TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.1 DEFINITIONS
Section 110.1 Definitions
"Act" means the Consumer
Installment Loan Act [205 ILCS 670].
"Affiliate", for
purposes of Section 1 of the Act, means any person or entity that directly or
indirectly controls, is controlled by, or shares control with another person or
entity. A person or entity has control over another if the person or entity has
an ownership interest of 25% or more in the other.
"Annual percentage rate"
or "APR" is the cost of the consumer credit expressed as an annual
rate and shall be calculated in accordance with Section 16 of the Act.
"Controlling person"
means a person, entity, or ultimate equitable owner that:
owns or controls, directly or
indirectly, 10% or more of any class of stock of the license applicant;
is not a depository institution,
as defined in Section 1007.50 of the Savings Bank Act [205 ILCS 205], that
lends, provides, or infuses, directly or indirectly, in any way, funds to or
into a license applicant in an amount equal to more than 10% of the license
applicant's net worth;
controls, directly or indirectly,
the election of 25% or more of the members of the board of directors of a
license applicant; or
the Director finds influences
management of the license applicant.
"Date of the loan" means
the date on which the loan agreement is signed or accepted by the licensee.
"Department" means the
Department of Financial and Professional Regulation.
"Director" means the
Director or Acting Director of the Department of Financial and Professional
Regulation-Division of Financial Institutions with the authority delegated by
the Secretary or the Director's designee.
"Division" means the
Department of Financial and Professional Regulation-Division of Financial
Institutions.
"Generally accepted
accounting procedures" or "GAAP" means those adopted by the
American Institute of Certified Public Accountants and Federal Accounting
Standards Board (401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116).
"Hypothecate" means to
pledge a security instrument without transfer of title.
"Illinois Insurance Code"
means 215 ILCS 5.
"Licensee" means a
person, partnership, association, limited liability company, corporation or
other legal entity licensed under the Act. Any person or entity who holds
himself, herself, or itself out as a licensee or who is accused of unlicensed
practice is considered a licensee for purposes of enforcement, investigation,
hearings, and the Illinois Administrative Procedure Act [5 ILCS 100].
"Loan" means a loan
governed by the Act. "Loan" does not include a retail installment
contract, a motor vehicle retail installment contract, a retail charge
agreement, or a revolving line of credit.
"Missed payment" means
any failure to make a payment within 90 days of the due date.
"Net worth" means
total assets minus total liabilities. (Section 2 of the Act)
"Obligor" means a
consumer who is contractually obligated to make all principal repayments and
interest payments on an outstanding loan.
"Predatory Loan Prevention
Act" means the act codified at 815 ILCS 123.
"Predatory Loan Prevention
Act Annual Percentage Rate" or "PLPA APR" is the cost of the
consumer credit expressed as an annual rate and shall be calculated in
accordance with 32 CFR 232.4(c), the Predatory
Loan Prevention Act, and as incorporated in 38 Ill. Adm. Code 215.
"Person" means an
individual, partnership, association, joint stock association, corporation, or
any other form of business organization.
"Recording fee" is a fee
paid to a government agency to record or release a security instrument.
"Sales Finance Agency Act"
means 205 ILCS 660.
"Secretary" means the
Secretary or Acting Secretary of Financial and Professional Regulation or the
Secretary's designee.
"Uniform Commercial
Code" means 810 ILCS 5.
(Source: Amended at 49 Ill. Reg. 3924,
effective March 21, 2025)
 | TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.2 RATE CAP DISCLOSURE NOTICES
Section 110.2 Rate Cap Disclosure Notices
All loan contracts or agreements must include a separate
disclosure signed by the consumer that states: "A lender shall not
contract for or receive charges exceeding a 36% annual percentage rate on the
unpaid balance of the amount financed for a loan, as calculated under the Illinois
Predatory Loan Prevention Act (PLPA APR). Any loan with a PLPA APR over 36% is
null and void, such that no person or entity shall have any right to collect,
attempt to collect, receive, or retain any principal, fee, interest, or charges
related to the loan. The annual percentage rate disclosed in any loan contract
may be lower than the PLPA APR." This disclosure shall be clear and
conspicuous and shall be substantially similar to the form in Appendix C. A
lender shall provide all disclosures required by this section in English and in
the same language as the loan agreement.
(Source: Added at 46 Ill. Reg. 6519,
effective August 1, 2022)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.5 APPLICABILITY
Section 110.5 Applicability
All rules in this Part, unless context indicates otherwise,
apply only to loans made pursuant to the Consumer Installment Loan Act.
(Source: Added at 47 Ill. Reg. 9271,
effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.10 RECORD KEEPING
Section 110.10 Record
Keeping
a) Every licensee shall keep the following records at the
licensed location in any medium or format that accurately reproduces original
documents or papers:
1) Loan register.
2) Individual account records, including transaction histories of
obligors.
3) File of all original papers.
4) Cash book.
5) Alphabetical record of all co-makers, obligors, or sureties.
6) Permanent file.
b) Records for loans made under the Act shall be kept separate or
readily identifiable from other types of business conducted in the office.
c) Electronic data processing, combination forms and special
office systems may be used if in accordance with standard accounting procedures
and if they contain the information enumerated in subsection (a).
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.15 APPLICATION FOR LICENSE; CONTROLLING PERSON
Section 110.15 Application
for License; Controlling Person
a) An application for a license must be under oath and in the
form the Director prescribes. The application shall contain the following:
1) The legal name of the applicant, including any other names the
applicant does or intends to do business as, and the address of the proposed
place of business;
2) The form of business organization of the applicant, including:
A) a copy of its filed articles of incorporation;
B) a copy of the filed articles of organization, if the applicant
is a limited liability company;
C) a certified statement of the ownership of the partnership and
any subsequent changes to the ownership, if the applicant is a partnership.
3) Information on Involved Individuals
A) The name, business and home address, credit report (except for
a publicly traded company) and a chronological summary of the business
experience, material litigation history and felony convictions over the
preceding 10 years of:
i) the proprietor, if the applicant is an individual;
ii) every general partner, if the applicant is a partnership;
iii) President, Secretary, Executive and Senior Vice Presidents,
Directors and individuals owning more than 25% of the corporate stock, if the
applicant is a corporation;
iv) the manager, if the applicant is a limited liability company;
and
v) any controlling person.
B) A licensee shall not submit the information required in
subsections (a)(2) and (3) if the licensee has previously submitted the
information to the Division in a previous license application within the last 5
years and there have been no material changes unless the licensee is requested
by the Director to submit this information.
4) The most current year end financial statements, prepared in
accordance with generally accepted accounting principles (as defined by the Financial
Standards Accounting Board (401 Merritt 7, PO Box 5116, Norwalk Ct 06856-5116
(203/847-0700))) and a balance sheet and statement of operations as of the most
recent quarterly report before the date of the application.
5) A list of all states in which the applicant is licensed as a
lender or sales finance agency and whether the licenses of the applicant have
ever been withdrawn, refused, cancelled, or suspended in any other state, with
full details.
6) Bond as required by the Act.
7) Appointment of Attorney-in-Fact.
8) Business Plan, which shall at minimum detail the nature,
amount, and term of loans to be made and types of security that will be taken.
9) Photographs of both the inside and outside of the proposed site.
10) Details of any other businesses that will be conducted within
the licensed premises.
11) The applicable fees as required by the Act.
12) Any additional information the Director considers necessary.
b) A licensee that is a corporation must notify the Director
within 15 days after a person becomes a controlling person. Upon notification,
the Director may require all information they consider necessary to determine
if a new application is required. A licensee that is an entity other than a
corporation shall seek prior approval whenever a person proposes to become a
controlling person. The request for approval shall be accompanied by an
amendment fee of $1000.
c) Licensees shall file with the Department written reports as the
Department may from time to time consider necessary in the form requested by
the Department.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.16 POSITIVE NET WORTH
Section 110.16 Positive Net
Worth
a) A licensee shall maintain a positive net worth of a minimum of
$30,000 at all times.
b) A licensee shall provide a year-end balance sheet
demonstrating that it has maintained a positive net worth of $30,000 no later
than March 31 of the next year. The balance sheet shall be prepared in
accordance with generally accepted accounting principles.
c) The Secretary may require a licensee to produce financial
statements demonstrating that the licensee has maintained a positive net worth
of a minimum of $30,000 at any other time when the Secretary has good cause to
believe that the licensee may not have a positive net worth of a minimum of
$30,000. Any such financial statements shall be prepared in accordance with generally
accepted accounting principles.
