Bill Amendment: IL HB3461 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: CREDIT REPAIR ORGANIZATIONS

Status: 2023-10-31 - Added Co-Sponsor Rep. Will Guzzardi [HB3461 Detail]

Download: Illinois-2023-HB3461-House_Amendment_001.html

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Rep. Debbie Meyers-Martin

Filed: 3/21/2023

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AMENDMENT TO HOUSE BILL 3461
AMENDMENT NO. ______. Amend House Bill 3461 by replacing
everything after the enacting clause with the following:
"Section 5. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2Z as follows:
(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
Sec. 2Z. Violations of other Acts. Any person who
knowingly violates the Automotive Repair Act, the Automotive
Collision Repair Act, the Home Repair and Remodeling Act, the
Dance Studio Act, the Physical Fitness Services Act, the
Hearing Instrument Consumer Protection Act, the Illinois Union
Label Act, the Installment Sales Contract Act, the Job
Referral and Job Listing Services Consumer Protection Act, the
Travel Promotion Consumer Protection Act, the Credit Repair
Services Organizations Act, the Automatic Telephone Dialers
Act, the Pay-Per-Call Services Consumer Protection Act, the

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Telephone Solicitations Act, the Illinois Funeral or Burial
Funds Act, the Cemetery Oversight Act, the Cemetery Care Act,
the Safe and Hygienic Bed Act, the Illinois Pre-Need Cemetery
Sales Act, the High Risk Home Loan Act, the Payday Loan Reform
Act, the Predatory Loan Prevention Act, the Mortgage Rescue
Fraud Act, subsection (a) or (b) of Section 3-10 of the
Cigarette Tax Act, subsection (a) or (b) of Section 3-10 of the
Cigarette Use Tax Act, the Electronic Mail Act, the Internet
Caller Identification Act, paragraph (6) of subsection (k) of
Section 6-305 of the Illinois Vehicle Code, Section 11-1431,
18d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the
Illinois Vehicle Code, Article 3 of the Residential Real
Property Disclosure Act, the Automatic Contract Renewal Act,
the Reverse Mortgage Act, Section 25 of the Youth Mental
Health Protection Act, the Personal Information Protection
Act, or the Student Online Personal Protection Act commits an
unlawful practice within the meaning of this Act.
(Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)
Section 10. The Credit Services Organizations Act is
amended by changing Sections 1, 2, 3, 5, 6, 7, 8, 9, 11, 12,
14, and 15 and by adding Sections 5.4, 5.5, 7.1, 17, 17.5, 18,
19, 20, 21, 22, 23, and 24 as follows:
(815 ILCS 605/1) (from Ch. 121 1/2, par. 2101)

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Sec. 1. This Act shall be known and may be cited as the
"Credit Repair Services Organizations Act".
(Source: P.A. 85-1384.)
(815 ILCS 605/2) (from Ch. 121 1/2, par. 2102)
Sec. 2. The General Assembly finds and declares that:
(a) The ability to obtain and use credit has become of
great importance to consumers who have a vital interest in
establishing and maintaining their credit worthiness and
credit standing. As a result, consumers who have experienced
credit problems may seek assistance from credit repair service
businesses which offer to improve the credit standing of such
consumers. Certain advertising and business practices of some
companies engaged in the business of credit repair services
have worked a financial hardship upon the people of this
State, often on those who are of limited economic means and
inexperienced in credit matters.
(b) The purpose of this Act is to provide prospective
consumers of credit repair organizations services companies
with the information necessary to make an informed decision
regarding the purchase of those services and to protect the
public from unfair or deceptive advertising and business
practices.
(Source: P.A. 85-1384.)
(815 ILCS 605/3) (from Ch. 121 1/2, par. 2103)

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Sec. 3. As used in this Act:
(a) "Buyer" or "consumer" means an individual who is
solicited to purchase or who purchases the services of a
credit repair services organization. "Buyer" or "consumer"
includes an individual for whom the services of a credit
repair organization are purchased.
(b) "Consumer reporting agency" has the meaning assigned
by Section 603(f), Fair Credit Reporting Act (15 U.S.C.
Section 1681a(f)).
(c) "Extension of Credit" means the right to defer payment
of a debt or to incur a debt and defer its payment that is
offered or granted primarily for personal, family, or
household purposes.
(d) "Credit Repair Services Organization" means any a
person who sells, provides, performs, or represents that such
person can or will sell, provide, or perform any service, with
respect to the extension of credit by others and in return for
the payment of money or other valuable consideration, for
provides, or represents that the express or implied purpose of
person can or will provide, any of the following services:
(i) improving a buyer's credit record, history, or
rating;
(ii) (blank); or obtaining an extension of credit for
a buyer; or
(iii) providing advice or assistance to a buyer with
regard to activity or service described in item either

