Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1685 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1685 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/6z-2620 ILCS 1205/6205 ILCS 665/2 from Ch. 17, par. 5302225 ILCS 429/Act rep.815 ILCS 505/2JJJ Creates the Debt Resolution Services Act. Provides that no person shall provide or offer to provide debt resolution services without a debt resolution services license. Defines "debt resolution services" as a program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one or more unsecured creditors. Sets forth requirements for a debt resolution services license. Sets forth the process for obtaining a debt resolution services license. Provides that specified persons are exempt under the Act. Provides the prerequisites and permitted practices for providing debt resolution services. Provides the requirements for a contract between a licensee and a consumer for debt resolution services. Provides that a consumer may terminate a contract to provide debt resolution services at any time without any penalty. Provides that a licensee may terminate a contract to provide debt resolution services if specified conditions are satisfied. Includes provisions concerning the powers of the Department of Financial and Professional Regulation; prohibited activities under the Act, including prohibitions against false or misleading advertising; annual reports filed by a licensee; fees for debt resolution services; information a licensee must provide to a consumer; records a licensee is required to keep; penalties for violating the Act; and transactions entered into before the effective date of the Act. Repeals the Debt Settlement Consumer Protection Act. Amends various Acts to replace references to the Debt Settlement Consumer Protection Act to the Debt Resolution Services Act. Effective January 9, 2026. LRB104 09822 BAB 19890 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1685 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/6z-2620 ILCS 1205/6205 ILCS 665/2 from Ch. 17, par. 5302225 ILCS 429/Act rep.815 ILCS 505/2JJJ New Act 30 ILCS 105/6z-26 20 ILCS 1205/6 205 ILCS 665/2 from Ch. 17, par. 5302 225 ILCS 429/Act rep. 815 ILCS 505/2JJJ Creates the Debt Resolution Services Act. Provides that no person shall provide or offer to provide debt resolution services without a debt resolution services license. Defines "debt resolution services" as a program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one or more unsecured creditors. Sets forth requirements for a debt resolution services license. Sets forth the process for obtaining a debt resolution services license. Provides that specified persons are exempt under the Act. Provides the prerequisites and permitted practices for providing debt resolution services. Provides the requirements for a contract between a licensee and a consumer for debt resolution services. Provides that a consumer may terminate a contract to provide debt resolution services at any time without any penalty. Provides that a licensee may terminate a contract to provide debt resolution services if specified conditions are satisfied. Includes provisions concerning the powers of the Department of Financial and Professional Regulation; prohibited activities under the Act, including prohibitions against false or misleading advertising; annual reports filed by a licensee; fees for debt resolution services; information a licensee must provide to a consumer; records a licensee is required to keep; penalties for violating the Act; and transactions entered into before the effective date of the Act. Repeals the Debt Settlement Consumer Protection Act. Amends various Acts to replace references to the Debt Settlement Consumer Protection Act to the Debt Resolution Services Act. Effective January 9, 2026. LRB104 09822 BAB 19890 b LRB104 09822 BAB 19890 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1685 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED:
3	3	New Act30 ILCS 105/6z-2620 ILCS 1205/6205 ILCS 665/2 from Ch. 17, par. 5302225 ILCS 429/Act rep.815 ILCS 505/2JJJ New Act 30 ILCS 105/6z-26 20 ILCS 1205/6 205 ILCS 665/2 from Ch. 17, par. 5302 225 ILCS 429/Act rep. 815 ILCS 505/2JJJ
4	4	New Act
5	5	30 ILCS 105/6z-26
6	6	20 ILCS 1205/6
7	7	205 ILCS 665/2 from Ch. 17, par. 5302
8	8	225 ILCS 429/Act rep.
9	9	815 ILCS 505/2JJJ
10	10	Creates the Debt Resolution Services Act. Provides that no person shall provide or offer to provide debt resolution services without a debt resolution services license. Defines "debt resolution services" as a program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one or more unsecured creditors. Sets forth requirements for a debt resolution services license. Sets forth the process for obtaining a debt resolution services license. Provides that specified persons are exempt under the Act. Provides the prerequisites and permitted practices for providing debt resolution services. Provides the requirements for a contract between a licensee and a consumer for debt resolution services. Provides that a consumer may terminate a contract to provide debt resolution services at any time without any penalty. Provides that a licensee may terminate a contract to provide debt resolution services if specified conditions are satisfied. Includes provisions concerning the powers of the Department of Financial and Professional Regulation; prohibited activities under the Act, including prohibitions against false or misleading advertising; annual reports filed by a licensee; fees for debt resolution services; information a licensee must provide to a consumer; records a licensee is required to keep; penalties for violating the Act; and transactions entered into before the effective date of the Act. Repeals the Debt Settlement Consumer Protection Act. Amends various Acts to replace references to the Debt Settlement Consumer Protection Act to the Debt Resolution Services Act. Effective January 9, 2026.
11	11	LRB104 09822 BAB 19890 b LRB104 09822 BAB 19890 b
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13	13	A BILL FOR
14	14	SB1685LRB104 09822 BAB 19890 b SB1685 LRB104 09822 BAB 19890 b
15	15	SB1685 LRB104 09822 BAB 19890 b
16	16	1 AN ACT concerning regulation.
17	17	2 Be it enacted by the People of the State of Illinois,
18	18	3 represented in the General Assembly:
19	19	4 Section 1. Short title. This Act may be cited as the Debt
20	20	5 Resolution Services Act.
21	21	6 Section 2. Definitions. As used in this Act:
22	22	7 "Agreement" means a contract between a licensee and a
23	23	8 consumer that meets the requirements of Section 9.
24	24	9 "Bank" means a financial institution, including a
25	25	10 commercial bank, savings bank, savings and loan association,
26	26	11 credit union, mortgage bank, or trust company, engaged in the
27	27	12 business of banking, that is chartered under federal or State
28	28	13 law and regulated by a federal or State banking regulatory
29	29	14 agency.
30	30	15 "Business address" means the designation of the physical
31	31	16 location of a business, including the name and number of a
32	32	17 street.
33	33	18 "Business day" means a calendar day, except for Saturdays,
34	34	19 Sundays, and legal holidays.
35	35	20 "Consumer" means an individual who has executed an
36	36	21 agreement with a licensee.
37	37	22 "Creditor" means a person that has extended credit to a
38	38	23 consumer, including any agent or assignee of the person.
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42	42	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1685 Introduced 2/5/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED:
43	43	New Act30 ILCS 105/6z-2620 ILCS 1205/6205 ILCS 665/2 from Ch. 17, par. 5302225 ILCS 429/Act rep.815 ILCS 505/2JJJ New Act 30 ILCS 105/6z-26 20 ILCS 1205/6 205 ILCS 665/2 from Ch. 17, par. 5302 225 ILCS 429/Act rep. 815 ILCS 505/2JJJ
44	44	New Act
45	45	30 ILCS 105/6z-26
46	46	20 ILCS 1205/6
47	47	205 ILCS 665/2 from Ch. 17, par. 5302
48	48	225 ILCS 429/Act rep.
49	49	815 ILCS 505/2JJJ
50	50	Creates the Debt Resolution Services Act. Provides that no person shall provide or offer to provide debt resolution services without a debt resolution services license. Defines "debt resolution services" as a program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a consumer and one or more unsecured creditors. Sets forth requirements for a debt resolution services license. Sets forth the process for obtaining a debt resolution services license. Provides that specified persons are exempt under the Act. Provides the prerequisites and permitted practices for providing debt resolution services. Provides the requirements for a contract between a licensee and a consumer for debt resolution services. Provides that a consumer may terminate a contract to provide debt resolution services at any time without any penalty. Provides that a licensee may terminate a contract to provide debt resolution services if specified conditions are satisfied. Includes provisions concerning the powers of the Department of Financial and Professional Regulation; prohibited activities under the Act, including prohibitions against false or misleading advertising; annual reports filed by a licensee; fees for debt resolution services; information a licensee must provide to a consumer; records a licensee is required to keep; penalties for violating the Act; and transactions entered into before the effective date of the Act. Repeals the Debt Settlement Consumer Protection Act. Amends various Acts to replace references to the Debt Settlement Consumer Protection Act to the Debt Resolution Services Act. Effective January 9, 2026.
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53	53	A BILL FOR
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59	59	New Act
60	60	30 ILCS 105/6z-26
61	61	20 ILCS 1205/6
62	62	205 ILCS 665/2 from Ch. 17, par. 5302
63	63	225 ILCS 429/Act rep.
