(225 ILCS 425/1)(from Ch. 111, par. 2001) (Section scheduled to be repealed on January 1, 2016) Sec. 1. This Act shall be known and may be cited as the "Collection Agency Act". (Source: P.A. 78‑1248.)
(225 ILCS 425/1a)(from Ch. 111, par. 2001a) (Section scheduled to be repealed on January 1, 2016) Sec. 1a. Declaration of public policy. The practice as a collection agency by any entity in the State of Illinois is hereby declared to affect the public health, safety and welfare and to be subject to regulation and control in the public interest. It is further declared to be a matter of public interest and concern that the collection agency profession merit and receive the confidence of the public and that only qualified entities be permitted to practice as a collection agency in the State of Illinois. This Act shall be liberally construed to carry out these objects and purposes. It is further declared to be the public policy of this State to protect consumers against debt collection abuse. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/2)(from Ch. 111, par. 2002) (Section scheduled to be repealed on January 1, 2016) Sec. 2. Definitions. In this Act: "Consumer credit transaction" means a transaction between a natural person and another person in which property, service, or money is acquired on credit by that natural person from such other person primarily for personal, family, or household purposes. "Consumer debt" or "consumer credit" means money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction. "Creditor" means a person who extends consumer credit to a debtor. "Debt" means money, property, or their equivalent which is due or owing or alleged to be due or owing from a natural person to another person. "Debt collection" means any act or practice in connection with the collection of consumer debts. "Debt collector", "collection agency", or "agency" means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. "Debtor" means a natural person from whom a debt collector seeks to collect a consumer debt that is due and owing or alleged to be due and owing from such person. "Department" means Division of Professional Regulation within the Department of Financial and Professional Regulation. "Director" means the Director of the Division of Professional Regulation within the Department of Financial and Professional Regulation. "Person" means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity. (Source: P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.01) Sec. 2.01. (Repealed). (Source: P.A. 85‑1209. Repealed by P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.02) Sec. 2.02. (Repealed). (Source: P.A. 94‑414, eff. 12‑31‑05. Repealed by P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.03)(from Ch. 111, par. 2005) (Section scheduled to be repealed on January 1, 2016) Sec. 2.03. This Act does not apply to persons whose collection activities are confined to and are directly related to the operation of a business other than that of a collection agency, and specifically does not include the following: 1. Banks, including trust departments, affiliates,
and subsidiaries thereof, fiduciaries, and financing and lending institutions (except those who own or operate collection agencies);
2. Abstract companies doing an escrow business; 3. Real estate brokers when acting in the pursuit of
their profession;
4. Public officers and judicial officers acting
under order of a court;
5. Licensed attorneys at law; 6. Insurance companies; 7. Credit unions, including affiliates and
subsidiaries thereof;
8. Loan and finance companies; 9. Retail stores collecting their own accounts; 10. Unit Owner's Associations established under the
Condominium Property Act, and their duly authorized agents, when collecting assessments from unit owners; and
11. Any person or business under contract with a
creditor to notify the creditor's debtors of a debt using only the creditor's name.
(Source: P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.04)(from Ch. 111, par. 2005.1) (Section scheduled to be repealed on January 1, 2016) Sec. 2.04. Child support indebtedness. (a) Persons, associations, partnerships, 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; 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/3)(from Ch. 111, par. 2006) (Section scheduled to be repealed on January 1, 2016) Sec. 3. A person, association, partnership, 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 indebtedness;
(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 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.
(225 ILCS 425/4)(from Ch. 111, par. 2007) (Section scheduled to be repealed on January 1, 2016) Sec. 4. No collection agency shall operate in this State, directly or indirectly engage in the business of collecting, solicit claims for others, have a sales office, a client, or solicit a client in this State, exercise the right to collect, or receive payment for another of any account, bill or other indebtedness, without registering under this Act except that no collection agency shall be required to be licensed or maintain an established business address in this State if the agency's activities in this State are limited to collecting debts from debtors located in this State by means of interstate communication, including telephone, mail, or facsimile transmission from the agency's location in another state provided they are licensed in that state and these same privileges are permitted in that licensed state to agencies licensed in Illinois. (Source: P.A. 88‑363; 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/4.5) (Section scheduled to be repealed on January 1, 2016) 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. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/5)(from Ch. 111, par. 2008) (Section scheduled to be repealed on January 1, 2016) 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; and
(3) such other information as the Department may deem
necessary.