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subsection (i) or (ii).
"Credit repair organization Services Organization" does
not include any of the following:
(i) any creditor, with respect to any consumer, a
person authorized to the extent make loans or extensions
of credit under the creditor is assisting laws of this
State or the consumer United States who is subject to
restructure an extension of credit owed regulation and
supervision by this State or the consumer to the creditor
United States, or a lender approved by the United States
Secretary of Housing and Urban Development for
participation in a mortgage insurance program under the
National Housing Act (12 U.S.C. Section 1701 et seq.);
(ii) a bank or savings and loan association whose
deposits or accounts are eligible for insurance by the
Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation, or a subsidiary of
such a bank or savings and loan association;
(iii) a credit union doing business in this State;
(iv) a bona fide nonprofit organization exempt from
taxation under Section 501(c)(3) of the Internal Revenue
Code of 1986, provided that such organization does not
charge or receive any money or other valuable
consideration for assisting prior to or upon the execution
of a specific contract or other agreement between the
buyer and the nonprofit organization;

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(v) a person licensed as a real estate broker by this
state if the person is acting within the course and scope
of that license;
(vi) a person licensed to practice law in this State
solely when engaged in the practice of law acting within
the course and scope of the person's practice as an
attorney;
(vii) a broker-dealer registered with the Securities
and Exchange Commission or the Commodity Futures Trading
Commission acting within the course and scope of that
regulation;
(viii) a consumer reporting agency; and
(ix) a licensed debt management service:
(1) providing debt management services, as defined
in the Debt Management Service Act;
(2) acting within the course and scope of its debt
management service license;
(3) that does not charge any fee for the services
of a credit repair organization; and
(4) that does not hold itself out as providing the
services of a credit repair organization;
(x) a licensed debt settlement provider:
(1) providing debt settlement services, as defined
in the Debt Settlement Consumer Protection Act;
(2) acting within the course and scope of its debt
settlement service license;

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(3) that does not charge any fee for the services
of a credit repair organization; and
(4) that does not hold itself out as providing the
services of a credit repair organization; and
(xi) a residential mortgage loan broker or banker who
is duly licensed under the Illinois Residential Mortgage
License Act of 1987 and acting within the course and scope
of that regulation.
(e) "Person" means an individual, sole proprietorship,
corporation, partnership, joint venture, or any business
entity.
(f) "Consumer report" has the meaning assigned by Section
1681a(d) of the Fair Credit Reporting Act (15 U.S.C. Section
1681a(d)).
(g) "Contract start date" means the date the consumer
entered into a contract with a credit repair organization.
(h) "Creditor" has the meaning assigned by Section 103 of
the Truth in Lending Act (15 U.S.C. Section 1602(g)).
(i) "Department" means the Department of Financial and
Professional Regulation.
(i) "Permanent change" means any removal of negative items
from a consumer's credit report or any change that turns a
negative item on a consumer's credit report into a neutral or
positive item change to the consumer's credit report that
remains in place for at least 6 months.
(k) "Secretary" means the Secretary of Financial and

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Professional Regulation or the Secretary's designee.
(Source: P.A. 88-120.)
(815 ILCS 605/5) (from Ch. 121 1/2, par. 2105)
Sec. 5. No credit repair services organization, its
salespersons, agents or representatives, or any independent
contractor who sells or attempts to sell the services of a
credit repair services organization shall:
(1) Charge or receive any money or other valuable
consideration prior to: full and complete performance
(A) achieving a permanent change for a buyer;
(B) demonstrating achievement of the permanent
change by providing the buyer with:
(i) a copy of the buyer's credit report pulled
on or before the contract start date;
(ii) a second copy of the buyer's credit
report, pulled after the contract start date, that
shows the change for which the buyer is to be
charged if the change persists for 6 months; and
(iii) a third copy of the buyer's credit
report, pulled 6 months after the issuance of the
copy described in item (ii), that shows the
persistence of the change described in item (ii).
of the services the credit services organization
has agreed to perform for or on behalf of the
buyer, unless the credit services organization

