Debt Collector License

Mayor Emanuel introduced an ordinance passed by the City Council to regulate and license debt collectors to ensure they abide by fair debt collection guidelines and put a stop to illegal collections practices in Chicago. This ordinance will be effective on July 1, 2013. For more information, please click on the resources below:

Regulated Business License - Debt Collector

A “Regulated Business License” for a Debt Collector is not necessary for any person exempt from registration as a debt collector pursuant to section 2.03 of the Illinois Collection Agency Act, 225 ILCS 425/.

A “Regulated Business License” is required for the following business activities:
Any person who in the ordinary course of business, on behalf of himself or others, regularly engages in consumer debt collection. Consumer debt means money, property, or their equivalent, due or owing, or alleged to be due or owing, from a debtor by reason of a consumer credit transaction.

How do I apply?

You may apply for a license online or in person at the Department of Business Affairs and Consumer Protection (BACP) office in City Hall, 121 N. LaSalle St., Rm. 800. An appointment is recommended and can be made online or by calling 312.74.GOBIZ (744.6249).

Step 1: License Application

A separate license shall be required for each separate business location.
All activities and services to be provided must be described on the application.
License application fee: $250.00 per location. Fee is based on a two-year term.

Step 2: Zoning

Before taking out a business loan, signing a lease, or applying for a business license, ensure that the site where you intend to operate is appropriately zoned and complies with the current Chicago Municipal Code. The Code is frequently updated, so a new owner needs to check current zoning and code regulations; do not assume the previous owner's designation applies.
You can obtain zoning location information by utilizing the Department of Housing & Economic Development (HED) - Planning & Zoning Bureau’s interactive zoning map online or by asking a BACP consultant.

Step 3: Legal Duties

Each licensee engaged in the business of debt collector shall comply with all applicable state and federal laws and regulations including, but not limited to, the Fair Debt Collection Act, the Illinois Collection Agency Act and the Consumer Fraud and Deceptive Practices Act.
Each licensee engaged in the business of debt collector shall comply with MCC 4-6-160.

Step 4: Signage and Use of the Public Way

In addition to issuing business licenses, BACP handles permits for use of the public way. City Council must approve all permits where a business owner wishes to use public space for a sign, awning, or anything above, on or below the public way. BACP’s Public Way Use Unit will help you to obtain your permits through City Council, and assist in getting additional permits from the Department of Buildings (DOB) for your sign.

Prior to hanging or constructing any sign, you should read information about signs and file a Sign Permit Application with BACP. Because a sign contractor must be licensed with the City in order to obtain a sign construction permit, please see the list of approved sign contractors.