Full Text of SB2866 95th General Assembly
SB2866sam001 95TH GENERAL ASSEMBLY
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Sen. Donne E. Trotter
Filed: 3/12/2008
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| AMENDMENT TO SENATE BILL 2866
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| AMENDMENT NO. ______. Amend Senate Bill 2866 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Payday Loan Reform Act is amended by | 5 |
| changing Sections 3-5 and 4-5 as follows: | 6 |
| (815 ILCS 122/3-5)
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| Sec. 3-5. Licensure. | 8 |
| (a) A license to make a payday loan shall state the | 9 |
| address,
including city and state, at which
the business is to | 10 |
| be conducted and shall state fully the name of the licensee.
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| The license shall be conspicuously posted in the place of | 12 |
| business of the
licensee and shall not be transferable or | 13 |
| assignable.
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| (b) An application for a license shall be in writing and in | 15 |
| a form
prescribed by the Secretary. The Secretary may not issue | 16 |
| a payday loan
license unless and until the following findings |
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| are made:
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| (1) that the financial responsibility, experience, | 3 |
| character, and general
fitness of the applicant are such as | 4 |
| to command the confidence of the public
and to warrant the | 5 |
| belief that the business will be operated lawfully and
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| fairly and within the provisions and purposes of this Act; | 7 |
| and
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| (2) that the applicant has submitted such other | 9 |
| information as the
Secretary may deem necessary ; and | 10 |
| (3) that the applicant has unencumbered assets of at | 11 |
| least $50,000 per location .
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| (c) A license shall be issued for no longer than one year, | 13 |
| and no renewal
of a license may be provided if a licensee has | 14 |
| substantially violated this
Act and has not cured the violation | 15 |
| to the satisfaction of the Department.
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| (d) A licensee shall appoint, in writing, the Secretary as | 17 |
| attorney-in-fact
upon whom all lawful process against the | 18 |
| licensee may be served with the
same legal force and validity | 19 |
| as if served on the licensee. A copy of the
written | 20 |
| appointment, duly certified, shall be filed in the office of | 21 |
| the
Secretary, and a copy thereof certified by the Secretary | 22 |
| shall be sufficient
evidence to subject a licensee to | 23 |
| jurisdiction in a court of law. This appointment shall remain | 24 |
| in effect while any liability remains
outstanding in this State | 25 |
| against the licensee. When summons is served upon
the Secretary | 26 |
| as attorney-in-fact for a licensee, the Secretary shall |
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| immediately
notify the licensee by registered mail, enclosing | 2 |
| the summons and specifying
the hour and day of service.
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| (e) A licensee must pay an annual fee of $1,000. In | 4 |
| addition to the
license fee, the reasonable expense of any | 5 |
| examination or hearing
by the Secretary under any provisions of | 6 |
| this Act shall be borne by
the licensee. If a licensee fails to | 7 |
| renew its license by December 31,
its license
shall | 8 |
| automatically expire; however, the Secretary, in his or her | 9 |
| discretion,
may reinstate an expired license upon:
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| (1) payment of the annual fee within 30 days of the | 11 |
| date of
expiration; and
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| (2) proof of good cause for failure to renew.
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| (f) Not more than one place of business shall be maintained | 14 |
| under the
same license, but the Secretary may issue more than | 15 |
| one license to the same
licensee upon compliance with all the | 16 |
| provisions of this Act governing
issuance of a single license. | 17 |
| The location, except those locations already in
existence as of | 18 |
| June 1, 2005, may not be within one mile of a
horse race track | 19 |
| subject to the Illinois Horse Racing Act of 1975,
within one | 20 |
| mile of a facility at which gambling is conducted under the
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| Riverboat Gambling Act, within one mile of the location at | 22 |
| which a
riverboat subject to the Riverboat Gambling Act docks, | 23 |
| or within one mile of
any State of Illinois or United States | 24 |
| military base or naval installation. The location, except those | 25 |
| locations already in existence as of June 1, 2008, may not be | 26 |
| within 2,500 feet of the location of any other business |
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| licensed under this Act.
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| (g) No licensee shall conduct the business of making loans | 3 |
| under this
Act within any office, suite, room, or place of | 4 |
| business in which any other
business is solicited or engaged in | 5 |
| unless the other business is licensed by the Department or, in | 6 |
| the opinion of the Secretary, the
other business would not be | 7 |
| contrary to the best interests of consumers and
is authorized | 8 |
| by the Secretary in writing.