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has, in conformity with Section 10 of this Act,
obtained
(C) obtaining a surety bond in compliance with
Section 5.4 of this Act issued by a surety company
licensed to do business in this State. If a credit
services organization is in compliance with this
subsection the salespersons, agents, and
representatives who sell the services of such
organization shall not be required to obtain the
surety bond provided for by this Act.
(1.5) Fail to contemporaneously provide a buyer with a
copy of all communications sent to a credit reporting
agency on a buyer's behalf.
(2) Charge, pay, offer, or receive any money,
discount, or receive any money, discount, or other
valuable consideration solely for the referral of a buyer
to or from a credit repair organization a retail seller
who will or may extend credit to the buyer if such
extension of credit is in substantially the same terms as
those available to the general public.
(2.5) Represent changes that do not meet the
definition of permanent change as successful results in
advertisements.
(3) Make, or advise any buyer to make, any statement
that is untrue or misleading, or that should be known by
the exercise of reasonable care to be untrue or

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misleading, with respect to a buyer's credit reporting
agency or to any person who has extended credit to a buyer
or to whom a buyer has made application for an extension of
credit.
(4) Make or use any untrue or misleading
representations in the advertising, offer, or sale of the
services of a credit repair services organization or
engage .
(5) Engage, directly or indirectly, in any act,
practice or course of business reasonably likely intended
to defraud or deceive a buyer in connection with the
officer office or sale of such services; including but not
limited to: the amount or type of credit a consumer can
expect to receive as a result of the performance of the
services offered; the qualifications, training or
experience of its personnel; or the amount of credit
improvement the consumer can expect to receive as a result
of the services.
(Source: P.A. 85-1384.)
(815 ILCS 605/5.4 new)
Sec. 5.4. Surety bond. Every credit repair organization
shall maintain a surety bond or electronic surety bond in the
principal sum of $100,000 issued by a bonding company
authorized to do business in this State and approved by the
Secretary. The bond shall run to the Secretary and shall be for

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the benefit of any consumer who incurs damages as a result of
any violation of this Act or rules adopted under this Act.
(815 ILCS 605/5.5 new)
Sec. 5.5. Duties of the Secretary.
(a) The Secretary shall oversee the activities of credit
repair organizations and compliance with this Act.
(b) A credit repair organization shall submit a report
every 6 months to the Secretary, in a form and manner as the
Secretary may prescribe, containing the following information:
(1) the number of buyers under contract with the
credit repair organization during the reporting term;
(2) the number of credit report items questioned for
each buyer under contract through a dispute, a complaint,
or some other documented action by the credit repair
organization since the contract start date;
(3) the number of items successfully removed from each
buyer's credit report;
(4) the number of items reinserted in a buyer's credit
reports within 6 months;
(5) the number of items that stayed off a buyers'
credit reports for 6 or more months; and
(6) any additional information as determined by the
Secretary.
(c) A credit repair organization shall file with the
Secretary, every 6 months, statistical proof that confirms the

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information used to demonstrate successful results in
advertisements, including, but not limited to, advertisements
sent by mail, posted on the Internet, printed in newspapers or
other publications, and sent electronically by text or e-mail.
(d) The Secretary may issue reports to the General
Assembly and the general public, that includes a compilation
of the statistical proof received from credit repair
organizations described in paragraph (4) of Section 5 and an
assessment of the quality of services provided by credit
repair organizations to consumers.
(815 ILCS 605/6) (from Ch. 121 1/2, par. 2106)
Sec. 6. Before the execution of a contract or other form of
agreement between a buyer and a credit repair services
organization or before the credit repair organization receives
receipt by any such organization of money or other valuable
consideration, whichever occurs first, such organization shall
provide the buyer with a statement, in writing, containing the
following:
(1) a complete and accurate statement of the buyer's
right to review any file on the buyer maintained by a
consumer reporting agency, as provided under the Fair
Credit Reporting Act (15 U.S.C. Section 1681 et seq.);
(2) a statement that the buyer may review his consumer
reporting agency file at no charge if a request therefor
is made to such agency within 30 days after receipt by the

