as required by the Director based on the amount of disbursements made by the licensee in the previous year, and in which an insurance company, which is duly authorized by the State of Illinois, to transact the business of fidelity and surety insurance shall be a surety.
    The bond shall run to the Director for the use of the Department or of any person or persons who may have a cause of action against the obligor in said bond arising out of any violation of this Act or rules by a license. Such bond shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this Act and of all rules, regulations and directions lawfully made by the Director and will pay to the Director or to any person or persons any and all money that may become due or owing to the State or to such person or persons, from said obligor under and by virtue of the provisions of this Act.
(Source: P.A. 92‑400, eff. 1‑1‑02.)

    (205 ILCS 665/5) (from Ch. 17, par. 5305)
    Sec. 5. Qualifications for license. Upon the filing of the application and the approval of the bond and the payment of the specified fees, the Director shall issue a license if he finds:
    (1) That the financial responsibility, experience, character and general fitness of the applicant, the managers thereof, if the applicant is a limited liability company, the partners thereof, if the applicant is a partnership, and of the officers and directors thereof, if the applicant is a corporation or a not‑for‑profit corporation, are such as to command the confidence of the community and to warrant belief that the business will be operated fairly, honestly and efficiently within the purposes of this Act, and
    (2) That the applicant, if an individual, the managers thereof, if the applicant is a limited liability company, the partners thereof, if the applicant is a partnership, and the officers and directors thereof, if the applicant is a corporation, have not been convicted of a felony or a misdemeanor involving dishonesty or untrustworthiness, and
    (3) That the person or persons have not had a record of having defaulted in the payment of money collected for others, including the discharge of such debts through bankruptcy proceedings, and
    (4) The applicant, or any officers, directors, partners or managers, have not previously violated any provision of this Act or any rule lawfully made by the Director, and
    (5) The applicant has not made any false statement or representation to the Director in applying for a license hereunder.
    The Director shall deliver a license to the applicant to engage in the debt management service business in accordance with the provisions of this Act at the location specified in the said application, which license shall remain in full force and effect until it is surrendered by the licensee or revoked by the Director as herein provided; provided, however, that each license shall expire by the terms thereof on January 1 next following the issuance thereof unless the same be renewed as hereinafter provided. A license, however, may not be surrendered without the approval of the Director.
    More than one license may be issued to the same person for separate places of business, but separate applications shall be made for each place of business.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/6) (from Ch. 17, par. 5306)
    Sec. 6. Renewal of license. Each licensee under the provisions of this Act may make application to the Director for renewal of its license, which application for renewal shall be on the form prescribed by the Director and shall be accompanied by a fee of $100.00 together with a bond or other surety as required, in a minimum amount of $25,000 or such an amount as required by the Director based on the amount of disbursements made by the licensee in the previous year. The application must be received by the Department no later than December 1 of the year preceding the year for which the application applies.
(Source: P.A. 92‑400, eff. 1‑1‑02.)