(Source: Added at 49 Ill. Reg. 3924,
effective March 21, 2025)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.20 LOAN REGISTER
Section 110.20 Loan Register
a) The loan register shall contain the original entry and shall be
a permanent record, and shall show for every loan the account number, date of
loan, amount of loan, name of obligor, nature of security by types, amount of
fees, cost and type of any insurance, and amount of the note, including
precomputed interest, the simple interest rate contracted for or amount of
precomputed interest.
b) The loan register shall be kept numerically by number of loans
in order made and shall have headings for each of the items required.
c) Loan Registers shall be maintained in a form accessible to the
Department and a licensee may maintain these files in any medium or format
which accurately reproduces original documents or papers.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.30 INDIVIDUAL ACCOUNT RECORDS
Section 110.30 Individual
Account Records
a) An individual account record shall be kept for each obligor. Individual
account records shall show the name and address of the obligor, co-makers, or
sureties, loan number, date of loan, the number of payments, the amount of
payments and payment due dates, nature of security by type, type and cost of
insurance and name of bank if the note is hypothecated. The record for an
interest-bearing loan shall show the original principal amount of the loan,
rates of interest and finance charge where applicable. The record for a
precomputed loan shall show the original principal amount of the loan, excluding
the precomputed interest and charges, the amount of the finance charge and the
face amount of the note including the finance charge. The record shall also
show the amount of official fees received and paid out for filing, recording,
or releasing a financing statement or security agreement, including the fee
required by the Secretary of State for perfecting a lien on a motor vehicle
title.
b) The record for an interest-bearing loan shall show the amount
and date of each payment of principal and interest, the balance due on
principal, and the date to which interest is paid. If the amount paid is
insufficient to meet the entire amount of interest due, the record shall be
clearly marked to indicate the extent of credit given for such interest payment
and the date to which interest is paid. Upon the Division's or obligor's
request involving a specific account or accounts, the licensee shall provide
the amount of interest deficient.
c) The account record for a precomputed loan shall show the
amount and date of each payment applied to the loan, the unpaid balance of the
loan after applying such payment, and the date and amount of any additional
interest collected for delinquency, default, or deferment. If deferment
interest is collected in whole or in part, the record shall indicate the
deferred due date of the final installment and any uncollected portion of the
deferment interest. The account record shall also show the original principal
of the loan excluding the charge, the amount of the charge, the face amount of
the note including the charge, and any additional charge made for extra days in
the first installment period.
d) When a loan is prepaid in full, the account record shall show
the date of prepayment, the amount paid to discharge the loan, the amount of
the rebate on the finance charge, if any, and any deduction from the rebate for
previously earned but uncollected delinquency, default, or deferment charges.
e) When a loan is prepaid in full, the amount of any unearned
insurance premium for every policy shall be recorded on the account record.
f) If payment is made in any other way than in the ordinary
course of business, it shall be so designated. (For example, payment by a
third party, insurance claim or sale of security.)
g) If loan receivables are sold to another person the individual
account record for such receivables shall show the name of the authorized
person to whom sold and the date of such sale.
h) No erasures whatsoever shall be made in the payment and charge
sections of any account record. In case of error, a line shall be drawn
through the improper entry and the correct entry made on the following line.
The entries on the record shall correspond with the receipts given the obligor.
i) Every licensee shall preserve the records of all loans,
including the account record, for at least two years after making the final
entry for such loan. Records shall be maintained in a form accessible to the
Department. A licensee may maintain these files in any medium or format which accurately
reproduces original documents or papers.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.40 FILE OF ORIGINAL PAPERS
Section 110.40 File of
Original Papers
a) Files
1) A separate file shall be maintained for each obligor and shall
contain the note, security agreement, or financing statement, wage assignment,
acknowledged copy of the disclosure statement of loan, insurance certificate, a
separately signed statement indicating the borrower has received a copy of
right to rescind (if required), or waiver, if any, and all other evidence of
indebtedness or security pertaining to the loan, except when said documents are
in the custody of a court or of an agent for collection, or are hypothecated as
herein provided. Evidence of disclosure must be retained for two years from
the date of the loan. A licensee may maintain these files in any medium or
format which accurately reproduces original documents or papers.
2) When an obligor is also a co-maker or obligor on another loan,
the file of such obligor shall be cross-referenced to the other, unless such
cross-reference is included on the alphabetical record required by Section
110.60.
b) All legal instruments bearing evidence of indebtedness taken
in connection with a loan and executed by an obligor including the disclosure
statement of loan shall bear the loan number.
c) No licensee shall offer to or accept from an obligor any
instruments that contain blank terms.
d) All spaces or sections not used in the preparation of legal
documents shall be ruled out or designated as “none”, or “n/a”.
e) Any amendments to closed-end contracts shall be signed by the
obligor and creditor.
f) The name and address of the licensee making the loan shall
appear on any note, wage assignment, security agreement or other legal
instrument taken from an obligor before the proceeds of the loan are delivered.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.50 CASH BOOK
Section 110.50 Cash Book
a) All receipts and disbursements of any amount whatsoever shall
be entered, on the day they occur, in the cash book or equivalent record.
Separate headings shall be provided for payments on principal and interest and
for fees collected from obligors for filing, recording, and releasing security
agreements, financing statement for perfecting a lien on a motor vehicle, or
for amounts received for any type of insurance coverage. In the case of
precomputed loans, payments applied to the note may be shown as a total sum and
need not be itemized between principal and precomputed charges. Additional
charges collected for delinquency shall be itemized or otherwise separately
indicated.
b) The cash book shall show all fees paid by the licensee for
filing, recording, and releasing security agreements, for financing statements
or for perfecting a lien on a motor vehicle, and the actual date of payment.
c) The cash book shall be a permanent record of all details of
income and disbursements, including all entries to individual accounts of
borrowers. A licensee may maintain these files in any medium or format which
accurately reproduces original documents or papers.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.60 ALPHABETICAL RECORD OF CO-MAKERS, OBLIGORS OR GUARANTORS
Section 110.60 Alphabetical
Record of Co-Makers, Obligors or Guarantors
The alphabetical record shall
show the account number and the name of each co-maker, obligor, or guarantor
who is currently indebted to the licensee, together with sufficient information
to locate the account record. A licensee may maintain these files in any medium
or format that accurately reproduces original documents or papers.
(Source: Amended at 41 Ill.
Reg. 12380, effective October 6, 2017)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.65 PERMANENT FILE
Section 110.65 Permanent
File
Each licensee must maintain a
permanent file which includes the following:
a) A copy of all correspondence sent to or received from the Division
within the past 24 months.
b) A copy of the last two examination exception reports and any
related correspondence.
c) A copy of the Act and a copy of this Part.
(Source: Amended at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.70 PAYMENTS
Section 110.70 Payments
a) All payments shall be credited on the account record as of the
date received. Interest charges, as provided by the Act, shall be collected
only from the date the proceeds of the loan are delivered to or expended on behalf
of the obligor, even though the note shall bear a prior date.
b) A receipt shall be issued to the obligor for each payment
received.
c) When the finance charge is precomputed, the receipt for each
payment shall show the date of payment, the amount applied to the balance of
the loan and the amount applied to any other charges permissible under the
Act. Payments shall be applied in the order in which they become due.
d) The receipt for each payment on an interest-bearing account
shall show the date of payment, amount applied to interest, amount applied to
insurance, amount applied to principal, balance due on the account, amount
applied to any other charges permissible under the Act, and any amount of
interest earned but not collected.
e) No licensee may retain any portion of a payment processing fee.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.80 INTEREST-BEARING LOANS
Section 110.80 Interest-Bearing
Loans
a) No payment shall be accepted on the principal balance unless
interest is paid to date or is agreed to by the licensee, except a payment may
be credited to principal if the amount of the payment is not sufficient to pay
the interest due for one day.
b) A calendar month is the period from a given date in one month
to the same numbered date in the following month, and if there is no same
numbered date in the following month, to the last day of the following month.
c) Interest shall be computed on the basis of one month's
interest for each calendar month and 1/30th of a month's interest
for each day in a fraction of a month or, alternatively, 1/365th of
the agreed annual rate for each day actually elapsed.
d) When an interest-bearing loan contract is refinanced, accrued
but uncollected interest may be included in the principal amount of the new
loan contract.
e) Loans must be fully amortizing and repayable in substantially
equal and consecutive weekly, biweekly, semimonthly, or monthly installments. The
first installment period shall be deemed to begin on the day that interest
begins to accrue. No charge may be made for any days between the date of the
loan and the beginning of the first installment period. Notwithstanding the
foregoing, the days between the date of the loan and the commencement of the
first installment period may exceed one weekly, biweekly, semimonthly, or
monthly period by no more than the following:
1) For weekly payments, by 4 days;
2) For biweekly and semimonthly payments, by 7 days;
3) For monthly payments, by 15 days.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.90 CANCELLATION AND RETURN OF DOCUMENTS
Section 110.90 Cancellation
and Return of Documents
The contract and promissory note
executed by the obligor bearing evidence of indebtedness shall be cancelled and
returned to the obligor promptly following the renewal or paid in full date.
