Illinois Governor Enacts Amendments to Collection Agency Act

State Issues State Legislation Debt Collection Licensing

On August 18, Illinois Governor Bruce Rauner enacted amendments (HB 2783) to the state’s Collection Agency Act, which establishes provisions relating to licensing requirements. Among other things, the amended Act now (i) allows the Secretary of the Department of Financial and Professional Regulation (Department) to require licensing applications to participate in a multi-state licensing system and permits the licensing system to share regulatory information and charge administrative fees; (ii) removes the requirement to file an annual trust account financial report to the Department; (iv) provides that members of the Collection Agency Licensing and Disciplinary Board “shall have no liability in any action based upon any disciplinary proceeding or other activity performed in good faith as a member of the Board”; and (v) removes the provision requiring the Department to maintain rosters of all active licensees under the Act or persons whose licenses have been suspended, revoked, or denied renewal under the Act. The amended Act took effect upon being signed into law.