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buyer of notice that credit has been denied and if such
request is not made within the allotted time, the
approximate charge to the buyer for such review;
(3) a complete and accurate statement of the buyer's
right to dispute the completeness or accuracy of any item
contained in any file on the buyer maintained by a
consumer reporting agency;
(4) (blank); a complete and detailed description of
the services to be performed by the credit services
organization and the total cost to the buyer for such
services;
(5) a statement notifying the buyer that: (i) credit
reporting agencies have no obligation to remove
information from credit reports unless the information is
erroneous, cannot be verified or is more than 7 years old;
and (ii) credit reporting agencies have no obligation to
remove information concerning bankruptcies unless such
information is more than 10 years old;
(6) a statement asserting the buyer's right to proceed
against the surety bond required under Section 5.4 10; and
(7) the name and business address of any such surety
company together with the name and the number of the
account.
The credit repair services organization shall maintain on
file, for a period of 2 years after the date the statement is
provided, an exact copy of the statement, signed by the buyer,

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acknowledging receipt of the statement.
(Source: P.A. 91-357, eff. 7-29-99.)
(815 ILCS 605/7) (from Ch. 121 1/2, par. 2107)
Sec. 7. (a) Each contract between the buyer and a credit
repair services organization for the purchase of the services
of the credit repair services organization shall be in
writing, dated, signed by the buyer and an authorized employee
of the credit repair organization, and shall include:
(1) (blank); a conspicuous statement in boldfaced type, in
immediate proximity to the space reserved for the signature of
the buyer, as follows:
"You, the buyer, may cancel this contract at any time
before midnight of the third day after the date of the
transaction. See the attached notice of cancellation form for
an explanation of this right";
(2) a complete and detailed description of the terms and
conditions of payment consistent with Section 5 of this Act,
including the total of all payments to be made by the buyer,
whether to the credit repair organization credit services
organization or to another person;
(A) If a buyer seeks to stop using the services of a
credit repair organization, the buyer shall submit a
request to the credit repair organization to cancel the
contract. A credit repair organization shall allow
submission of a cancellation request electronically.

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(B) A credit repair organization that has received a
request to cancel services for a buyer shall process the
cancellation within 15 days after the postmark of any
written request or of receipt of an electronic request,
and cease to conduct any additional work on behalf of the
buyer.
(C) Consumers whose cancellation requests are
processed and completed, remain obligated to pay for any
permanent change resulting from actions taken by the
credit repair organization during the contract term from
the contract start date through the date the cancellation
is processed.
(3) a full and detailed description of the services to be
performed by the credit repair services organization for the
buyer, including all guarantees and all promises of full or
partial refunds, and the estimated date by which the services
are to be performed or the estimated length of time for
performing the services; and
(4) the address of the credit repair services
organization's principal place of business and the name and
address of its agent in the State authorized to receive
service of process.
(b) (Blank). The contract must have two easily detachable
copies of a notice of cancellation. The notice must be in
boldfaced type and in the following form:
"Notice of Cancellation"

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"You may cancel this contract, without any penalty or
obligation, within three days after the date the contract is
signed.
If you cancel, any payment made by you under this contract
will be returned within 10 days after the date of receipt by
the seller of your cancellation notice.
To cancel this contract, mail or deliver a signed, dated
copy of this cancellation notice, or other written notice to:
(name of seller) at (address of seller) (place of
business) not later than midnight (date)
I hereby cancel this transaction."
.............................. .............................
(date) (purchaser's signature)
(c) The credit repair services organization shall give to
the buyer a copy of the completed contract and all other
documents the credit repair services organization requires the
buyer to sign at the time they are signed. A credit repair
organization shall not unreasonably deny a buyer's request for
an additional copy of the contract or any other document the
buyer signed.
(Source: P.A. 85-1384.)
(815 ILCS 605/7.1 new)
Sec. 7.1. Recordkeeping. The credit repair organization
shall maintain on file, for a period of 2 years after the date
the statement required in Section 7 is provided, an exact copy

