MORTON, Ill. -

Not only is the Illinois Recovery Association ready to celebrate its 10th anniversary, the organization is using its annual meeting to discuss how the recently passed Collateral Recovery Act is going to affect repo agencies in the state.

The association is meeting Friday at the Embassy Suites in East Peoria, Ill. IRA intends to use the meeting to organize future workshops so the association can be involved in how Illinois government officials create rules and regulations associated with the law Gov. Pat Quinn signed.

Senate Bill 1306 sponsored by Rep. Frank Mautino and Sen. John Mulroe created the Collateral Recovery Act and allows the Illinois Commerce Commission to regulate entities that repossess collateral should debtors become delinquent on loans. The new law establishes procedures and sets fees for license application, as well as permits for repossession business employees.

State officials explained the license and permit procedure will include a criminal background check and will ensure that repossession agencies’ names cannot be designed to misrepresent their organizations  to consumers. They added the law also includes a number of new consumer safeguards, such as owner notification when personal property is found in repossessed vehicles.

“In these tough economic times, many people are struggling to fulfill a loan or are living in a foreclosed property,” Gov. Quinn stated. “This action will increase regulation of repossession businesses.”

The Illinois Commerce Commission intends to have a pair of information sessions on Oct. 17 in Springfield, Ill., and Oct. 25 in Chicago to discuss further how the act will govern repossessions.

With the state agency now having more regulatory power over repo companies, IRA believes now is the time all Illinois repossessors should join the organization. To push membership, the association is waiving the $500 application fee if companies join before Nov. 1.

For more details, visit www.illinoisrecoveryassociation.com.