64	64	815 ILCS 505/2JJJ
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83	83	1 "Debt resolution services" means any program or service
84	84	2 represented, directly or by implication, to renegotiate,
85	85	3 settle, or in any way alter the terms of payment or other terms
86	86	4 of the debt between a consumer and one or more unsecured
87	87	5 creditors, including, but not limited to, a reduction in the
88	88	6 balance, interest rate, or fees owed by a consumer to an
89	89	7 unsecured creditor.
90	90	8 "Dedicated account" means an account that meets the
91	91	9 criteria set forth in paragraphs (1), (2), (3), (4), and (5) of
92	92	10 subsection (a) of Section 9.
93	93	11 "Dedicated account service provider" means an entity that
94	94	12 facilitates transactions authorized by the consumer under the
95	95	13 terms of 16 CFR 310.4(a)(5)(ii).
96	96	14 "Department" means the Department of Financial and
97	97	15 Professional Regulation.
98	98	16 "Licensee" means a provider of debt resolution services
99	99	17 that possesses a valid license issued pursuant to this Act.
100	100	18 "Person" means any individual, group, unincorporated
101	101	19 association, limited or general partnership, corporation, or
102	102	20 other business entity.
103	103	21 "State" means any state of the United States, the District
104	104	22 of Columbia, Puerto Rico, the Northern Mariana Islands, and
105	105	23 any other territory, possession, or protectorate of the United
106	106	24 States.
107	107	25 Section 3. License required.
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118	118	1 (a) No person shall provide or offer to provide debt
119	119	2 resolution services in this State unless the person first
120	120	3 obtains a debt resolution services license from the
121	121	4 Department.
122	122	5 (b) A licensee shall obtain a license for the licensee's
123	123	6 primary business address.
124	124	7 (c) A license may not be transferred or assigned.
125	125	8 (d) A licensee shall file a surety bond in favor of this
126	126	9 State in an amount and form that the Department determines
127	127	10 before the licensee may provide or offer to provide debt
128	128	11 resolution services in this State, but in no event shall the
129	129	12 amount of the bond be greater than $50,000.
130	130	13 (e) A licensee shall not provide debt resolution services
131	131	14 in this State under a business name other than the business
132	132	15 name that is listed on the licensee's license; however, a
133	133	16 licensee may do business under a fictitious business name, if
134	134	17 the licensee registers the fictitious business name with the
135	135	18 Secretary of State and provides evidence of the registration
136	136	19 to the Department.
137	137	20 (f) The Department may adopt rules for the licensing of
138	138	21 licensees and may require a reasonable license and
139	139	22 investigation fee in connection with the issuance or renewal
140	140	23 of any license required by this Act.
141	141	24 Section 4. Exempt persons.
142	142	25 (a) The following persons are exempt from this Act:
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153	153	1 (1) Persons organized under Section 501(c) or 501(q)
154	154	2 of the Internal Revenue Code.
155	155	3 (2) Judicial officers, including individuals acting
156	156	4 under the direction of a court.
157	157	5 (3) Banks and their agents and their employees.
158	158	6 (4) Attorneys licensed to practice law in this State
159	159	7 who provide debt resolution services within an
160	160	8 attorney-client relationship.
161	161	9 (5) Creditors or their employees who negotiate debt
162	162	10 resolutions with consumers or with licensees acting on
163	163	11 behalf of consumers.
164	164	12 (6) Assignees for the benefit of creditors.
165	165	13 (7) Officers or employees of the United States or any
166	166	14 state who perform debt resolution services on behalf of
167	167	15 the federal government, a state, a municipality, or a
168	168	16 state agency, and who receive compensation solely from the
169	169	17 governmental entity.
170	170	18 (8) Certified public accountants licensed in this
171	171	19 State who provide debt resolution services within an
172	172	20 accountant-client relationship.
173	173	21 (9) Dedicated account service providers that do not
174	174	22 otherwise provide debt resolution services for consumers.
175	175	23 (10) Persons, to the extent that the person provides
176	176	24 or agrees to provide debt resolution services to an
177	177	25 individual who the person has no reason to know resides in
178	178	26 this State at the time the person agrees to provide the
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189	189	1 services.
190	190	2 (b) The following persons are exempt from the licensing
191	191	3 requirement established in Section 3:
192	192	4 (1) A licensee's employees.
193	193	5 (2) Persons who market on behalf of licensees and do
194	194	6 not otherwise provide debt resolution services.
195	195	7 Section 5. Application for licensure.
196	196	8 (a) The application for a license and the application for
197	197	9 a license renewal shall be in a form prescribed by the
198	198	10 Department, signed under oath, and shall contain such
199	199	11 information as the Department reasonably requires. A license
200	200	12 to provide debt resolution services is for a period of 2 years
201	201	13 from the date of issuance.
202	202	14 (b) The following items are required in any application
203	203	15 for a license under this Act:
204	204	16 (1) Proof of compliance with all relevant requirements
205	205	17 for an entity to engage in business in this State.
206	206	18 (2) The applicant's name, principal business address,
207	207	19 and telephone number; all business addresses in this
208	208	20 State; the principal email address for the business; and
209	209	21 the principal website address to be used for the business.
210	210	22 (3) The name and business address of each executive
211	211	23 officer and member of the board of directors, or
212	212	24 equivalent leadership structure, of the applicant.
213	213	25 (4) A statement describing, to the extent it is known
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224	224	1 or should be known by the applicant, any material civil or
225	225	2 criminal judgment in any jurisdiction, or any enforcement
226	226	3 action against the applicant, or any of its executive
227	227	4 officers or members of its board of directors, or
228	228	5 equivalent leadership structure, by any local, state, or
229	229	6 federal governmental agency, in each case relating to debt
230	230	7 adjusting, debt pooling, prorating, activity as a credit
231	231	8 services organization, unfair and deceptive trade
232	232	9 practices, false advertising, consumer deception law or
233	233	10 regulation, or any other similar law or regulation.
234	234	11 (5) A copy of each form of agreement and the schedule
235	235	12 of fees and charges that the applicant will use with
236	236	13 consumers who reside in this State.
237	237	14 (6) Income statements and balance sheets from the
238	238	15 applicant for the 2 fiscal years preceding the date of the
239	239	16 application. Notwithstanding any other requirement in this
240	240	17 Act or elsewhere, material submitted under this paragraph
241	241	18 shall be held confidential by the Department.
242	242	19 (c) In connection with any application for license
243	243	20 renewal, the licensee shall provide access to the licensee's
244	244	21 books and records with respect to consumers in this State that
245	245	22 are being or have been serviced by the licensee.
246	246	23 (d) The Department may participate in a multistate
247	247	24 licensing system for the sharing of regulatory information and
248	248	25 for the licensing and application, by electronic or other
249	249	26 means, of persons engaged in the business of debt resolution
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260	260	1 services. The Department may establish requirements for
261	261	2 participation by an applicant in a multistate licensing
262	262	3 system, which may vary from the provisions in this Act. The
263	263	4 applicant shall pay directly to a multistate licensing system
264	264	5 any additional fee relating to participation in a multistate
265	265	6 licensing system.
266	266	7 (e)(1) The Department may require each applicant applying
267	267	8 for initial licensure under this Act to submit a full set of
268	268	9 fingerprints of each of the applicant's executive officers in
269	269	10 order for the Department to obtain and receive national
270	270	11 criminal history records from the Federal Bureau of
271	271	12 Investigation criminal justice information services division.
272	272	13 Unless the Department, as authorized by paragraph (2),
273	273	14 contracts, or makes use of any existing contract, the
274	274	15 Department may submit each executive officer's fingerprints
275	275	16 and the fee required to perform the criminal history record
276	276	17 checks to the Illinois State Police and the Federal Bureau of
277	277	18 Investigation for state and national criminal history record
278	278	19 checks. The Department may require any fingerprints submitted
279	279	20 pursuant to this subsection be provided in an electronic
280	280	21 format.
281	281	22 (2) The Department may contract, or make use of any
282	282	23 existing contract with this State, for the collection and
283	283	24 transmission of fingerprints authorized under this Section. If
284	284	25 the Department contracts, or makes use of an existing
285	285	26 contract, the Department may order the applicant to pay the
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296	296	1 fee for collecting and transmitting fingerprints to the
297	297	2 contractor. The Department may agree to a reasonable
298	298	3 fingerprinting fee to be charged by the contractor to the
299	299	4 applicant.
300	300	5 (3) The Department shall treat and maintain any executive
301	301	6 officer's fingerprints and any criminal history record
302	302	7 information obtained under this Section as confidential and
303	303	8 limit the use of records solely to the purposes authorized in
304	304	9 this Section. The fingerprints and any criminal history record
305	305	10 information are not subject to subpoena, other than a subpoena
306	306	11 issued in a criminal action or investigation, and are
307	307	12 confidential by law and privileged, and are not subject to
308	308	13 discovery or admissible in evidence in any civil action.