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of the statement, signed by the buyer, acknowledging receipt
of the statement.
(815 ILCS 605/8) (from Ch. 121 1/2, par. 2108)
Sec. 8. (a) Any contract for services which does not
comply with applicable provisions of this article shall be
void and unenforceable as contrary to public policy. Any
waiver by a buyer of the provisions of this Act shall be deemed
void and unenforceable by a credit services organization as
contrary to public policy. Any attempt by a credit repair
services organization to have a buyer waive rights granted by
this Act shall constitute a violation of this Act.
(b) The provisions of this Act shall apply to any person
who seeks to evade its application by any device, subterfuge,
or pretense, including, without limitation:
(1) instructing or suggesting that a buyer make
payments into an account controlled by a third party;
(2) using any agents, affiliates, or subsidiaries in
an attempt to avoid the application of the provisions of
this Act; or
(3) having any affiliation or other business
arrangement with an entity that is exempt from the
provisions of this Act for the purpose of evading the
provisions of this Act.
(c) A violation of this Section shall constitute a
violation of this Act.

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(Source: P.A. 85-1384.)
(815 ILCS 605/9) (from Ch. 121 1/2, par. 2109)
Sec. 9. (a) A credit repair services organization shall
file a registration statement with the Secretary of State
before conducting business in this State. The registration
statement shall contain:
(1) the name and address of the credit repair services
organization;
(2) the name and address of the registered agent
authorized to accept service of process on behalf of the
credit repair services organization;
(3) the name and address of any person who directly or
indirectly owns or controls 10 percent or more of the
outstanding shares of stock in the credit repair services
organization; and
(4) the name, numbers, and location of the surety
company issuing a surety bond maintained as required by
Section 5.4 10 of this Act.
(b) The registration statement must also contain either:
(1) a full and complete disclosure of any litigation
or unresolved complaint filed with a governmental
authority of this State, any other state or the United
States relating to the operation of the credit repair
services organization; or
(2) a notarized statement that states that there has

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been no litigation or unresolved complaint filed with a
governmental authority of this State, any other state or
the United States relating to the operation of the credit
repair services organization.
(c) The credit repair services organization shall update
such statement not later than 30 days the 90th day after the
date on which a change in the information required in the
statement occurs.
(d) Each credit repair services organization registering
under this Section shall maintain a copy of the registration
statement in their files. The credit repair services
organization shall allow a buyer to inspect the registration
statement on request.
(e) The Department Secretary of State may charge each
credit services organization that files a registration
statement a reasonable fee not to exceed $100 to cover the cost
of filing.
(Source: P.A. 85-1384.)
(815 ILCS 605/11) (from Ch. 121 1/2, par. 2111)
Sec. 11. Any person injured by a violation of this Act or
by the credit repair services organization's breach of a
contract entered into pursuant to Section 7 of this Act, may
bring any action for recovery of actual damages and statutory
damages of $5,000 for the first offense and $10,000 for a
second and any subsequent offense. Such person may also be

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awarded punitive damages, reasonable attorney's fees and court
costs.
Where the buyer demonstrates actual or statutory damages,
proof of reliance shall not be required to pursue a claim based
on misrepresentation, false statements, or the omission of any
material fact.
(Source: P.A. 85-1384.)
(815 ILCS 605/12) (from Ch. 121 1/2, par. 2112)
Sec. 12. A. Nothing in this Act shall be construed to
restrict the exercise of powers or the performance of the
duties of the Attorney General, a State's Attorney, or federal
law enforcement. The Attorney General, the State's Attorney of
any county, or a buyer may bring an action in a circuit court
to enjoin a violation of this Act. In addition to any
injunction, the Attorney General or any State's Attorney or
any county, in the name of the People of the State of Illinois,
may seek to recover damages pursuant to this Act or any other
relief permitted by law. The Attorney General may enforce a
violation of this Act as an unlawful practice under the
Consumer Fraud and Deceptive Business Practices Act.
(Source: P.A. 85-1384.)
(815 ILCS 605/14) (from Ch. 121 1/2, par. 2114)
Sec. 14. Construction.
(a) For purposes of carrying out the objectives of this