    (205 ILCS 665/7) (from Ch. 17, par. 5307)
    Sec. 7. License, display and location. Each license issued shall be kept conspicuously posted in the place of business of the licensee. The business location may be changed by any licensee upon 10 days prior written notice to the Director. A license must operate under the name as stated in its original application.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/8.5)
    Sec. 8.5. Temporary location. The Director may approve a temporary additional business location for the purpose of allowing a licensee to conduct business outside the licensed location.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/9) (from Ch. 17, par. 5309)
    Sec. 9. Denial of license. Any application for a license shall be approved or denied within 60 days of the filing of an application with the Director.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/10) (from Ch. 17, par. 5310)
    Sec. 10. Revocation or suspension of license.
    (a) The Director may revoke or suspend any license if he finds that:
        (1) any licensee has failed to pay the annual
     license fee, or to maintain in effect the bond required under the provisions of this Act;
        (2) the licensee has violated any provisions of this
     Act or any rule, lawfully made by the Director within the authority of this Act;
        (3) any fact or condition exists which, if it had
     existed at the time of the original application for a license, would have warranted the Director in refusing its issuance; or
        (4) any applicant has made any false statement or
     representation to the Director in applying for a license hereunder.
    (b) In every case in which a license is suspended or revoked or an application for a license or renewal of a license is denied, the Director shall serve notice of his action, including a statement of the reasons for his actions, either personally or by certified mail, return receipt requested. Service by mail shall be deemed completed if the notice is deposited in the U.S. Mail.
    (c) In the case of a denial of an application or renewal of a license, the applicant or licensee may request in writing, within 30 days after the date of service, a hearing. In the case of a denial of a renewal of a license, the license shall be deemed to continue in force until 30 days after the service of the notice of denial, or if a hearing is requested during that period, until a final administrative order is entered.
    (d) An order of revocation or suspension of a license shall take effect upon service of the order unless the licensee requests, in writing, within 10 days after the date of service, a hearing. In the event a hearing is requested, the order shall be stayed until a final administrative order is entered.
    (e) If the licensee requests a hearing, the Director shall schedule the hearing within 30 days after the request for a hearing unless otherwise agreed to by the parties.
    (f) The hearing shall be held at the time and place designated by the Director. The Director and any administrative law judge designated by him have the power to administer oaths and affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of books, papers, correspondence, and other records or information that he considers relevant or material to the injury.
    (g) The costs for the administrative hearing shall be set by rule.
    (h) The Director shall have the authority to prescribe rules for the administration of this Section.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/11) (from Ch. 17, par. 5311)
    Sec. 11. Contracts, books, records and contract cancellation. Each licensee shall furnish to the Director, when requested, a copy of the contract entered into between the licensee and the debtor. The licensee shall furnish the debtor with a copy of the written contract, at the time of execution, which shall set forth the charges, if any, agreed upon for the services of the licensee.
    Each licensee shall maintain records and accounts which will enable any debtor contracting with the licensee, at any reasonable time, to ascertain the amounts paid to creditors of the debtor. A statement showing the total amount received and the total disbursements to each creditor shall be furnished by the licensee to any individual within seven days of a request therefor by the said debtor. Each licensee shall issue a receipt for each payment made by the debtor at a licensee's office. Each licensee shall prepare and retain in the file of each debtor a written analysis of debtor's income and expenses to substantiate that the plan of payment is feasible and practical.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/11.5)
    Sec. 11.5. Examination of licensee. The Director at any time, either in person or through an appointed representative, may examine the condition and affairs of a licensee. In connection with any examination, the Director may examine on oath any licensee and any director, officer, employee, customer, manager, partner, member, creditor or stockholder of a licensee concerning the affairs and business of the licensee. The Director shall ascertain whether the licensee transacts its business in the manner prescribed by law and the rules issued thereunder. The licensee shall pay the cost of the examination as determined by the Director by administrative rule. Failure to pay the examination fee within 30 days after receipt of demand from the Director may result in the suspension of the license until the fee is paid. The Director shall have the right to investigate and examine any person, whether licensed or not, who is engaged in the debt management service business. The Director shall have the power to subpoena the production of any books and records pertinent to any investigation.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/12) (from Ch. 17, par. 5312)
    Sec. 12. Fees and charges of licensees. A licensee may not charge a debtor any fees or penalties except the following:
    (1) an initial counseling fee not to exceed $50 per debtor counseled, provided the average initial counseling fee does not exceed $30 per debtor for all debtors counseled; and
    (2) additional fees at the completion of the initial counseling services which shall not exceed $50 per month, provided the average monthly fee does not exceed $30 per debtor for all debtors counseled.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/12.1)
    Sec. 12.1. All moneys received by the Department of Financial Institutions under this Act shall be deposited in the Financial Institutions Fund created under Section 6z‑26 of the State Finance Act.
(Source: P.A. 88‑13.)

    (205 ILCS 665/13) (from Ch. 17, par. 5313)
    Sec. 13. Prohibitions.
    (1) No licensee shall advertise, in any manner whatsoever, any statement or representation with regard to the rates, terms or conditions of debt management service which is false, misleading, or deceptive.
    (2) No licensee shall require as a part of the agreement between the licensee and any debtor, the purchase of any stock, insurance, commodity, service or other property or any interest therein.
    (3) No licensee shall, directly or indirectly, accept payment or any other consideration, whether in cash or in kind, from any entity for referring applicants to that entity. The licensee shall not, directly or indirectly, make payments in any form, whether in cash or in kind, to any person, corporation, or other entity for referring applicants or clients to the licensee.
    (4) No licensee shall make any loans.
    (5) No licensee shall issue credit cards or act as an agent in procuring customers for a credit card company or any financial institution.
    (6) No licensee shall act as a loan broker.
    (7) No licensee shall operate any other business at the licensed location without another business authorization from the Director, pursuant to Section 13.5.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/13.5)
    Sec. 13.5. Other business. Upon application by the licensee, and approval by the Director, the Director may approve the conduct of other businesses in the licensee's place of business. The approval shall be in writing and shall describe the other businesses that may be conducted in the licensed office. The Director shall make and enforce reasonable rules to prevent evasions or violations of this Act. The Director may investigate any business conducted in the licensed office to determine whether any evasion or violation of this Act has occurred.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/14) (from Ch. 17, par. 5314)
    Sec. 14. Trust funds; requirements and restrictions.
    (a) All funds received by a licensee or his agent from and for the purpose of paying bills, invoices, or accounts of a debtor shall constitute trust funds owned by and belonging to the debtor from whom they were received. All such funds received by a licensee shall be separated from the funds of the licensee not later than the end of the business day following receipt by the licensee. All such funds shall be kept separate and apart at all times from funds belonging to the licensee or any of its officers, employees or agents and may be used for no purpose other than paying bills, invoices, or accounts of the debtor. All such trust funds received at the main or branch offices of a licensee shall be deposited in a bank in an account in the name of the licensee designated "trust account", or by some other appropriate name indicating that the funds are not the funds of the licensee or its officers, employees, or agents, on or before the close of the business day following receipt.
    (b) Prior to separation and deposit by the licensee, such funds may be used by the licensee only for the making of change or the cashing of checks in the normal course of its business. Such funds are not subject to attachment, lien, levy of execution, or sequestration by order of court except by a debtor for whom a licensee is acting as an agent in paying bills, invoices, or accounts.
    (c) Each licensee shall make remittances within 30 days after initial receipt of funds, and thereafter remittances shall be made within 15 days of receipt, less fees and costs, unless the reasonable payment of one or more of the debtor's obligations requires that the funds be held for a longer period so as to accumulate a sum certain.
    (d) At least once every quarter, the licensee shall render an accounting to the debtor which shall itemize the total amount received from the debtor, the total amount paid each creditor, the amount of charges deducted, and any amount held in reserve. A licensee shall, in addition thereto, provide such an accounting to a debtor within 7 days after written demand, but not more than 3 times per 6 month period.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/15) (from Ch. 17, par. 5315)
    Sec. 15. Rules.) The Director shall make and enforce all reasonable rules as shall be necessary for the administration of this Act. Such rulemaking shall be subject to the provisions of the Illinois Administrative Procedure Act.
(Source: P.A. 81‑1403.)

