Illinois 2023-2024 Regular Session

Illinois House Bill HB2491 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2491 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 205 ILCS 740/9 was 225 ILCS 425/9 Amends the Collection Agency Act. In provisions concerning disciplinary actions by the Department of Financial and Professional Regulation, provides that nothing shall prevent a debtor from choosing to make a payment that includes a transaction fee paid by the debtor if the transaction complies with specified conditions. LRB103 28451 BMS 54831 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2491 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 205 ILCS 740/9 was 225 ILCS 425/9 205 ILCS 740/9 was 225 ILCS 425/9 Amends the Collection Agency Act. In provisions concerning disciplinary actions by the Department of Financial and Professional Regulation, provides that nothing shall prevent a debtor from choosing to make a payment that includes a transaction fee paid by the debtor if the transaction complies with specified conditions. LRB103 28451 BMS 54831 b LRB103 28451 BMS 54831 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2491 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
3	3	205 ILCS 740/9 was 225 ILCS 425/9 205 ILCS 740/9 was 225 ILCS 425/9
4	4	205 ILCS 740/9 was 225 ILCS 425/9
5	5	Amends the Collection Agency Act. In provisions concerning disciplinary actions by the Department of Financial and Professional Regulation, provides that nothing shall prevent a debtor from choosing to make a payment that includes a transaction fee paid by the debtor if the transaction complies with specified conditions.
6	6	LRB103 28451 BMS 54831 b LRB103 28451 BMS 54831 b
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8	8	A BILL FOR
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Collection Agency Act is amended by
15	15	5 changing Section 9 as follows:
16	16	6 (205 ILCS 740/9) (was 225 ILCS 425/9)
17	17	7 (Section scheduled to be repealed on January 1, 2026)
18	18	8 Sec. 9. Disciplinary actions.
19	19	9 (a) The Department may refuse to issue or renew, or may
20	20	10 revoke, suspend, place on probation, reprimand or take other
21	21	11 disciplinary or non-disciplinary action as the Department may
22	22	12 deem proper, including fines not to exceed $10,000 per
23	23	13 violation, for any one or any combination of the following
24	24	14 causes:
25	25	15 (1) Material misstatement in furnishing information to
26	26	16 the Department.
27	27	17 (2) Violations of this Act or of the rules promulgated
28	28	18 hereunder.
29	29	19 (3) Conviction by plea of guilty or nolo contendere,
30	30	20 finding of guilt, jury verdict, or entry of judgment or by
31	31	21 sentencing of any crime, including, but not limited to,
32	32	22 convictions, preceding sentences of supervision,
33	33	23 conditional discharge, or first offender probation of the
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2491 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
38	38	205 ILCS 740/9 was 225 ILCS 425/9 205 ILCS 740/9 was 225 ILCS 425/9
39	39	205 ILCS 740/9 was 225 ILCS 425/9
40	40	Amends the Collection Agency Act. In provisions concerning disciplinary actions by the Department of Financial and Professional Regulation, provides that nothing shall prevent a debtor from choosing to make a payment that includes a transaction fee paid by the debtor if the transaction complies with specified conditions.
41	41	LRB103 28451 BMS 54831 b LRB103 28451 BMS 54831 b
42	42	LRB103 28451 BMS 54831 b
43	43	A BILL FOR
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49	49	205 ILCS 740/9 was 225 ILCS 425/9
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68	68	1 collection agency or any of the officers or owners of more
69	69	2 than 10% interest of the agency of any crime under the laws
70	70	3 of any U.S. jurisdiction that (i) is a felony, (ii) is a
71	71	4 misdemeanor, an essential element of which is dishonesty,
72	72	5 or (iii) is directly related to the practice of a
73	73	6 collection agency.
74	74	7 (4) Fraud or misrepresentation in applying for, or
75	75	8 procuring, a license under this Act or in connection with
76	76	9 applying for renewal of a license under this Act.
77	77	10 (5) Aiding or assisting another person in violating
78	78	11 any provision of this Act or rules adopted under this Act.
79	79	12 (6) Failing, within 60 days, to provide information in
80	80	13 response to a written request made by the Department.
81	81	14 (7) Habitual or excessive use or addiction to alcohol,
82	82	15 narcotics, stimulants or any other chemical agent or drug
83	83	16 which results in the inability to practice with reasonable
84	84	17 judgment, skill, or safety by any of the officers or
85	85	18 owners of 10% or more interest of a collection agency.
