Section 110.370  Lending Limits and Refinancing

a)         A short-term title-secured loan may not exceed $2,000 in principal amount.  However, no loan shall be made in such amount that the principal and interest payments for the stated duration of the loan exceed 50% of the obligor's gross income for that period.

b)         A short-term loan may be refinanced a maximum number of 2 times, but only when the outstanding balance of the loan has been reduced by at least 20%. 

c)         No loan, other than the refinancing of an existing short-term loan, may be made to an obligor who has had an outstanding short-term loan within the preceding 15 days.

d)         The loan agreement must include a separate statement signed by the obligor attesting that the obligor has not had an outstanding short-term loan within the preceding 15 days.  The lender shall further verify the statement by means of any database created by or approved by the Director for that purpose.

e)         The loan agreement shall advise the obligor that matters involving improprieties in the making of the loan or in loan collection practices may be referred to the Division and shall prominently disclose the Division's address and telephone number.

f)          Each short-term loan refinancing agreement executed by a licensee shall include a statement, which shall be initialed by the obligor, as follows:  "I have received from (name of lender) a toll free number from the Department of Financial and Professional Regulation-Division of Financial Institutions that I can call for information regarding debt management service."

(Source:  Amended at 30 Ill. Reg. 12558, effective July 7, 2006)