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Act:
(1) This Act shall be liberally construed.
(2) This Act shall be construed as a consumer
protection law.
(3) All exclusions from the definition of the credit
repair organization, as described in subsection (g) of
Section 3, shall be construed narrowly and the burden of
proving an exclusion from the definition of credit repair
organization definition exemption under subsection (g) of
Section 3 is on the person claiming the exemption.
(b) It is the intent of the General Assembly for this Act
to apply to the conduct of attorneys when not engaged in the
practice of law.
(c) In construing this Act consideration shall be given to
the interpretations of the Fair Credit Reporting Act (15
U.S.C. Section 1681 et seq.) In an action under this Act the
burden of proving an exemption under paragraph (d) of Section
3 is on the person claiming the exemption.
(Source: P.A. 85-1384.)
(815 ILCS 605/15) (from Ch. 121 1/2, par. 2115)
Sec. 15. The remedies provided by this Act are in addition
to other remedies provided by law. A violation of this Act
shall also constitute a violation of the Consumer Fraud and
Deceptive Business Practices Act. A violation of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15

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U.S.C. Section 6101 et seq.), and its implementing
regulations, 16 CFR 310.1 et seq., or of the credit repair
organizations Act (15 U.S.C. Section 1679 et seq.) shall also
be a violation of this Act.
(Source: P.A. 85-1384.)
(815 ILCS 605/17 new)
Sec. 17. Rulemaking.
(a) In addition to powers granted to the Department this
Act, the Department may adopt rules consistent with the
purposes of this Act, including, but not limited to:
(1) rules in connection with the activities of credit
repair organizations as may be necessary and appropriate
for the protection of consumers in this State;
(2) rules as may be necessary and appropriate to
define and deter improper or fraudulent business practices
in connection with the activities of credit repair
organizations;
(3) rules that define the terms used in this Act and as
may be necessary and appropriate to interpret and
implement the provisions of this Act; and
(4) rules to prevent evasion of this Act; and
(5) rules as may be necessary for the enforcement and
administration of this Act.
(b) The Secretary is may make specific rulings, demands,
and findings that the Secretary deems necessary for the proper

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conduct of any credit repair organization.
(815 ILCS 605/17.5 new)
Sec. 17.5. Regulatory assessment.
(a) Every credit repair organization shall annually pay to
the Department its pro rata share of the cost for
administration of the Act, as estimated by the Department, for
the current year and for any deficit actually incurred in the
administration of the Act in prior years. Every credit repair
organization's pro rata share shall be the percentage that the
number of buyers under contract with the credit repair
organization bears to the total buyers under contract with all
credit repair organizations in the previous year, or any other
method of pro rata fee assessment as established by rule.
(b) The Secretary may establish other fees by rule as
necessary to administer and enforce this Act.
(c) All fees received under this Section shall be
nonrefundable.
(815 ILCS 605/18 new)
Sec. 18. Evasion. Any agreement, contract, or transaction
that is structured to evade this Act shall be deemed to covered
by this Act.
(815 ILCS 605/19 new)
Sec. 19. Examination and reports.

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(a) The Secretary may examine the business affairs of a
credit report organization for compliance with this Act as
often as the Secretary deems necessary and proper. The
Department may adopt rules with respect to the frequency and
manner of examination. The Secretary shall appoint a suitable
person to perform an examination. The Secretary and his or her
appointees may examine under oath the entire books, records,
documents, and operations of each credit repair organization
and its subsidiary, affiliate, or agent, and may examine any
of the credit repair organization's or the officers,
directors, employees, and agents of its subsidiaries,
affiliates, or agents.
(b) Affiliates of a credit repair organization shall be
subject to examination by the Secretary on the same terms as
the credit repair organization.
(c) The expenses of any examination of the credit repair
organization and affiliates shall be borne by the licensee and
assessed by the Secretary as established by rule.
(d) In addition to any reports required under this Act,
every licensee shall file any other report that the Secretary
requires.
(815 ILCS 605/20 new)
Sec. 20. Violations. It is a violation of this Act for a
credit repair organization, or other person subject to this
Act to:

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(1) directly or indirectly employ any scheme, device,
or artifice to defraud or mislead any person, including,
but not limited to, engaging in bait and switch
advertising or sales practices;
(2) directly or indirectly engage in any unfair or
deceptive act or practice toward any person, including,
but not limited to, any false or deceptive statement about
fees or other terms of the contract with a buyer;
(3) directly or indirectly obtain property by fraud or
misrepresentation;
(4) knowingly make, publish, or disseminate any false,
deceptive, or misleading information;
(5) fail to make any report or statement lawfully
required by the Secretary or other public official;
(6) demonstrate, by course of conduct, negligence or
incompetence in performing any act directly or indirectly
relating to activities covered by this Act;
(7) violate the Consumer Fraud and Deceptive Business
Practices Act; and
(8) fail to comply with the provisions of this Act or
with any lawful order, agreement, or rule made or issued
under the provisions of this Act.
(815 ILCS 605/21 new)
Sec. 21. Enforcement.
(a) In order to enforce this Act, the Department may:

