Illinois Compiled Statutes 225 ILCS 429 Debt Settlement Consumer Protection Act. Section 145

    (225 ILCS 429/145)

    Sec. 145. Prohibited practices. A debt settlement provider shall not do any of the following:

        (1) Charge or collect from a consumer any fee not

    permitted by, in an amount in excess of the maximum amount permitted by, or at a time earlier than permitted by Section 125 of this Act.

        (2) Advise or represent, expressly or by implication,

    that consumers should stop making payments to their creditors.

        (3) Advise or represent, expressly or by implication,

    that consumers should stop communicating with their creditors.

        (4) Change the mailing address on any of a consumer's

    creditor's statements.

        (5) Make loans or offer credit or solicit or accept

    any note, mortgage, or negotiable instrument other than a check signed by the consumer and dated no later than the date of signature.

        (6) Take any confession of judgment or power of

    attorney to confess judgment against the consumer or appear as the consumer or on behalf of the consumer in any judicial proceedings.

        (7) Take any release or waiver of any obligation to

    be performed on the part of the debt settlement provider or any right of the consumer.

        (8) Advertise, display, distribute, broadcast, or

    televise services or permit services to be displayed, advertised, distributed, broadcasted, or televised, in any manner whatsoever, that contains any false, misleading, or deceptive statements or representations with regard to any matter, including services to be performed, the fees to be charged by the debt settlement provider, or the effect those services will have on a consumer's credit rating or on creditor collection efforts.

        (9) Receive any cash, fee, gift, bonus, premium,

    reward, or other compensation from any person other than the consumer explicitly for the provision of debt settlement service to that consumer.

        (10) Offer or provide gifts or bonuses to consumers

    for signing a debt settlement service contract or for referring another potential customer or customer.

        (11) Disclose to anyone the name or any personal

    information of a consumer for whom the debt settlement provider has provided or is providing debt settlement service other than to a consumer's own creditors or the debt settlement provider's agents, affiliates, or contractors for the purpose of providing debt settlement service without the prior consent of the consumer.

        (12) Enter into a contract with a consumer without

    first providing the disclosures and financial analysis and making the determinations required by this Section.

        (13) Misrepresent any material fact, make a material

    omission, or make a false promise directed to one or more consumers in connection with the solicitation, offering, contracting, or provision of debt settlement service.

        (14) Violate the provisions of applicable do not call

    statutes.

        (15) Purchase debts or engage in the practice or

    business of debt collection.

        (16) Include in a debt settlement agreement any

    secured debt.

        (17) Employ an unfair, unconscionable, or deceptive

    act or practice, including the knowing omission of any material information.

        (18) Engage in any practice that prohibits or limits

    the consumer or any creditor from communication directly with one another.

        (19) Represent or imply to a person participating in

    or considering debt settlement that purchase of any ancillary goods or services is required.

(Source: P.A. 96-1420, eff. 8-3-10.)

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Last modified: February 18, 2015