Where prior written approval has been obtained from the Division and original
documents are not available, a licensee shall substitute copies reproduced from
any medium or format which accurately reproduces the original documents. On
renewal, continuing security agreements may be retained until subsequent loans
are paid in full. If an executed copy of a legal document is retained
following payment in full or renewal, it must be clearly indicated by physical
or digital method as "PAID" or "CANCELLED", indicating the
date of payment or renewal. Copies clearly identified with the legend
"COPY NOT NEGOTIABLE", or similar language, may be used in lieu of
this requirement.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.100 PRECOMPUTED LOANS
Section 110.100 Precomputed
Loans
a) A standard payment schedule is one under which a precomputed loan
is repayable in substantially equal and consecutive weekly, biweekly,
semimonthly, or monthly installments of principal and charges combined, and the
first installment is due one weekly, biweekly, semimonthly, or monthly period
from the date of the note, except as provided in subsections (b)(1), (2) and
(3).
1) The loan contract shall be drawn to reflect a standard payment
schedule with payments to be made on a weekly, biweekly, semimonthly, or
monthly basis, except that the first installment period may be longer than one
month by not more than 15 days.
2) If a charge is made for extra days in the first installment
period it may be added to the first installment payment. The interest for such
period may be increased by 1/30 of the agreed monthly
rate for each extra day. A charge for extra days in the first installment
period does not change the amount of rebate required for prepayment in full on
or after the first installment date.
3) If the first installment period is less than one month the
loan charge shall be reduced by 1/30 of the agreed
monthly rate for each day that the first installment period is less than one
month, and the amount of the first installment shall be reduced by the same
amount. This adjustment in the first installment period does not change the
amount of rebate required for prepayment in full on or after the first
installment date.
b) The obligor shall have the right to prepay a precomputed loan
in full on any installment due date. When prepayment in full occurs on a date
other than a scheduled installment due date, the rebate may be computed as of
the next following scheduled installment due date.
c) When the contract is refinanced before maturity, or judgment
is obtained before maturity, the same rebate is required as for prepayment in
full.
d) Any required rebate of finance charge for a precomputed loan
may be calculated using the actuarial method, defined by the federal Truth in
Lending Act (15 U.S.C. 1601 et seq.) and Regulation Z, Appendix J (12 CFR 226)
or any other method permitted by the Act. The required rebate is a fraction
(or percentage) of the precomputed interest charge. The fraction differs for
each number of months that the contract is prepaid in full.
e) When a precomputed interest loan contract is refinanced,
accrued but uncollected interest may be included in the principal amount of the
new loan contract.
f) If two or more installments are delinquent on any installment
date the contract balance may be reduced as of that date by the rebate that
would be required for prepayment in full on that date. Thereafter, the agreed
contractual rate may be charged on the actual unpaid balances of the loan
contract until the contract is fully paid. Interest received shall be in lieu
of the rebated charges and any delinquency or default charge that would
otherwise accrue after the date of which the rebate was made.
g) When a contract is prepaid in full, a statement or receipt
shall be given to the obligor, showing the date of prepayment, the amount of
the rebate, if any, and the amount paid to discharge the loan.
h) Fifteen days after the expiration date of the loan contract,
interest may be charged at the contractually agreed rate, not to exceed the
rate permitted in Section 15 of the Act on any balance remaining unpaid. At
the time of final payment the licensee shall notify the obligor of the balance
unpaid.
i) Deferment for Precomputed Loans
1) The maximum amount that may be charged for a one month's
deferment is equal to the difference between the rebate that would be required
for prepayment in full as of the scheduled due date of the deferred installment
and the rebate that would be required for prepayment in full as of one month
prior to the due date.
2) On a precomputed loan the rebate for prepayment in full after
deferment interest has been charged shall be larger than the rebate that
otherwise would be required.
3) If a rebate is required one month or more before the deferred
due date of the first deferred installment, the licensee, at its option, may
make a separate rebate of deferment interest for each unexpired month of the
deferment period and then rebate the standard precomputed finance charge for
the number of months to the original final installment date, plus one month for
each month that deferment is retained.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.105 DELINQUENCY OR DEFAULT CHARGES
Section 110.105 Delinquency
or Default Charges
a) Delinquency charges may be assessed and collected and added to
the balance of the note, but interest shall not be collected on charge.
b) Earned, but uncollected delinquency charges shall be recorded
on the account record on the date the delinquent payment is received, if the
licensee intends to collect the charges at a later date.
c) A licensee shall not directly or indirectly, to levy or
collect any delinquency charge on a payment, which payment is otherwise a full
payment for the applicable period and is paid on its due date or within an
applicable grace period when the only delinquency is attributable to late fees
or delinquency charges assessed on earlier installments.
(Source: Added at 47 Ill. Reg. 9271,
effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.110 HYPOTHECATION AT THE TIME OF THE SALE OF OBLIGOR'S NOTES
Section 110.110
Hypothecation at the Time of the Sale of Obligor's Notes
a) A licensee may pledge, hypothecate, or sell a note made under
the provisions of the Act without the prior approval of the Director provided
that said transaction is with another licensee under the Act, Sales Finance
Agency Act, a bank, savings bank, savings and loan association or credit union
created under the laws of this State or the United States and that the
following conditions are satisfied:
1) the licensee notifies the Division in writing within ten days
of the transaction indicating the name of the purchaser/pledgee, location where
the related notes can be examined, and that the licensee shall be responsible
for all examination costs.
2) the licensee will provide the Division with an executed
agreement entered into by the licensee and the purchaser/pledgee authorizing
the Director to conduct an examination of these notes.
b) All pledges, hypothecations, or sales to entities other than
those listed in subsection (a) require the prior approval of the Director after
submission of documents required in subsection (a).
c) Each instrument hypothecated must bear the following
endorsement:
"This
instrument is non-negotiable in form but may be pledged as collateral
security. If so pledged, any payment made to the payee, either of principal or
of interest, upon the debt evidenced by this obligation, shall be considered
and construed as a payment on this instrument, the same as though it were still
in the possession and under the control of the payee named herein; and the
pledgee holding this instrument as collateral security hereby makes said payee
its agent to accept and receive payments hereon, either of principal or of
interest."
d) The licensee shall keep in the licensed office a record or
list of all account records of all loans sold to another affiliated or
non-affiliated licensee at the time of the sale. The account shall be
maintained in such file until examined and released by the examiner. This
record or list shall indicate the date of transaction, account name and number,
and the names of the other buyer in the transaction.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.120 LEGAL FORMS
Section 110.120 Legal Forms
a) Submission to the Division
1) All forms of notes, security agreements or assignments of
wages or other forms used in connection with the making of loans shall be
submitted to the Division prior to the conduct of the business in the licensed
location; provided, however, where the licensee or affiliate is engaged in the
same business and licensed by this Division, the use of forms in the new
location identical to those being used in the existing location shall not
require filing. Notice of intent to use identical forms (change of name excepted)
should be provided the Division by the licensee.
2) Should the licensees at any time following submission of forms
modify the forms previously submitted, the forms as modified shall be submitted
to the Division.
3) All forms shall be submitted in the format requested by the
Division.
b) Standard forms approved by the Division shall be used in the
following cases:
1) Application for original license.
2) Application for annual renewal of license.
3) Change of location.
4) Annual Report.
5) Appointment of attorney-in-fact for service of process.
6) Bond.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.130 JUDGMENTS
Section 110.130 Judgments
a) When a note has been reduced to judgment, the face of the
account record, in physical or digital form, shall show the amount and date of
the judgment. When judgment is taken on a precomputed loan before maturity,
the same rebate of interest is required that would be required for prepayment
in full on the date of the entry of judgment.
b) All payments received shall be applied to the judgment balance
and be properly identified. The rate of interest charged on a judgment balance
must comply with applicable federal and State law. No higher rate of interest
or charge shall be assessed or accepted.
c) The files of the licensee shall contain statements setting
forth the following items:
1) Date of judgment.
2) Copy of the judgment.
3) Date suit was filed.
4) Amount of the judgment.
5) The amount of principal and the amount of interest for which
judgment is taken.