(Source: P.A. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/6)(from Ch. 111, par. 2009) (Section scheduled to be repealed on January 1, 2016) Sec. 6. (a) If the Director determines that the applicant meets the qualifications for registration required by this Act, he or she shall issue a certificate of registration forthwith. Each application for a certificate shall be acted upon within 45 days of receipt of the application by the Department. If the application is deficient in form, the Director shall reject it and notify the applicant of the nature of the deficiency. Such rejection shall be without prejudice to the filing of a new application. If the Director finds that the applicant is not qualified under this Act, he shall reject the application and give the applicant written notice of such rejection and the reasons therefor. (b) The expiration date and renewal period for each certificate of registration issued under this Act shall be set by rule. The holder of a certificate of registration may renew such certificate during the month preceding the expiration date thereof by paying the required fee. (c) Upon application, accompanied by the initial fee and compliance with the financial bonding requirements herein set forth, the Director shall issue an original certificate to each entity required to have a certificate if the application is received by the Department within 60 days of the effective date of this Act. Any collection agency to whom an original license is issued under this subsection (c) must meet the requirements of Section 7 of this Act to be entitled to a renewal license. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/6a)(from Ch. 111, par. 2009a) (Section scheduled to be repealed on January 1, 2016) 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 terminated. (Source: P.A. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/7)(from Ch. 111, par. 2010) (Section scheduled to be repealed on January 1, 2016) Sec. 7. In order to be qualified to obtain a certificate or a renewal certificate under this Act, a collection agency's officers shall: (a) be of good moral character and of the age of 18 years or more; (b) have had at least one year experience working in the credit field or a related area, or be qualified for an original license under Section 6 (c) of this Act; (c) have an acceptable credit rating, have no unsatisfied judgments; and not have been officers of a former registrant under this Act whose certificates were suspended or revoked without subsequent reinstatement. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8)(from Ch. 111, par. 2011) (Section scheduled to be repealed on January 1, 2016) Sec. 8. Before issuing a certificate or renewing one, the Director shall require each collection agency to file and maintain in force a surety bond, issued by an insurance company authorized to transact fidelity and surety business in the State of Illinois. The bond shall be for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor. No action on the bond shall be commenced more than one year after the creditor obtains a judgment against the collection agency from a court of competent jurisdiction. The bond shall be in the form prescribed by the Director in the sum of $25,000. The bond shall be continuous in form and run concurrently with the original and each renewal license period unless terminated by the insurance company. An insurance company may terminate a bond and avoid further liability by filing a 60‑day notice of termination with the Department and at the same time sending the same notice to the agency. A certificate of registration shall be cancelled on the termination date of the agency's bond unless a new bond is filed with the Department to become effective at the termination date of the prior bond. If a certificate of registration has been cancelled under this Section, the agency must file a new application and will be considered a new applicant if it obtains a new bond. (Source: P.A. 84‑242.)
(225 ILCS 425/8a)(from Ch. 111, par. 2011a) (Section scheduled to be repealed on January 1, 2016) Sec. 8a. Fees. The Department shall provide by rule for a schedule of fees for the administration and enforcement of this Act, including but not limited to original licensure, renewal, and restoration. The fees shall be nonrefundable. All fees collected under this Act shall be deposited into the General Professions Dedicated Fund and shall be appropriated to the Department for the ordinary and contingent expenses of the Department in the administration of this Act. (Source: P.A. 91‑454, eff. 1‑1‑00.)
