Debt collector laws in Illinois

Illinois regulates collectors through the Collection Agency Act. Here are its extra protections, licensing, complaints and medical debt rules.

Short answer

Illinois has its own debt collection law: the Collection Agency Act. It does not cover original creditors collecting their own debts. Debt collectors need a state license in Illinois; the licensing agency is Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions, Consumer Credit Section. Complaints go to Illinois Attorney General, Consumer Protection Division (also IDFPR for licensed collection agencies), and to the CFPB.

State law
Yes
Covers original creditors
No
License required
Yes
Extra protections listed
5

The Illinois debt collection law

State law
Collection Agency Act
Law
205 ILCS 740 (formerly 225 ILCS 425)
Covers original creditors
No
Official text
Read the law

Protections Illinois adds to federal law

  • A collection agency cannot threaten to contact your employer unless you have been behind at least 30 days and it gave you 5 days' written notice first. (205 ILCS 740/9(a)(18))
  • Calls before 8 a.m. or after 9 p.m. your local time, or calls so frequent they harass you or your family, are prohibited. (205 ILCS 740/9(a)(19))
  • A collection agency cannot tell others about a debt it knows you dispute without saying it is disputed. (205 ILCS 740/9(a)(22))
  • If a debt was coerced (for example, taken out in your name by an abuser or trafficker), you are not liable for it and can send the agency a written Statement of Coerced Debt with supporting documents. (205 ILCS 740/9.6)
  • If you send a police report and an identity-theft statement, the agency must stop collecting until it reviews your claim. (205 ILCS 740/9.4)

Medical bills and collectors in Illinois

Since July 2, 2024, credit reports cannot include medical debt (SB 2933, amending the Consumer Fraud and Deceptive Business Practices Act). The state also funded a program to buy and cancel medical debt for eligible low-income residents (HB 5290, 2024); people helped get a letter and do not need to apply. Note: on October 28, 2025 the federal Consumer Financial Protection Bureau issued an interpretive rule saying that the federal Fair Credit Reporting Act generally preempts state laws that ban medical debt from credit reports (90 Fed. Reg. 48710). The state law is still on the books, but credit bureaus may argue it cannot be enforced, and courts have the final say.

Your right to sue in Illinois

IDFPR can discipline and fine agencies up to $10,000 per violation (205 ILCS 740/9), and any person may go to court to stop an unlicensed agency (205 ILCS 740/14a). You can sue a debt collector that breaks the federal FDCPA (15 U.S.C. § 1692k).

Federal law (15 U.S.C. 1692k) also lets you sue within 1 year for actual damages, up to $1,000 extra and attorney's fees.

More Illinois rules

  • Illinois moved the Collection Agency Act to 205 ILCS 740; IDFPR says its collection agency board was repealed as of January 1, 2026 (Public Act 104-149).
  • Jan. 1, 2026) amended the Collection Agency Act and repealed its board; P.A. 104-842 (eff.

Licenses for collection agencies in Illinois

License required
Yes
Who licenses
Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions, Consumer Credit Section
Check a license
Official license lookup

Illinois is one of 28 states in our 48 state guides that require a license.

In nearby states

Reporting a collector in Illinois

Steps against an abusive collector in Illinois

  1. Keep a record

    Note the date, time and caller of every contact, and keep letters, voicemails, emails and texts.

  2. Check the collector

    Illinois requires a license, so check the collector's: Official license lookup.

  3. Write to the collector

    Write to dispute a debt or to stop collector calls, and keep a copy with proof of mailing.

  4. Report the collector

    Complain to Illinois Attorney General, Consumer Protection Division (also IDFPR for licensed collection agencies). You can also complain to the CFPB at consumerfinance.gov/complaint.

  5. Know your right to sue in Illinois

    Under Illinois law: IDFPR can discipline and fine agencies up to $10,000 per violation (205 ILCS 740/9), and any person may go to court to stop an unlicensed agency (205 ILCS 740/14a).

Questions about collector laws in Illinois

Does Illinois license debt collectors?

Yes. Illinois Department of Financial and Professional Regulation (IDFPR), Division of Financial Institutions, Consumer Credit Section

Is there a Illinois debt collection act?

Yes: the Collection Agency Act (205 ILCS 740 (formerly 225 ILCS 425)). It does not cover original creditors collecting their own debts.

Are there medical debt rules in Illinois?

Since July 2, 2024, credit reports cannot include medical debt (SB 2933, amending the Consumer Fraud and Deceptive Business Practices Act). The state also funded a program to buy and cancel medical debt for eligible low-income residents (HB 5290, 2024); people helped get a letter and do not need to apply. Note: on October 28, 2025 the federal Consumer Financial Protection Bureau issued an interpretive rule saying that the federal Fair Credit Reporting Act generally preempts state laws that ban medical debt from credit reports (90 Fed. Reg. 48710). The state law is still on the books, but credit bureaus may argue it cannot be enforced, and courts have the final say.

Who takes complaints about collectors in Illinois?

Illinois Attorney General, Consumer Protection Division (also IDFPR for licensed collection agencies): https://illinoisattorneygeneral.gov/File-A-Complaint/ · 1-800-386-5438 (Chicago); 1-800-243-0618 (Springfield); 1-866-310-8398 (Spanish)

Does Illinois law let me sue a collector?

IDFPR can discipline and fine agencies up to $10,000 per violation (205 ILCS 740/9), and any person may go to court to stop an unlicensed agency (205 ILCS 740/14a). You can sue a debt collector that breaks the federal FDCPA (15 U.S.C. § 1692k).

How do I check a debt collector's license in Illinois?

Use Illinois's official license lookup: https://idfpr.illinois.gov/dfi/dfilicenselookup.html.

How does Illinois law go beyond the FDCPA?

A collection agency cannot threaten to contact your employer unless you have been behind at least 30 days and it gave you 5 days' written notice first. (205 ILCS 740/9(a)(18)) Calls before 8 a.m. or after 9 p.m. your local time, or calls so frequent they harass you or your family, are prohibited. (205 ILCS 740/9(a)(19)) A collection agency cannot tell others about a debt it knows you dispute without saying it is disputed. (205 ILCS 740/9(a)(22))

Related Illinois pages

Sources

Last checked: Oct 24, 2026.

Federal sources