SB1398 Enrolled LRB095 08474 RAS 28653 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Collection Agency Act is amended by changing
5 Sections 2, 2.03, and 3 and by adding Sections 9.1, 9.2, 9.3,
6 9.4, and 9.7 as follows:
 
7     (225 ILCS 425/2)  (from Ch. 111, par. 2002)
8     (Section scheduled to be repealed on January 1, 2016)
9     Sec. 2. Definitions. In this Act:
10     "Consumer credit transaction" means a transaction between
11 a natural person and another person in which property, service,
12 or money is acquired on credit by that natural person from such
13 other person primarily for personal, family, or household
14 purposes.
15     "Consumer debt" or "consumer credit" means money,
16 property, or their equivalent, due or owing or alleged to be
17 due or owing from a natural person by reason of a consumer
18 credit transaction.
19     "Creditor" means a person who extends consumer credit to a
20 debtor.
21     "Debt" means money, property, or their equivalent which is
22 due or owing or alleged to be due or owing from a natural
23 person to another person.

 

 

SB1398 Enrolled - 2 - LRB095 08474 RAS 28653 b

1     "Debt collection" means any act or practice in connection
2 with the collection of consumer debts.
3     "Debt collector", "collection agency", or "agency" means
4 any person who, in the ordinary course of business, regularly,
5 on behalf of himself or herself or others, engages in debt
6 collection.
7     "Debtor" means a natural person from whom a debt collector
8 seeks to collect a consumer debt that is due and owing or
9 alleged to be due and owing from such person.
10     "Department" means Division of Professional Regulation
11 within the Department of Financial and Professional
12 Regulation.
13     "Director" means the Director of the Division of
14 Professional Regulation within the Department of Financial and
15 Professional Regulation.
16     "Person" means a natural person, partnership, corporation,
17 limited liability company, trust, estate, cooperative,
18 association, or other similar entity. Unless the context
19 clearly requires otherwise, the following terms have the
20 meanings ascribed to them in Sections 2.01 through 2.02.
21 (Source: P.A. 78-1248.)
 
22     (225 ILCS 425/2.03)  (from Ch. 111, par. 2005)
23     (Section scheduled to be repealed on January 1, 2016)
24     Sec. 2.03. This Act does not apply to persons whose
25 collection activities are confined to and are directly related

 

 

SB1398 Enrolled - 3 - LRB095 08474 RAS 28653 b

1 to the operation of a business other than that of a collection
2 agency, and specifically does not include the following:
3         1. Banks, including trust departments, affiliates, and
4     subsidiaries thereof, fiduciaries, and financing and
5     lending institutions (except those who own or operate
6     collection agencies);
7         2. Abstract companies doing an escrow business;
8         3. Real estate brokers when acting in the pursuit of
9     their profession;
10         4. Public officers and judicial officers acting under
11     order of a court;
12         5. Licensed attorneys at law;
13         6. Insurance companies;
14         7. Credit unions, including affiliates and
15     subsidiaries thereof;
16         8. Loan and finance companies;
17         9. Retail stores collecting their own accounts;
18         10. Unit Owner's Associations established under the
19     Condominium Property Act, and their duly authorized
20     agents, when collecting assessments from unit owners; and
21         11. Any person or business under contract with a
22     creditor to notify the creditor's debtors of a debt using
23     only the creditor's name.
24 (Source: P.A. 89-387, eff. 1-1-96.)
 
25     (225 ILCS 425/3)  (from Ch. 111, par. 2006)

 

 

SB1398 Enrolled - 4 - LRB095 08474 RAS 28653 b

1     (Section scheduled to be repealed on January 1, 2016)
2     Sec. 3. A person, association, partnership, corporation,
3 or other legal entity acts as a collection agency when he or
4 it:
5         (a) Engages in the business of collection for others of
6     any account, bill or other indebtedness;
7         (b) Receives, by assignment or otherwise, accounts,
8     bills, or other indebtedness from any person owning or
9     controlling 20% or more of the business receiving the
10     assignment, with the purpose of collecting monies due on
11     such account, bill or other indebtedness;
12         (c) Sells or attempts to sell, or gives away or
13     attempts to give away to any other person, other than one
14     registered under this Act, any system of collection,
15     letters, demand forms, or other printed matter where the
16     name of any person, other than that of the creditor,
17     appears in such a manner as to indicate, directly or
18     indirectly, that a request or demand is being made by any
19     person other than the creditor for the payment of the sum
20     or sums due or asserted to be due;
21         (d) Buys accounts, bills or other indebtedness with
22     recourse and engages in collecting the same; or
23         (e) Uses a fictitious name in collecting its own
24     accounts, bills, or debts with the intention of conveying
25     to the debtor that a third party has been employed to make
26     such collection.