86	86	19 (8) Discipline by another state, the District of
87	87	20 Columbia, a territory of the United States, or a foreign
88	88	21 nation, if at least one of the grounds for the discipline
89	89	22 is the same or substantially equivalent to those set forth
90	90	23 in this Act.
91	91	24 (9) A finding by the Department that the licensee,
92	92	25 after having his or her license placed on probationary
93	93	26 status, has violated the terms of probation.
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104	104	1 (10) Willfully making or filing false records or
105	105	2 reports in his or her practice, including, but not limited
106	106	3 to, false records filed with State agencies or
107	107	4 departments.
108	108	5 (11) Practicing or attempting to practice under a
109	109	6 false or, except as provided by law, an assumed name.
110	110	7 (12) An adjudicated finding by the Federal Trade
111	111	8 Commission or other federal or State agency that a
112	112	9 licensee violated the federal Fair Debt Collection
113	113	10 Practices Act or its rules.
114	114	11 (13) Failure to file a return, or to pay the tax,
115	115	12 penalty or interest shown in a filed return, or to pay any
116	116	13 final assessment of tax, penalty or interest, as required
117	117	14 by any tax Act administered by the Illinois Department of
118	118	15 Revenue until such time as the requirements of any such
119	119	16 tax Act are satisfied.
120	120	17 (14) Using or threatening to use force or violence to
121	121	18 cause physical harm to a debtor, his or her family or his
122	122	19 or her property.
123	123	20 (15) Threatening to instigate an arrest or criminal
124	124	21 prosecution where no basis for a criminal complaint
125	125	22 lawfully exists.
126	126	23 (16) Threatening the seizure, attachment or sale of a
127	127	24 debtor's property where such action can only be taken
128	128	25 pursuant to court order without disclosing that prior
129	129	26 court proceedings are required.
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140	140	1 (17) Disclosing or threatening to disclose information
141	141	2 adversely affecting a debtor's reputation for credit
142	142	3 worthiness with knowledge the information is false.
143	143	4 (18) Threatening to initiate communication with a
144	144	5 debtor's employer unless there has been a default of the
145	145	6 payment of the obligation for at least 30 days and the
146	146	7 licensee has given at least 5 days prior written notice of
147	147	8 the intention to communicate with the employer to the
148	148	9 employee to the last known address of the debtor.
149	149	10 (19) Communicating with the debtor or any member of
150	150	11 the debtor's family at such a time of day or night and with
151	151	12 such frequency as to constitute harassment of the debtor
152	152	13 or any member of the debtor's family. For purposes of this
153	153	14 Section the following conduct shall constitute harassment:
154	154	15 (A) Communicating with the debtor or any member of
155	155	16 his or her family in connection with the collection of
156	156	17 any debt without the prior consent of the debtor given
157	157	18 directly to the debt collector, or the express
158	158	19 permission of a court of competent jurisdiction, at
159	159	20 any unusual time or place or a time or place known or
160	160	21 which should be known to be inconvenient to the
161	161	22 debtor. In the absence of knowledge of circumstances
162	162	23 to the contrary, a debt collector shall assume that
163	163	24 the convenient time for communicating with a consumer
164	164	25 is after 8 o'clock a.m. and before 9 o'clock p.m. in
165	165	26 the debtor's local time.
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176	176	1 (B) The threat of publication or publication of a
177	177	2 list of consumers who allegedly refuse to pay debts,
178	178	3 except to a consumer reporting agency.
179	179	4 (C) The threat of advertisement or advertisement
180	180	5 for sale of any debt to coerce payment of the debt.
181	181	6 (D) Causing a telephone to ring or engaging any
182	182	7 person in telephone conversation repeatedly or
183	183	8 continuously with intent to annoy, abuse, or harass
184	184	9 any person at the called number.
185	185	10 (20) Using profane, obscene or abusive language in
186	186	11 communicating with a debtor, his or her family or others.
187	187	12 (21) Disclosing or threatening to disclose information
188	188	13 relating to a debtor's debt to any other person except
189	189	14 where such other person has a legitimate business need for
190	190	15 the information or except where such disclosure is
191	191	16 permitted by law.
192	192	17 (22) Disclosing or threatening to disclose information
193	193	18 concerning the existence of a debt which the collection
194	194	19 agency knows to be disputed by the debtor without
195	195	20 disclosing the fact that the debtor disputes the debt.
