Public Act 094-0414
Public Act 0414 94TH GENERAL ASSEMBLY
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Public Act 094-0414
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| HB1177 Enrolled |
LRB094 05055 RAS 35091 b |
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| AN ACT concerning regulation.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Regulatory Sunset Act is amended by changing | Section 4.16 and by adding Section 4.26 as follows:
| (5 ILCS 80/4.16)
| Sec. 4.16. Acts repealed January 1, 2006. The following | Acts are repealed January 1, 2006:
| The Respiratory Care Practice Act.
| The Hearing Instrument Consumer Protection Act.
| The Illinois Dental Practice Act.
| The Professional Geologist Licensing Act.
| The Illinois Athletic Trainers Practice Act.
| The Barber, Cosmetology, Esthetics, and Nail Technology | Act of 1985.
| The Collection Agency Act.
| The Illinois Roofing Industry Licensing Act.
| The Illinois Physical Therapy Act.
| (Source: P.A. 89-33, eff. 1-1-96; 89-72, eff. 12-31-95; 89-80, | eff. 6-30-95;
89-116, eff. 7-7-95; 89-366, eff. 7-1-96; 89-387, | eff. 8-20-95; 89-626, eff.
8-9-96.)
| (5 ILCS 80/4.26 new)
| Sec. 4.26. Act repealed on January 1, 2016. The following | Act is repealed on January 1, 2016: | The Collection Agency Act.
| Section 10. The Collection Agency Act is amended by | changing Sections 2.02, 2.04, 3, 4.5, 5, 6a, and 9 as follows:
| (225 ILCS 425/2.02) (from Ch. 111, par. 2004)
| (Section scheduled to be repealed on January 1, 2006)
|
| Sec. 2.02. "Collection agency" or "agency" means any | person, association,
partnership, or corporation, or legal | entity who, for compensation, either contingent or
otherwise, | or for other valuable consideration, offers services to collect
| an alleged delinquent debt.
| (Source: P.A. 89-387, eff. 1-1-96.)
| (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| (Section scheduled to be repealed on January 1, 2006)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, | 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.
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| (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.
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| (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.)
| (225 ILCS 425/3) (from Ch. 111, par. 2006)
| (Section scheduled to be repealed on January 1, 2006)
| Sec. 3. A person, association, partnership,
or
| 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. 83-1539.)
| (225 ILCS 425/4.5)
| (Section scheduled to be repealed on January 1, 2006)
| 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. 89-474, eff. 6-18-96.)
| (225 ILCS 425/5) (from Ch. 111, par. 2008)
| (Section scheduled to be repealed on January 1, 2006)
| 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. 81-1381.)
| (225 ILCS 425/6a) (from Ch. 111, par. 2009a)
| (Section scheduled to be repealed on January 1, 2006)
| 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. 84-1299.)
| (225 ILCS 425/9) (from Ch. 111, par. 2012)
| (Section scheduled to be repealed on January 1, 2006)
| 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
| $1,000 per licensee per complaint, 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.
| (4) Habitual or excessive use or addiction to alcohol, | narcotics,
stimulants or any other chemical agent or drug | which results in the
inability to practice with reasonable | judgment, skill, or safety by any of
the principals of a | collection agency.
| (5) Discipline by another U.S. jurisdiction or foreign | nation, if at
least one of the grounds for the discipline | is the same or substantially
equivalent to those set forth | in this Act.
| (6) A finding by the Department that the licensee, | after having his
license placed on probationary status, has | violated the terms of probation.
| (7) Practicing or attempting to practice under a name | other than the
name as shown on his or her license or any |
| other legally authorized name.
| (8) A finding by the Federal Trade Commission that a | licensee violated
the Federal Fair Debt and Collection Act | or its rules.
| (9) Failure to file a return, or to pay the tax, | penalty or interest
shown in a filed return, or to pay any | final assessment of tax, penalty or
interest, as required | by any tax Act administered by the Illinois
Department of | Revenue until such time as the requirements of any such tax
| Act are satisfied.
| (10) Using or threatening to use force or violence to | cause physical
harm to a debtor, his family or his | property.
| (11) Threatening to instigate an arrest or criminal | prosecution where no
basis for a criminal complaint | lawfully exists.
| (12) Threatening the seizure, attachment or sale of a | debtor's property
where such action can only be taken | pursuant to court order without
disclosing that prior court | proceedings are required.
| (13) Disclosing or threatening to disclose information | adversely
affecting a debtor's reputation for credit | worthiness with knowledge the
information is false.
| (14) Initiating or threatening to initiate | communication with a debtor's
employer unless there has | been a default of the payment of the obligation
for at | least 30 days and at least 5 days prior written notice, to | the last
known address of the debtor, of the intention to | communicate with the
employer has been given to the | employee, except as expressly permitted by
law or court | order.
