Illinois · statute · 205 ILCS 665 · 29 active provisions
Declaration of policy. The business of providing debt management services to individuals is a matter of public interest and concern and is subject to regulation and control in the public interest. (Source: P.A. 90-545, eff. 1-1-98.)
Purpose and construction. The purpose of this Act is to protect consumers who enter into agreements with debt management service providers and to regulate debt management service providers. This Act shall be construed as a consumer protection law for all purposes. This Act shall be liberally construed to effectuate its…
Definitions. As used in this Act: "Credit counselor" means an individual, corporation, or other entity that is not a debt management service that provides (1) guidance, educational programs, or advice for the purpose of addressing budgeting, personal finance, financial literacy, saving and spending practices, or the so…
Requirement of license. It shall be unlawful for any person to operate a debt management service or engage in that business as herein defined except as authorized by this Act and without first having obtained a license as hereinafter provided. (Source: P.A. 90-545, eff. 1-1-98.)
Application for license. Application for a license to engage in the debt management service business in this State shall be made to the Secretary and shall be in writing, under oath, and in the form prescribed by the Secretary. Each applicant, at the time of making such application, shall pay to the Secretary the sum o…
Qualifications for license. Upon the filing of the application and the approval of the bond and the payment of the specified fees, the Secretary may issue a license if he finds: (1) That the financial responsibility, experience, character and general fitness of the applicant, the managers thereof, if the applicant is a…
Renewal of license. Each debt management service provider under the provisions of this Act may make application to the Secretary for renewal of its license, which application for renewal shall be on the form prescribed by the Secretary and shall be accompanied by a fee of $100.00 together with a bond or other surety as…
Fees. (a) The expenses of administering this Act, including licensing, investigations, and examinations provided for in this Act, shall be borne by and assessed against persons and entities regulated by this Act in such proportions and in such manner as the Secretary deems appropriate. The Secretary may establish by ru…
License, display and location. Each license issued shall be kept conspicuously posted in the place of business of the debt management service provider. The business location may be changed by any licensee upon 10 days prior written notice to the Secretary. A license must operate under the name as stated in its original…
Temporary location. The Secretary may approve a temporary additional business location for the purpose of allowing a debt management service provider to conduct business outside the licensed location. (Source: P.A. 96-1420, eff. 8-3-10.)
Denial of license. Any application for a license shall be approved or denied within 60 days of the filing of a completed application with the Secretary. (Source: P.A. 96-1420, eff. 8-3-10.)
Revocation, suspension, or refusal to renew license. (a) The Secretary may revoke or suspend or refuse to renew any license if he finds that: (1) any licensee has failed to pay the annual license fee, or to maintain in effect the bond required under the provisions of this Act; (2) the licensee has violated any provisio…
Contracts, books, records and contract cancellation. Each debt management service provider shall furnish to the Secretary, when requested, a copy of the contract entered into between the debt management service provider and the debtor. The debt management service provider shall furnish the debtor with a copy of the wri…
Examination of debt management service provider. The Secretary at any time, either in person or through an appointed representative, may examine the condition and affairs of a debt management service provider. In connection with any examination, the Secretary may examine on oath any debt management service provider and…
Fees and charges of debt management service providers. A debt management service provider may not charge a debtor any fees or penalties except the following: (1) an initial counseling fee not to exceed $50 per debtor counseled; and (2) additional fees at the completion of the initial counseling services which shall not…
All moneys received by the Department of Financial Institutions under this Act, except moneys received for the Debt Management Service Consumer Protection Fund, shall be deposited in the Financial Institution Fund created under Section 6z-26 of the State Finance Act. (Source: P.A. 98-463, eff. 8-16-13.)
Prohibitions. (1) No licensee shall advertise, in any manner whatsoever, any statement or representation with regard to the rates, terms or conditions of debt management service which is false, misleading, or deceptive. (2) No licensee shall require as a part of the agreement between the licensee and any debtor, the pu…
Trust funds; requirements and restrictions. (a) All funds received by a debt management service provider or his agent from and for the purpose of paying bills, invoices, or accounts of a debtor shall constitute trust funds owned by and belonging to the debtor from whom they were received. All such funds received by a d…
Rules.) The Secretary shall make and enforce all reasonable rules as shall be necessary for the administration of this Act. Such rulemaking shall be subject to the provisions of the Illinois Administrative Procedure Act. (Source: P.A. 96-1420, eff. 8-3-10.)
Penalties. (a) Any person who engages in the business of debt management service without a license shall be guilty of a Class 4 felony. (b) Any contract of debt management service as defined in this Act, made by an unlicensed person, shall be null and void and of no legal effect. (c) The Secretary may, after 10 days no…
Additional liability for unlicensed activity. Any person who, without the required license, engages in conduct requiring a license under this Act, shall be liable to the Department in an amount equal to the greater of (1) $1,000 or (2) an amount equal to 4 times the amount of consumer debt enrolled. The Department shal…
Debt Management Service Consumer Protection Fund. (a) A special non-appropriated income-earning fund is hereby created in the State Treasury, known as the Debt Management Service Consumer Protection Fund. This Fund is not subject to appropriation by the Illinois General Assembly. (b) All moneys paid into the Fund toget…
Injunction. To engage in debt management service, render financial service, or accept debtors' funds, as defined in this Act, without a valid license so to do, is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Secretary may, in the name of the people of the State of Illino…
Review. All final administrative decisions of the Secretary hereunder shall be subject to judicial review pursuant to the provisions of the Administrative Review Law, and all amendments and modifications thereof and the rules adopted pursuant thereto. (Source: P.A. 96-1420, eff. 8-3-10.)
If any clause, sentence, section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not impair, affect or invalidate the remainder of this Act which shall be in full force and effect thereafter. (Source: Laws 1957…