6) In the case of a precomputed loan, the unpaid balance of note,
the rebate of interest, subtracted therefrom, the resulting balance, plus the
amount of any interest included in the judgment.
d) Court costs charged to the obligor shall be itemized and
verified by receipts.
e) Where property is foreclosed or sold pursuant to any judgment
or judicial process, the file must contain a copy of the decree or judicial
sale.
f) If records related to the judgment are kept off-site, the
licensee shall make these documents available from that site or return the
records to the licensed location within 72 hours after the Division's request.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.140 SALE OF SECURITY
Section 110.140 Sale of
Security
The following regulations shall
be observed in the sale of security:
a) The account record shall give the following information:
1) When possession of the security was obtained, and whether by
voluntary or involuntary action.
2) Public or private sale and date sold.
3) When part or all of the security is sold, the fact must be
noted on the account record.
4) All credits from proceeds of the sale must be properly
identified (whether by sale of security, etc.).
b) The files of the licensee shall contain:
1) Evidence of compliance by licensee with all applicable
provisions of the Uniform Commercial Code in the sale and disposition by a
secured party of collateral after default including copies of all notices
directed to the obligor as required therein or as required by any other law,
statute or regulation, state or federal.
2) Copy of notice of intended sale which must contain notice of
default, balance owing, date, place and time of public sale or the date after
which a private sale may occur. Such notice must be forwarded to the obligor by
certified mail to the last known address of the obligor.
3) Signed receipts from the purchasers or auctioneer describing
the collateral purchased, showing the amount paid for same, and, if a private
sale, copies of any competitive bids.
4) Copy of statement of final accounting, original of which shall
be sent to the obligor after the sale, which statement shall set forth the sale
price of the collateral, itemization of the costs of sale, and any surplus or
deficiency balance due on the account.
5) A report of condition of the collateral at the time of
retaking.
c) No waiver of the provisions of the Uniform Commercial Code
safeguarding the rights of the obligor shall be accepted by a licensee prior to
default.
d) When the collateral is abandoned and the address of the
obligor is unknown, notice of sale and statement of final accounting shall be
sent to the last known address by registered or certified mail, return receipt
requested.
e) In connection with the sale of collateral given as security
for loans after default, the licensee shall make only such charges for expense
incurred as are permitted by the applicable provision of the Uniform Commercial
code which charges must be reasonable, taking into consideration the nature of
the collateral, the circumstances surrounding the sale, the fair market value
of the collateral and the amount of the indebtedness. Such charges must be
substantiated by paid receipts.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.150 TROUBLE FILE (REPEALED)
Section 110.150 Trouble File
(Repealed)
(Source: Repealed at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.155 SCHEDULE OF FINES
Section 110.155 Schedule of Fines
a) The Department may assess fines on any licensee or unlicensed
person or entity that violates, through any act or omission, any provision of
the Act or this Part, and shall determine the amount of the fine pursuant to
this Section:
1) Fine Schedule:
|
Tier
|
Conduct
|
Fine
Amount
|
|
Tier
1
|
For each identified act or
omission related to information disclosure, information reporting,
advertising, document maintenance, or other similar statutory and regulatory
requirements.
|
A fine not to exceed $1,000
per violation except as provided for in Tier 3.
|
|
Tier
2
|
For each identified act or
omission related to the terms of a loan, additional fees, costs, or charges,
ancillary products, security interests, underwriting, servicing, collection
or any other act or omission not expressly covered by Tiers 1 or 3.
|
A fine not to exceed $5,000
per violation except as provided for in Tier 3.
|
|
Tier
3
|
Any action or omission that is
an intentional or reckless violation of the Act regardless of type.
|
A fine not to exceed $10,000
per violation.
|
2) In determining the amount of any fine assessed under subsection
(a)(1), the Department will take into account the totality of the
circumstances, including, but not limited to:
A) Proactive consumer remediation provided by the licensee or
unlicensed person or entity to address harm caused by the act or omission;
B) Frequency or pervasiveness of the act or omission;
C) Adequacy of compliance policies, procedures, and practices to
avoid recurrence of the act or omission and/or agreement to alter compliance
policies, procedures, and practices to avoid recurrence of the act or omission
in the future;
D) History of compliant or non-compliant behavior, including past
legal violations;
E) Cooperation with the Department in its regulatory and
examination activities; and
F) Any other remedial measures the licensee or unlicensed person
or entity has undertaken or has agreed to undertake in the future.
b) Nothing in this Section shall be construed as limiting the
Department’s investigative powers or remedies under the Act, including, but not
limited to, fines, suspension or revocation under Section 9 of the Act, cease
and desist orders under Section 20.5 of the Act, and injunctive relief under
Section 24.5 of the Act.
c) In
accordance with Section 1 of the Act, the Department will follow the procedures
established under Section 9 of the Act for unlicensed violators of the Act and
this Part.
(Source: Added at 47 Ill. Reg. 9271,
effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.160 LIEN CHARGES
Section 110.160 Lien Charges
a) All official fees paid for the purpose of perfecting or
releasing a security interest in property given as collateral for a loan may be
collected by a licensee from the obligor.
b) As a prerequisite for a loan, the licensee may require the
prospective obligor to provide evidence of ownership and condition of title.
(Source: Amended at 30 Ill.
Reg. 12558, effective July 7, 2006)
ADMINISTRATIVE CODE TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110 CONSUMER INSTALLMENT LOAN ACT
SECTION 110.170 INSURANCE AND OTHER PRODUCTS
Section 110.170 Insurance
and Other Products
a) Licensees may provide insurances to the obligor provided the
obligor has indicated in a specific, dated and separately signed statement that
the obligor desires the insurance coverage. The purchase of any policy of
insurance from or through the licensee shall not be a condition precedent to a
loan. The insurance shall comply with the Illinois Insurance Code and all
lawful requirements of the Director of the Department of Insurance related to
that insurance.
b) The licensee may provide joint credit life or joint credit
accident and health insurance if both insureds are obligated for the loan;
however, this coverage shall not be a requirement precedent to the extension of
credit.
c) When a loan is prepaid in full, cancelled, renewed,
refinanced, or reduced to judgment prior to maturity, the licensee shall, not
later than the 60th day after a loan is prepaid in full, cancelled,
renewed, refinanced, or reduced to judgment prior to maturity, refund or credit
the unearned insurance premium or provide written instruction to the person
able to refund or credit the unearned insurance premium. The licensee shall
make all reasonable efforts to ensure that the person able to refund or credit
the unearned insurance premium completes the refund or credit within 60 days of
sending of the written instruction. The required refund or credit shall be
computed in accordance with 50 Ill. Adm. Code 1053.10. When the refund of any
insurance premium is less than $1.00, no refund is required. The licensee
shall maintain records to demonstrate their compliance with this Section for at
least two years from the date of refund, credit, or written instruction.
d) It shall be the licensee's responsibility to explain clearly
to the obligor the benefits and limitations of any insurance requested in
connection with any loan or loan extensions.
e) The licensee shall also deliver or cause to be delivered to
the obligor a copy of the policy, or policies, certificate, or other evidence
at the time the loan is made, and all obligors shall sign and receive a copy of
a separate agreement clearly and conspicuously disclosing the limits of
coverage.
f) No obligor shall be required to purchase any policy of
insurance from any certain company, agent, broker, or person as a condition
precedent to a loan. No licensee shall decline new or existing insurance that
is approved by the Director of the Department of Insurance or prevent any
obligor from obtaining the insurance from any other source.
g) When the loan is made, the insurance charges shall be computed
for no more than the term of the loan contract on an amount that does not
exceed the total amount required to pay the combined total of principal and
interest charges.
h) The obligor's estate shall be paid the amount due between the
unpaid balance and the insurance benefit paid. Evidence of this payment shall
be maintained by the licensee.
i) In the case of a precomputed contract, the amount of the net
unpaid balance shall be the unpaid balance of the note less any required rebate
for prepayment in full on the date of the borrower's death, plus accrued but
unpaid delinquency charges. In the case of an interest-bearing contract, the
amount of the net unpaid balance shall be the principal balance plus accrued
interest to the date of the borrower's death.
j) Account records shall indicate the date of death and the
refunds of interest or loan charges and unearned insurance premiums paid to the
estate. The refund check or voucher shall be available on demand.
k) Property damage insurance against loss or damage to real or
personal property given as security for a loan or liability arising out of
ownership may be required of an obligor. No licensee may require an obligor to
purchase more than one form of property damage insurance against loss or damage
to real or personal property. The purchase of such insurance through the
licensee or from an agent, broker or insurer specified by the licensee shall
not be a condition precedent to the granting of the loan. No licensee may
require an obligor to purchase property damage insurance that the obligor
cannot reasonably purchase from an agent, broker or insurer unrelated to and
not specified by the licensee.
l) Property insurance provided by a licensee shall be consistent
with the amount and term of the loan and shall not extend beyond the maturity
of the loan unless the loan is delinquent when it may be extended 30 days
beyond the original expiration date without charge to the obligor.
m) Upon cancellation of the loan by prepayment or refinancing, the
obligor shall be entitled to a refund not less than the unearned insurance premium
in any amount exceeding $1.00.
n) The licensee or affiliate may receive compensation for the
sale of any insurance or debt cancellation contract or other such product
purchased pursuant to the loan made or held by the licensee, provided the
licensee discloses to the obligor that either the licensee or an affiliate may
receive something of value in connection with the purchase by the obligor.
