Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 140 - DEBT MANAGEMENT SERVICE ACT
Section 140.50 - General Operations
Current through Register Vol. 48, No. 12, March 22, 2024
a) The licensee shall explain clearly and distinctly to each customer exactly the services to be rendered and the fees to be paid.
b) If, after analyzing the debtor's total income and expenses, it is determined that a payment plan should be developed, the licensee shall create a Debt Management Plan (DMP) that is considered feasible and practical to allow a payment of funds by the debtor for distribution to debtor's creditors as may be mutually agreed upon.
c) When a contract is paid-in-full or satisfied, a statement shall be issued promptly to the debtor showing that the obligation has been satisfied. Licensee shall retain a copy of the contract marked "Paid" or "Satisfied" in the client file.
d) Every contract between a licensee and debtor shall:
e) All contracts shall be originated at the office of the licensee or its agent.
f) When adjustments are needed to change the indebtedness listed in the contract, the licensee may execute a new contract using the revised figures or use a rider form executed in accordance with instructions provided in the rider.
g) All legal documents and other forms that a debtor shall be required to sign shall be filed with the Director prior to use.
h) A licensee shall deliver a copy of any contract, agreement, or Debt Management Plan between the licensee and the debtor to the debtor immediately after the debtor executes it, and the debtor's copy shall be executed by the licensee.
i) A calendar month is the period from the given date in one month to the same numbered date in the following month and if there is no same numbered date in the following month, to the last date in the following month. Not more than one month's service fee may be considered earned in any calendar month. A calendar month commences on the anniversary date of the contract.
j) A licensee shall deliver a receipt to the debtor for each cash payment.
k) The licensee shall make distribution to the debtor's creditors within 30 days after initial receipt of funds, and thereafter distributions shall be made to creditors within 30 days after receipt, less fees and costs, unless the reasonable payment of one or more of the debtor's obligations requires that such funds be held for a longer period to accumulate a certain sum, but in any case not to exceed an additional 30 days, or as authorized by the contract.
l) At least once each 3 months, the licensee shall render an accounting to the debtors which shall itemize the total amount received from the debtor, the total amount paid to each creditor, the total amount which any creditor has agreed to accept as payment in full on any debt owed him by the debtor, the amount of charges deducted, and any amounts held in reserve. A licensee shall render such an accounting to a debtor within 5 days after receipt of a written demand.