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| (h) The Secretary shall maintain a list of licensees that | 10 |
| shall be
available to interested consumers and lenders and the | 11 |
| public. The Secretary
shall maintain a toll-free number whereby | 12 |
| consumers may obtain
information about licensees. The | 13 |
| Secretary shall also establish a complaint
process under which | 14 |
| an aggrieved consumer
may file a complaint against a licensee | 15 |
| or non-licensee who violates any
provision of this Act.
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| (Source: P.A. 94-13, eff. 12-6-05.) | 17 |
| (815 ILCS 122/4-5)
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| Sec. 4-5. Prohibited acts. A licensee or unlicensed person | 19 |
| or entity making payday
loans may not commit, or have committed | 20 |
| on behalf of the
licensee
or unlicensed person or entity, any | 21 |
| of the following acts: | 22 |
| (1) Threatening to use or using the criminal process in | 23 |
| this or any
other state to collect on the loan.
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| (2) Using any device or agreement that would have the | 25 |
| effect of
charging or collecting more fees or charges than |
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| allowed by this
Act, including, but not limited to, | 2 |
| entering into a different type of
transaction
with the | 3 |
| consumer.
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| (3) Engaging in unfair, deceptive, or fraudulent | 5 |
| practices in the
making or collecting of a payday loan.
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| (4) Using or attempting to use the check provided by | 7 |
| the consumer in
a payday loan as collateral for a | 8 |
| transaction not related to a payday loan.
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| (5) Knowingly accepting payment in whole or in part of | 10 |
| a payday
loan through the proceeds of another payday loan | 11 |
| provided by any licensee.
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| (6) Knowingly accepting any security, other than that | 13 |
| specified in the
definition of payday loan in Section 1-10, | 14 |
| for a payday loan.
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| (7) Charging any fees or charges other than those | 16 |
| specifically
authorized by this Act.
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| (8) Threatening to take any action against a consumer | 18 |
| that is
prohibited by this Act or making any misleading or | 19 |
| deceptive statements
regarding the payday loan or any | 20 |
| consequences thereof.
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| (9) Making a misrepresentation of a material fact by an | 22 |
| applicant for licensure in
obtaining or attempting to | 23 |
| obtain a license.
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| (10) Including any of the following provisions in loan | 25 |
| documents
required by subsection (b) of Section 2-20:
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| (A) a confession of judgment clause;
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| (B) a waiver of the right to a jury trial , if | 2 |
| applicable, in any action
brought by or against a | 3 |
| consumer, unless the waiver is included in an | 4 |
| arbitration clause allowed under
subparagraph (C) of | 5 |
| this paragraph (11) ;
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| (C) a mandatory arbitration clause that is | 7 |
| oppressive, unfair,
unconscionable, or substantially | 8 |
| in derogation of the rights of consumers ; or
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| (D) a provision in which the consumer agrees not to | 10 |
| assert any claim
or defense arising out of the | 11 |
| contract.
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| (11) Selling any insurance of any kind whether or not | 13 |
| sold in
connection with the making or collecting of a | 14 |
| payday loan.
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| (12) Taking any power of attorney.
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| (13) Taking any security interest in real estate.
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| (14) Collecting a delinquency or collection charge on | 18 |
| any installment
regardless of the period in which it | 19 |
| remains in default.
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| (15) Collecting treble damages on an amount owing from | 21 |
| a payday loan.
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| (16) Refusing, or intentionally delaying or
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| inhibiting, the consumer's right to enter into a repayment | 24 |
| plan pursuant to this
Act. | 25 |
| (17) Charging for, or attempting to
collect, | 26 |
| attorney's fees, court costs, or arbitration costs |
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| incurred in connection with the
collection of a payday | 2 |
| loan. | 3 |
| (18) Making a loan in violation of this Act. | 4 |
| (19) Garnishing the wages or salaries of a consumer who | 5 |
| is a member of the military. | 6 |
| (20) Failing to suspend or defer collection activity | 7 |
| against a consumer who is a member of the military and who | 8 |
| has been deployed to a combat or combat-support posting. | 9 |
| (21) Contacting the military chain of command of a | 10 |
| consumer who is a member of the military in an effort to | 11 |
| collect on a payday loan.
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| (Source: P.A. 94-13, eff. 12-6-05.)
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.".
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