This must be prominently disclosed in the loan contract.
o) In the event of a judgment prior to maturity, the judgment
shall be decreased by the amount equal to any unearned insurance premium.
Evidence of this decrease shall be maintained by the licensee.
p) If
the Director has authorized a licensee to offer debt cancellation products or
other credit-related ancillary products, and an obligor has purchased a debt
cancellation product or other credit-related ancillary product, when a loan is
prepaid in full, cancelled, renewed, refinanced, or reduced to judgment prior
to maturity, the licensee shall, not later than the 60th day after a
loan is prepaid in full, cancelled, renewed, refinanced, or reduced to judgment
prior to maturity, refund or credit the unearned debt cancellation charge or
other unearned credit-related ancillary product charge, as applicable, or
provide written instruction to the person able to refund the unearned debt
cancellation charge or other unearned credit-related ancillary product charge,
as applicable. The licensee shall make all reasonable efforts to ensure that
the person able to refund the unearned debt cancellation charge or
credit-related ancillary product charge completes the refund or credit within
60 days of sending of a written instruction. The refund or credit shall be
calculated according to a method at least as favorable to the obligor as the
actuarial method. The licensee shall maintain records to demonstrate their
compliance with this Section for at least two years from the date of refund,
credit, or written instruction.
q) Vehicle
service contracts as defined in 215 ILCS 152/5, and vehicle protection products
or warranties as defined in 215 ILCS 5/155.39(a) are not subject to subsection
(p) of this Section.
(Source: Amended at 49 Ill.
Reg. 11640, effective September 5, 2025)
|
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.180 OFFICE AND OFFICE HOURS
Section 110.180 Office and
Office Hours
Every licensee shall maintain a
place of business or website to which the general public shall have free access
and where all obligations entered into shall be payable.
a) Except as provided in subsection (c), or otherwise authorized
by the Division, each licensed office shall be open not less three consecutive
hours between 8:00 A.M. and 6:00 P.M. on every business day, except Saturdays,
Sundays and legal holidays, during the term of the license, and the licensee
shall file with the Division a schedule of the hours during which it elects to
keep such office open, provided that any licensee may keep its office open for
any period it sees fit in addition to the hours listed in such schedule.
b) Whenever a licensee desires to change the schedule of hours
during which its office shall remain open then on file with the Division, it
may do so upon filing with the Division a schedule setting forth such change of
time at least three days before such change shall go into effect. The schedule
of hours shall be prominently displayed in the place of business of the
licensee.
c) If any payment of principal or interest, or both, shall be due
on any obligations to such licensee on any closed day, then such payment shall
be considered for all purposes, including the computation of interest, as
having been received on the closed day, if such payment shall be received,
whether through the mail or otherwise, at any time before the close of business
on the next regular business day following the closed day.
d) The license of each licensee and the Annual License Fee
Renewal Certificate shall be prominently displayed and be made available for
easy reading by the public in the place of business and website of the
licensee.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.190 ADVERTISING
Section 110.190 Advertising
a) Licensees shall not advertise "No co-makers
required", "No endorsers required", "Signature only"
loans, "Loans made on your plain note" or the like, unless the loans
constitute at least 50% of all loans made by the licensee.
b) Licensees shall not make reference, in any form of advertising
such as newspapers, circulars, letters, radio, or other media, to "Low
rates", or "Lower rates", or "Lowest rates", or
"Lowest cost", or indicate by direct or indirect means through such
expression as "Low cost", "Lower cost", or "Easier to
repay", or by any device that the charges for a loan are low.
c) Licensees may advertise "New reduced rates" or
"Reduced rates", or similar phrases for not more than 60 days after
the effective date of the reduction in rates.
d) Upon specific request by the Division, licensees shall forward
to the Supervisor of the Consumer Credit Section the complete text of all
advertising copy, whether printed or broadcast, for which questions have been
raised concerning compliance with the Act.
e) A licensee may indicate in advertising and otherwise that its
business is "regulated" or "examined" or
"supervised" or "licensed" by the State of Illinois. A
licensee may not advertise in a false, misleading, or deceptive manner
or imply or indicate that the rates or charges for loans made are
"approved", "set" or "established" by the State
government. [205 ILCS 670/18]
f) Should any advertisement by a licensee state the amount of any
installment payment, dollar amount of any finance charge or number of
installments, or period of repayment, the advertisement shall comply with the
provisions of the federal Consumer Credit Protection Act (15 U.S.C. 41 et seq.)
and the regulations applicable to that Act.
g) Any statement of the payment schedule for a loan in an
advertisement must show the proceeds of the loan exclusive of the finance
charge and indicate the number and amount of the weekly, biweekly, semimonthly,
or monthly installments required to pay the loan contract. The total of the
installments must be sufficient to pay the total of the proceeds and finance
charge for the loan according to the payment schedule. When a payment schedule
is used, it must disclose the Annual Percentage Rate for each amount of loan
advertised, using that term.
h) If the advertisement includes an offer of insurance, the
advertisement must disclose the type of insurance offered and whether or not
the installments include the cost of the insurance.
i) The licensee shall not advertise the conduct of business
other than at the license location or other location approved by the Director.
j) On a finding that an advertisement is false, misleading, or
deceptive, the Director may issue a cease and desist order and may issue an
order imposing a fine, suspension, or revocation.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.200 BUSINESS PRACTICES
Section 110.200 Business
Practices
a) Unless otherwise authorized by the Act, no other business may
be conducted at the licensed location unless authorized in writing by the
Director. The Director’s authorization to conduct other businesses at the
licensed location shall be referred to as an Other Business Authorization. The
Director's authorization will be predicated upon the licensee's agreeing to the
following:
1) That the authorization will not conceal nor facilitate
concealment of an evasion of the Act;
2) To comply with any State or federal statute or regulation;
3) To obtain any license or registration required by a federal,
State, or local government agency to engage in the other business authorized;
4) That the Division may examine all records and investigate any
or all transactions of the licensee;
5) The Director retains the right, upon notice and opportunity to
be heard, to alter, amend or revoke an Other Business Authorization;
6) That, if any federal or State statute or regulation enacted after
the authorization prohibits the activity, the authorization shall become null
and void immediately;
7) At the time of making the request for the authorization, the
licensee shall pay to the Director a nonrefundable Other Business Authorization
Request fee of $300;
8) At the time of renewing the annual license, the licensee shall
pay to the Director the sum of $100 as a renewal fee for each Other Business
Authorization. Regardless of the number of licensed locations, only one fee
per Other Business Authorization is required to be remitted.
b) No person who is an obligor of a licensee may become a surety
or co-maker for one or more obligors of the same licensee, if the obligor’s
aggregate direct or contingent liability is in excess of maximum principal
amounts specified in Section 15 of the Act.
c) Notary fees shall not be charged to or collected from the
obligor, surety, or co-maker.
d) No penalty charge other than provided by the Act or this Part
shall be imposed by the licensee in the event of prepayment of the principal of
the obligation, in whole or in part.
e) Loans secured by real estate made under the Act shall disclose
on the face of the contract that the loan is being made pursuant to the
Consumer Installment Loan Act.
(Source: Amended at 47 Ill. Reg.
9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.210 EXAMINATIONS
Section 110.210 Examinations
a) The Division may examine all records and investigate any or
all transactions in the office of the licensee and shall charge the licensee
$1,200 for each examiner day or portion of an examiner day.
b) The examination of the books and records of the licensee may
be conducted concurrently with the examination of any other business conducted
by the licensee that is regulated or licensed by the Division. A separate
charge shall be made for each examiner day or portion of an examiner day.
c) The Division may conduct an examination for the purpose of
verifying that the licensee has taken necessary actions to correct violations
of the Act and/or this Part and shall charge the licensee $1,500 for each
examiner day or portion of an examiner day.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.215 REMITTANCES
Section 110.215 Remittances
a) Licensees shall forward all remittances to the Division, at
any address designated by the Director.
b) All
fees and charges shall be remitted in the form deemed acceptable by the
Department.