 

 

SB1398 Enrolled - 5 - LRB095 08474 RAS 28653 b

1 (Source: P.A. 94-414, eff. 12-31-05.)
 
2     (225 ILCS 425/9.1 new)
3     (Section scheduled to be repealed on January 1, 2016)
4     Sec. 9.1. Communication with persons other than debtor.
5     (a) Any debt collector or collection agency communicating
6 with any person other than the debtor for the purpose of
7 acquiring location information about the debtor shall:
8         (1) identify himself or herself, state that he or she
9     is confirming or correcting location information
10     concerning the consumer, and, only if expressly requested,
11     identify his or her employer;
12         (2) not state that the consumer owes any debt;
13         (3) not communicate with any person more than once
14     unless requested to do so by the person or unless the debt
15     collector or collection agency reasonably believes that
16     the earlier response of the person is erroneous or
17     incomplete and that the person now has correct or complete
18     location information;
19         (4) not communicate by postcard;
20         (5) not use any language or symbol on any envelope or
21     in the contents of any communication effected by mail or
22     telegram that indicates that the debt collector or
23     collection agency is in the debt collection business or
24     that the communication relates to the collection of a debt;
25     and

 

 

SB1398 Enrolled - 6 - LRB095 08474 RAS 28653 b

1         (6) after the debt collector or collection agency knows
2     the debtor is represented by an attorney with regard to the
3     subject debt and has knowledge of or can readily ascertain
4     the attorney's name and address, not communicate with any
5     person other than the attorney, unless the attorney fails
6     to respond within a reasonable period of time, not less
7     than 30 days, to communication from the debt collector or
8     collection agency.
 
9     (225 ILCS 425/9.2 new)
10     (Section scheduled to be repealed on January 1, 2016)
11     Sec. 9.2. Communication in connection with debt
12 collection.
13     (a) Without the prior consent of the debtor given directly
14 to the debt collector or collection agency or the express
15 permission of a court of competent jurisdiction, a debt
16 collector or collection agency may not communicate with a
17 debtor in connection with the collection of any debt in any of
18 the following circumstances:
19         (1) At any unusual time, place, or manner that is known
20     or should be known to be inconvenient to the debtor. In the
21     absence of knowledge of circumstances to the contrary, a
22     debt collector or collection agency shall assume that the
23     convenient time for communicating with a debtor is after 8
24     o'clock a.m. and before 9 o'clock p.m. local time at the
25     debtor's location.

 

 

SB1398 Enrolled - 7 - LRB095 08474 RAS 28653 b

1         (2) If the debt collector or collection agency knows
2     the debtor is represented by an attorney with respect to
3     such debt and has knowledge of or can readily ascertain,
4     the attorney's name and address, unless the attorney fails
5     to respond within a reasonable period of time to a
6     communication from the debt collector or collection agency
7     or unless the attorney consents to direct communication
8     with the debtor.
9         (3) At the debtor's place of employment, if the debt
10     collector or collection agency knows or has reason to know
11     that the debtor's employer prohibits the debtor from
12     receiving such communication.
13     (b) Except as provided in Section 9.1 of this Act, without
14 the prior consent of the debtor given directly to the debt
15 collector or collection agency or the express permission of a
16 court of competent jurisdiction or as reasonably necessary to
17 effectuate a post judgment judicial remedy, a debt collector or
18 collection agency may not communicate, in connection with the
19 collection of any debt, with any person other than the debtor,
20 the debtor's attorney, a consumer reporting agency if otherwise
21 permitted by law, the creditor, the attorney of the creditor,
22 or the attorney of the collection agency.
23     (c) If a debtor notifies a debt collector or collection
24 agency in writing that the debtor refuses to pay a debt or that
25 the debtor wishes the debt collector or collection agency to
26 cease further communication with the debtor, the debt collector

 

 

SB1398 Enrolled - 8 - LRB095 08474 RAS 28653 b

1 or collection agency may not communicate further with the
2 debtor with respect to such debt, except to perform any of the
3 following tasks:
4         (1) Advise the debtor that the debt collector's or
5     collection agency's further efforts are being terminated.
6         (2) Notify the debtor that the collection agency or
7     creditor may invoke specified remedies that are ordinarily
8     invoked by such collection agency or creditor.
9         (3) Notify the debtor that the collection agency or
10     creditor intends to invoke a specified remedy.
11     If such notice from the debtor is made by mail,
12 notification shall be complete upon receipt. (d) For the
13 purposes of this Section, "debtor" includes the debtor's
14 spouse, parent (if the debtor is a minor), guardian, executor,
15 or administrator.
 
16     (225 ILCS 425/9.3 new)
17     (Section scheduled to be repealed on January 1, 2016)
18     Sec. 9.3. Validation of debts.
19     (a) Within 5 days after the initial communication with a
20 debtor in connection with the collection of any debt, a debt
21 collector or collection agency shall, unless the following
22 information is contained in the initial communication or the
23 debtor has paid the debt, send the debtor a written notice with
24 each of the following disclosures:
25         (1) The amount of the debt.

 

 

SB1398 Enrolled - 9 - LRB095 08474 RAS 28653 b

1         (2) The name of the creditor to whom the debt is owed.
2         (3) That, unless the debtor, within 30 days after
3     receipt of the notice, disputes the validity of the debt,
4     or any portion thereof, the debt will be assumed to be
5     valid by the debt collector or collection agency.
6         (4) That, if the debtor notifies the debt collector or
7     collection agency in writing within the 30-day period that
8     the debt, or any portion thereof, is disputed, the debt
9     collector or collection agency will obtain verification of
10     the debt or a copy of a judgment against the debtor and a
11     copy of the verification or judgment will be mailed to the
12     debtor by the debt collector or collection agency.
13         (5) That upon the debtor's written request within the
14     30-day period, the debt collector or collection agency will
15     provide the debtor with the name and address of the
16     original creditor, if different from the current creditor.
17     If the disclosures required under this subsection (a) are
18     placed on the back of the notice, the front of the notice
19     shall contain a statement notifying debtors of that fact.
20     (b) If the debtor notifies the debt collector or collection
21 agency in writing within the 30-day period set forth in
22 paragraph (3) of subsection (a) of this Section that the debt,
23 or any portion thereof, is disputed or that the debtor requests
24 the name and address of the original creditor, the debt
25 collector or collection agency shall cease collection of the
26 debt, or any disputed portion thereof, until the debt collector

 

 

SB1398 Enrolled - 10 - LRB095 08474 RAS 28653 b

1 or collection agency obtains verification of the debt or a copy
2 of a judgment or the name and address of the original creditor
3 and mails a copy of the verification or judgment or name and
4 address of the original creditor to the debtor.
5     (c) The failure of a debtor to dispute the validity of a
6 debt under this Section shall not be construed by any court as
7 an admission of liability by the debtor.
 
8     (225 ILCS 425/9.4 new)
9     (Section scheduled to be repealed on January 1, 2016)
10     Sec. 9.4. Debt collection as a result of identity theft.
11     (a) Upon receipt from a debtor of all of the following
12 information, a debt collector or collection agency must cease
13 collection activities until completion of the review provided
14 in subsection (d) of this Section:
15         (1) A copy of a police report filed by the debtor
16     alleging that the debtor is the victim of an identity theft
17     crime for the specific debt being collected by the debt
18     collector.
19         (2) The debtor's written statement that the debtor
20     claims to be the victim of identity theft with respect to
21     the specific debt being collected by the debt collector,
22     including (i) a Federal Trade Commission's Affidavit of
23     Identity Theft, (ii) an Illinois Attorney General ID Theft
24     Affidavit, or (iii) a written statement that certifies that
25     the representations are true, correct, and contain no

 

 

