Current through Register Vol. 47, No. 52, December 29, 2023
a)
Required Files
1) Every licensee shall keep
the following records or their equivalent in accord with generally accepted
accounting principles as approved by the Department of Financial and
Professional Regulation-Division of Financial Institutions (Division):
A) Client File
B) Client Activity Record
C) Payment Detail Report
D) Index System
2) If a computerized system is in use,
licensee shall maintain a permanent file of back-up computer media for the end
of each month.
3) All books and
records shall be kept current and available for examination by the
Division.
b) Client File
The client file shall contain the following: the original
contract, a listing of total debtor income, a list of creditors including the
balance owed to each and monthly payments due and a copy of the agreed-upon
debt management plan.
c)
Client Activity Record
The Client Activity Record shall contain the original entry and
be a permanent record, and shall show the debtor's account number, name,
address, date of contract, total indebtedness, monthly receipts, any fees
charged, amounts disbursed to creditors and the estimated term of the contract
to satisfy the amount owed.
1) If a
contract is cancelled by a licensee or debtor and a fee is claimed but not
paid, the debtor activity record shall show the reason for cancellation and the
amount of any fee claimed to be owed.
2) If legal action is taken to collect an
unpaid fee, the client activity record shall include a copy of the judgment or
action taken.
3) A separate file of
all litigation accounts shall be maintained in the office of the
licensee.
d) Payment
Detail Report
An individual Payment Detail Report shall be maintained for
each debtor, including the account number, name and address, date of contract,
total indebtedness, terms of payment and any fees charged. The report shall
also show the monthly total of all receipts, disbursements, undisbursed or
reserve funds and the distribution of any prorated fee.
1) A file shall be kept containing the paid
or canceled Payment Detail Reports for a period of 5 years, showing the
receipts and disbursement in full and the total amount of fees collected. In a
non-computerized system, adding machine tapes verifying the receipts against
all disbursements, including total fees, shall be attached to each client
file.
2) The entries on the Payment
Detail Report shall correspond with the receipt of periodic statements given to
the debtor and shall reflect the disbursement made to creditors showing the net
and gross amount.
3) In a
non-computerized system, all entries shall be made in ink and no erasures
whatsoever may made on the report. In case of error, a line should be drawn in
ink through the improper entry and the correct entry made on the following
line. No entries shall be masked, covered or rendered illegible.
e) Index System
An alphabetical index system shall be kept indicating name and
address of clients, account number, date of contract and total
indebtedness.
Amended at 35 Ill. Reg. 6350, effective March 29,
2011