309	309	14 (4) The Department shall refuse to issue an initial
310	310	15 license to an applicant who does not provide fingerprints in
311	311	16 compliance with this subsection.
312	312	17 (f) An applicant or licensee shall notify the Department
313	313	18 within 30 days after a material change in any of the
314	314	19 information submitted in connection with any application or
315	315	20 renewal application for a license under this Act, including,
316	316	21 but not limited to:
317	317	22 (1) a change in the licensee's principal place of
318	318	23 business;
319	319	24 (2) a merger or dissolution related to the license; or
320	320	25 (3) a licensee pleading guilty to or being convicted
321	321	26 of any felony in a court of competent jurisdiction.
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332	332	1 Section 6. Licensure issuance or denial.
333	333	2 (a) The Department may deny a license if:
334	334	3 (1) the applicant does not satisfy the criteria set
335	335	4 forth in Section 5;
336	336	5 (2) the application contains information that is
337	337	6 materially erroneous or materially incomplete;
338	338	7 (3) the applicant fails to provide in a timely manner
339	339	8 such information as the Department reasonably requests;
340	340	9 (4) an executive officer or member of the board of
341	341	10 directors, or equivalent leadership structure, of the
342	342	11 applicant has been convicted of or pled nolo contendere
343	343	12 to:
344	344	13 (A) a felony; or
345	345	14 (B) an act involving fraud, deceit, or dishonesty;
346	346	15 or
347	347	16 (5) an executive officer or member of the board of
348	348	17 directors, or equivalent leadership structure, of the
349	349	18 applicant has had a professional license revoked,
350	350	19 suspended, or subjected to enforcement action in any
351	351	20 state, and the license has not been reinstated.
352	352	21 (b) Not later than the 20th day after a license
353	353	22 application denial, the Department shall provide to the
354	354	23 applicant a written decision and findings containing the
355	355	24 reasons supporting a license denial.
356	356	25 (c) A license application denial is a final administrative
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367	367	1 decision under the Administrative Review Law.
368	368	2 Section 7. Licensure suspension, revocation, or denial of
369	369	3 renewal.
370	370	4 (a) The Department may suspend, revoke, or deny renewal of
371	371	5 a license if:
372	372	6 (1) the Department asserts that the licensee has
373	373	7 materially violated this Act or any rule adopted under
374	374	8 this Act or any other law applicable to the conduct of the
375	375	9 licensee's business and the licensee has failed to cure
376	376	10 the violation after notice and a reasonable opportunity to
377	377	11 cure the violation;
378	378	12 (2) a fact or condition exists that, if it had existed
379	379	13 when the licensee applied for a license, would have
380	380	14 warranted the Department refusing to issue the license;
381	381	15 (3) the licensee does not satisfy the criteria for
382	382	16 licensure set out in Section 5;
383	383	17 (4) the licensee has refused to permit the Department
384	384	18 to examine the licensee's books and records, failed to
385	385	19 comply with Section 12, or made a material
386	386	20 misrepresentation or omission in complying with Section
387	387	21 12; or
388	388	22 (5) the licensee has not responded within a reasonable
389	389	23 time and in an appropriate manner to the Department's
390	390	24 communications.
391	391	25 (b) If the Department suspends, revokes, or denies renewal
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402	402	1 of a license, the Department may require the licensee to make
403	403	2 available the licensee's books and records with respect to any
404	404	3 consumers in this State that are being or have been serviced by
405	405	4 the licensee.
406	406	5 (c) Except as provided in Section 8, a licensee shall
407	407	6 receive notice and a hearing before the Department revokes or
408	408	7 suspends a license.
409	409	8 (d) A licensee may deliver a written notice to the
410	410	9 Department to surrender the licensee's license. However, if a
411	411	10 licensee surrenders the licensee's license, the licensee's
412	412	11 civil or criminal liability for acts committed before the
413	413	12 surrender is not affected.
414	414	13 (e) Upon submission of a renewal application for a license
415	415	14 and until a renewal application is approved or denied, the
416	416	15 licensee may continue to provide or offer to provide debt
417	417	16 resolution services, but a suspension or denial of a license
418	418	17 terminates any right to provide or offer to provide debt
419	419	18 resolution services in this State unless continuation is
420	420	19 approved by the Department.
421	421	20 Section 8. Powers of the Department.
422	422	21 (a) The Illinois Administrative Procedures Act and the
423	423	22 Administrative Review Law govern all matters and procedures
424	424	23 respecting the hearing and judicial review of any violation or
425	425	24 contested case arising under this Act.
426	426	25 (b) If the Department finds that a delay in issuing an
427	427
428	428
429	429
430	430
431	431
432	432	SB1685 - 11 - LRB104 09822 BAB 19890 b
433	433
434	434
435	435	SB1685- 12 -LRB104 09822 BAB 19890 b SB1685 - 12 - LRB104 09822 BAB 19890 b
436	436	SB1685 - 12 - LRB104 09822 BAB 19890 b
437	437	1 order under subsection (a) will irreparably harm the public
438	438	2 interest, the Department may summarily suspend the license
439	439	3 immediately.
440	440	4 (c) Any order issued under this Section is a final
441	441	5 administrative decision under the Administrative Review Law.
442	442	6 (d) The Department may investigate the books, accounts,
443	443	7 records, and files of a licensee or any other person that the
444	444	8 Department has reason to believe is providing or offering to
445	445	9 provide debt resolution services in this State.
446	446	10 Section 9. Prerequisites and permitted practices for
447	447	11 providing debt resolution services.
448	448	12 (a) A licensee may request or require a consumer, as a
449	449	13 condition to the provision of debt resolution services, to
450	450	14 establish and place funds into a dedicated account
451	451	15 administered by a dedicated account service provider, if:
452	452	16 (1) the funds are held in an FDIC-insured bank;
453	453	17 (2) the consumer owns the funds held in the account,
454	454	18 including all accrued interest on the account, if any;
455	455	19 (3) the dedicated account service provider is not
456	456	20 owned or controlled by, or affiliated with, the debt
457	457	21 resolution services provider. For purposes of this
458	458	22 paragraph, (i) "affiliated with" means a dedicated account
459	459	23 service provider that controls, is controlled by, or is
460	460	24 under common control with a licensee, and (ii) "control"
461	461	25 means the direct or indirect possession of the power to
462	462
463	463
464	464
465	465
466	466
467	467	SB1685 - 12 - LRB104 09822 BAB 19890 b
468	468
469	469
470	470	SB1685- 13 -LRB104 09822 BAB 19890 b SB1685 - 13 - LRB104 09822 BAB 19890 b
471	471	SB1685 - 13 - LRB104 09822 BAB 19890 b
472	472	1 direct or cause the direction of the management of a
473	473	2 licensee, whether by contract or through ownership of more
474	474	3 than 20% of the voting securities of the licensee;
475	475	4 (4) the dedicated account service provider does not
476	476	5 give or accept any money or other compensation in exchange
477	477	6 for referrals of business involving the debt resolution
478	478	7 services;
479	479	8 (5) the consumer may terminate the debt resolution
480	480	9 services at any time without penalty by giving notice as
481	481	10 required in subsection (a) of Section 10, and thereafter,
482	482	11 the licensee shall notify the dedicated account service
483	483	12 provider of the consumer's termination within 5 business
484	484	13 days of the consumer's notice; and
485	485	14 (6) the agreement discloses each of the criteria set
486	486	15 forth in the preceding paragraphs.
487	487	16 (b) A licensee shall, at the time an agreement is executed
488	488	17 by a consumer, or as shortly thereafter as practical,
489	489	18 distribute or otherwise make available to the consumer a copy
490	490	19 of the executed agreement. For purposes of this Act,
491	491	20 electronic distribution of an executed agreement is permitted
492	492	21 if the consumer agrees.
