Bill > SB2457

This bill amends the Collection Agency Act to make several significant changes to the regulation of collection agencies in Illinois. The bill removes the Collection Agency Act from the list of Acts set to be repealed in 2026 and modifies multiple aspects of how collection agencies operate. Key provisions include expanding and clarifying the definition of a "collection agency", broadening the list of exempt entities (such as adding motor vehicle retail sellers and various licensed financial service providers), and updating disciplinary procedures. The bill eliminates the Collection Agency Licensing and Disciplinary Board and transfers its responsibilities directly to the Department of Financial and Professional Regulation. Notably, for child support debt collection, the bill allows the Department to modify the fee rate a collection agency can charge, setting a range between 25% and 35% of the child support amount collected. The bill also updates provisions related to unlicensed practice, communication with debtors, investigative powers, and penalty structures, including introducing more flexible mechanisms for disciplinary actions and consent orders. These changes aim to modernize the regulation of debt collection practices while providing more administrative flexibility to the overseeing department.

Budget and Finance, Business and Industry

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2457&GAID=18&DocTypeID=SB&SessionID=114&GA=104