196	196	21 (23) Engaging in any conduct that is intended to cause
197	197	22 and did cause mental or physical illness to the debtor or
198	198	23 his or her family.
199	199	24 (24) Attempting or threatening to enforce a right or
200	200	25 remedy with knowledge or reason to know that the right or
201	201	26 remedy does not exist.
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212	212	1 (25) Failing to disclose to the debtor or his or her
213	213	2 family the legally authorized corporate, partnership or
214	214	3 proprietary name, or other trade or business name, under
215	215	4 which the collection agency is engaging in debt
216	216	5 collections.
217	217	6 (26) Using any form of communication which simulates
218	218	7 legal or judicial process or which gives the appearance of
219	219	8 being authorized, issued, or approved by a governmental
220	220	9 agency or official or by an attorney at law when it is not.
221	221	10 (27) Using any badge, uniform, or other indicia of any
222	222	11 governmental agency or official except as authorized by
223	223	12 law.
224	224	13 (28) Conducting business under any name or in any
225	225	14 manner which suggests or implies that the collection
226	226	15 agency is a branch of or is affiliated in any way with a
227	227	16 governmental agency or court if such collection agency is
228	228	17 not.
229	229	18 (29) Failing to disclose, at the time of making any
230	230	19 demand for payment, the name of the person to whom the debt
231	231	20 is owed and at the request of the debtor, the address where
232	232	21 payment is to be made and the address of the person to whom
233	233	22 the debt is owed.
234	234	23 (30) Misrepresenting the amount of the debt alleged to
235	235	24 be owed.
236	236	25 (31) Representing that an existing debt may be
237	237	26 increased by the addition of attorney's fees,
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248	248	1 investigation fees or any other fees or charges when such
249	249	2 fees or charges may not legally be added to the existing
250	250	3 debt.
251	251	4 (32) Representing that the collection agency is an
252	252	5 attorney at law or an agent for an attorney if he or she is
253	253	6 not.
254	254	7 (33) Collecting or attempting to collect any interest
255	255	8 or other charge or fee in excess of the actual debt unless
256	256	9 such interest or other charge or fee is expressly
257	257	10 authorized by the agreement creating the debt unless
258	258	11 expressly authorized by law or unless in a commercial
259	259	12 transaction such interest or other charge or fee is
260	260	13 expressly authorized in a subsequent agreement. Nothing in
261	261	14 this paragraph (33) shall prevent a debtor from choosing
262	262	15 to make a payment that includes a transaction fee paid by
263	263	16 the debtor if (i) the transaction fee does not exceed 3% of
264	264	17 the amount of the payment or $4.95 for the transaction,
265	265	18 whichever is less, (ii) an option to make the payment at no
266	266	19 cost to the debtor is disclosed and offered to the debtor,
267	267	20 (iii) the transaction fee is paid on a credit card or debit
268	268	21 card transaction and the fee is processed by an entity
269	269	22 that is independent and not affiliated with the collection
270	270	23 agency, and (iv) the transaction fee paid by the debtor is
271	271	24 remitted to the entity that processes the debtor's payment
272	272	25 and not to the collection agency. If a contingency or
273	273	26 hourly fee arrangement (i) is established under an
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284	284	1 agreement between a collection agency and a creditor to
285	285	2 collect a debt and (ii) is paid by a debtor pursuant to a
286	286	3 contract between the debtor and the creditor, then that
287	287	4 fee arrangement does not violate this Section unless the
288	288	5 fee is unreasonable. The Department shall determine what
289	289	6 constitutes a reasonable collection fee.
290	290	7 (34) Communicating or threatening to communicate with
291	291	8 a debtor when the collection agency is informed in writing
292	292	9 by an attorney that the attorney represents the debtor
293	293	10 concerning the debt. If the attorney fails to respond
294	294	11 within a reasonable period of time, the collector may
295	295	12 communicate with the debtor. The collector may communicate
296	296	13 with the debtor when the attorney gives his or her
297	297	14 consent.
298	298	15 (35) Engaging in dishonorable, unethical, or
299	299	16 unprofessional conduct of a character likely to deceive,
300	300	17 defraud, or harm the public.
301	301	18 (b) No collection agency while collecting or attempting to
302	302	19 collect a debt shall engage in any of the Acts specified in
303	303	20 this Section, each of which shall be unlawful practice.
304	304	21 (Source: P.A. 102-975, eff. 1-1-23.)
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