493	493	22 (c) The agreement must disclose:
494	494	23 (1) the services that the licensee will perform;
495	495	24 (2) the methodology that the licensee will use to
496	496	25 calculate fees to be charged for debt resolution services
497	497	26 and, if reasonably available at the time the agreement is
498	498
499	499
500	500
501	501
502	502
503	503	SB1685 - 13 - LRB104 09822 BAB 19890 b
504	504
505	505
506	506	SB1685- 14 -LRB104 09822 BAB 19890 b SB1685 - 14 - LRB104 09822 BAB 19890 b
507	507	SB1685 - 14 - LRB104 09822 BAB 19890 b
508	508	1 executed, the fees that the licensee will charge;
509	509	2 (3) the amount of time estimated on a good-faith basis
510	510	3 to be necessary to achieve the resolution of all enrolled
511	511	4 debts, and to the extent that the service may include a
512	512	5 resolution offer to any of the consumer's creditors, the
513	513	6 time estimated on a good-faith basis when the debt
514	514	7 resolution services provider will make a bona fide
515	515	8 resolution offer to each of them;
516	516	9 (4) to the extent that the debt resolution services
517	517	10 may include a resolution offer to any of the consumer's
518	518	11 creditors, the amount of money or the percentage of each
519	519	12 outstanding debt that the consumer must accumulate before
520	520	13 the debt resolution services provider will make a bona
521	521	14 fide resolution offer to each of them;
522	522	15 (5) that debt resolution services may not be suitable
523	523	16 for all individuals;
524	524	17 (6) to the extent that any aspect of the debt
525	525	18 resolution services relies upon or results in the
526	526	19 consumer's failure to make timely payments to creditors,
527	527	20 that the failure to pay one's debts will likely adversely
528	528	21 affect the consumer's creditworthiness, may result in the
529	529	22 consumer being subject to collections efforts, including
530	530	23 lawsuits by creditors, and may increase the amount of
531	531	24 money the consumer owes due to the accrual of fees and
532	532	25 interest;
533	533	26 (7) that, unless the consumer is insolvent, if a
534	534
535	535
536	536
537	537
538	538
539	539	SB1685 - 14 - LRB104 09822 BAB 19890 b
540	540
541	541
542	542	SB1685- 15 -LRB104 09822 BAB 19890 b SB1685 - 15 - LRB104 09822 BAB 19890 b
543	543	SB1685 - 15 - LRB104 09822 BAB 19890 b
544	544	1 creditor resolves a debt for less than its full amount,
545	545	2 the resolution may result in the creation of taxable
546	546	3 income to the consumer, even though the consumer does not
547	547	4 receive any money;
548	548	5 (8) that specific results cannot be predicted or
549	549	6 guaranteed and the licensee cannot require a creditor to
550	550	7 negotiate or resolve a debt;
551	551	8 (9) that debt resolution services programs require
552	552	9 that individuals meet regular savings goals in order to
553	553	10 enable resolutions;
554	554	11 (10) that the licensee does not provide tax,
555	555	12 accounting, or legal advice to individuals, unless the
556	556	13 licensee is licensed in this State to provide such advice;
557	557	14 (11) that the licensee is the consumer's advocate and
558	558	15 does not receive compensation of any sort from creditors
559	559	16 for providing debt resolution services to the consumer;
560	560	17 (12) that the licensee does not make monthly or other
561	561	18 payments to the consumer's creditors;
562	562	19 (13) the list of debts that the agreement covers; and
563	563	20 (14) that, if applicable, the consumer's rights are
564	564	21 subject to mandatory arbitration of any and all disputes
565	565	22 with the debt resolution services provider.
566	566	23 (d) A licensee shall maintain a toll-free
567	567	24 telecommunications system, staffed at a level that has
568	568	25 adequate capacity to accept requests from the reasonably
569	569	26 anticipated volume of consumers contacting the licensee during
570	570
571	571
572	572
573	573
574	574
575	575	SB1685 - 15 - LRB104 09822 BAB 19890 b
576	576
577	577
578	578	SB1685- 16 -LRB104 09822 BAB 19890 b SB1685 - 16 - LRB104 09822 BAB 19890 b
579	579	SB1685 - 16 - LRB104 09822 BAB 19890 b
580	580	1 ordinary business hours.
581	581	2 (e) A licensee may extend credit to a consumer in the form
582	582	3 of a deferral of some or all of the licensee's fee for
583	583	4 resolving the consumer's debts, at no additional expense to
584	584	5 the consumer. A licensee may assist in arranging credit to the
585	585	6 consumer if such credit is extended to the consumer by or
586	586	7 through a person that is either separately licensed or
587	587	8 authorized to perform lending in this State or exempt from
588	588	9 such licensure.
589	589	10 Section 10. Consumer's right to terminate agreements.
590	590	11 (a) A consumer may terminate an agreement at any time
591	591	12 without penalty by notifying the licensee electronically, in
592	592	13 writing, or telephonically on a recorded line.
593	593	14 (b) Upon receipt of a consumer's notice of termination, a
594	594	15 licensee shall, as soon as possible but in all instances
595	595	16 within 2 business days, advise the consumer of the effect, if
596	596	17 any, a termination of the consumer's debt resolution services
597	597	18 program would have on previously negotiated installment
598	598	19 resolution agreements and pending resolution negotiations. Not
599	599	20 later than 5 business days following the delivery of such
600	600	21 advice, and absent further instruction from the consumer, a
601	601	22 licensee shall notify the dedicated account service provider
602	602	23 of the consumer's termination and request that the dedicated
603	603	24 account service provider communicate with the consumer
604	604	25 regarding disposition of all funds held in the dedicated
605	605
606	606
607	607
608	608
609	609
610	610	SB1685 - 16 - LRB104 09822 BAB 19890 b
611	611
612	612
613	613	SB1685- 17 -LRB104 09822 BAB 19890 b SB1685 - 17 - LRB104 09822 BAB 19890 b
614	614	SB1685 - 17 - LRB104 09822 BAB 19890 b
615	615	1 account.
616	616	2 (c) Notwithstanding the consumer's right to terminate as
617	617	3 set forth in subsection (a), the licensee is entitled to
618	618	4 recover all fees earned prior to the receipt of any
619	619	5 termination notice, provided that the fee is requested or
620	620	6 received in compliance with Section 13.
621	621	7 Section 11. Licensee's right to terminate agreements. If a
622	622	8 consumer fails to honor the consumer's contractual obligations
623	623	9 on or before the 60th day after the consumer was required to
624	624	10 perform them, then the licensee may terminate its agreement
625	625	11 with the consumer electronically or in writing. If the
626	626	12 licensee terminates the agreement as permitted in this
627	627	13 Section, the consumer will not owe any further payment to the
628	628	14 licensee as of the date the licensee terminates the agreement,
629	629	15 other than for fees previously earned by the licensee.
630	630	16 Notwithstanding this Section, if a consumer refuses to pay any
631	631	17 fee to a licensee after the payment has been earned by the
632	632	18 licensee, then the licensee may, upon proper notice to the
633	633	19 consumer either electronically or in writing, terminate the
634	634	20 licensee's agreement with the consumer immediately.
635	635	21 Section 12. Annual reports. A licensee shall file with the
636	636	22 Department an annual report in writing, under oath, that
637	637	23 includes the following information for the calendar year
638	638	24 reporting period: total number of active consumers in this
639	639
640	640
641	641
642	642
643	643
644	644	SB1685 - 17 - LRB104 09822 BAB 19890 b
645	645
646	646
647	647	SB1685- 18 -LRB104 09822 BAB 19890 b SB1685 - 18 - LRB104 09822 BAB 19890 b
648	648	SB1685 - 18 - LRB104 09822 BAB 19890 b
649	649	1 State, total number of enrolled consumers in this State, and
650	650	2 total fees collected in this State. If a licensee neglects to
651	651	3 file an annual report or fails to amend the same on or before
652	652	4 the 30th day after the Department provides notice to the
653	653	5 licensee, then the Department may assess civil penalties and
654	654	6 suspend, revoke, or refuse to renew any license under this
655	655	7 Act.
656	656	8 Section 13. Fees for debt resolution services.
657	657	9 (a) A licensee shall not impose, directly or indirectly, a
658	658	10 fee or other charge on a consumer or receive payment from or on
659	659	11 behalf of a consumer for performing debt resolution services
660	660	12 except as provided in this Section.
