Chapter 205 — FINANCIAL REGULATION

(205 ILCS 665/1) (from Ch. 17, par. 5301) Sec. 1. 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…

(205 ILCS 665/1.5) Sec. 1.5. 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 …

(205 ILCS 665/10) (from Ch. 17, par. 5310) Sec. 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 th…

(205 ILCS 665/11) (from Ch. 17, par. 5311) Sec. 11. 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 …

(205 ILCS 665/11.5) Sec. 11.5. 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…

(205 ILCS 665/12) (from Ch. 17, par. 5312) Sec. 12. 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; …

(205 ILCS 665/12.1) Sec. 12.1. 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 …

(205 ILCS 665/13) (from Ch. 17, par. 5313) Sec. 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 l…

(205 ILCS 665/13.5) Sec. 13.5. (Repealed). (Source: P.A. 90-545, eff. 1-1-98. Repealed by P.A. 96-1420, eff. 8-3-10.)

(205 ILCS 665/14) (from Ch. 17, par. 5314) Sec. 14. 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…

(205 ILCS 665/15) (from Ch. 17, par. 5315) Sec. 15. 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…

(205 ILCS 665/15.1) Sec. 15.1. (Repealed). (Source: P.A. 90-545, eff. 1-1-98. Repealed by P.A. 96-1420, eff. 8-3-10.)

(205 ILCS 665/15.2) Sec. 15.2. (Repealed). (Source: Laws 1965, p. 2494. Repealed by P.A. 96-1420, eff. 8-3-10.)

(205 ILCS 665/15.3) Sec. 15.3. (Repealed). (Source: P.A. 90-545, eff. 1-1-98. Repealed by P.A. 96-1420, eff. 8-3-10.)

(205 ILCS 665/16) (from Ch. 17, par. 5319) Sec. 16. 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 pe…

(205 ILCS 665/16.5) Sec. 16.5. 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 equ…

(205 ILCS 665/16.6) Sec. 16.6. 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…

(205 ILCS 665/17) (from Ch. 17, par. 5320) Sec. 17. 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 const…

(205 ILCS 665/18) (from Ch. 17, par. 5321) Sec. 18. 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 ad…

(205 ILCS 665/19) (from Ch. 17, par. 5322) Sec. 19. 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 …

(205 ILCS 665/2) (from Ch. 17, par. 5302) Sec. 2. 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…

(205 ILCS 665/20) (from Ch. 17, par. 5323) Sec. 20. Cease and desist orders. (a) The Secretary may issue a cease and desist order to any licensee, or other person doing business without the required license, when in the opinion of the Secretary, the licensee, or other person, is …

(205 ILCS 665/20.5) Sec. 20.5. Receivership. (a) If the Secretary determines that a licensee is insolvent or is violating this Act, he or she may appoint a receiver. Under the direction of the Secretary, the receiver shall, for the purpose of receivership, take possession of and …

(205 ILCS 665/21) (from Ch. 17, par. 5324) Sec. 21. Effective date. This Act shall become effective on the first day of January 1958. (Source: Laws 1957, p. 2164.)

(205 ILCS 665/22) (from Ch. 17, par. 5325) Sec. 22. Title of Act. This Act may be cited as the Debt Management Service Act. (Source: P.A. 90-545, eff. 1-1-98.)

(205 ILCS 665/3) (from Ch. 17, par. 5303) Sec. 3. 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 hereinaf…

(205 ILCS 665/4) (from Ch. 17, par. 5304) Sec. 4. 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. Ea…

(205 ILCS 665/5) (from Ch. 17, par. 5305) Sec. 5. 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, c…

(205 ILCS 665/6) (from Ch. 17, par. 5306) Sec. 6. 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 Secr…

(205 ILCS 665/7) (from Ch. 17, par. 5307) Sec. 7. 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 writte…

(205 ILCS 665/8.5) Sec. 8.5. 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.)

(205 ILCS 665/9) (from Ch. 17, par. 5309) Sec. 9. 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.)

