Could Changes to Illinois Collection Act Come to a State Near You?

Sep 28, 2015

Updated license requirements have reached the Illinois Collection Agency Act along with a 10-year expansion of the Act itself. The new laws will stay into effect through Jan. 1, 2026. There were some major changes that occurred for the legislation that may make ripples throughout the industry. Some major changes to note: all references to debt collectors were removed from the Collection Agency Act. The act also changes the definition of the “debtor” that states the Act applies to both commercial and consumer collection efforts.

License and Communication Requirements

Although major provisions of the Collection Agency Act in the areas of restoration, expiration, and renewal remain the same, the revisions have no significant impact on many of the state’s current communication requirements or prohibited practices. The Illinois Collection Agency Act now requires collection agencies give the name and address of the original creditor in the initial notice sent to the debtor.

Validation of Debts

Currently, the debt collector or agency may send the debtor a written notice with several disclosures within five days after the initial communication. The major notices are as follows:

(1) The amount of the debt.

(2) The name of the creditor.

(3) Notification that the debt will be assumed valid unless the debtor, within 30 days after receipt of the notice, disputes the validity of the debt.

(4) Within the 30–day period, debt the collector or agency will give the debtor the name and address of the original creditor.

More Requirements

A collection agency with an expired license can reinstate the renewal license within 5 years.

In addition the civil penalty for acting as a collection agency without a license was increased from $5,000 to $10,000.

If a collection agency’s practices “constitute an imminent danger to the public,” the Secretary of Financial and Professional Regulation can suspend their license without a hearing.

The recent changes in Illinois’ Collection Agency Act could be modeled across the country. This could make it more difficult for collection agencies to perform their duties. eMerchantBroker.com is the preferred processor for  Collections Max, and Industry Leading Collections Software. We have assisted thousands of collection agencies and will acquire the collection agency merchant account that will help your profits grow.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat