The Collection Agency Act does not apply to banks; the law exempts “banks, including trust departments, affiliates, and subsidiaries thereof, fiduciaries, and financing and lending institutions (except those who own or operate collection agencies).” 225 ILCS 425/2.03(1). The law defines collection agencies to include any entity that:

(a) Engages in the business of collection for others of any account, bill or other indebtedness;  

(b) Receives, by assignment or otherwise, accounts, bills, or other indebtedness from any person owning or controlling 20% or more of the business receiving the assignment, with the purpose of collecting monies due on such account, bill or other indebtedness;  

(c) Sells or attempts to sell, or gives away or attempts to give away to any other person, other than one registered under this Act, any system of collection, letters, demand forms, or other printed matter where the name of any person, other than that of the creditor, appears in such a manner as to indicate, directly or indirectly, that a request or demand is being made by any person other than the creditor for the payment of the sum or sums due or asserted to be due;  

(d) Buys accounts, bills or other indebtedness and engages in collecting the same; or  

(e) Uses a fictitious name in collecting its own accounts, bills, or debts with the intention of conveying to the debtor that a third party has been employed to make such collection.  

225 ILCS 425/3. Therefore, if the bank does not own or operate any entity that collects debts for others, uses a fictitious name in collecting debts, or engages in any of the other enumerated collection agency activities, the Collection Agency Act will not apply. (However, note that if the bank uses any non-employees for collection actions, such as hiring an individual to repossess a car or boat, the Act could apply to that individual.)