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Public Act 91-0768
HB3046 Enrolled LRB9109389ACtm
AN ACT to amend the Collection Agency Act by changing
Section 9.
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 Section 9 as follows:
(225 ILCS 425/9) (from Ch. 111, par. 2012)
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 $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:
(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. 89-387, eff. 1-1-96.)
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