of the Illinois Department of Professional Regulation.
This copy of the Act is furnished to you for your convenience. This is not an official copy.
If there are any inconsistencies between this version and the current law, the official law,
as published by the Secretary of State in the "Laws of Illinois", controls.
The paragraph numbers in the first column refer to the relevant paragraphs of 225 Illinois Compiled Statutes 1992. The Section numbers in the second column refer to the Sections of the Collection Agency Act, as amended.
Par. Sec.
425/2.02. 2.02. Collection agency or agency
425/3. 3. Acts constituting a collection agency
425/4. 4. Registration
425/4.5. 4.5. Unlicensed practice - Violation - Civil penalty
425/5. 5. Application for registration
425/6. 6. Certificate of registration - Applications for renewal
425/6a. 6a. Expiration of license - Restoration
425/7. 7. Qualifications of agency's officers to obtain certificate or renewal certificate
(425/2.02. Collection agency or agency) Section 2.02. "Collection agency" or "agency" means any person, association, partnership, or corporation who, for compensation, either contingent or otherwise, or for other valuable consideration, offers services to collect an alleged delinquent debt.
(425/3. Acts constituting a collection agency) Section 3. A person, association, partnership or corporation acts as a collection agency when he or it:
(a) Engages in the business of collection for others of any account, bill or other indebtedness;
(b) Receives, by assignment or otherwise, accounts, bills, or other indebtedness from any person owning or controlling 20% or more of the business receiving the assignment, with the purpose of collecting monies due on such account, bill or other indebtedness;
(c) Sells or attempts to sell, or gives away or attempts to give away to any other person, other than one registered under this Act, any system of collection, letters, demand forms, or other printed matter where the name of any person, other than that of the creditor, appears in such a manner as to indicate, directly or indirectly, that a request or demand is being made by any person other than the creditor for the payment of the sum or sums due or asserted to be due;
(d) Buys accounts, bills or other indebtedness with recourse and engages in collecting the same; or
(e) Uses a fictitious name in collecting its own accounts, bills, or debts with the intention of conveying to the debtor that a third party has been employed to make such collection.
(425/4. Registration) Section 4. No collection agency shall operate in this State, directly or indirectly engage in the business of collecting, solicit claims for others, have a sales office, a client, or solicit a client in this State, exercise the right to collect, or receive payment for another of any account, bill or other indebtedness, without registering under this Act except that no collection agency shall be required to be licensed or maintain an established business address in this State if the agency's activities in this State are limited to collecting debts from debtors located in this State by means of interstate communication, including telephone, mail, or facsimile transmission from the agency's location in another state provided they are licensed in that state and these same privileges are permitted in that licensed state to agencies licensed in Illinois.
(425/4.5. Unlicensed practice - Violation - Civil penalty) Section 4.5. Unlicensed practice; violation; civil penalty.
(a) Any person who practices, offers to practice, attempts to practice, or holds oneself out to practice as a collection agency without being licensed under this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department in an amount not to exceed $5,000 for each offense as determined by the Department. The civil penalty shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding the provision of a hearing for the discipline of a licensee.
(b) The Department has the authority and power to investigate any and all unlicensed activity.
(c) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of record.
Added by P.A. 89-474, Section 120, effective June 18, 1996.
(425/5. Application for registration) Section 5. Application for registration shall be made to the Director on forms provided by the Department, shall be accompanied by the required fee and shall state:
(1) The applicant's name and address;
(2) the names and addresses of the officers of the collection agency and, if the collection agency is a corporation, the names and addresses of all persons owning 10% or more of the stock of such corporation; and
(3) Such other information as the Department may deem necessary.
(425/6. Certificate of registration - Applications for renewal) Section 6. (a) If the Director determines that the applicant meets the qualifications for registration required by this Act, he or she shall issue a certificate of registration forthwith. Each application for a certificate shall be acted upon within 45 days of receipt of the application by the Department. If the application is deficient in form, the Director shall reject it and notify the applicant of the nature of the deficiency. Such rejection shall be without prejudice to the filing of a new application. If the Director finds that the applicant is not qualified under this Act, he shall reject the application and give the applicant written notice of such rejection and the reasons therefor.
(b) The expiration date and renewal period for each certificate of registration issued under this Act shall be set by rule. The holder of a certificate of registration may renew such certificate during the month preceding the expiration date thereof by paying the required fee.
(c) Upon application, accompanied by the initial fee and compliance with the financial bonding requirements herein set forth, the Director shall issue an original certificate to each entity required to have a certificate if the application is received by the Department within 60 days of the effective date of this Act. Any collection agency to whom an original license is issued under this subsection (c) must meet the requirements of Section 7 of this Act to be entitled to a renewal license.
(425/6a. Expiration of license - Restoration) Section 6a. Any registered collection agency whose certificate of registration has expired may have the certificate of registration restored by making application to the Department and filing proof acceptable to the Department of fitness to have the certificate of registration restored, and by paying the required restoration fee.
However, any registered collection agency whose certificate of registration has expired while the individual registered or while a shareholder owning 50% or more of the shares of stock in a registered corporation has expired while he has been engaged (1) in federal service on active duty with the Army of the United States, the United States Navy, the Marine Corps, the Air Force, the Coast Guard, or the State Militia called into the service or training of the United States of America, or (2) in training or education under the supervision of the United States preliminary to induction into the military service, may have his certificate of registration restored or reinstated without paying any lapsed renewal fees, restoration fee or reinstatement fee if within 2 years after termination of such service, training or education other than by dishonorable discharge he furnishes the Department with an affidavit to the effect that he has been so engaged and that his service, training or education has been so terminated.
(425/7. Qualifications of agency's officers to obtain certificate or renewal certificate) Section 7. In order to be qualified to obtain a certificate or a renewal certificate under this Act, a collection agency's officers shall:
(a) be of good moral character and of the age of 18 years or more;
(b) have had at least one year experience working in the credit field or a related area, or be qualified for an original license under Section 6 (c) of this Act;
(c) have an acceptable credit rating, have no unsatisfied judgments; and not have been officers of a former registrant under this Act whose certificates were suspended or revoked without subsequent reinstatement.