(Source: Repealed at 46 Ill.
Reg. 6519, effective August 1, 2022; added at 47 Ill. Reg. 9271, effective June
20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.216 SMALL CONSUMER LOANS; CHARGES PERMITTED (REPEALED)
Section 110.216 Small Consumer Loans; Charges Permitted
(Repealed)
(Source: Repealed at 46 Ill.
Reg. 6519, effective August 1, 2022)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.220 CREDIT PRACTICES
Section 110.220 Credit
Practices
No licensee or agent of the
licensee, while collecting or attempting to collect an alleged debt, shall
engage in any of the following acts:
a) Using or threatening to use force violence or physical harm to
an obligor, their family or their property;
b) Threatening arrest or criminal prosecution when no basis for that
action lawfully exists;
c) Threatening the seizure, attachment, and sale of an obligor's
property when that action can only be taken pursuant to court order, unless
disclosure is made that prior court proceedings are required;
d) Disclosing or threatening to disclose information adversely
affecting an obligor's reputation for credit worthiness with knowledge or
reason to know the information is false;
e) Threatening to initiate or initiating communication with an
obligor's employer unless there has been a default in the payment of the
obligation and at least 5 days prior written notice is given to the last known
address of the obligor of the intent to communicate with the employer and
except as expressly permitted by statute or court order;
f) Communicating or threatening to communicate with an obligor or
their family with such unreasonable frequency as to constitute harassment, or
at times reasonably considered to be unusual hours or known to be inconvenient;
g) Using profane, obscene, or abusive language with an obligor or
their family;
h) Disclosing or threatening to disclose information relating to
an obligor's indebtedness to any other person, except when the other person has
a legitimate business need for the information;
i) Disclosing or threatening to disclose information concerning
the existence of a debt the licensee knows to be reasonably disputed by the
obligor without disclosing the fact that the debt is disputed;
j) Attempting or threatening to attempt enforcement of a right
or remedy with knowledge or reason to know that the right or remedy does not
exist;
k) Use of any form of communication simulating legal or judicial
process that gives the appearance of being authorized, issued, or approved by a
governmental agency, official or attorney at law when it is not;
l) Use of badges, uniforms, or other indicia of any governmental
agency or official, except as authorized by law;
m) Misrepresenting the amount of the debt alleged to be owed;
n) Representing that an alleged debt may be increased by the
addition of attorney's fees, investigation fees or any other fees or charges
when there is no contractual or statutory authorization for that addition.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.225 VERIFICATION OF AMOUNT OWING
Section 110.225 Verification
of Amount Owing
Upon written request by either
the obligor or the obligor's appointed designee to obtain the amount owing to
satisfy the loan in full, the licensee shall provide the following information
in a form agreed to in the loan contract no later than 3 business days after
receiving the request:
a) Net amount owing as of the date of response;
b) For interest-bearing loans, the per diem interest that will
accrue for every day after the response;
c) For precomputed loans, the date that the amount owing, as
stated in the response, will expire.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.230 WAGE ASSIGNMENTS
Section 110.230 Wage
Assignments
a) A wage assignment may only be taken from any employed
obligor. An "obligor", as the word is used in this Part, includes
co-makers or sureties as well as the person actually receiving the money. Any
wage assignment must comply with all applicable federal and State law.
b) Any loan that is a transaction in which the licensee accepts a
wage assignment must meet the requirements of this Act, the requirements of the
Illinois Wage Assignment Act, and the requirements of 16 C.F.R.
444.2(a)(3)(i)(2003) (no subsequent amendments or editions are included). A
violation of this Section constitutes a material violation of the Consumer
Installment Loan Act.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.235 RELOCATION
Section 110.235 Relocation
a) Whenever a licensee desires to change the licensed place of
business to a location other than that set forth in the license and the
proposed site is 15 miles or less from the current location, the licensee shall
provide the Director with the following at least ten days prior to the
relocation in the format prescribed by the Director:
1) A written notice providing the complete address of the new
location;
2) Photographs of both the exterior and interior of the new
location;
3) A written sworn statement that the new location will not share
the premises with that of another business and the exact distance in miles
between the existing location and new location; and
4) A
relocation fee of $500.
b) A relocation in excess of 15 miles requires the prior approval
of the Director in addition to the information required in subsection (a).
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.236 NAME CHANGE
Section 110.236 Name Change
Whenever the licensee desires to
amend the name of the licensed business, the licensee shall submit to the Division,
within 15 days after amending the name, the following in the format prescribed
by the Director:
a) $300
amended name change fee.
b) Amended
Articles of Incorporation if the licensee is a corporation.
c) Amended organization papers, if the licensee is an entity
other than a corporation.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.240 HEARING PROCEDURES
Section 110.240 Hearing
Procedures
All administrative hearings shall be conducted in accordance
with 38 Ill. Adm. Code 100.
(Source: Amended at 46 Ill.
Reg. 17939, effective October 27, 2022)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.250 LIMITED PURPOSE BRANCH
Section 110.250 Limited
Purpose Branch
A licensee applying for a
limited purpose branch shall submit to the Division the following:
a) A written application in the form prescribed by the Director.
b) Fee as prescribed by the Act.
c) Photograph of proposed site and a description of the location,
including any other business conducted there.
d) Written statements:
1) that no other activity shall be conducted at the site,
including, but not limited to, accepting payments, servicing the accounts, or
collections; and
2) that the proposed site shall not be within 1,000 feet of a
facility operated by an inter-track wagering licensee or an organization
licensee subject to the Illinois Horse Racing Act of 1975, or casino or riverboat
subject to the Illinois Gambling Act, or within 1,000 feet of the location at
which the riverboat docks.
e) Any additional information that the Director may require.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.260 OFF-SITE RECORDS
Section 110.260 Off-Site
Records
With the Director's prior
written approval, the licensee may retain records at a location other than the
licensed location. The licensee shall make a written request that shall
include the following:
a) Address of off-site location.
b) Contact person and telephone number at the off-site location.
c) Statement that all books, records, and account information
shall be made available within 72 hours after the Division's request at either
the licensed location or the off-site location.
d) At the Director's discretion, the examination may be conducted
at either the licensed location or the off-site location.
e) The licensee shall pay for all examination expenses in
accordance with Section 10 of the Act.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.265 SERVICING OF ACCOUNTS BY CONTRACT
Section 110.265 Servicing of
Accounts by Contract
Upon prior approval of the
Director, the licensee may contract for servicing of accounts. A request for
the Director's approval shall be in writing and include the following:
a) Name and address of proposed servicer;
b) Executed contract, conditioned upon approval by the Director,
between licensee and servicer;
c) Contact person and telephone number of the servicer;
d) A statement that the licensee will make all books, records,
and account information readily available for examination by the Division;
e) A statement that the licensee will pay all examination
expenses in accordance with Section 10 of the Act;
f) Written consent of servicer for the Division to conduct its
examination; and
g) A list of all Illinois licensees held by the proposed servicer.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.270 REVOCATION OR SUSPENSION OF LICENSE
Section 110.270 Revocation
or Suspension of License
If it is determined that the
Director had the authority to issue the suspension or revocation of a
license pursuant to Section 9 of the Act, the Director may issue orders
reasonably necessary to correct, eliminate or remedy the situation.
(Section 20.5 of the Act)
(Source: Amended at 47 Ill. Reg. 9271,
effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.280 GROSS MONTHLY INCOME VERIFICATION - OFFICIAL DOCUMENTATION (REPEALED)
Section 110.280 Gross Monthly Income Verification −
Official Documentation (Repealed)
(Source: Repealed at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.290 CONSUMER SERVICE
Section 110.290 Consumer Service
a) For
the purposes of this Part, "certified database" or "database"
means the consumer reporting service database established pursuant to the
Payday Loan Reform Act [815 ILCS 122].
b) The
Division shall approve a database as a method of reporting loans as required by
Section 17.5 of the Act and by the Payday Loan Reform Act. Upon approving a
database, the Department shall provide reasonable notice to all lenders
identifying the approved database.
c) Except
as otherwise provided in this Section, all personally identifiable information
regarding any prospective obligor or obligor obtained by way of the approved
database and maintained by the Department is strictly confidential and shall be
exempt from disclosure under Section 7(1)(c) of the Freedom of Information Act
[5 ILCS 140].
d) The
certified database shall comply with all requirements of the Payday Loan Reform
Act and associated Payday Loan Reform Act rules (38 Ill. Adm. Code 210) and all
requirements of the Consumer Installment Loan Act.