(225 ILCS 425/8a‑1)(from Ch. 111, par. 2011a‑1) (Section scheduled to be repealed on January 1, 2016) Sec. 8a‑1. (a) No account may be referred by a collection agency to an attorney unless, prior to placing an account with an attorney for further collection action, each account creditor is notified in writing by the collection agency of the collection agency's intent to refer the account to an attorney. The account may not be referred to an attorney if a creditor notifies the collection agency within 5 days after receiving the notice that the creditor is withholding authorization for the account to be referred to an attorney. The notice requirement under this subsection may, in the alternative, be satisfied if the creditor signs the complaint that will be filed in the circuit court seeking judgment on the debt owed. A collection agency shall not take any action that in fact or in appearance interferes with the professional relationship between the attorney and the creditor. (b) Court costs expended by the agency or the creditor for filing a complaint are recoverable by the agency or the creditor if the principal on the debt is paid before the judgment is issued. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8b)(from Ch. 111, par. 2011b) (Section scheduled to be repealed on January 1, 2016) Sec. 8b. Assignment for collection. An account may be assigned to a collection agency for collection with title passing to the collection agency to enable collection of the account in the agency's name as assignee for the creditor provided: (a) The assignment is manifested by a written agreement, separate from and in addition to any document intended for the purpose of listing a debt with a collection agency. The document manifesting the assignment shall specifically state and include: (i) the effective date of the assignment; and (ii) the consideration for the assignment. (b) The consideration for the assignment may be paid or given either before or after the effective date of the assignment. The consideration may be contingent upon the settlement or outcome of litigation and if the claim being assigned has been listed with the collection agency as an account for collection, the consideration for assignment may be the same as the fee for collection. (c) All assignments shall be voluntary and properly executed and acknowledged by the corporate authority or individual transferring title to the collection agency before any action can be taken in the name of the collection agency. (d) No assignment shall be required by any agreement to list a debt with a collection agency as an account for collection. (e) No litigation shall commence in the name of the licensee as plaintiff unless: (i) there is an assignment of the account that satisfies the requirements of this Section and (ii) the licensee is represented by a licensed attorney at law. (f) If a collection agency takes assignments of accounts from 2 or more creditors against the same debtor and commences litigation against that debtor in a single action, in the name of the collection agency, then (i) the complaint must be stated in separate counts for each assignment and (ii) the debtor has an absolute right to have any count severed from the rest of the action. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8c)(from Ch. 111, par. 2011c) (Section scheduled to be repealed on January 1, 2016) Sec. 8c. (a) Each licensed agency office shall at all times maintain a separate bank account in which all monies received on claims shall be deposited, referred to as a "Trust Account", except that negotiable instruments received may be forwarded directly to a creditor if such procedure is provided for by a writing executed by the creditor. Monies received shall be so deposited within 5 business days after posting to the agency's books of account. There shall be sufficient funds in the trust account at all times to pay the creditors the amount due them. (b) The trust account shall be established in a bank, savings and loan association, or other recognized depository which is federally or State insured or otherwise secured as defined by rule. Such account may be interest bearing. The licensee shall pay to the creditor interest earned on funds on deposit after the sixtieth day. (c) Notwithstanding any contractual arrangement, every client of a licensee shall within 60 days after the close of each calendar month, account and pay to the licensee collection agency all sums owed to the collection agency for payments received by the client during that calendar month on claims in possession of the collection agency. If a client fails to pay the licensee any sum due under this Section, the licensee shall, in addition to other remedies provided by law, have the right to offset any money due the licensee under this Section against any moneys due the client. (d) Each collection agency shall keep on file the name of the bank, savings and loan association, or other recognized depository in which each trust account is maintained, the name of each trust account, and the names of the persons authorized to withdraw funds from each account. The collection agency, within 30 days of the time of a change of depository or person authorized to make withdrawal, shall update its files to reflect such change. An examination and audit of an agency's trust accounts may be made by the Department as the Department deems appropriate. A trust account financial report shall be submitted annually on forms provided by the Department. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/9)(from Ch. 111, par. 2012) (Section scheduled to be repealed on January 1, 2016) 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, for any one or any combination of the following causes: (1) Violations of this Act or of the rules
promulgated hereunder.
(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
(225 ILCS 425/1)(from Ch. 111, par. 2001) (Section scheduled to be repealed on January 1, 2016) Sec. 1. This Act shall be known and may be cited as the "Collection Agency Act". (Source: P.A. 78‑1248.)
(225 ILCS 425/1a)(from Ch. 111, par. 2001a) (Section scheduled to be repealed on January 1, 2016) Sec. 1a. Declaration of public policy. The practice as a collection agency by any entity in the State of Illinois is hereby declared to affect the public health, safety and welfare and to be subject to regulation and control in the public interest. It is further declared to be a matter of public interest and concern that the collection agency profession merit and receive the confidence of the public and that only qualified entities be permitted to practice as a collection agency in the State of Illinois. This Act shall be liberally construed to carry out these objects and purposes. It is further declared to be the public policy of this State to protect consumers against debt collection abuse. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/2)(from Ch. 111, par. 2002) (Section scheduled to be repealed on January 1, 2016) Sec. 2. Definitions. In this Act: "Consumer credit transaction" means a transaction between a natural person and another person in which property, service, or money is acquired on credit by that natural person from such other person primarily for personal, family, or household purposes. "Consumer debt" or "consumer credit" means money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction. "Creditor" means a person who extends consumer credit to a debtor. "Debt" means money, property, or their equivalent which is due or owing or alleged to be due or owing from a natural person to another person. "Debt collection" means any act or practice in connection with the collection of consumer debts. "Debt collector", "collection agency", or "agency" means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. "Debtor" means a natural person from whom a debt collector seeks to collect a consumer debt that is due and owing or alleged to be due and owing from such person. "Department" means Division of Professional Regulation within the Department of Financial and Professional Regulation. "Director" means the Director of the Division of Professional Regulation within the Department of Financial and Professional Regulation. "Person" means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity. (Source: P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.01) Sec. 2.01. (Repealed). (Source: P.A. 85‑1209. Repealed by P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.02) Sec. 2.02. (Repealed). (Source: P.A. 94‑414, eff. 12‑31‑05. Repealed by P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.03)(from Ch. 111, par. 2005) (Section scheduled to be repealed on January 1, 2016) Sec. 2.03. This Act does not apply to persons whose collection activities are confined to and are directly related to the operation of a business other than that of a collection agency, and specifically does not include the following: 1. Banks, including trust departments, affiliates,
