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91_HB3046enr HB3046 Enrolled LRB9109389ACtm 1 AN ACT to amend the Collection Agency Act by changing 2 Section 9. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Collection Agency Act is amended by 6 changing Section 9 as follows: 7 (225 ILCS 425/9) (from Ch. 111, par. 2012) 8 Sec. 9. (a) The Department may refuse to issue or renew, 9 or may revoke, suspend, place on probation, reprimand or take 10 other disciplinary action as the Department may deem proper, 11 including fines not to exceed $1,000 per licensee per 12 complaint, for any one or any combination of the following 13 causes: 14 (1) Violations of this Act or of the rules 15 promulgated hereunder. 16 (2) Conviction of the collection agency or the 17 principals of the agency of any crime under the laws of 18 any U.S. jurisdiction which is a felony, a misdemeanor an 19 essential element of which is dishonesty, or of any crime 20 which directly relates to the practice of the profession. 21 (3) Making any misrepresentation for the purpose of 22 obtaining a license or certificate. 23 (4) Habitual or excessive use or addiction to 24 alcohol, narcotics, stimulants or any other chemical 25 agent or drug which results in the inability to practice 26 with reasonable judgment, skill, or safety by any of the 27 principals of a collection agency. 28 (5) Discipline by another U.S. jurisdiction or 29 foreign nation, if at least one of the grounds for the 30 discipline is the same or substantially equivalent to 31 those set forth in this Act. HB3046 Enrolled -2- LRB9109389ACtm 1 (6) A finding by the Department that the licensee, 2 after having his license placed on probationary status, 3 has violated the terms of probation. 4 (7) Practicing or attempting to practice under a 5 name other than the name as shown on his or her license 6 or any other legally authorized name. 7 (8) A finding by the Federal Trade Commission that 8 a licensee violated the Federal Fair Debt and Collection 9 Act or its rules. 10 (9) Failure to file a return, or to pay the tax, 11 penalty or interest shown in a filed return, or to pay 12 any final assessment of tax, penalty or interest, as 13 required by any tax Act administered by the Illinois 14 Department of Revenue until such time as the requirements 15 of any such tax Act are satisfied. 16 (10) Using or threatening to use force or violence 17 to cause physical harm to a debtor, his family or his 18 property. 19 (11) Threatening to instigate an arrest or criminal 20 prosecution where no basis for a criminal complaint 21 lawfully exists. 22 (12) Threatening the seizure, attachment or sale of 23 a debtor's property where such action can only be taken 24 pursuant to court order without disclosing that prior 25 court proceedings are required. 26 (13) Disclosing or threatening to disclose 27 information adversely affecting a debtor's reputation for 28 credit worthiness with knowledge the information is 29 false. 30 (14) Initiating or threatening to initiate 31 communication with a debtor's employer unless there has 32 been a default of the payment of the obligation for at 33 least 30 days and at least 5 days prior written notice, 34 to the last known address of the debtor, of the intention HB3046 Enrolled -3- LRB9109389ACtm 1 to communicate with the employer has been given to the 2 employee, except as expressly permitted by law or court 3 order. 4 (15) Communicating with the debtor or any member of 5 the debtor's family at such a time of day or night and 6 with such frequency as to constitute harassment of the 7 debtor or any member of the debtor's family. For 8 purposes of this Section the following conduct shall 9 constitute harassment: 10 (A) Communicating with the debtor or any 11 member of his or her family in connection with the 12 collection of any debt without the prior consent of 13 the debtor given directly to the debt collector, or 14 the express permission of a court of competent 15 jurisdiction, at any unusual time or place or a time 16 or place known or which should be known to be 17 inconvenient to the debtor. In the absence of 18 knowledge of circumstances to the contrary, a debt 19 collector shall assume that the convenient time for 20 communicating with a consumer is after 8 o'clock 21 a.m. and before 9 o'clock p.m. local time at the 22 debtor's location. 23 (B) The threat of publication or publication 24 of a list of consumers who allegedly refuse to pay 25 debts, except to a consumer reporting agency. 26 (C) The threat of advertisement or 27 advertisement for sale of any debt to coerce payment 28 of the debt. 29 (D) Causing a telephone to ring or engaging 30 any person in telephone conversation repeatedly or 31 continuously with intent to annoy, abuse, or harass 32 any person at the called number. 