Public Act 095-0437
 
SB1398 Enrolled LRB095 08474 RAS 28653 b

    AN ACT concerning 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
Sections 2, 2.03, and 3 and by adding Sections 9.1, 9.2, 9.3,
9.4, and 9.7 as follows:
 
    (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    (Section scheduled to be repealed on January 1, 2016)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. Unless the context
clearly requires otherwise, the following terms have the
meanings ascribed to them in Sections 2.01 through 2.02.
(Source: P.A. 78-1248.)
 
    (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    (Section scheduled to be repealed on January 1, 2016)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. 89-387, eff. 1-1-96.)
 
    (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 with
    recourse and engages in collecting the same; or
        (e) Uses a fictitious name in collecting its own
    accounts, bills, or debts with the intention of conveying
    to the debtor that a third party has been employed to make
    such collection.
(Source: P.A. 94-414, eff. 12-31-05.)
 
    (225 ILCS 425/9.1 new)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 9.1. Communication with persons other than debtor.
    (a) Any debt collector or collection agency communicating
with any person other than the debtor for the purpose of
acquiring location information about the debtor shall:
        (1) identify himself or herself, state that he or she
    is confirming or correcting location information
    concerning the consumer, and, only if expressly requested,
    identify his or her employer;
        (2) not state that the consumer owes any debt;
        (3) not communicate with any person more than once
    unless requested to do so by the person or unless the debt
    collector or collection agency reasonably believes that
    the earlier response of the person is erroneous or
    incomplete and that the person now has correct or complete
    location information;
        (4) not communicate by postcard;
        (5) not use any language or symbol on any envelope or
    in the contents of any communication effected by mail or
    telegram that indicates that the debt collector or
    collection agency is in the debt collection business or
    that the communication relates to the collection of a debt;
    and
        (6) after the debt collector or collection agency knows
    the debtor is represented by an attorney with regard to the
    subject debt and has knowledge of or can readily ascertain
    the attorney's name and address, not communicate with any
    person other than the attorney, unless the attorney fails
    to respond within a reasonable period of time, not less
    than 30 days, to communication from the debt collector or
    collection agency.
 
    (225 ILCS 425/9.2 new)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 9.2. Communication in connection with debt
collection.
    (a) Without the prior consent of the debtor given directly
to the debt collector or collection agency or the express
permission of a court of competent jurisdiction, a debt
collector or collection agency may not communicate with a
debtor in connection with the collection of any debt in any of
the following circumstances:
        (1) At any unusual time, place, or manner that is known
    or should be known to be inconvenient to the debtor. In the
    absence of knowledge of circumstances to the contrary, a
    debt collector or collection agency shall assume that the
    convenient time for communicating with a debtor is after 8
    o'clock a.m. and before 9 o'clock p.m. local time at the
    debtor's location.
        (2) If the debt collector or collection agency knows
    the debtor is represented by an attorney with respect to
    such debt and has knowledge of or can readily ascertain,
    the attorney's name and address, unless the attorney fails
    to respond within a reasonable period of time to a
    communication from the debt collector or collection agency
    or unless the attorney consents to direct communication
    with the debtor.
        (3) At the debtor's place of employment, if the debt
    collector or collection agency knows or has reason to know
    that the debtor's employer prohibits the debtor from
    receiving such communication.
    (b) Except as provided in Section 9.1 of this Act, without
the prior consent of the debtor given directly to the debt
collector or collection agency or the express permission of a
court of competent jurisdiction or as reasonably necessary to
effectuate a post judgment judicial remedy, a debt collector or
collection agency may not communicate, in connection with the
collection of any debt, with any person other than the debtor,
the debtor's attorney, a consumer reporting agency if otherwise
permitted by law, the creditor, the attorney of the creditor,
or the attorney of the collection agency.
    (c) If a debtor notifies a debt collector or collection
agency in writing that the debtor refuses to pay a debt or that
the debtor wishes the debt collector or collection agency to
cease further communication with the debtor, the debt collector
or collection agency may not communicate further with the
debtor with respect to such debt, except to perform any of the
following tasks:
        (1) Advise the debtor that the debt collector's or
    collection agency's further efforts are being terminated.
        (2) Notify the debtor that the collection agency or
    creditor may invoke specified remedies that are ordinarily
    invoked by such collection agency or creditor.
        (3) Notify the debtor that the collection agency or
    creditor intends to invoke a specified remedy.
    If such notice from the debtor is made by mail,
notification shall be complete upon receipt. (d) For the
purposes of this Section, "debtor" includes the debtor's
spouse, parent (if the debtor is a minor), guardian, executor,
or administrator.
 
    (225 ILCS 425/9.3 new)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 9.3. Validation of debts.
    (a) Within 5 days after the initial communication with a
debtor in connection with the collection of any debt, a debt
collector or collection agency shall, unless the following
information is contained in the initial communication or the
debtor has paid the debt, send the debtor a written notice with
each of the following disclosures:
        (1) The amount of the debt.
        (2) The name of the creditor to whom the debt is owed.
        (3) That, unless the debtor, within 30 days after
    receipt of the notice, disputes the validity of the debt,
    or any portion thereof, the debt will be assumed to be
    valid by the debt collector or collection agency.
        (4) That, if the debtor notifies the debt collector or
    collection agency in writing within the 30-day period that
    the debt, or any portion thereof, is disputed, the debt
    collector or collection agency will obtain verification of
    the debt or a copy of a judgment against the debtor and a
    copy of the verification or judgment will be mailed to the
    debtor by the debt collector or collection agency.
        (5) That upon the debtor's written request within the
    30-day period, the debt collector or collection agency will
    provide the debtor with the name and address of the
    original creditor, if different from the current creditor.
    If the disclosures required under this subsection (a) are
    placed on the back of the notice, the front of the notice
    shall contain a statement notifying debtors of that fact.
    (b) If the debtor notifies the debt collector or collection
agency in writing within the 30-day period set forth in
paragraph (3) of subsection (a) of this Section that the debt,
or any portion thereof, is disputed or that the debtor requests
the name and address of the original creditor, the debt
collector or collection agency shall cease collection of the
debt, or any disputed portion thereof, until the debt collector
or collection agency obtains verification of the debt or a copy
of a judgment or the name and address of the original creditor
and mails a copy of the verification or judgment or name and
address of the original creditor to the debtor.
    (c) The failure of a debtor to dispute the validity of a
debt under this Section shall not be construed by any court as
an admission of liability by the debtor.
 