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(1) take any action authorized by this Act against a
credit repair organization or other person subject to this
Act for any violation of this Act;
(2) order relief under this Section which may include,
but is not limited to, any of the following:
(A) rescission or reformation of contracts;
(B) refund of moneys or return of real property;
(C) restitution;
(D) disgorgement or compensation for unjust
enrichment, with any disgorged amounts returned to the
affected consumers, to the extent practicable;
(E) payment of damages or other monetary relief;
(F) public notification regarding the violation,
including the costs of notification;
(G) limits on the activities or functions of the
person; and
(F) monetary penalties, as set forth more fully in
paragraph (1) of subsection (d);
(3) compromise, modify, or remit any penalty that may
be assessed or has already been assessed; and
(4) impose penalties to deter future violations by any
person subject to this Act.
(b) In any administrative action brought under this Act,
the following penalties shall apply:
(1) Any person that violates any provision of this
Act, through any act or omission, to forfeit and pay a

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penalty as follows:
(A) For any violation of this Act, rule, order, or
condition imposed in writing by the Department, a
penalty may not exceed the greater of either $5,000
for each day during which the violation or failure to
pay continues or $2,500 for each act or omission in
violation of this subparagraph.
(B) For any reckless violation by a person of this
Act, rule, order, or condition imposed by the
Department, a penalty may not exceed the greater of
$25,000 for each day during which the violation
continues or $10,000 for each act or omission in
violation of this subparagraph.
(C) For any knowing violation, by a person of this
Act, rule, order, or condition imposed by the
Department, a penalty may not exceed the lesser of 1%
of the person's total assets or $1,000,000 for each
day during which the violation continues, but in no
circumstances may be less than or $25,000 for each act
or omission in violation of this subparagraph.
(2) In determining the amount of any penalty assessed
under this Act, the Department shall take into account
mitigating factors and the appropriateness of the penalty
with respect to all of the following:
(A) the amount of financial resources of the
person charged;

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(B) the good faith of the person charged;
(C) the gravity of the violation;
(D) the severity of the risks to or losses of the
consumer, which may take into account the number of
products or services sold or provided;
(E) the history of previous violations; and
(G) other facts and circumstances as justice may
require.
(815 ILCS 605/22 new)
Sec. 22. Confidential supervisory information.
(a) Reports of investigation and examination, other
reports rendered under this Act, and correspondence and
memoranda concerning or arising out of an investigation,
examination, or report, including any copies thereof, in the
possession of the Secretary shall be confidential
communications, shall not be subject to disclosure under the
Freedom of Information Act, and shall not be made public
unless the Secretary finds that the ends of justice and the
public advantage will be served by the disclosure. Upon such
finding, the Secretary may disclose, in whole or in part, any
report or other material referred to in this Section in the
manner he considers proper.
(b) The Secretary may release any of the information
described in subsection (a) to any agency of this State,
another state, or the United States.

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(c) Any information provided by a credit repair
organization under subsections (a) and (b) and Section 5.5,
other than personal identifiable information of a buyer, shall
be a public record subject to disclosure under the Freedom of
Information Act.
(815 ILCS 605/23 new)
Sec. 23. Judicial review. All final administrative
decisions of the Department under this Act, all amendments and
modifications of final administrative decisions, and any rules
adopted by the Department under this Act, shall be subject to
judicial review under the provisions of the Administrative
Review Law.
(815 ILCS 605/24 new)
Sec. 24. Superiority of this Act. To the extent this Act
conflicts with any other State laws, this Act is superior and
supersedes those laws.
(815 ILCS 605/4 rep.)
(815 ILCS 605/10 rep.)
Section 15. The Credit Services Organizations Act is
amended by repealing Sections 4 and 10.
Section 99. Effective date. This Act takes effect January
1, 2024.".