e) A
lender may rely on the information contained in the approved database as
accurate and is not subject to any administrative penalty or liability as a
result of relying on inaccurate information contained in the database.
f) The
database provider shall meet all qualifications outlined in the Payday Loan
Reform Act.
g) The
surety bond required by 815 ILCS 122/2-17 shall also secure the faithful
performance of the database’s obligations under the Consumer Installment Loan Act.
h) For
any loan other than a title-secured loan the licensee shall enter the following
information into the certified database within 90 days after the loan is made:
1) Obligor's
Social Security Number, Alien Identification Number, or other official identification
number, as approved by the USA Patriot Act rules and regulations (see 31 CFR 1020.220(a)(2)(i)(A)(4)(ii)),
issued by a foreign government or government in the United States;
2) Principal
amount of the loan;
3) Total
of payments;
4) Whether
the loan is precomputed or interest-bearing;
5) Maturity
date of the loan;
6) Date
of the loan;
7) Number
and amount of scheduled payments;
8) Zip
code of obligor and any co-maker;
9) Security
taken;
10) APR;
11) PLPA
APR;
12) Whether
the loan pays off any prior loan; and
13) Any
additional information the Director may require.
i) The licensee
shall update the certified database within 90 days if any of the following
events occur:
1) Missed payment;
2) Late payment fee
charged;
3) Licensee
accelerates the loan or otherwise deems the loan immediately due in full;
4) Paying the loan in
full;
5) Closing of the loan;
6) Writing off the loan;
7) Involuntary repossession
of any security;
8) Voluntary surrender of
any security;
9) Sale of any security;
10) Return
of any security to consumer; or
11) Any
other event as the Director may require.
j) The
certified database provider shall indemnify the licensee against all claims and
actions arising from illegal or willful or wanton acts on the part of the
certified database provider. The certified database provider may charge a fee
not to exceed $1 for each loan entered into the certified database under
subsection (b). The database provider shall not charge any additional fees or
charges to the licensee.
k) A
licensee who submits information to a certified database provider in accordance
with this Section shall not be liable to any person for any subsequent release
or disclosure of that information by the certified database provider, the
Department, or any other person acquiring possession of the information,
regardless of whether the subsequent release or disclosure was lawful,
authorized, or intentional.
l) To
the extent the certified database becomes unavailable to a licensee as a result
of some event or events outside the control of the licensee including, but not
limited to, unavailability due to the certified database being unable to accept
information from the licensee or the certified database is decertified, the
requirements of this Section and Section 17.5 of the Act shall not be enforceable
by the Department until such time as the certified database becomes available.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
SUBPART B: TITLE-SECURED LENDING
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.300 DEFINITIONS
Section 110.300 Definitions
"Motor vehicle" shall mean a motor vehicle as defined in the
Illinois Vehicle Code [625 ILCS 5/1-146].
"Title-secured
lender" shall mean any licensee engaged in making any title-secured loans.
"Title-secured
loan" shall mean a loan made pursuant to the Act and in which at
commencement, an obligor provides to the licensee, as security for the loan,
physical possession of the obligor's title to a motor vehicle. "Title-secured
loan" means only a loan secured by a motor vehicle title which a consumer
has possessed (physically or the electronic equivalent) at any time prior to
the making of the loan, free and clear of any lienholder. "Title-secured
loan" does not include:
Any loan or
credit transaction that is expressly intended to finance the purchase of motor
vehicle or other item.
Any loan or
credit transaction that is expressly intended to re-finance a transaction which
financed the purchase of a motor vehicle or other item.
"Title-secured
loan" includes loan or credit transactions that include motor vehicle
title as a security and is intended to refinance a prior title-secured loan. A
licensee may rely on a consumer’s signed representation or certification that
the motor vehicle title provided has never been held by the consumer free and
clear. The certification that the motor vehicle title has never been held free
and clear must include:
Date
State
City
Loan Number
Year and Make of Vehicle
Model of Vehicle
VIN
Certification from the consumer
that:
The consumer has pledged to
Lender the above Motor Vehicle as security for the requested loan; and
The consumer has never held the
title to the above Motor Vehicle free and clear of any lienholder.
Signed acknowledgement that the
consumer agrees that Lender will rely on the above certifications in connection
with the requested loan.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.310 APPLICABILITY OF RULE
Section 110.310
Applicability of Rule
This Subpart B, as well as
Subpart A, shall apply to any title-secured lender as defined in Section
110.300 of this Part.
(Source: Amended
at 33 Ill. Reg. 4142_____, effective__________)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.320 APPLICATION FOR LICENSE (REPEALED)
Section 110.320 Application
for License (Repealed)
(Source:
Repealed at 45 Ill. Reg. 6519, effective August 1, 2022)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.330 RENEWAL OF LICENSE (REPEALED)
Section 110.330 Renewal of
License (Repealed)
(Source: Repealed at 45 Ill.
Reg. 6519, effective August 1, 2022)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.340 LOAN TERMS
Section 110.340 Loan Terms
a) Beginning August 1, 2023, any required rebate of finance
charge for a precomputed title-secured loan may be calculated using the
actuarial method, defined by the federal Truth in Lending Act (15 U.S.C. 1601
et seq.) and Regulation Z, Appendix J (12 C.F.R. 226). The required rebate shall
not be calculated using the Rule of 78s.
b) Title-secured loans must be fully amortized and repayable in
substantially equal installments.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.350 RELEASE OF LIEN
Section 110.350 Release of
Lien
a) A title-secured lender must immediately take into possession
the registered electronic or physical title evidencing the obligor's ownership
in the motor vehicle and shall note on the face of the loan agreement the
vehicle's make, model, year of manufacture and vehicle identification number.
b) Within 24 hours after payment in full of the amount due under
the agreement, the licensee must move to release any filed or recorded liens,
provide evidence of the release of lien to the obligor, and return the title to
the obligor or cause the title to be returned to the obligor. If payment has
been made by a personal or business check, the licensee may delay the release of
lien or return of title by 5 business days for the purpose of confirming
availability of funds.
(Source:
Amended at 47 Ill. Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.360 AVAILABILITY OF DEBT MANAGEMENT SERVICES
Section 110.360 Availability
of Debt Management Services
a) Before entering into a title-secured loan agreement, licensee
must give to the obligor a pamphlet, approved by the Director, describing the
availability of debt management services and the obligor's rights and
responsibilities in the transaction.
b) Each title-secured loan agreement and 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 Financial Institutions that I can call for information
regarding debt management services."
c) At the time a title-secured lender conveys any written notice
to an obligor indicating the obligor is in arrears or that the obligor is in
default, the lender shall include with the notice a statement indicating a toll
free number of the Division that the obligor may contact for the purpose of the
obligor receiving information from the Division regarding debt management
services. The form and method of providing the information shall be subject to
approval of the Division.
(Source: Amended at 33 Ill.
Reg. 4142, effective April 1, 2009)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.370 LENDING LIMITS AND REFINANCING
Section 110.370 Lending
Limits and Refinancing
a) No title-secured loan shall be made in an amount that the scheduled
principal and interest payment for any one monthly payment on the loan exceeds 22.5%
of the obligor's gross monthly income.
b) 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, and website.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.380 SECOND NOTICE
Section 110.380 Second
Notice
At the time a title-secured lender
conveys a second notice to an obligor indicating the obligor is in arrears or
any notice that the obligor is in default for a debt issued by the lender under
the Act, the licensee shall include with the notice a statement indicating a
telephone number of the Division that the obligor may contact for the purpose
of the obligor receiving information from the Division regarding debt
management services for assisting the obligor. The form and method of the
notice provided by lenders shall be subject to approval by the Director.
(Source: Amended at 33 Ill.
Reg. 4142, effective April 1, 2009)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.390 POSSESSION OF VEHICLE
Section 110.390 Possession
of Vehicle
a) Unless otherwise provided for in the loan agreement, a lender
shall not take or retain possession of the keys (or a copy of the keys) to a
motor vehicle used to secure a title-secured loan.
b) No title-secured lender may take possession of a vehicle without
first giving a minimum of 72 hours notice to the obligor, unless expressly
prohibited by other law; affording the obligor the opportunity to make the
vehicle available to the lender at a place, date, and time reasonably
convenient to the lender and obligor; and permitting the obligor to remove any
personal belongings from the vehicle without charge or additional cost to the
obligor. Notice may be provided to an obligor in any form agreed to by an
obligor for general loan communications, so long as the licensee reasonably
believes the notice will provide the obligor adequate opportunity to act upon
their rights under this subsection (b).
c) Possession measures shall be in accordance with Section 19.1
of the Consumer Installment Loan Act.
d) No title-secured lender may take possession of a motor vehicle
for a loan default or delinquency and lease the vehicle back to the obligor.
