Illinois recently amended its Financial Institutions Code and Collection Agency Act. The amendments expand the definition of “financial institutions” to include consumer installment lenders, payday lenders, sales finance agencies, and other industries or businesses that offer services that are regulated by the Director of the Division of Financial Institutions. Further, the amendments give the Director of the Division of Financial Institutions authority to administer and enforce additional Acts relating to financial services, administer examinations of licensees, conduct authorized disciplinary hearings of licensees, and promulgate rules relating to the Collection Agency Act.
The amendments also specify requirements that owners or officers of collection agencies must meet, and reduce the amount of time within which a collection agency with an expired license can restore its license from 5 years to 1 year.
The amendments take effect January 1, 2023.