SB1398 Enrolled - 11 - LRB095 08474 RAS 28653 b

1     material omissions of fact to the best knowledge and belief
2     of the person submitting the certification. This written
3     statement must contain or be accompanied by, each of the
4     following, to the extent that an item listed below is
5     relevant to the debtor's allegation of identity theft with
6     respect to the debt in question:
7             (A) A statement that the debtor is a victim of
8         identity theft.
9             (B) A copy of the debtor's driver's license or
10         identification card, as issued by this State.
11             (C) Any other identification document that
12         supports the statement of identity theft.
13             (D) Specific facts supporting the claim of
14         identity theft, if available.
15             (E) Any explanation showing that the debtor did not
16         incur the debt.
17             (F) Any available correspondence disputing the
18         debt after transaction information has been provided
19         to the debtor.
20             (G) Documentation of the residence of the debtor at
21         the time of the alleged debt, which may include copies
22         of bills and statements, such as utility bills, tax
23         statements, or other statements from businesses sent
24         to the debtor and showing that the debtor lived at
25         another residence at the time the debt was incurred.
26             (H) A telephone number for contacting the debtor

 

 

SB1398 Enrolled - 12 - LRB095 08474 RAS 28653 b

1         concerning any additional information or questions or
2         direction that further communications to the debtor be
3         in writing only, with the mailing address specified in
4         the statement.
5             (I) To the extent the debtor has information
6         concerning who may have incurred the debt, the
7         identification of any person whom the debtor believes
8         is responsible.
9             (J) An express statement that the debtor did not
10         authorize the use of the debtor's name or personal
11         information for incurring the debt.
12     (b) A written certification submitted pursuant to item
13 (iii) of paragraph (2) of subsection (a) of this Section shall
14 be sufficient if it is in substantially the following form:
15     "I certify that the representations made are true, correct,
16     and contain no material omissions of fact known to me.
 
17             (Signature)
 
18             (Date)"
 
19     (c) If a debtor notifies a debt collector or collection
20 agency orally that he or she is a victim of identity theft, the
21 debt collector or collection agency shall notify the debtor
22 orally or in writing, that the debtor's claim must be in
23 writing. If a debtor notifies a debt collector or collection

 

 

SB1398 Enrolled - 13 - LRB095 08474 RAS 28653 b

1 agency in writing that he or she is a victim of identity theft,
2 but omits information required pursuant to this Section, if the
3 debt collector or collection agency does not cease collection
4 activities, the debt collector or collection agency must
5 provide written notice to the debtor of the additional
6 information that is required or send the debtor a copy of the
7 Federal Trade Commission's Affidavit of Identity Theft form.
8     (d) Upon receipt of the complete statement and information
9 described in subsection (a) of this Section, the debt collector
10 shall review and consider all of the information provided by
11 the debtor and other information available to the debt
12 collector or collection agency in its file or from the
13 creditor. The debt collector or collection agency may
14 recommence debt collection activities only upon making a good
15 faith determination that the information does not establish
16 that the debtor is not responsible for the specific debt in
17 question. The debt collector or collection agency must notify
18 the consumer in writing of that determination and the basis for
19 that determination before proceeding with any further
20 collection activities. The debt collector's or collection
21 agency's determination shall be based on all of the information
22 provided by the debtor and other information available to the
23 debt collector or collection agency in its file or from the
24 creditor.
25     (e) No inference or presumption that the debt is valid or
26 invalid or that the debtor is liable or not liable for the debt

 

 

SB1398 Enrolled - 14 - LRB095 08474 RAS 28653 b

1 may arise if the debt collector or collection agency decides
2 after the review described in subsection (d) to cease or
3 recommence the debt collection activities. The exercise or
4 non-exercise of rights under this Section is not a waiver of
5 any other right or defense of the debtor or debt collector.
6     (f) A debt collector or collection agency that (i) ceases
7 collection activities under this Section, (ii) does not
8 recommence those collection activities, and (iii) furnishes
9 adverse information to a consumer credit reporting agency, must
10 notify the consumer credit reporting agency to delete that
11 adverse information.
 
12     (225 ILCS 425/9.7 new)
13     Sec. 9.7. Enforcement under the Consumer Fraud and
14 Deceptive Business Practices Act. The Attorney General may
15 enforce the knowing violation of Section 9 (except for items
16 (1) through (9) and (19) of subsection (a)), 9.1, 9.2, 9.3, or
17 9.4 of this Act as an unlawful practice under the Consumer
18 Fraud and Deceptive Business Practices Act.
 
19     (225 ILCS 425/2.01 rep.)
20     (225 ILCS 425/2.02 rep.)
21     Section 10. The Collection Agency Act is amended by
22 repealing Sections 2.01 and 2.02.
 
23     Section 99. Effective date. This Act takes effect January
24 1, 2008.