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| Public Act 093-0896 |
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AN ACT concerning professional regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Collection Agency Act is amended by changing | ||||
Section 2.04 as follows:
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(225 ILCS 425/2.04) (from Ch. 111, par. 2005.1)
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(Section scheduled to be repealed on January 1, 2006)
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Sec. 2.04. Child support indebtedness.
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(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,
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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,
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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
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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,
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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.
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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.
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(Source: P.A. 90-673, eff. 1-1-99; 91-613, eff. 10-1-99.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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