661	661	13 (b) A licensee may not request or receive payment of any
662	662	14 fee or consideration for any debt resolution services until
663	663	15 and unless:
664	664	16 (1) the licensee has renegotiated, resolved, reduced,
665	665	17 or otherwise altered the terms of at least one debt
666	666	18 pursuant to a resolution agreement or other such valid
667	667	19 contractual agreement executed by the consumer and the
668	668	20 creditor;
669	669	21 (2) the consumer has made at least one payment
670	670	22 pursuant to that resolution agreement or other valid
671	671	23 contractual agreement between the consumer and the
672	672	24 creditor; and
673	673	25 (3) to the extent that debts enrolled in a service are
674	674
675	675
676	676
677	677
678	678
679	679	SB1685 - 18 - LRB104 09822 BAB 19890 b
680	680
681	681
682	682	SB1685- 19 -LRB104 09822 BAB 19890 b SB1685 - 19 - LRB104 09822 BAB 19890 b
683	683	SB1685 - 19 - LRB104 09822 BAB 19890 b
684	684	1 renegotiated, resolved, reduced, or otherwise altered
685	685	2 individually, the fee or consideration either: (i) bears
686	686	3 the same proportional relationship to the total fee for
687	687	4 renegotiating, resolving, reducing, or altering the terms
688	688	5 of the entire debt balance as the individual debt amount
689	689	6 bears to the entire debt amount. The individual debt
690	690	7 amount and the entire debt amount are those owed at the
691	691	8 time the debt was enrolled in the service; or (ii) is a
692	692	9 percentage of the amount saved as a result of the
693	693	10 renegotiation, resolution, reduction, or alteration. The
694	694	11 percentage charged cannot change from one individual debt
695	695	12 to another. The amount saved is the difference between the
696	696	13 amount owed at the time the debt was enrolled in the
697	697	14 service and the amount actually paid to satisfy the debt.
698	698	15 (c) A licensee shall not impose charges or receive payment
699	699	16 for debt resolution services until the licensee and the
700	700	17 consumer have signed an agreement that complies with Section
701	701	18 9.
702	702	19 (d) Any fee or other charge imposed by or on behalf of a
703	703	20 dedicated account service provider in connection with the
704	704	21 administration of a dedicated account shall not be considered
705	705	22 a fee or other charge imposed for performing debt resolution
706	706	23 services for purposes of this Act.
707	707	24 (e) Any fee or other charge imposed by or on behalf of a
708	708	25 third-party legal service provider shall not be considered a
709	709	26 fee or other charge imposed by a licensee for performing debt
710	710
711	711
712	712
713	713
714	714
715	715	SB1685 - 19 - LRB104 09822 BAB 19890 b
716	716
717	717
718	718	SB1685- 20 -LRB104 09822 BAB 19890 b SB1685 - 20 - LRB104 09822 BAB 19890 b
719	719	SB1685 - 20 - LRB104 09822 BAB 19890 b
720	720	1 resolution services for purposes of this Act.
721	721	2 Section 14. Prohibitions.
722	722	3 (a) A licensee, a person who markets debt resolution
723	723	4 services on behalf of a licensee, or a person described in
724	724	5 paragraph (2) of subsection (b) of Section 4 shall not:
725	725	6 (1) take or exercise a power of attorney that
726	726	7 authorizes the licensee to resolve a debt. For purposes of
727	727	8 this paragraph, "resolve" means entering into a binding
728	728	9 agreement to discharge in full a debt in exchange for a
729	729	10 payment of a sum certain of money;
730	730	11 (2) send to creditors cease and desist notices, or
731	731	12 require consumers to notify creditors of changes of
732	732	13 address or phone number, meant to divert communication
733	733	14 from the creditor to the debt resolution services provider
734	734	15 rather than the consumer;
735	735	16 (3) exercise or attempt to exercise any authority of
736	736	17 the consumer after a licensee has received notice under
737	737	18 Section 10 that the consumer has terminated the consumer's
738	738	19 agreement with the licensee;
739	739	20 (4) initiate, or request that a dedicated account
740	740	21 service provider initiate, a transfer from a consumer's
741	741	22 bank account unless the transfer is:
742	742	23 (A) a return of money to the consumer;
743	743	24 (B) before any termination of an agreement and
744	744	25 properly authorized by the agreement and this Act for
745	745
746	746
747	747
748	748
749	749
750	750	SB1685 - 20 - LRB104 09822 BAB 19890 b
751	751
752	752
753	753	SB1685- 21 -LRB104 09822 BAB 19890 b SB1685 - 21 - LRB104 09822 BAB 19890 b
754	754	SB1685 - 21 - LRB104 09822 BAB 19890 b
755	755	1 payment of a fee; or
756	756	2 (C) at the express direction of the consumer, to a
757	757	3 consumer's creditor to fund a negotiated resolution
758	758	4 with that creditor;
759	759	5 (5) receive consumer funds or control consumer funds,
760	760	6 other than to receive funds in payment of fees earned by
761	761	7 the debt resolution services provider;
762	762	8 (6) resolve a debt or lead a consumer to believe that a
763	763	9 payment to a creditor is in resolution of a debt to the
764	764	10 creditor unless, at the time of resolution, the creditor
765	765	11 confirms that the payment is in full resolution of the
766	766	12 debt or is part of a payment plan that, upon completion,
767	767	13 will be in full resolution of the debt;
768	768	14 (7) make any representation that:
769	769	15 (A) the licensee will furnish money to pay bills
770	770	16 or prevent attachments; or
771	771	17 (B) participation in a program will prevent
772	772	18 litigation, garnishment, attachment, repossession,
773	773	19 foreclosure, eviction, or loss of employment;
774	774	20 (8) misrepresent that the licensee is able to furnish
775	775	21 legal advice or perform legal services;
776	776	22 (9) misrepresent, directly or by implication, any
777	777	23 material aspect of any debt resolution services program,
778	778	24 including, but not limited to, the amount of money or the
779	779	25 percentage of the debt amount that a consumer may save by
780	780	26 using such service; the amount of time necessary to
781	781
782	782
783	783
784	784
785	785
786	786	SB1685 - 21 - LRB104 09822 BAB 19890 b
787	787
788	788
789	789	SB1685- 22 -LRB104 09822 BAB 19890 b SB1685 - 22 - LRB104 09822 BAB 19890 b
790	790	SB1685 - 22 - LRB104 09822 BAB 19890 b
791	791	1 achieve the represented results; the amount of money or
792	792	2 the percentage of each outstanding debt that the consumer
793	793	3 must accumulate before the provider of the debt resolution
794	794	4 services will initiate attempts with the consumer's
795	795	5 creditors or make a bona fide offer to negotiate, resolve,
796	796	6 or modify the terms of the consumer's debt; the effect of
797	797	7 the service on a consumer's creditworthiness; the effect
798	798	8 of the service on collection efforts of the consumer's
799	799	9 creditors; the percentage or number of consumers who
800	800	10 attain the represented results; and whether debt
801	801	11 resolution services are offered or provided by a nonprofit
802	802	12 entity;
803	803	13 (10) take a confession of judgment or power of
804	804	14 attorney to confess judgment against a consumer;
805	805	15 (11) purchase a debt or obligation of the consumer, or
806	806	16 obtain a mortgage or other security interest from any
807	807	17 person in connection with the services provided to the
808	808	18 consumer;
809	809	19 (12) receive from or on behalf of a consumer a
810	810	20 promissory note or other negotiable instrument other than
811	811	21 a check or a demand draft or a post-dated check or demand
812	812	22 draft; or
813	813	23 (13) except as permitted by federal law or by order of
814	814	24 a court of competent jurisdiction, disclose the identity
815	815	25 or identifying information of a consumer or the identity
816	816	26 of the consumer's creditors, except to the Department,
817	817
818	818
819	819
820	820
821	821
822	822	SB1685 - 22 - LRB104 09822 BAB 19890 b
823	823
824	824
825	825	SB1685- 23 -LRB104 09822 BAB 19890 b SB1685 - 23 - LRB104 09822 BAB 19890 b
826	826	SB1685 - 23 - LRB104 09822 BAB 19890 b
827	827	1 upon proper demand, or to the extent necessary or
828	828	2 appropriate to administer the program, including, but not
829	829	3 limited to, a dedicated account service provider or to a
830	830	4 creditor of the consumer.
831	831	5 (b) An agreement must not:
832	832	6 (1) provide for the application of the law of any
833	833	7 jurisdiction other than the United States and this State;
834	834	8 (2) except as otherwise permitted by the laws of this
835	835	9 State and the Federal Arbitration Act (9 U.S.C. 1 et
836	836	10 seq.), contain a provision that restricts an individual's
837	837	11 remedies under this Act or any other law of this State; or
838	838	12 (3) contain a provision that limits or releases the
839	839	13 liability of any person for not performing the agreement
840	840	14 or for violating this Act.
841	841	15 Section 15. Information requirements.
842	842	16 (a) A licensee shall distribute or arrange to be
843	843	17 distributed a statement of accounting to a consumer:
844	844	18 (1) while a debt resolution services agreement is in
845	845	19 effect:
846	846	20 (A) at least once per month; and
847	847	21 (B) on or before the 5th business day after a
848	848	22 consumer requests a statement of accounting from a
849	849	23 licensee. However, this Act does not require a
850	850	24 licensee to provide more than one statement of
851	851	25 accounting per month per consumer in response to the
852	852
853	853
854	854
855	855
856	856
857	857	SB1685 - 23 - LRB104 09822 BAB 19890 b
858	858
859	859
860	860	SB1685- 24 -LRB104 09822 BAB 19890 b SB1685 - 24 - LRB104 09822 BAB 19890 b
861	861	SB1685 - 24 - LRB104 09822 BAB 19890 b
862	862	1 consumer's request; and
863	863	2 (2) within 5 business days after the date on which a
864	864	3 consumer or a licensee terminates an agreement.
