IL HB5220

Transfers regulatory authority over collection agencies from the Department of Financial Institutions to the Department of Financial and Professional Regulation, effective January 1, 2023.

Reduces the license restoration period from 5 years to 1 year after expiration and allows collection agencies to restore licenses within that timeframe by submitting a renewal application and paying the required fee.

Establishes the Division of Financial Institutions within the Department of Financial and Professional Regulation to administer and enforce multiple financial regulations including the Consumer Installment Loan Act, Currency Exchange Act, Payday Loan Reform Act, and other financial services laws.

Clarifies communication restrictions for collection agencies, specifying that convenient contact times are 8:00 a.m. to 9:00 p.m. in the debtor's local time and restricting communications with third parties except debtors, attorneys, creditors, and consumer reporting agencies.

Requires the Department to provide written notice with reasons for disciplinary actions and allow 30 days for individuals to file a petition for hearing, with all hearings conducted according to administrative procedures outlined in 38 Ill. Adm. Code 100.