Business Licenses and Permits

On August 26, 2011, the governor of Illinois signed the Collateral Recovery Act to regulate individuals and entities engaged in the business of collateral recovery.  With limited exceptions, it will be unlawful for any person to repossess or attempt to repossess property subject to a security interest unless the person is licensed under the act.  Certain related activities will also require a license, such as property locating services, recovered property storage, and other incidental services.

Not only does a repossession agency need to obtain a license under the act, but each employee of the agency engaged in repossession work must be individually licensed as well.  The license application process requires extensive information–including personal photo identification, Social Security numbers, work history and fingerprints.  The act also imposes considerable record keeping requirements on licensed repossession agencies.

The act was passed as Senate Bill 1306 and chaptered as Public Act 097-0576.  The act takes effect on July 1, 2012.  Any business or entity that comes within the scope of the act should begin its compliance planning as soon as possible.

Tags: business licenses, business permits, licenses, permits