(205 ILCS 670/1) (from Ch. 17, par. 5401) Sec. 1. License required to engage in business. No person, partnership, association, limited liability company, or corporation shall engage in the business of making loans of money and charge, contract for, or receive on any such loan a g…

(205 ILCS 670/10) (from Ch. 17, par. 5410) Sec. 10. Investigation of conduct of business. For the purpose of discovering violations of this Act or securing information lawfully required by it, the Director may at any time investigate the loans and business and examine the books, …

(205 ILCS 670/11) (from Ch. 17, par. 5411) Sec. 11. Books and records - Reports. (a) Every licensee shall retain and use in his business or at another location approved by the Director such records as are required by the Director to enable the Director to determine whether the li…

(205 ILCS 670/12) (from Ch. 17, par. 5412) Sec. 12. Other business. (a) Upon application by the licensee, and approval by the Director, the Director may approve the conduct of other businesses not specifically permitted by this Act in the licensee's place of business, unless the …

(205 ILCS 670/12.5) Sec. 12.5. Limited purpose branch. (a) Upon the written approval of the Director, a licensee may maintain a limited purpose branch for the sole purpose of making loans as permitted by this Act. A limited purpose branch may include an automatic loan machine. No…

(205 ILCS 670/13) (from Ch. 17, par. 5413) Sec. 13. Prohibition against taking power of attorney. No licensee shall take any power of attorney except to cancel any policies of insurance financed by the licensee as permitted by this Act and to receive either rebate of unearned pre…

(205 ILCS 670/14) (from Ch. 17, par. 5414) Sec. 14. Pledge or sale of note. No licensee or other person shall pledge, hypothecate or sell a note entered into under the provisions of this Act by an obligor except to another licensee under this Act, a licensee under the Sales Finan…

(205 ILCS 670/15) (from Ch. 17, par. 5415) Sec. 15. Charges permitted. (a) Every licensee may lend a principal amount not exceeding $40,000 and may charge, contract for and receive thereon an annual percentage rate of no more than 36%, subject to the provisions of this Act. For p…

(205 ILCS 670/15a) (from Ch. 17, par. 5416) Sec. 15a. Credit insurance. Voluntary credit life insurance, credit accident and health insurance, involuntary unemployment insurance, credit property insurance, or other credit insurance policies approved or permitted by the Director o…

(205 ILCS 670/15b) (from Ch. 17, par. 5417) Sec. 15b. Property insurance. (a) A licensee may require the obligor to provide property damage insurance on real and personal property, all or part of which serves as security against reasonable risks of loss, damage, and destruction i…

(205 ILCS 670/15d) (from Ch. 17, par. 5419) Sec. 15d. Extra charges prohibited; exceptions. No amount in addition to the charges authorized by this Act shall be directly or indirectly charged, contracted for, or received, except (1) lawful fees paid to any public officer or agenc…

(205 ILCS 670/15e) (from Ch. 17, par. 5419.1) Sec. 15e. Insurance. (a) A licensee shall not be considered to be the obligor's agent or broker in connection with the purchase or sale of insurance under this Act for any purpose. (b) Consideration or another thing of value may be pa…

(205 ILCS 670/16) (from Ch. 17, par. 5420) Sec. 16. Disclosure of Terms of Contract. In any loan transaction under this Act, the licensee must disclose the following items to the obligor of the loan before the transaction is consummated: (a) The amount and date of the loan contra…

(205 ILCS 670/16b) (from Ch. 17, par. 5422) Sec. 16b. No real estate security in certain cases. For loans with an original principal amount of $3,000 or less, a licensee shall not take any security interest in real estate, except such lien as results from obtaining a judgment. (S…

(205 ILCS 670/16c) Sec. 16c. Non-English language transactions. A licensee may conduct transactions in a language other than English through an employee or agent acting as interpreter or through an interpreter provided by the customer. (Source: P.A. 92-578, eff. 6-26-02.)

(205 ILCS 670/17) (from Ch. 17, par. 5423) Sec. 17. Maximum term and amount. The loan contract shall provide for repayment of the principal and charges within 181 months from the date of the loan contract or the last advance, if any, required by the loan contract. No licensee sha…

(205 ILCS 670/17.1) Sec. 17.1. (Repealed). (Source: P.A. 96-936, eff. 3-21-11. Repealed by P.A. 101-658, eff. 3-23-21.)

(205 ILCS 670/17.2) Sec. 17.2. (Repealed). (Source: P.A. 96-936, eff. 3-21-11. Repealed by P.A. 101-658, eff. 3-23-21.)