and subsidiaries thereof, fiduciaries, and financing and lending institutions (except those who own or operate collection agencies);
2. Abstract companies doing an escrow business; 3. Real estate brokers when acting in the pursuit of
their profession;
4. Public officers and judicial officers acting
under order of a court;
5. Licensed attorneys at law; 6. Insurance companies; 7. Credit unions, including affiliates and
subsidiaries thereof;
8. Loan and finance companies; 9. Retail stores collecting their own accounts; 10. Unit Owner's Associations established under the
Condominium Property Act, and their duly authorized agents, when collecting assessments from unit owners; and
11. Any person or business under contract with a
creditor to notify the creditor's debtors of a debt using only the creditor's name.
(Source: P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.04)(from Ch. 111, par. 2005.1) (Section scheduled to be repealed on January 1, 2016) Sec. 2.04. Child support indebtedness. (a) Persons, associations, partnerships, 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; 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/3)(from Ch. 111, par. 2006) (Section scheduled to be repealed on January 1, 2016) Sec. 3. A person, association, partnership, 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 indebtedness;
(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 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.
(225 ILCS 425/4)(from Ch. 111, par. 2007) (Section scheduled to be repealed on January 1, 2016) Sec. 4. No collection agency shall operate in this State, directly or indirectly engage in the business of collecting, solicit claims for others, have a sales office, a client, or solicit a client in this State, exercise the right to collect, or receive payment for another of any account, bill or other indebtedness, without registering under this Act except that no collection agency shall be required to be licensed or maintain an established business address in this State if the agency's activities in this State are limited to collecting debts from debtors located in this State by means of interstate communication, including telephone, mail, or facsimile transmission from the agency's location in another state provided they are licensed in that state and these same privileges are permitted in that licensed state to agencies licensed in Illinois. (Source: P.A. 88‑363; 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/4.5) (Section scheduled to be repealed on January 1, 2016) 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. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/5)(from Ch. 111, par. 2008) (Section scheduled to be repealed on January 1, 2016) 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; and
(3) such other information as the Department may deem
necessary.
(Source: P.A. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/6)(from Ch. 111, par. 2009) (Section scheduled to be repealed on January 1, 2016) Sec. 6. (a) If the Director determines that the applicant meets the qualifications for registration required by this Act, he or she shall issue a certificate of registration forthwith. Each application for a certificate shall be acted upon within 45 days of receipt of the application by the Department. If the application is deficient in form, the Director shall reject it and notify the applicant of the nature of the deficiency. Such rejection shall be without prejudice to the filing of a new application. If the Director finds that the applicant is not qualified under this Act, he shall reject the application and give the applicant written notice of such rejection and the reasons therefor. (b) The expiration date and renewal period for each certificate of registration issued under this Act shall be set by rule. The holder of a certificate of registration may renew such certificate during the month preceding the expiration date thereof by paying the required fee. (c) Upon application, accompanied by the initial fee and compliance with the financial bonding requirements herein set forth, the Director shall issue an original certificate to each entity required to have a certificate if the application is received by the Department within 60 days of the effective date of this Act. Any collection agency to whom an original license is issued under this subsection (c) must meet the requirements of Section 7 of this Act to be entitled to a renewal license. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/6a)(from Ch. 111, par. 2009a) (Section scheduled to be repealed on January 1, 2016) 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 terminated. (Source: P.A. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/7)(from Ch. 111, par. 2010) (Section scheduled to be repealed on January 1, 2016) Sec. 7. In order to be qualified to obtain a certificate or a renewal certificate under this Act, a collection agency's officers shall: (a) be of good moral character and of the age of 18 years or more; (b) have had at least one year experience working in the credit field or a related area, or be qualified for an original license under Section 6 (c) of this Act; (c) have an acceptable credit rating, have no unsatisfied judgments; and not have been officers of a former registrant under this Act whose certificates were suspended or revoked without subsequent reinstatement. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8)(from Ch. 111, par. 2011) (Section scheduled to be repealed on January 1, 2016) Sec. 8. Before issuing a certificate or renewing one, the Director shall require each collection agency to file and maintain in force a surety bond, issued by an insurance company authorized to transact fidelity and surety business in the State of Illinois. The bond shall be for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor. No action on the bond shall be commenced more than one year after the creditor obtains a judgment against the collection agency from a court of competent jurisdiction. The bond shall be in the form prescribed by the Director in the sum of $25,000. The bond shall be continuous in form and run concurrently with the original and each renewal license period unless terminated by the insurance company. An insurance company may terminate a bond and avoid further liability by filing a 60‑day notice of termination with the Department and at the same time sending the same notice to the agency. A certificate of registration shall be cancelled on the termination date of the agency's bond unless a new bond is filed with the Department to become effective at the termination date of the prior bond. If a certificate of registration has been cancelled under this Section, the agency must file a new application and will be considered a new applicant if it obtains a new bond. (Source: P.A. 84‑242.)