33 (16) Using profane, obscene or abusive language in 34 communicating with a debtor, his or her family or others. HB3046 Enrolled -4- LRB9109389ACtm 1 (17) Disclosing or threatening to disclose 2 information relating to a debtor's indebtedness to any 3 other person except where such other person has a 4 legitimate business need for the information or except 5 where such disclosure is regulated by law. 6 (18) Disclosing or threatening to disclose 7 information concerning the existence of a debt which the 8 debt collector knows to be reasonably disputed by the 9 debtor without disclosing the fact that the debtor 10 disputes the debt. 11 (19) Engaging in any conduct which the Director 12 finds was intended to cause and did cause mental or 13 physical illness to the debtor or his or her family. 14 (20) Attempting or threatening to enforce a right 15 or remedy with knowledge or reason to know that the right 16 or remedy does not exist. 17 (21) Failing to disclose to the debtor or his or 18 her family the corporate, partnership or proprietary 19 name, or other trade or business name, under which the 20 debt collector is engaging in debt collections and which 21 he or she is legally authorized to use. 22 (22) Using any form of communication which 23 simulates legal or judicial process or which gives the 24 appearance of being authorized, issued or approved by a 25 governmental agency or official or by an attorney at law 26 when it is not. 27 (23) Using any badge, uniform, or other indicia of 28 any governmental agency or official except as authorized 29 by law. 30 (24) Conducting business under any name or in any 31 manner which suggests or implies that a debt collector is 32 bonded if such collector is or is a branch of or is 33 affiliated with any governmental agency or court if such 34 collector is not. HB3046 Enrolled -5- LRB9109389ACtm 1 (25) Failing to disclose, at the time of making any 2 demand for payment, the name of the person to whom the 3 claim is owed and at the request of the debtor, the 4 address where payment is to be made and the address of 5 the person to whom the claim is owed. 6 (26) Misrepresenting the amount of the claim or 7 debt alleged to be owed. 8 (27) Representing that an existing debt may be 9 increased by the addition of attorney's fees, 10 investigation fees or any other fees or charges when such 11 fees or charges may not legally be added to the existing 12 debt. 13 (28) Representing that the debt collector is an 14 attorney at law or an agent for an attorney if he is not. 15 (29) Collecting or attempting to collect any 16 interest or other charge or fee in excess of the actual 17 debt or claim unless such interest or other charge or fee 18 is expressly authorized by the agreement creating the 19 debt or claim unless expressly authorized by law or 20 unless in a commercial transaction such interest or other 21 charge or fee is expressly authorized in a subsequent 22 agreement. If a contingency or hourly fee arrangement (i) 23 is established under an agreement between a collection 24 agency and a creditor to collect a debt and (ii) is paid 25 by a debtor pursuant to a contract between the debtor and 26 the creditor, then that fee arrangement does not violate 27 this Section unless the fee is unreasonable. The 28 Department shall determine what constitutes a reasonable 29 collection fee. 30 (30) Communicating or threatening to communicate 31 with a debtor when the debt collector is informed in 32 writing by an attorney that the attorney represents the 33 debtor concerning the claim, unless authorized by the 34 attorney. If the attorney fails to respond within a HB3046 Enrolled -6- LRB9109389ACtm 1 reasonable period of time, the collector may communicate 2 with the debtor. The collector may communicate with the 3 debtor when the attorney gives his consent. 4 (31) Engaging in dishonorable, unethical, or 5 unprofessional conduct of a character likely to deceive, 6 defraud, or harm the public. 7 (b) The Department shall deny any license or renewal 8 authorized by this Act to any person who has defaulted on an 9 educational loan guaranteed by the Illinois State Scholarship 10 Commission; however, the Department may issue a license or 11 renewal if the person in default has established a 12 satisfactory repayment record as determined by the Illinois 13 State Scholarship Commission. 14 No debt collector while collecting or attempting to 15 collect a debt shall engage in any of the Acts specified in 16 this Section, each of which shall be unlawful practice. 17 (Source: P.A. 89-387, eff. 1-1-96.)