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| Public Act 097-1070 | ||||
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AN ACT concerning 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 and by adding Sections 8.5 and 8.6 as follows:
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(225 ILCS 425/2) (from Ch. 111, par. 2002)
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(Section scheduled to be repealed on January 1, 2016)
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Sec. 2. Definitions. In this Act:
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"Charge-off balance" means an account principal and other | ||||
legally collectible costs, expenses, and interest accrued | ||||
prior to the charge-off date, less any payments or settlement. | ||||
"Charge-off date" means the date on which a receivable is | ||||
treated as a loss or expense. | ||||
"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. | ||
"Current balance" means the charge-off balance plus any | ||
legally collectible costs, expenses, and interest, less any | ||
credits or payments. | ||
"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 buyer" means a person or entity that is engaged in | ||
the business of purchasing delinquent or charged-off consumer | ||
loans or consumer credit accounts or other delinquent consumer | ||
debt for collection purposes, whether it collects the debt | ||
itself or hires a third-party for collection or an | ||
attorney-at-law for litigation in order to collect such debt. | ||
"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.
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(Source: P.A. 95-437, eff. 1-1-08.)
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(225 ILCS 425/8.5 new) | ||
Sec. 8.5. Debt buyers. A debt buyer shall be subject to all | ||
of the terms, conditions, and requirements of this Act, except | ||
as otherwise provided for in subsection (b) of Section 8.6 of | ||
this Act. | ||
(225 ILCS 425/8.6 new) | ||
Sec. 8.6. Debt buyer activities. | ||
(a) Debt buyers initiating actions upon an obligation | ||
arising out of a consumer debt shall be commenced within the | ||
applicable statute of limitations period. | ||
(b) With respect to its activities as a debt buyer in | ||
pursuing the collection of accounts it owns, a debt buyer shall | ||
be subject to all of the terms, conditions, and requirements of | ||
this Act, except that a debt buyer shall not be required to (i) | ||
file and maintain in force a surety bond under Section 8 of | ||
this Act; (ii) maintain a trust account under Section 8c of | ||
this Act; (iii) procure written authorization to refer the | ||
account to an attorney for suit under Section 8a-1 of this Act; | ||
or (iv) adhere to the assignment for collection criteria under | ||
Section 8b of this Act. | ||
(c) The Attorney General may enforce against debt buyers | ||
the provisions identified in Section 9.7 of this Act as an | ||
unlawful practice under the Consumer Fraud and Deceptive | ||
Business Practices Act.
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Section 99. Effective date. This Act takes effect January | ||
1, 2013.
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