    (225 ILCS 425/9.4 new)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 9.4. Debt collection as a result of identity theft.
    (a) Upon receipt from a debtor of all of the following
information, a debt collector or collection agency must cease
collection activities until completion of the review provided
in subsection (d) of this Section:
        (1) A copy of a police report filed by the debtor
    alleging that the debtor is the victim of an identity theft
    crime for the specific debt being collected by the debt
    collector.
        (2) The debtor's written statement that the debtor
    claims to be the victim of identity theft with respect to
    the specific debt being collected by the debt collector,
    including (i) a Federal Trade Commission's Affidavit of
    Identity Theft, (ii) an Illinois Attorney General ID Theft
    Affidavit, or (iii) a written statement that certifies that
    the representations are true, correct, and contain no
    material omissions of fact to the best knowledge and belief
    of the person submitting the certification. This written
    statement must contain or be accompanied by, each of the
    following, to the extent that an item listed below is
    relevant to the debtor's allegation of identity theft with
    respect to the debt in question:
            (A) A statement that the debtor is a victim of
        identity theft.
            (B) A copy of the debtor's driver's license or
        identification card, as issued by this State.
            (C) Any other identification document that
        supports the statement of identity theft.
            (D) Specific facts supporting the claim of
        identity theft, if available.
            (E) Any explanation showing that the debtor did not
        incur the debt.
            (F) Any available correspondence disputing the
        debt after transaction information has been provided
        to the debtor.
            (G) Documentation of the residence of the debtor at
        the time of the alleged debt, which may include copies
        of bills and statements, such as utility bills, tax
        statements, or other statements from businesses sent
        to the debtor and showing that the debtor lived at
        another residence at the time the debt was incurred.
            (H) A telephone number for contacting the debtor
        concerning any additional information or questions or
        direction that further communications to the debtor be
        in writing only, with the mailing address specified in
        the statement.
            (I) To the extent the debtor has information
        concerning who may have incurred the debt, the
        identification of any person whom the debtor believes
        is responsible.
            (J) An express statement that the debtor did not
        authorize the use of the debtor's name or personal
        information for incurring the debt.
    (b) A written certification submitted pursuant to item
(iii) of paragraph (2) of subsection (a) of this Section shall
be sufficient if it is in substantially the following form:
    "I certify that the representations made are true, correct,
    and contain no material omissions of fact known to me.
 
            (Signature)
 
            (Date)"
 
    (c) If a debtor notifies a debt collector or collection
agency orally that he or she is a victim of identity theft, the
debt collector or collection agency shall notify the debtor
orally or in writing, that the debtor's claim must be in
writing. If a debtor notifies a debt collector or collection
agency in writing that he or she is a victim of identity theft,
but omits information required pursuant to this Section, if the
debt collector or collection agency does not cease collection
activities, the debt collector or collection agency must
provide written notice to the debtor of the additional
information that is required or send the debtor a copy of the
Federal Trade Commission's Affidavit of Identity Theft form.
    (d) Upon receipt of the complete statement and information
described in subsection (a) of this Section, the debt collector
shall review and consider all of the information provided by
the debtor and other information available to the debt
collector or collection agency in its file or from the
creditor. The debt collector or collection agency may
recommence debt collection activities only upon making a good
faith determination that the information does not establish
that the debtor is not responsible for the specific debt in
question. The debt collector or collection agency must notify
the consumer in writing of that determination and the basis for
that determination before proceeding with any further
collection activities. The debt collector's or collection
agency's determination shall be based on all of the information
provided by the debtor and other information available to the
debt collector or collection agency in its file or from the
creditor.
    (e) No inference or presumption that the debt is valid or
invalid or that the debtor is liable or not liable for the debt
may arise if the debt collector or collection agency decides
after the review described in subsection (d) to cease or
recommence the debt collection activities. The exercise or
non-exercise of rights under this Section is not a waiver of
any other right or defense of the debtor or debt collector.
    (f) A debt collector or collection agency that (i) ceases
collection activities under this Section, (ii) does not
recommence those collection activities, and (iii) furnishes
adverse information to a consumer credit reporting agency, must
notify the consumer credit reporting agency to delete that
adverse information.
 
    (225 ILCS 425/9.7 new)
    Sec. 9.7. Enforcement under the Consumer Fraud and
Deceptive Business Practices Act. The Attorney General may
enforce the knowing violation of Section 9 (except for items
(1) through (9) and (19) of subsection (a)), 9.1, 9.2, 9.3, or
9.4 of this Act as an unlawful practice under the Consumer
Fraud and Deceptive Business Practices Act.
 
    (225 ILCS 425/2.01 rep.)
    (225 ILCS 425/2.02 rep.)
    Section 10. The Collection Agency Act is amended by
repealing Sections 2.01 and 2.02.
 
    Section 99. Effective date. This Act takes effect January
1, 2008.