IllinoisSB2457104th General Assembly (2025–2026)SenateWALLET

COLLECTION AGENCY ACT

Sponsored By: Mark L. Walker (Democratic)

Signed by Governor

Summary

Amends the Regulatory Sunset Act. Removes the Collection Agency Act from the list of Acts being repealed under the Act. Amends the Collection Agency Act. Makes changes concerning defined terms; exempt persons and entities under the Act; unlicensed practice; disciplinary actions; communication; informal conferences; penalties; investigations; the record of hearing; oaths; findings and recommendations; hearings; orders; and returned payments. Provides that the fee rate a collection agency can charge may be modified by rule to not less than 25% of the amount of child support actually collected by the collection agency but not greater than 35%. Repeals provisions concerning the Collection Agency Licensing and Disciplinary Board and provisions concerning when a person acts as a collection agency. Makes other changes.

assignmentsfinancial institutionsfinancial institutions and licensing

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

More privacy for debtors with lawyers

Collection agencies and debt buyers face limits when seeking a consumer debtor’s location from other people. They cannot make those contacts once they know a lawyer represents the debtor for that debt. This applies when they know, or can readily find, the lawyer’s name and address. Contacts are allowed if the lawyer fails to respond within a reasonable period of at least 30 days.

Debt collection oversight continues and gains tools

The law removes the Collection Agency Act’s scheduled January 1, 2026 repeal, keeping the Act in force beyond that date. Illinois financial regulators can investigate and periodically examine applicants, collection service providers, and people holding or claiming a license. They can also reprimand collection agencies for reasons listed in the Act. Discipline by another Illinois agency can support action when at least one reason matches, or closely matches, an Act violation.

More debt collection falls under state rules

The law covers regularly collecting others’ debts, buying debt, and collecting payments returned unpaid by a financial institution. It also covers certain debt assignments involving someone who owns or controls at least 20% of the recipient. Covered activities include supplying materials that suggest third-party collection and using a made-up name to collect one’s own debts. A creditor now means anyone extending credit, not just consumer credit. The law removes the broad exemption for collection tied to another business but keeps listed exemptions. These include qualifying banks, credit unions, loan originators, and retail sellers collecting specified agreements they originated. Listed licensed businesses include sales finance agencies, student loan servicers, installment lenders, consumer legal funding providers, and pawnbrokers. Several exemptions cover only activities authorized by the relevant law, and the Department can add exemptions by rule.

Unlicensed debt collectors face faster, tougher penalties

Practicing or offering collection services without a license, or with a suspended, revoked, or expired license, carries criminal penalties. An initial offense is a Class A misdemeanor; the law also covers Act violations without another specified penalty. A new violation after a prior Act conviction is a Class 4 felony, and the Secretary must seek a permanent injunction. Civil penalties for unlicensed practice must be ordered after a hearing. Payment is due within 30 days after the order takes effect, down from 60 days.

Sponsors & Cosponsors

Sponsor

  • Mark L. Walker

    Democratic • Senate

Cosponsors

  • Graciela Guzmán

    Democratic • Senate

  • Karina Villa

    Democratic • Senate

  • Margaret Croke

    Democratic • House

  • Mary Edly-Allen

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 197 • No: 0

House vote • 5/22/2025

Third Reading - Short Debate - Passed

Yes: 113 • No: 0

House vote • 4/29/2025

Do Pass / Short Debate Financial Institutions and Licensing Committee;

Yes: 12 • No: 0

Senate vote • 4/9/2025

Third Reading - Passed;

Yes: 56 • No: 0

Senate vote • 4/3/2025

Senate Floor Amendment No. 2 Recommend Do Adopt Financial Institutions;

Yes: 8 • No: 0

Senate vote • 3/19/2025

Do Pass as Amended Financial Institutions;

Yes: 8 • No: 0

Actions Timeline

  1. Public Act . . . . . . . . . 104-0149

    8/1/2025Senate
  2. Effective Date January 1, 2026

    8/1/2025Senate
  3. Governor Approved

    8/1/2025Senate
  4. Sent to the Governor

    6/20/2025Senate
  5. Passed Both Houses

    5/22/2025Senate
  6. Third Reading - Short Debate - Passed 113-000-000

    5/22/2025House
  7. Placed on Calendar Order of 3rd Reading - Short Debate

    5/14/2025House
  8. Second Reading - Short Debate

    5/14/2025House
  9. Added as Co-Sponsor Sen. Mary Edly-Allen

    5/13/2025Senate
  10. Placed on Calendar 2nd Reading - Short Debate

    4/30/2025House
  11. Do Pass / Short Debate Financial Institutions and Licensing Committee; 012-000-000

    4/29/2025House
  12. Assigned to Financial Institutions and Licensing Committee

    4/17/2025House
  13. Referred to Rules Committee

    4/9/2025House
  14. First Reading

    4/9/2025House
  15. Chief House Sponsor Rep. Margaret Croke

    4/9/2025House
  16. Arrived in House

    4/9/2025House
  17. Third Reading - Passed; 056-000-000

    4/9/2025Senate
  18. Placed on Calendar Order of 3rd Reading

    4/9/2025Senate
  19. Placed on Calendar Order of 3rd Reading **

    4/4/2025Senate
  20. Added as Chief Co-Sponsor Sen. Graciela Guzmán

    4/4/2025Senate
  21. Placed on Calendar Order of 3rd Reading April 4, 2025

    4/3/2025Senate
  22. Senate Floor Amendment No. 2 Adopted; Walker

    4/3/2025Senate
  23. Second Reading

    4/3/2025Senate
  24. Senate Floor Amendment No. 2 Recommend Do Adopt Financial Institutions; 008-000-000

    4/3/2025Senate
  25. Senate Floor Amendment No. 2 Assignments Refers to Financial Institutions

    4/1/2025Senate

Bill Text

  • Engrossed

  • Enrolled

  • Introduced

  • Senate Amendment 1

  • Senate Amendment 2

Related Bills

Back to State Legislation