(Source:
Amended at 47 Ill. Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.400 LOAN PROCEEDS
Section 110.400 Loan
Proceeds
A lender must issue the proceeds
of a title-secured loan in the form of a check drawn on the licensee's bank
account, in cash, by electric fund transfer or by money order. When the
proceeds are issued in the form of a check drawn on the lender's bank account
or by money order, the lender may not charge a fee for cashing the check or
money order if cashing service is offered at the location. When the proceeds
are issued in cash, the lender must provide the obligor with a written
verification of the cash transaction and shall maintain a record of the
transaction.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.410 SECURITY INTEREST
Section 110.410 Security
Interest
a) A title-secured lender shall not take a security interest in
any of the obligor's property other than the obligor's motor vehicle title, as
tendered to the lender at the time of the making of the loan.
b) Notwithstanding subsection (a), a title-secured lender may
accept an agreement for repayment by preauthorized electronic transfers but may
not condition an extension of credit on repayment by preauthorized electronic
transfer.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.420 APPROVED DATABASE
Section 110.420 Approved Database
a) Lender Input into
Database
1) Within
90 days after a title-secured loan is made, the lender shall enter into the
approved database the following information:
A) Obligor's
Social Security Number, Alien Identification Number, or other official
identification number, as approved by the USA Patriot Act rules and regulations
(see 31 CFR 1020.220(a)(2)(i)(A)(4)(ii)), issued by a foreign government or
government in the United States;
B) Principal
amount of the loan;
C) Total of payments;
D) Term of
the loan and the maturity date of the loan;
E) Date the
loan was executed;
F) Scheduled
number and amount of payments;
G) Zip
code of obligor and any co-maker;
H) Any
security taken;
I) APR;
J) PLPA
APR;
K) Vehicle
identification number of security;
L) Whether
the loan pays off any prior loan;
M) Whether
the loan is interest-bearing or precomputed; and
N) Any
additional information the Director may require.
2) The
lender shall update the approved database within 90 days if any of the
following events occur:
A) Paying
the loan in full;
B) Return
of any security;
C) Closing
the loan;
D) Writing
off the loan;
E) Missed payment;
F) Late
payment fee charged;
G) Voluntary
surrender of any security;
H) Involuntary
repossession of any security;
I) Sale
of any security;
J) Licensee
accelerates the loan or otherwise deems the loan immediately due in full; or
K) Any
other transaction the Director may require.
b) All personally
identifiable information regarding any consumer obtained by way of the
certified database and maintained by the Department is strictly confidential
and shall be exempt from disclosure under Section 7(1)(c) of the Freedom of
Information Act.
(Source: Amended at 47 Ill.
Reg. 9271, effective June 20, 2023)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.430 GROSS MONTHLY INCOME VERIFICATION
Section 110.430 Gross Monthly
Income Verification
a) Prior
to making a title-secured loan, the lender must obtain from the obligor one or
more of the following types of documentation to verify the gross monthly income
of the obligor as required by Section 110.370(a).
1) A
copy of the prospective obligor's most recent official pay stub or official
payroll receipt;
2) A
copy of the prospective obligor's most recent W2 or tax return, along with
reasonable evidence that the prospective obligor has access to the same income
in the 30 days before the origination date of the loan;
3) Signed
and verifiable documentation prepared by the provider of the income, dated no
more than 30 days before the origination date of the loan;
4) A
contract that provides for funds to have been paid to the prospective obligor
within the 30 days prior to the origination date of the loan, and documentation
reflecting that the funds have actually been paid;
5) A
copy of the prospective obligor's most recent official receipt documenting
payment of government or pension benefits to the obligor for the benefit of the
obligor; or
6) A
commercially reasonable method of income verification not prohibited, in
writing, by the Department. A licensee may only use the commercially reasonable
method of income verification for purposes of verifying an obligor’s gross
monthly income or underwriting the loan requested.
b) A
licensee may not use information collected in the process of income
verification for any other purpose, including, but not limited to, marketing.
(Source: Amended at 46 Ill.
Reg. 6519, effective August 1, 2022)
SUBPART C: MORTGAGE LENDING
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.500 DEFINITIONS (REPEALED)
Section 110.500 Definitions
(Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.505 APPLICABILITY OF RULE (REPEALED)
Section 110.505
Applicability of Rule (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.510 GOOD FAITH REQUIREMENTS (REPEALED)
Section 110.510 Good Faith
Requirements (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.515 FRAUDULENT OR DECEPTIVE PRACTICES (REPEALED)
Section 110.515 Fraudulent
or Deceptive Practices (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.520 PROHIBITED REFINANCES (REPEALED)
Section 110.520 Prohibited
Refinances (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.525 NEGATIVE AMORTIZATION (REPEALED)
Section 110.525 Negative
Amortization (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.530 NEGATIVE EQUITY (REPEALED)
Section 110.530 Negative
Equity (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.535 BALLOON PAYMENTS (REPEALED)
Section 110.535 Balloon
Payments (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.540 FINANCING OF CERTAIN POINTS AND FEES (REPEALED)
Section 110.540 Financing of
Certain Points and Fees (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.545 FINANCING OF SINGLE PREMIUM INSURANCE PRODUCTS (REPEALED)
Section 110.545 Financing of
Single Premium Insurance Products (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.550 LENDING WITHOUT DUE REGARD TO ABILITY TO REPAY (REPEALED)
Section 110.550 Lending
Without Due Regard to Ability to Repay (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.555 VERIFICATION OF ABILITY TO REPAY (REPEALED)
Section 110.555 Verification
of Ability to Repay (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.560 PAYMENTS TO CONTRACTORS (REPEALED)
Section 110.560 Payments to
Contractors (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.565 COUNSELING PRIOR TO PERFECTING FORECLOSURE (REPEALED)
Section 110.565 Counseling
Prior to Perfecting Foreclosure (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.570 MORTGAGE AWARENESS PROGRAM (REPEALED)
Section 110.570 Mortgage
Awareness Program (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.575 OFFER OF MORTGAGE AWARENESS PROGRAM (REPEALED)
Section 110.575 Offer of
Mortgage Awareness Program (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.580 THIRD PARTY REVIEW (REPEALED)
Section 110.580 Third Party
Review (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
Section 110.APPENDIX A Estimated Monthly Income and Expenses Worksheet (Repealed)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.APPENDIX A ESTIMATED MONTHLY INCOME AND EXPENSES WORKSHEET (REPEALED)
Section 110.APPENDIX A Estimated
Monthly Income and Expenses Worksheet (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.APPENDIX B MORTGAGE RATIO WORKSHEET (REPEALED)
Section 110.APPENDIX B Mortgage
Ratio Worksheet (Repealed)
(Source: Repealed at 30 Ill.
Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.APPENDIX C DISCLOSURE OF 36% RATE CAP
Section 110.APPENDIX C Disclosure
of 36% Rate Cap
DISCLOSURE
OF 36% RATE CAP
A
lender shall not contract for or receive charges exceeding a 36% annual
percentage rate on the unpaid balance of the amount financed for a loan, as
calculated under the Illinois Predatory Loan Prevention Act (PLPA APR)
Any
loan with a PLPA APR over 36% is null and void, such that no person or entity
shall have any right to collect, attempt to collect, receive, or retain any
principal, fee, interest, or charges related to the loan.
The
annual percentage rate disclosed in any loan contract may be lower than the
PLPA APR.
_________________________________________
Borrower
Signature
_________________________________________
Co-Borrower
Signature (If Applicable)
(Source: Added at 46 Ill. Reg. 6519,
effective August 1, 2022)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.TABLE A ILLINOIS RULE OF 78 FRACTIONS FOR REBATING CHARGES ACCORDING TO NUMBER OF MONTHS ORIGINALLY CONTRACTED FOR AND NUMBER OF MONTHS PREPAID IN FULL FOR CONTRACTS OF 2 TO 120 MONTHS (REPEALED)
Section 110.TABLE A Illinois
Rule of 78 Fractions for Rebating Charges According to Number of Months
Originally Contracted For and Number of Months Prepaid in Full for Contracts of
2 to 120 Months (Repealed)
(Source: Repealed at 30 Ill. Reg. 12558, effective July 7, 2006)
| TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110
CONSUMER INSTALLMENT LOAN ACT
SECTION 110.TABLE B RULE OF 78 PERCENTAGE REBATE TABLE (REPEALED)
Section 110.TABLE B Rule of
78 Percentage Rebate Table (Repealed)
(Source: Repealed at 30 Ill. Reg. 12558, effective July 7, 2006)
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