(225 ILCS 425/8a)(from Ch. 111, par. 2011a) (Section scheduled to be repealed on January 1, 2016) Sec. 8a. Fees. The Department shall provide by rule for a schedule of fees for the administration and enforcement of this Act, including but not limited to original licensure, renewal, and restoration. The fees shall be nonrefundable. All fees collected under this Act shall be deposited into the General Professions Dedicated Fund and shall be appropriated to the Department for the ordinary and contingent expenses of the Department in the administration of this Act. (Source: P.A. 91‑454, eff. 1‑1‑00.)
(225 ILCS 425/8a‑1)(from Ch. 111, par. 2011a‑1) (Section scheduled to be repealed on January 1, 2016) Sec. 8a‑1. (a) No account may be referred by a collection agency to an attorney unless, prior to placing an account with an attorney for further collection action, each account creditor is notified in writing by the collection agency of the collection agency's intent to refer the account to an attorney. The account may not be referred to an attorney if a creditor notifies the collection agency within 5 days after receiving the notice that the creditor is withholding authorization for the account to be referred to an attorney. The notice requirement under this subsection may, in the alternative, be satisfied if the creditor signs the complaint that will be filed in the circuit court seeking judgment on the debt owed. A collection agency shall not take any action that in fact or in appearance interferes with the professional relationship between the attorney and the creditor. (b) Court costs expended by the agency or the creditor for filing a complaint are recoverable by the agency or the creditor if the principal on the debt is paid before the judgment is issued. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8b)(from Ch. 111, par. 2011b) (Section scheduled to be repealed on January 1, 2016) Sec. 8b. Assignment for collection. An account may be assigned to a collection agency for collection with title passing to the collection agency to enable collection of the account in the agency's name as assignee for the creditor provided: (a) The assignment is manifested by a written agreement, separate from and in addition to any document intended for the purpose of listing a debt with a collection agency. The document manifesting the assignment shall specifically state and include: (i) the effective date of the assignment; and (ii) the consideration for the assignment. (b) The consideration for the assignment may be paid or given either before or after the effective date of the assignment. The consideration may be contingent upon the settlement or outcome of litigation and if the claim being assigned has been listed with the collection agency as an account for collection, the consideration for assignment may be the same as the fee for collection. (c) All assignments shall be voluntary and properly executed and acknowledged by the corporate authority or individual transferring title to the collection agency before any action can be taken in the name of the collection agency. (d) No assignment shall be required by any agreement to list a debt with a collection agency as an account for collection. (e) No litigation shall commence in the name of the licensee as plaintiff unless: (i) there is an assignment of the account that satisfies the requirements of this Section and (ii) the licensee is represented by a licensed attorney at law. (f) If a collection agency takes assignments of accounts from 2 or more creditors against the same debtor and commences litigation against that debtor in a single action, in the name of the collection agency, then (i) the complaint must be stated in separate counts for each assignment and (ii) the debtor has an absolute right to have any count severed from the rest of the action. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8c)(from Ch. 111, par. 2011c) (Section scheduled to be repealed on January 1, 2016) Sec. 8c. (a) Each licensed agency office shall at all times maintain a separate bank account in which all monies received on claims shall be deposited, referred to as a "Trust Account", except that negotiable instruments received may be forwarded directly to a creditor if such procedure is provided for by a writing executed by the creditor. Monies received shall be so deposited within 5 business days after posting to the agency's books of account. There shall be sufficient funds in the trust account at all times to pay the creditors the amount due them. (b) The trust account shall be established in a bank, savings and loan association, or other recognized depository which is federally or State insured or otherwise secured as defined by rule. Such account may be interest bearing. The licensee shall pay to the creditor interest earned on funds on deposit after the sixtieth day. (c) Notwithstanding any contractual arrangement, every client of a licensee shall within 60 days after the close of each calendar month, account and pay to the licensee collection agency all sums owed to the collection agency for payments received by the client during that calendar month on claims in possession of the collection agency. If a client fails to pay the licensee any sum due under this Section, the licensee shall, in addition to other remedies provided by law, have the right to offset any money due the licensee under this Section against any moneys due the client. (d) Each collection agency shall keep on file the name of the bank, savings and loan association, or other recognized depository in which each trust account is maintained, the name of each trust account, and the names of the persons authorized to withdraw funds from each account. The collection agency, within 30 days of the time of a change of depository or person authorized to make withdrawal, shall update its files to reflect such change. An examination and audit of an agency's trust accounts may be made by the Department as the Department deems appropriate. A trust account financial report shall be submitted annually on forms provided by the Department. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/9)(from Ch. 111, par. 2012) (Section scheduled to be repealed on January 1, 2016) 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, for any one or any combination of the following causes: (1) Violations of this Act or of the rules
promulgated hereunder.
(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.
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(225 ILCS 425/1)(from Ch. 111, par. 2001) (Section scheduled to be repealed on January 1, 2016) Sec. 1. This Act shall be known and may be cited as the "Collection Agency Act". (Source: P.A. 78‑1248.)
(225 ILCS 425/1a)(from Ch. 111, par. 2001a) (Section scheduled to be repealed on January 1, 2016) Sec. 1a. Declaration of public policy. The practice as a collection agency by any entity in the State of Illinois is hereby declared to affect the public health, safety and welfare and to be subject to regulation and control in the public interest. It is further declared to be a matter of public interest and concern that the collection agency profession merit and receive the confidence of the public and that only qualified entities be permitted to practice as a collection agency in the State of Illinois. This Act shall be liberally construed to carry out these objects and purposes. It is further declared to be the public policy of this State to protect consumers against debt collection abuse. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/2)(from Ch. 111, par. 2002) (Section scheduled to be repealed on January 1, 2016) Sec. 2. Definitions. In this Act: "Consumer credit transaction" means a transaction between a natural person and another person in which property, service, or money is acquired on credit by that natural person from such other person primarily for personal, family, or household purposes. "Consumer debt" or "consumer credit" means money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a consumer credit transaction. "Creditor" means a person who extends consumer credit to a debtor. "Debt" means money, property, or their equivalent which is due or owing or alleged to be due or owing from a natural person to another person. "Debt collection" means any act or practice in connection with the collection of consumer debts. "Debt collector", "collection agency", or "agency" means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. "Debtor" means a natural person from whom a debt collector seeks to collect a consumer debt that is due and owing or alleged to be due and owing from such person. "Department" means Division of Professional Regulation within the Department of Financial and Professional Regulation. "Director" means the Director of the Division of Professional Regulation within the Department of Financial and Professional Regulation. "Person" means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity. (Source: P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.01) Sec. 2.01. (Repealed). (Source: P.A. 85‑1209. Repealed by P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.02) Sec. 2.02. (Repealed). (Source: P.A. 94‑414, eff. 12‑31‑05. Repealed by P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.03)(from Ch. 111, par. 2005) (Section scheduled to be repealed on January 1, 2016) Sec. 2.03. This Act does not apply to persons whose collection activities are confined to and are directly related to the operation of a business other than that of a collection agency, and specifically does not include the following: 1. Banks, including trust departments, affiliates,
and subsidiaries thereof, fiduciaries, and financing and lending institutions (except those who own or operate collection agencies);
2. Abstract companies doing an escrow business; 3. Real estate brokers when acting in the pursuit of
their profession;
4. Public officers and judicial officers acting
under order of a court;
5. Licensed attorneys at law; 6. Insurance companies; 7. Credit unions, including affiliates and
subsidiaries thereof;
8. Loan and finance companies; 9. Retail stores collecting their own accounts; 10. Unit Owner's Associations established under the
Condominium Property Act, and their duly authorized agents, when collecting assessments from unit owners; and
11. Any person or business under contract with a
creditor to notify the creditor's debtors of a debt using only the creditor's name.
(Source: P.A. 95‑437, eff. 1‑1‑08.)
