Public Act 093-0896

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Public Act 093-0896

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Public Act 0896 93RD GENERAL ASSEMBLY 







 

 		


Public Act 093-0896
 		





HB4393 Enrolled
LRB093 17919 AMC 43602 b






    AN ACT concerning professional regulation.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Collection Agency Act is amended  by changing 
Section 2.04 as follows:
 



    (225 ILCS 425/2.04)  (from Ch. 111, par. 2005.1)



    (Section scheduled to be repealed on January 1, 2006)

    Sec. 2.04. Child support indebtedness. 

    (a) Persons, associations, partnerships, or corporations 
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. 90-673, eff. 1-1-99; 91-613, eff. 10-1-99.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.






                                        
                                    

                                

                            

                        

                    

                

            

            

                

                    Effective Date: 8/10/2004