| (15) Communicating with the debtor or any member of the | debtor's family
at such a time of day or night and with | such frequency as to constitute
harassment of the debtor or | any member of the debtor's family. For
purposes of this | Section the following conduct shall constitute harassment:
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| (A) Communicating with the debtor or any member of | his or her family
in connection with the collection of | any debt without the prior consent of the
debtor given | directly to the debt collector, or the express | permission of a
court of competent jurisdiction, at any | unusual time or place or a time or
place known or which | should be known to be inconvenient to the debtor. In
| the absence of knowledge of circumstances to the | contrary, a debt collector
shall assume that the | convenient time for communicating with a consumer is
| after 8 o'clock a.m. and before 9 o'clock p.m. local | time at the debtor's
location.
| (B) The threat of publication or publication of a | list of consumers who
allegedly refuse to pay debts, | except to a consumer reporting agency.
| (C) The threat of advertisement or advertisement | for sale of any debt to
coerce payment of the debt.
| (D) Causing a telephone to ring or engaging any | person in telephone
conversation repeatedly or | continuously with intent to annoy, abuse, or
harass any | person at the called number.
| (16) Using profane, obscene or abusive language in | communicating with a
debtor, his or her family or others.
| (17) Disclosing or threatening to disclose information | relating to a
debtor's indebtedness to any other person | except where such other person has
a legitimate business | need for the information or except where such
disclosure is | regulated by law.
| (18) Disclosing or threatening to disclose information | concerning the
existence of a debt which the debt collector | knows to be reasonably
disputed by the debtor without | disclosing the fact that the debtor
disputes the debt.
| (19) Engaging in any conduct which the Director finds | was intended to
cause and did cause mental or physical | illness to the debtor or his
or her
family.
| (20) Attempting or threatening to enforce a right or |
| remedy with
knowledge or reason to know that the right or | remedy does not exist.
| (21) Failing to disclose to the debtor or his or her | family the
corporate, partnership or proprietary name, or | other trade or business name,
under
which the debt | collector is engaging in debt collections and which he or
| she is legally authorized to use.
| (22) Using any form of communication which simulates | legal or judicial
process or which gives the appearance of | being authorized, issued or
approved by a governmental | agency or official or by an attorney at law
when it is not.
| (23) Using any badge, uniform, or other indicia of any | governmental
agency or official except as authorized by | law.
| (24) Conducting business under any name or in any | manner which suggests
or implies that a debt collector is | bonded if such collector is or is a
branch of or is | affiliated with any governmental agency or court if such
| collector is not.
| (25) Failing to disclose, at the time of making any | demand for payment,
the name of the person to whom the | claim is owed and at the request of the
debtor, the address | where payment is to be made and the address of the
person | to whom the claim is owed.
| (26) Misrepresenting the amount of the claim or debt | alleged to be owed.
| (27) Representing that an existing debt may be | increased by the addition
of attorney's fees, | investigation fees or any other fees or charges when
such | fees or charges may not legally be added to the existing | debt.
| (28) Representing that the debt collector is an | attorney at law or an
agent for an attorney if he is not.
| (29) Collecting or attempting to collect any interest | or other charge or
fee in excess of the actual debt or | claim unless such interest or other
charge or fee is |
| expressly authorized by the agreement creating the debt or
| claim unless expressly authorized by law or unless in a | commercial
transaction such interest or other charge or fee | is expressly authorized in
a subsequent agreement. If a | contingency or hourly fee arrangement (i) is
established | under an agreement between a collection agency and a | creditor to
collect a debt and (ii) is paid by a debtor | pursuant to a contract between the
debtor and the creditor, | then that fee arrangement does not violate this
Section | unless the fee is unreasonable. The Department shall | determine what
constitutes a reasonable collection fee.
| (30) Communicating or threatening to communicate with | a debtor when the
debt collector is informed in writing by | an attorney that the attorney
represents the debtor | concerning the claim, unless authorized by the
attorney. If | the attorney fails to respond within a reasonable period of
| time, the collector may communicate with the debtor. The | collector may
communicate with the debtor when the attorney | gives his consent.
| (31) Engaging in dishonorable, unethical, or | unprofessional conduct of a
character likely to deceive, | defraud, or harm the public.
| (b) The Department shall deny any license or renewal | authorized by this
Act to any person who has defaulted on an | educational loan guaranteed by
the Illinois State Scholarship | Commission; however, the Department may
issue a license or | renewal if the person in default has established a
satisfactory | repayment record as determined by the Illinois State
| Scholarship Commission.
| No debt collector while collecting or attempting to collect | a debt shall
engage in any of the Acts specified in this | Section, each of which shall
be unlawful practice.
| (Source: P.A. 91-768, eff. 1-1-01.)
| Section 99. Effective date. This Act takes effect December | 31, 2005.
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Effective Date: 12/31/2005
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