(225 ILCS 425/2.04)(from Ch. 111, par. 2005.1) (Section scheduled to be repealed on January 1, 2016) Sec. 2.04. Child support indebtedness. (a) Persons, associations, partnerships, 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; 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/3)(from Ch. 111, par. 2006) (Section scheduled to be repealed on January 1, 2016) Sec. 3. A person, association, partnership, 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 indebtedness;
(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 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.
(225 ILCS 425/4)(from Ch. 111, par. 2007) (Section scheduled to be repealed on January 1, 2016) Sec. 4. No collection agency shall operate in this State, directly or indirectly engage in the business of collecting, solicit claims for others, have a sales office, a client, or solicit a client in this State, exercise the right to collect, or receive payment for another of any account, bill or other indebtedness, without registering under this Act except that no collection agency shall be required to be licensed or maintain an established business address in this State if the agency's activities in this State are limited to collecting debts from debtors located in this State by means of interstate communication, including telephone, mail, or facsimile transmission from the agency's location in another state provided they are licensed in that state and these same privileges are permitted in that licensed state to agencies licensed in Illinois. (Source: P.A. 88‑363; 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/4.5) (Section scheduled to be repealed on January 1, 2016) 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. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/5)(from Ch. 111, par. 2008) (Section scheduled to be repealed on January 1, 2016) 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; and
(3) such other information as the Department may deem
necessary.
(Source: P.A. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/6)(from Ch. 111, par. 2009) (Section scheduled to be repealed on January 1, 2016) Sec. 6. (a) If the Director determines that the applicant meets the qualifications for registration required by this Act, he or she shall issue a certificate of registration forthwith. Each application for a certificate shall be acted upon within 45 days of receipt of the application by the Department. If the application is deficient in form, the Director shall reject it and notify the applicant of the nature of the deficiency. Such rejection shall be without prejudice to the filing of a new application. If the Director finds that the applicant is not qualified under this Act, he shall reject the application and give the applicant written notice of such rejection and the reasons therefor. (b) The expiration date and renewal period for each certificate of registration issued under this Act shall be set by rule. The holder of a certificate of registration may renew such certificate during the month preceding the expiration date thereof by paying the required fee. (c) Upon application, accompanied by the initial fee and compliance with the financial bonding requirements herein set forth, the Director shall issue an original certificate to each entity required to have a certificate if the application is received by the Department within 60 days of the effective date of this Act. Any collection agency to whom an original license is issued under this subsection (c) must meet the requirements of Section 7 of this Act to be entitled to a renewal license. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/6a)(from Ch. 111, par. 2009a) (Section scheduled to be repealed on January 1, 2016) 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 terminated. (Source: P.A. 94‑414, eff. 12‑31‑05.)
(225 ILCS 425/7)(from Ch. 111, par. 2010) (Section scheduled to be repealed on January 1, 2016) Sec. 7. In order to be qualified to obtain a certificate or a renewal certificate under this Act, a collection agency's officers shall: (a) be of good moral character and of the age of 18 years or more; (b) have had at least one year experience working in the credit field or a related area, or be qualified for an original license under Section 6 (c) of this Act; (c) have an acceptable credit rating, have no unsatisfied judgments; and not have been officers of a former registrant under this Act whose certificates were suspended or revoked without subsequent reinstatement. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8)(from Ch. 111, par. 2011) (Section scheduled to be repealed on January 1, 2016) Sec. 8. Before issuing a certificate or renewing one, the Director shall require each collection agency to file and maintain in force a surety bond, issued by an insurance company authorized to transact fidelity and surety business in the State of Illinois. The bond shall be for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the agency to remit money collected on account and owed to the creditor. No action on the bond shall be commenced more than one year after the creditor obtains a judgment against the collection agency from a court of competent jurisdiction. The bond shall be in the form prescribed by the Director in the sum of $25,000. The bond shall be continuous in form and run concurrently with the original and each renewal license period unless terminated by the insurance company. An insurance company may terminate a bond and avoid further liability by filing a 60‑day notice of termination with the Department and at the same time sending the same notice to the agency. A certificate of registration shall be cancelled on the termination date of the agency's bond unless a new bond is filed with the Department to become effective at the termination date of the prior bond. If a certificate of registration has been cancelled under this Section, the agency must file a new application and will be considered a new applicant if it obtains a new bond. (Source: P.A. 84‑242.)
(225 ILCS 425/8a)(from Ch. 111, par. 2011a) (Section scheduled to be repealed on January 1, 2016) Sec. 8a. Fees. The Department shall provide by rule for a schedule of fees for the administration and enforcement of this Act, including but not limited to original licensure, renewal, and restoration. The fees shall be nonrefundable. All fees collected under this Act shall be deposited into the General Professions Dedicated Fund and shall be appropriated to the Department for the ordinary and contingent expenses of the Department in the administration of this Act. (Source: P.A. 91‑454, eff. 1‑1‑00.)
