Illinois Collection Agency Act
Some states have opted to bolster the federal Fair Debt Collection Practices Act’s (FDCPA) protections by supplementing them with their own versions of the Act. Illinois is one such state, and has passed 225 ILCS 425/1 to 425/60, the Collection Agency Act (“ILCA”). The Collection Agency Act regulates the licensing and conduct of debt buyers and debt collectors, and provides penalties for unlicensed collection activities. The Collection Agency Act also provides communication and notice requirements by requiring collection agencies to validate debts and inform consumers of their right to dispute the alleged debt.
ILCA regulates debt collector conduct in Illinois:
- Collectors cannot use threats of force, harm, disclosure, or criminal prosecution.
- Collectors cannot obscure their identities nor information regarding the alleged debt.
- Debt collectors must communicate with the consumer’s attorney, if so directed.
- Collectors must cease communication if properly directed to do so.