865	865	4 (b) A statement of accounting shall contain the following
866	866	5 information to the extent applicable:
867	867	6 (1) The amount of money that the consumer has
868	868	7 deposited into the consumer's Dedicated Account, and all
869	869	8 withdrawals therefrom, from initiation of the consumer's
870	870	9 debt resolution services program.
871	871	10 (2) The amounts, dates, and creditors associated with
872	872	11 each resolution obtained by the licensee on behalf of the
873	873	12 consumer.
874	874	13 (3) The fees that the licensee has charged to and
875	875	14 collected from the consumer in connection with each of the
876	876	15 consumer's resolutions.
877	877	16 (4) The amount of money that the consumer holds in the
878	878	17 consumer's Dedicated Account.
879	879	18 (5) With respect to each resolution obtained by the
880	880	19 licensee for the consumer:
881	881	20 (A) the total amount of money that the consumer
882	882	21 paid to the creditor in full discharge or satisfaction
883	883	22 of the consumer's debt;
884	884	23 (B) the amount of the debt at the time the licensee
885	885	24 and the consumer entered into the agreement;
886	886	25 (C) the amount of the debt at the time the creditor
887	887	26 agreed to resolve the debt; and
888	888
889	889
890	890
891	891
892	892
893	893	SB1685 - 24 - LRB104 09822 BAB 19890 b
894	894
895	895
896	896	SB1685- 25 -LRB104 09822 BAB 19890 b SB1685 - 25 - LRB104 09822 BAB 19890 b
897	897	SB1685 - 25 - LRB104 09822 BAB 19890 b
898	898	1 (D) the amount of compensation that the licensee
899	899	2 received or will receive to resolve the debt.
900	900	3 (c) Notwithstanding the requirements set forth in
901	901	4 paragraphs (1) and (2) of subsection (a), a licensee that
902	902	5 enables, or arranges to enable, 24 hours per day, 7 days per
903	903	6 week, electronic access by a consumer to all of the consumer's
904	904	7 deposit account transaction information, including all deposit
905	905	8 and withdrawal activity, and electronic access by a consumer
906	906	9 to account activity, including, but not limited to, resolution
907	907	10 information, account status, resolution dates, resolution
908	908	11 amounts, and fees paid, is deemed to have satisfied the
909	909	12 content requirements in subsection (b) and the distribution
910	910	13 requirements in subsection (a).
911	911	14 Section 16. Prohibition on false and misleading
912	912	15 advertising.
913	913	16 (a) A licensee shall not, directly or through a person who
914	914	17 markets debt resolution services on behalf of a licensee or a
915	915	18 person described in paragraph (2) of subsection (b) of Section
916	916	19 4, advertise, announce, broadcast, display, distribute, print,
917	917	20 publish, televise, or permit any other person to advertise,
918	918	21 announce, broadcast, display, distribute, print, publish, or
919	919	22 televise on the licensee's behalf a statement or
920	920	23 representation related to debt resolution services that is
921	921	24 deceptive, false, or misleading.
922	922	25 (b) A licensee shall not directly or indirectly provide
923	923
924	924
925	925
926	926
927	927
928	928	SB1685 - 25 - LRB104 09822 BAB 19890 b
929	929
930	930
931	931	SB1685- 26 -LRB104 09822 BAB 19890 b SB1685 - 26 - LRB104 09822 BAB 19890 b
932	932	SB1685 - 26 - LRB104 09822 BAB 19890 b
933	933	1 anything of value in exchange for favorable treatment in
934	934	2 reviews or favorable placement on rankings.
935	935	3 (c) Neither a licensee nor any affiliate of a licensee
936	936	4 shall directly or indirectly own or operate a website or other
937	937	5 public-facing resource presenting rankings or consumer reviews
938	938	6 of the licensee.
939	939	7 (d) A licensee shall not make any statement or take any
940	940	8 action that is likely to mislead consumers regarding whether
941	941	9 reviews the licensee uses to advertise its business accurately
942	942	10 reflect all reviews consumers have submitted to the licensee.
943	943	11 (e) A licensee shall comply with 16 CFR Part 255 and with
944	944	12 CFPB Bulletin 2022-05: Unfair and Deceptive Acts or Practices
945	945	13 That Impede Consumer Reviews.
946	946	14 Section 17. Records.
947	947	15 (a) At the time of providing to a consumer any materials or
948	948	16 agreements required by this Act, a licensee shall inform the
949	949	17 consumer that upon electronic, telephonic, or written request,
950	950	18 the licensee shall send the consumer a copy of the materials
951	951	19 and shall comply with a request as provided in subsection (b).
952	952	20 (b) If a consumer submits a request to a licensee, before
953	953	21 the expiration of 90 days after a program is completed or
954	954	22 terminated, to send a copy of the materials required by this
955	955	23 Act, the licensee shall send them to the consumer at no charge
956	956	24 within 5 business days after the request, but the licensee is
957	957	25 not required to comply with a request more than once per
958	958
959	959
960	960
961	961
962	962
963	963	SB1685 - 26 - LRB104 09822 BAB 19890 b
964	964
965	965
966	966	SB1685- 27 -LRB104 09822 BAB 19890 b SB1685 - 27 - LRB104 09822 BAB 19890 b
967	967	SB1685 - 27 - LRB104 09822 BAB 19890 b
968	968	1 calendar month or if it reasonably believes the request is
969	969	2 made for purposes of harassment. If a request is made more than
970	970	3 90 days and less than 2 years after a program is completed or
971	971	4 terminated, the licensee must send within a reasonable time a
972	972	5 copy of the materials requested. The licensee is not required
973	973	6 to comply with any request from a consumer made more than the
974	974	7 later of (i) 2 years after a program is completed or terminated
975	975	8 or (ii) the expiration of the statute of limitations governing
976	976	9 contracts in this State.
977	977	10 (c) A licensee that maintains a website shall disclose on
978	978	11 the home page or on a page that is clearly and conspicuously
979	979	12 connected to the home page by a link that clearly reveals its
980	980	13 contents:
981	981	14 (1) the licensee's name and all names under which the
982	982	15 licensee does business in this State; and
983	983	16 (2) the licensee's principal business address,
984	984	17 telephone number, and email address, if any.
985	985	18 (d) Any licensee shall keep, for a period of 2 years from
986	986	19 the date the record is produced, the following records:
987	987	20 (1) All substantially different advertising,
988	988	21 brochures, telemarketing scripts, promotional materials,
989	989	22 and supportive data.
990	990	23 (2) The name and last known address of each consumer,
991	991	24 the goods or services purchased, the date such goods or
992	992	25 services were first provided or the consumer signed an
993	993	26 agreement for the provision of goods or services, and the
994	994
995	995
996	996
997	997
998	998
999	999	SB1685 - 27 - LRB104 09822 BAB 19890 b
1000	1000
1001	1001
1002	1002	SB1685- 28 -LRB104 09822 BAB 19890 b SB1685 - 28 - LRB104 09822 BAB 19890 b
1003	1003	SB1685 - 28 - LRB104 09822 BAB 19890 b
1004	1004	1 amount paid by the consumer for the goods or services.
1005	1005	2 (3) The name, any fictitious name used, the last known
1006	1006	3 home address and telephone number, and the job title for
1007	1007	4 all current and former employees directly involved in
1008	1008	5 sales or solicitations; however, if the licensee permits
1009	1009	6 fictitious names to be used by employees, each fictitious
1010	1010	7 name must be traceable to only one specific employee.
1011	1011	8 (e) In addition to the records required by subsection (d),
1012	1012	9 the licensee must keep a copy of each signed agreement with any
1013	1013	10 consumer for not less than 5 years from the date that the
1014	1014	11 consumer either graduates or terminates the debt resolution
1015	1015	12 services program.
1016	1016	13 (f) A licensee may keep the records required by
1017	1017	14 subsections (d) and (e) in any form, and in the same manner,
1018	1018	15 format, or place as they keep such records in the ordinary
1019	1019	16 course of business. Failure to keep all records required by
1020	1020	17 subsections (d) and (e) is a violation of this Act.