(225 ILCS 425/8a‑1)(from Ch. 111, par. 2011a‑1) (Section scheduled to be repealed on January 1, 2016) Sec. 8a‑1. (a) No account may be referred by a collection agency to an attorney unless, prior to placing an account with an attorney for further collection action, each account creditor is notified in writing by the collection agency of the collection agency's intent to refer the account to an attorney. The account may not be referred to an attorney if a creditor notifies the collection agency within 5 days after receiving the notice that the creditor is withholding authorization for the account to be referred to an attorney. The notice requirement under this subsection may, in the alternative, be satisfied if the creditor signs the complaint that will be filed in the circuit court seeking judgment on the debt owed. A collection agency shall not take any action that in fact or in appearance interferes with the professional relationship between the attorney and the creditor. (b) Court costs expended by the agency or the creditor for filing a complaint are recoverable by the agency or the creditor if the principal on the debt is paid before the judgment is issued. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8b)(from Ch. 111, par. 2011b) (Section scheduled to be repealed on January 1, 2016) Sec. 8b. Assignment for collection. An account may be assigned to a collection agency for collection with title passing to the collection agency to enable collection of the account in the agency's name as assignee for the creditor provided: (a) The assignment is manifested by a written agreement, separate from and in addition to any document intended for the purpose of listing a debt with a collection agency. The document manifesting the assignment shall specifically state and include: (i) the effective date of the assignment; and (ii) the consideration for the assignment. (b) The consideration for the assignment may be paid or given either before or after the effective date of the assignment. The consideration may be contingent upon the settlement or outcome of litigation and if the claim being assigned has been listed with the collection agency as an account for collection, the consideration for assignment may be the same as the fee for collection. (c) All assignments shall be voluntary and properly executed and acknowledged by the corporate authority or individual transferring title to the collection agency before any action can be taken in the name of the collection agency. (d) No assignment shall be required by any agreement to list a debt with a collection agency as an account for collection. (e) No litigation shall commence in the name of the licensee as plaintiff unless: (i) there is an assignment of the account that satisfies the requirements of this Section and (ii) the licensee is represented by a licensed attorney at law. (f) If a collection agency takes assignments of accounts from 2 or more creditors against the same debtor and commences litigation against that debtor in a single action, in the name of the collection agency, then (i) the complaint must be stated in separate counts for each assignment and (ii) the debtor has an absolute right to have any count severed from the rest of the action. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/8c)(from Ch. 111, par. 2011c) (Section scheduled to be repealed on January 1, 2016) Sec. 8c. (a) Each licensed agency office shall at all times maintain a separate bank account in which all monies received on claims shall be deposited, referred to as a "Trust Account", except that negotiable instruments received may be forwarded directly to a creditor if such procedure is provided for by a writing executed by the creditor. Monies received shall be so deposited within 5 business days after posting to the agency's books of account. There shall be sufficient funds in the trust account at all times to pay the creditors the amount due them. (b) The trust account shall be established in a bank, savings and loan association, or other recognized depository which is federally or State insured or otherwise secured as defined by rule. Such account may be interest bearing. The licensee shall pay to the creditor interest earned on funds on deposit after the sixtieth day. (c) Notwithstanding any contractual arrangement, every client of a licensee shall within 60 days after the close of each calendar month, account and pay to the licensee collection agency all sums owed to the collection agency for payments received by the client during that calendar month on claims in possession of the collection agency. If a client fails to pay the licensee any sum due under this Section, the licensee shall, in addition to other remedies provided by law, have the right to offset any money due the licensee under this Section against any moneys due the client. (d) Each collection agency shall keep on file the name of the bank, savings and loan association, or other recognized depository in which each trust account is maintained, the name of each trust account, and the names of the persons authorized to withdraw funds from each account. The collection agency, within 30 days of the time of a change of depository or person authorized to make withdrawal, shall update its files to reflect such change. An examination and audit of an agency's trust accounts may be made by the Department as the Department deems appropriate. A trust account financial report shall be submitted annually on forms provided by the Department. (Source: P.A. 89‑387, eff. 1‑1‑96.)
(225 ILCS 425/9)(from Ch. 111, par. 2012) (Section scheduled to be repealed on January 1, 2016) 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, for any one or any combination of the following causes: (1) Violations of this Act or of the rules
promulgated hereunder.
(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
