The new rules bring collection agencies in alignment with other industries regulated by the Division of Financial Institutions.
01/08/2024 4:00 P.M.
2 minute read
Illinois recently transferred the authority to regulate collection agencies from the Division of Professional Regulation to the Division of Financial Institutions under Public Act 102-975 (PDF).
The Division of Professional Regulation repealed 68 Ill. Adm. Code, Ch. VII, Subch. B, Pt. 1210, and promulgated new rules to effect the transfer and update the rules for collection agencies. The new rules can be found at 38 Ill. Adm. Code 150 (“Collection Agency Act”). The rules were adopted on Dec. 1, 2023, but were made retroactive to Nov. 20, 2023.
The new rules were proposed to “help the Division of Financial Institutions fulfill its newly-granted statutory responsibility and align these rules with regulatory requirements” set forth by the Illinois Collection Agency Act.
For the most part, the new rules mirror the old regulations, although they have been altered to bring collection agencies in alignment with other industries regulated by the Division of Financial Institutions.
Of note: the new rules alter the previous collection agency guidelines “regarding definitions, officers, applications for or changes to licensure, communications, pseudonyms, changes in ownership, recordkeeping, fees, payments, and the granting of variances to better reflect the standards of the Division of Financial Institutions.”
The changes to licensure mentioned above can be found at 38 Ill. Adm. Code 150.130. It states:
“Any license issued on or before October 31, 2024 shall expire on December 31, 2024. Thereafter, all licenses shall expire annually on December 31, except that any license issued on or after November 1 shall expire on December 31 of the next calendar year. A licensee may renew its license by submitting a license renewal application for the next calendar year and paying the required fee between November 1 and December 31 of the current year. A license shall be deemed not to have expired if its license renewal application is received by the Department before December 31. Licensees shall maintain sufficient proof to demonstrate receipt of the renewal application by the Department.”
Further, Section 150.130 also states:
“It is the responsibility of each licensee to notify the Division of any change of address. Failure to receive a renewal form from the Division shall not constitute an excuse for failure to pay the renewal fee or to renew one’s license. Practicing or offering to practice on a license that has expired shall be considered unlicensed activity and shall be grounds for discipline pursuant to Section 9 of the Act.”
Collectors Insurance Agency is working with the state on the updated regulations for the upcoming licensing and bond renewal season. If your licensing and bonds services are provided by CIA, your representatives will be in touch.
For more information on how the CIA licensing & bonds staff can assist with your application completion needs, please contact us at [email protected] or call (952) 926-6547