1021	1021	18 (g) In the event of any dissolution or termination of the
1022	1022	19 licensee's business, the principal of that licensee shall
1023	1023	20 maintain all records as required under subsections (d) and
1024	1024	21 (e). In the event of any sale, assignment, or other change in
1025	1025	22 ownership of the licensee's business, the successor business
1026	1026	23 shall maintain all records required under subsections (d) and
1027	1027	24 (e).
1028	1028	25 Section 18. Penalty for violation.
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034	SB1685 - 28 - LRB104 09822 BAB 19890 b
1035	1035
1036	1036
1037	1037	SB1685- 29 -LRB104 09822 BAB 19890 b SB1685 - 29 - LRB104 09822 BAB 19890 b
1038	1038	SB1685 - 29 - LRB104 09822 BAB 19890 b
1039	1039	1 (a) If the Department finds that a person has violated any
1040	1040	2 material provision of this Act, a rule adopted pursuant to
1041	1041	3 this Act, or any other law applicable to the conduct of a
1042	1042	4 licensee, the Department may, after notice and opportunity to
1043	1043	5 cure, order or impose a penalty upon the person, which must not
1044	1044	6 exceed $1,000 per violation of law or rule, up to a maximum of
1045	1045	7 $100,000, plus the costs of investigation. Notwithstanding
1046	1046	8 anything to the contrary herein or elsewhere, a continuing
1047	1047	9 violation shall be deemed to be a singular violation and not be
1048	1048	10 given multiple effect.
1049	1049	11 (b) A finding or order that the Department issues under
1050	1050	12 this Section is a final administrative decision under the
1051	1051	13 Administrative Review Law.
1052	1052	14 Section 19. Statute of limitations. An action or
1053	1053	15 proceeding brought by the Department under this Act must be
1054	1054	16 commenced within the longer of (i) 3 years after the conduct
1055	1055	17 that underlies the complaint is discovered by the Department
1056	1056	18 or the harmed consumer or (ii) if the violation constitutes a
1057	1057	19 criminal offense, the applicable statute of limitations.
1058	1058	20 Section 20. Transitional provisions. Transactions entered
1059	1059	21 into before this Act takes effect, and the rights, duties, and
1060	1060	22 interests resulting from them, may be completed, terminated,
1061	1061	23 or enforced as required or permitted by a law amended,
1062	1062	24 repealed, modified, or preempted by this Act as though the
1063	1063
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068	SB1685 - 29 - LRB104 09822 BAB 19890 b
1069	1069
1070	1070
1071	1071	SB1685- 30 -LRB104 09822 BAB 19890 b SB1685 - 30 - LRB104 09822 BAB 19890 b
1072	1072	SB1685 - 30 - LRB104 09822 BAB 19890 b
1073	1073	1 amendment, repeal, modification, or preemption had not
1074	1074	2 occurred.
1075	1075	3 Section 21. Illinois Administrative Procedure Act. The
1076	1076	4 Illinois Administrative Procedure Act is hereby expressly
1077	1077	5 adopted and incorporated herein as if all of the provisions of
1078	1078	6 that Act were included in this Act.
1079	1079	7 Section 22. Rulemaking. The Department may adopt rules to
1080	1080	8 administer and enforce Section 3.
1081	1081	9 Section 900. The State Finance Act is amended by changing
1082	1082	10 Section 6z-26 as follows:
1083	1083	11 (30 ILCS 105/6z-26)
1084	1084	12 Sec. 6z-26. The Financial Institution Fund. All moneys
1085	1085	13 received by the Department of Financial and Professional
1086	1086	14 Regulation under the Safety Deposit License Act, the Foreign
1087	1087	15 Exchange License Act, the Pawners Societies Act, the Sale of
1088	1088	16 Exchange Act, the Currency Exchange Act, the Sales Finance
1089	1089	17 Agency Act, the Debt Management Service Act, the Consumer
1090	1090	18 Installment Loan Act, the Illinois Development Credit
1091	1091	19 Corporation Act, the Title Insurance Act, the Debt Resolution
1092	1092	20 Services Settlement Consumer Protection Act, the Debt
1093	1093	21 Management Service Consumer Protection Fund, and any other Act
1094	1094	22 administered by the Department of Financial and Professional
1095	1095
1096	1096
1097	1097
1098	1098
1099	1099
1100	1100	SB1685 - 30 - LRB104 09822 BAB 19890 b
1101	1101
1102	1102
1103	1103	SB1685- 31 -LRB104 09822 BAB 19890 b SB1685 - 31 - LRB104 09822 BAB 19890 b
1104	1104	SB1685 - 31 - LRB104 09822 BAB 19890 b
1105	1105	1 Regulation as the successor of the Department of Financial
1106	1106	2 Institutions now or in the future (unless an Act specifically
1107	1107	3 provides otherwise) shall be deposited in the Financial
1108	1108	4 Institution Fund (hereinafter "Fund"), a special fund that is
1109	1109	5 hereby created in the State Treasury.
1110	1110	6 Moneys in the Fund shall be used by the Department,
1111	1111	7 subject to appropriation, for expenses incurred in
1112	1112	8 administering the above named and referenced Acts.
1113	1113	9 The Comptroller and the State Treasurer shall transfer
1114	1114	10 from the General Revenue Fund to the Fund any monies received
1115	1115	11 by the Department after June 30, 1993, under any of the above
1116	1116	12 named and referenced Acts that have been deposited in the
1117	1117	13 General Revenue Fund.
1118	1118	14 As soon as possible after the end of each calendar year,
1119	1119	15 the Comptroller shall compare the balance in the Fund at the
1120	1120	16 end of the calendar year with the amount appropriated from the
1121	1121	17 Fund for the fiscal year beginning on July 1 of that calendar
1122	1122	18 year. If the balance in the Fund exceeds the amount
1123	1123	19 appropriated, the Comptroller and the State Treasurer shall
1124	1124	20 transfer from the Fund to the General Revenue Fund an amount
1125	1125	21 equal to the difference between the balance in the Fund and the
1126	1126	22 amount appropriated.
1127	1127	23 Nothing in this Section shall be construed to prohibit
1128	1128	24 appropriations from the General Revenue Fund for expenses
1129	1129	25 incurred in the administration of the above named and
1130	1130	26 referenced Acts.
1131	1131
1132	1132
1133	1133
1134	1134
1135	1135
1136	1136	SB1685 - 31 - LRB104 09822 BAB 19890 b
1137	1137
1138	1138
1139	1139	SB1685- 32 -LRB104 09822 BAB 19890 b SB1685 - 32 - LRB104 09822 BAB 19890 b
1140	1140	SB1685 - 32 - LRB104 09822 BAB 19890 b
1141	1141	1 Moneys in the Fund may be transferred to the Professions
1142	1142	2 Indirect Cost Fund, as authorized under Section 2105-300 of
1143	1143	3 the Department of Professional Regulation Law of the Civil
1144	1144	4 Administrative Code of Illinois.
1145	1145	5 (Source: P.A. 96-1420, eff. 8-3-10.)
1146	1146	6 Section 905. The Financial Institutions Code is amended by
1147	1147	7 changing Section 6 as follows:
1148	1148	8 (20 ILCS 1205/6)
1149	1149	9 Sec. 6. General powers and duties. In addition to the
1150	1150	10 powers and duties provided by law and imposed elsewhere in
1151	1151	11 this Act, the Division has the following powers and duties:
1152	1152	12 (1) To administer and enforce the Consumer Installment
1153	1153	13 Loan Act and its implementing rules.
1154	1154	14 (2) To administer and enforce the Currency Exchange
1155	1155	15 Act and its implementing rules.
1156	1156	16 (3) To administer and enforce the Debt Management
1157	1157	17 Service Act and its implementing rules.
1158	1158	18 (4) To administer and enforce the Debt Resolution
1159	1159	19 Services Settlement Consumer Protection Act and its
1160	1160	20 implementing rules.
1161	1161	21 (5) To administer and enforce the Illinois Development
1162	1162	22 Credit Corporation Act and its implementing rules.
1163	1163	23 (6) To administer and enforce the Payday Loan Reform
1164	1164	24 Act and its implementing rules.
1165	1165
1166	1166
1167	1167
1168	1168
1169	1169
1170	1170	SB1685 - 32 - LRB104 09822 BAB 19890 b
1171	1171
1172	1172
1173	1173	SB1685- 33 -LRB104 09822 BAB 19890 b SB1685 - 33 - LRB104 09822 BAB 19890 b
1174	1174	SB1685 - 33 - LRB104 09822 BAB 19890 b
1175	1175	1 (7) To administer and enforce the Safety Deposit
1176	1176	2 License Act and its implementing rules.