    (205 ILCS 665/15.1) (from Ch. 17, par. 5316)
    Sec. 15.1. Advisory Board; appointment. There is created a Board of Debt Management Service Advisors composed of 5 persons appointed by the Governor. The majority of members shall be active in a debt management or consumer credit counseling service. Each Board member shall serve without compensation, but shall be reimbursed for necessary expenses. Initially, the Board shall consist of members appointed for terms beginning on July 1, 1965, and one member shall serve until July 1, 1966, 2 members shall serve until July 1, 1967, and 2 members shall serve until July 1, 1968, as designated by the Governor at the time of the initial appointments. As terms of appointment expire, successors shall be appointed for terms to expire on July 1, 3 years subsequent to the date of appointment. Each member of the board shall serve until his respective successor is appointed.
(Source: P.A. 89‑400, eff. 8‑20‑95; 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/15.2) (from Ch. 17, par. 5317)
    Sec. 15.2. Advisory board ‑ Organization and meetings. The Board shall elect a chairman, vice‑chairman and secretary, adopt regulations for the holding and conducting of meetings and for holding hearings concerning all matters within its powers and shall keep a record of all meetings and transactions. Regular meetings shall be held as provided in the regulations, and special meetings may be called by the Director or upon the request of any 4 members of the Board.
(Source: Laws 1965, p. 2494.)

    (205 ILCS 665/15.3) (from Ch. 17, par. 5318)
    Sec. 15.3. Advisory Board; powers. The Board shall have the following powers:
    1. To make recommendations to the Director concerning matters which he may refer to the Board for consideration;
    2. To recommend on its own initiative policies and practices to the Director, the Governor and the General Assembly;
    3. To make recommendations to the Director for the purpose of preventing unsound practices in the field of debt management service;
    4. To foster the interest and cooperation of persons rendering debt management service in improvement of their services to the people of the State of Illinois.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/16) (from Ch. 17, par. 5319)
    Sec. 16. Penalties.
    (a) Any person who engages in the business of debt management service without a license shall be guilty of a Class 4 felony.
    (b) Any contract of debt management service as defined in this Act, made by an unlicensed person, shall be null and void and of no legal effect.
    (c) The Director may set by rule monetary penalties for violation of this Act.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/17) (from Ch. 17, par. 5320)
    Sec. 17. Injunction. To engage in debt management service, render financial service, or accept debtors' funds, as defined in this Act, without a valid license so to do, is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may, in the name of the people of the State of Illinois, through the Attorney General of the State of Illinois, file a complaint for an injunction in the circuit court to enjoin such person, from engaging in said business. Such injunction proceeding shall be in addition to, and not in lieu of, penalties and remedies otherwise in this Act provided.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/18) (from Ch. 17, par. 5321)
    Sec. 18. Review. All final administrative decisions of the Director hereunder shall be subject to judicial review pursuant to the provisions of the Administrative Review Law, and all amendments and modifications thereof and the rules adopted pursuant thereto.
(Source: P.A. 90‑545, eff. 1‑1‑98.)

    (205 ILCS 665/19) (from Ch. 17, par. 5322)
    Sec. 19. If any clause, sentence, section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not impair, affect or invalidate the remainder of this Act which shall be in full force and effect thereafter.
(Source: Laws 1957, p. 2164.)

    (205 ILCS 665/20) (from Ch. 17, par. 5323)
    Sec. 20. Cease and desist orders.
    (a) The Director may issue a cease and desist order to any licensee, or other person doing business without the required license, when in the opinion of the Director, the licensee, or other person, is violating or is about to violate any provision of the Act or any rule or condition imposed in writing by the Department.
    (b) The Director may issue a cease and desist order prior to a hearing.
    (c) The Director shall serve notice of his action, including a statement of the reasons for his action either personally or by certified mail, return receipt requested. Service by mail shall be deemed completed if the notice is deposited in the U.S. Mail.
    (d) Within 10 days after service of the cease and desist order, the licensee or other person may request, in writing, a hearing.
    

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