1177	1177	3 (8) To administer and enforce the Sales Finance Agency
1178	1178	4 Act and its implementing rules.
1179	1179	5 (9) To administer and enforce the Title Insurance Act
1180	1180	6 and its implementing rules.
1181	1181	7 (10) To administer and enforce the Transmitters of
1182	1182	8 Money Act and its implementing rules.
1183	1183	9 (11) To administer and enforce the Predatory Loan
1184	1184	10 Prevention Act and its implementing rules.
1185	1185	11 (12) To administer and enforce the Motor Vehicle
1186	1186	12 Retail Installment Sales Act and its implementing rules.
1187	1187	13 (13) To administer and enforce the Retail Installment
1188	1188	14 Sales Act and its implementing rules.
1189	1189	15 (14) To administer and enforce the Illinois Credit
1190	1190	16 Union Act and its implementing rules.
1191	1191	17 (15) To administer and enforce the Collection Agency
1192	1192	18 Act and its implementing rules.
1193	1193	19 (16) To administer and enforce the Consumer Legal
1194	1194	20 Funding Act and its implementing rules.
1195	1195	21 (17) To administer and enforce this Act and any other
1196	1196	22 Act administered by the Director or Division.
1197	1197	23 (18) To authorize and administer examinations to
1198	1198	24 ascertain the qualifications of applicants and licensees
1199	1199	25 for which the examination is held.
1200	1200	26 (19) To conduct hearings in proceedings to revoke,
1201	1201
1202	1202
1203	1203
1204	1204
1205	1205
1206	1206	SB1685 - 33 - LRB104 09822 BAB 19890 b
1207	1207
1208	1208
1209	1209	SB1685- 34 -LRB104 09822 BAB 19890 b SB1685 - 34 - LRB104 09822 BAB 19890 b
1210	1210	SB1685 - 34 - LRB104 09822 BAB 19890 b
1211	1211	1 suspend, refuse to renew, or take other disciplinary
1212	1212	2 action regarding licenses, charters, certifications,
1213	1213	3 registrations, or authorities of persons as authorized in
1214	1214	4 any Act administered by the Division.
1215	1215	5 Whenever the Division is authorized or required by law to
1216	1216	6 consider some aspect of criminal history record information
1217	1217	7 for the purpose of carrying out its statutory powers and
1218	1218	8 responsibilities, then, upon request and payment of fees in
1219	1219	9 conformance with the requirements of Section 2605-400 of the
1220	1220	10 Illinois State Police Law, the Illinois State Police is
1221	1221	11 authorized to furnish, pursuant to positive identification,
1222	1222	12 the information contained in State files that is necessary to
1223	1223	13 fulfill the request.
1224	1224	14 (Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22;
1225	1225	15 102-975, eff. 1-1-23; 103-154, eff. 6-30-23; 103-1014, eff.
1226	1226	16 8-9-24.)
1227	1227	17 Section 910. The Debt Management Service Act is amended by
1228	1228	18 changing Section 2 as follows:
1229	1229	19 (205 ILCS 665/2) (from Ch. 17, par. 5302)
1230	1230	20 Sec. 2. Definitions. As used in this Act:
1231	1231	21 "Credit counselor" means an individual, corporation, or
1232	1232	22 other entity that is not a debt management service that
1233	1233	23 provides (1) guidance, educational programs, or advice for the
1234	1234	24 purpose of addressing budgeting, personal finance, financial
1235	1235
1236	1236
1237	1237
1238	1238
1239	1239
1240	1240	SB1685 - 34 - LRB104 09822 BAB 19890 b
1241	1241
1242	1242
1243	1243	SB1685- 35 -LRB104 09822 BAB 19890 b SB1685 - 35 - LRB104 09822 BAB 19890 b
1244	1244	SB1685 - 35 - LRB104 09822 BAB 19890 b
1245	1245	1 literacy, saving and spending practices, or the sound use of
1246	1246	2 consumer credit; or (2) assistance or offers to assist
1247	1247	3 individuals and families with financial problems by providing
1248	1248	4 counseling; or (3) a combination of the activities described
1249	1249	5 in items (1) and (2) of this definition.
1250	1250	6 "Debt management service" means the planning and
1251	1251	7 management of the financial affairs of a debtor for a fee and
1252	1252	8 the receiving of money from the debtor for the purpose of
1253	1253	9 distributing it to the debtor's creditors in payment or
1254	1254	10 partial payment of the debtor's obligations or soliciting
1255	1255	11 financial contributions from creditors. The business of debt
1256	1256	12 management is conducted in this State if the debt management
1257	1257	13 business, its employees, or its agents are located in this
1258	1258	14 State or if the debt management business solicits or contracts
1259	1259	15 with debtors located in this State. "Debt management service"
1260	1260	16 does not include "debt resolution services" "debt settlement
1261	1261	17 service" as defined in the Debt Resolution Services Settlement
1262	1262	18 Consumer Protection Act.
1263	1263	19 This term shall not include the following when engaged in
1264	1264	20 the regular course of their respective businesses and
1265	1265	21 professions:
1266	1266	22 (a) Attorneys at law licensed, or otherwise authorized
1267	1267	23 to practice, in Illinois who are engaged in the practice
1268	1268	24 of law.
1269	1269	25 (b) Banks, operating subsidiaries of banks, affiliates
1270	1270	26 of banks, fiduciaries, credit unions, savings and loan
1271	1271
1272	1272
1273	1273
1274	1274
1275	1275
1276	1276	SB1685 - 35 - LRB104 09822 BAB 19890 b
1277	1277
1278	1278
1279	1279	SB1685- 36 -LRB104 09822 BAB 19890 b SB1685 - 36 - LRB104 09822 BAB 19890 b
1280	1280	SB1685 - 36 - LRB104 09822 BAB 19890 b
1281	1281	1 associations, and savings banks as duly authorized and
1282	1282	2 admitted to transact business in the State of Illinois and
1283	1283	3 performing credit and financial adjusting service in the
1284	1284	4 regular course of their principal business.
1285	1285	5 (c) Title insurers, title agents, independent
1286	1286	6 escrowees, and abstract companies, while doing an escrow
1287	1287	7 business.
1288	1288	8 (d) Judicial officers or others acting pursuant to
1289	1289	9 court order.
1290	1290	10 (e) Employers for their employees, except that no
1291	1291	11 employer shall retain the services of an outside debt
1292	1292	12 management service to perform this service unless the debt
1293	1293	13 management service is licensed pursuant to this Act.
1294	1294	14 (f) Bill payment services, as defined in the
1295	1295	15 Transmitters of Money Act.
1296	1296	16 (g) Credit counselors, only when providing services
1297	1297	17 described in the definition of credit counselor in this
1298	1298	18 Section.
1299	1299	19 "Debtor" means the person or persons for whom the debt
1300	1300	20 management service is performed.
1301	1301	21 "Person" means an individual, firm, partnership,
1302	1302	22 association, limited liability company, corporation, or
1303	1303	23 not-for-profit corporation.
1304	1304	24 "Licensee" means a person licensed under this Act.
1305	1305	25 "Secretary" means the Secretary of Financial and
1306	1306	26 Professional Regulation.
1307	1307
1308	1308
1309	1309
1310	1310
1311	1311
1312	1312	SB1685 - 36 - LRB104 09822 BAB 19890 b
1313	1313
1314	1314
1315	1315	SB1685- 37 -LRB104 09822 BAB 19890 b SB1685 - 37 - LRB104 09822 BAB 19890 b
1316	1316	SB1685 - 37 - LRB104 09822 BAB 19890 b
1317	1317	1 (Source: P.A. 100-201, eff. 8-18-17.)
1318	1318	2 (225 ILCS 429/Act rep.)
1319	1319	3 Section 915. The Debt Settlement Consumer Protection Act
1320	1320	4 is repealed.
1321	1321	5 Section 920. The Consumer Fraud and Deceptive Business
1322	1322	6 Practices Act is amended by changing Section 2JJJ as follows:
1323	1323	7 (815 ILCS 505/2JJJ)
1324	1324	8 Sec. 2JJJ. Violations of the Debt Resolution Services
1325	1325	9 Settlement Consumer Protection Act. Any person who violates
1326	1326	10 the Debt Resolution Services Settlement Consumer Protection
1327	1327	11 Act commits an unlawful practice within the meaning of this
1328	1328	12 Act.
1329	1329	13 (Source: P.A. 96-1420, eff. 8-3-10; 97-333, eff. 8-12-11.)
1330	1330
1331	1331
1332	1332
1333	1333
1334	1334
1335	1335	SB1685 - 37 - LRB104 09822 BAB 19890 b