Public Act 101-0658
 
SB1792 EnrolledLRB101 09871 AMC 54973 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
Article 1. 

 
    Section 1-5. The Farmer Equity Act is amended  by adding 
Section 25 as follows:
 
    (505 ILCS 72/25 new)
    Sec. 25. Disparity study; report.
    (a)  The Department shall conduct a study and use the data 
collected to determine economic and other disparities 
associated with farm ownership and farm operations in this 
State. The study shall focus primarily on identifying and 
comparing economic, land ownership, education, and other 
related differences between African American farmers and white 
farmers, but may include data collected in regards to farmers 
from other socially disadvantaged groups.  The study shall 
collect, compare, and analyze data relating to disparities or 
differences in farm operations for the following areas:
        (1)  Farm ownership and the size or acreage of the 
    farmland owned compared to the number of farmers who are 
    farm tenants.
        (2)  The distribution of farm-related generated income 
    and wealth.
        (3)  The accessibility and availability to grants, 
    loans, commodity subsidies, and other financial 
    assistance.
        (4)  Access to technical assistance programs and 
    mechanization.
        (5)  Participation in continuing education, outreach, 
    or other agriculturally related services or programs.
        (6)  Interest in farming by young or beginning farmers.
    (b)    The Department shall submit a report of study to the 
Governor and General Assembly on or before January 1, 2022. The 
report shall be made available on the Department's Internet 
website.
 
Article 5. 

 
    Section 5-5. The Cannabis Regulation and Tax Act is amended  
by adding Section 10-45 as follows:
 
    (410 ILCS 705/10-45 new)
    Sec. 10-45. Cannabis Equity Commission.
    (a) The Cannabis Equity Commission is created and shall 
reflect the diversity of the State of Illinois, including 
geographic, racial, and ethnic diversity. The Cannabis Equity 
Commission shall be responsible for the following:
        (1)   Ensuring that equity goals in the Illinois cannabis 
    industry, as stated in Section 10-40, are met.
        (2)   Tracking and analyzing minorities in the 
    marketplace.
        (3)    Ensuring that revenue is being invested properly 
    into R3 areas under Section 10-40.
        (4)   Recommending changes to make the law more equitable 
    to communities harmed the most by the war on drugs.
        (5)   Create standards to protect true social equity 
    applicants from predatory businesses.
    (b) The Cannabis Equity Commission's ex officio members 
shall, within 4 months after the effective date of this 
amendatory Act of the 101st General Assembly, convene the 
Commission to appoint a full Cannabis Equity Commission and 
oversee, provide guidance to, and develop an administrative 
structure for the Cannabis Equity Commission. The ex officio 
members are:
        (1)   The Governor, or his or her designee, who shall 
    serve as chair.
        (2)   The Attorney General, or his or her designee.
        (3)   The Director of Commerce and Economic Opportunity, 
    or his or her designee.
        (4)   The Director of Public Health, or his or her 
    designee.
        (5)   The Director of Corrections, or his or her 
    designee.
        (6)   The Director of Financial and Professional 
    Regulation, or his or her designee.
        (7)   The Director of Agriculture, or his or her 
    designee.
        (8)   The Executive Director of the Illinois Criminal 
    Justice Information Authority, or his or her designee.
        (9)   The Secretary of Human Services, or his or her 
    designee.
        (10)   A member of the Senate, designated by the 
    President of the Senate.
        (11)   A member of the House of Representatives, 
    designated by the Speaker of the House of Representatives.
        (12)   A member of the Senate, designated by the Minority 
    Leader of the Senate.
        (13)   A member of the House of Representatives, 
    designated by the Minority Leader of the House of 
    Representatives.
    (c) Within 90 days after the ex officio members convene, 
the following members shall be appointed to the Commission by 
the chair:
        (1)   Four community-based providers or community 
    development organization representatives who provide 
    services to treat violence and address the social 
    determinants of health, or promote community investment, 
    including, but not limited to, services such as job 
    placement and training, educational services, workforce 
    development programming, and wealth building. No more than 
    2 community-based organization representatives shall work 
    primarily in Cook County. At least one of the 
    community-based providers shall have expertise in 
    providing services to an immigrant population.
        (2)   Two experts in the field of violence reduction.
        (3)   One male who has previously been incarcerated and 
    is over the age of 24 at the time of appointment.
        (4)   One female who has previously been incarcerated and 
    is over the age of 24 at the time of appointment.
        (5)   Two individuals who have previously been 
    incarcerated and are between the ages of 17 and 24 at the 
    time of appointment.
    As used in this subsection (c), "an individual who has been 
previously incarcerated" has the same meaning as defined in 
paragraph (2) of subsection (e) of Section 10-40.

 
Article 15. 

  
 
Division 1.  General Provisions

 
    Section 15-1-1. Short title. This Act may be cited as the 
Predatory Loan Prevention Act. References in this Article to 
"this Act" mean this Article.
 
    Section 15-1-5. Purpose and construction.  Illinois 
families pay over $500,000,000 per year in consumer 
installment, payday, and title loan fees. As reported by the 
Department in 2020, nearly half of Illinois payday loan 
borrowers earn less than $30,000 per year, and the average 
annual percentage rate of a payday loan is 297%. The purpose of 
this Act is to protect consumers from predatory loans 
consistent with federal law and the Military Lending Act which 
protects active duty members of the military. This Act shall be 
construed as a consumer protection law for all purposes. This 
Act shall be liberally construed to effectuate its purpose.
 
    Section 15-1-10. Definitions. As used in this Act:
    "Consumer" means any natural person, including consumers 
acting jointly.
    "Department" means the Department of Financial and 
Professional Regulation.
    "Lender" means any person or entity, including any 
affiliate or subsidiary of a lender, that offers or makes a 
loan, buys a whole or partial interest in a loan, arranges a 
loan for a third party, or acts as an agent for a third party in 
making a loan, regardless of whether approval, acceptance, or 
ratification by the third party is necessary to create a legal 
obligation for the third party, and includes any other person 
or entity if the Department determines that the person or 
entity is engaged in a transaction that is in substance a 
disguised loan or a subterfuge for the purpose of avoiding this 
Act.
    "Person" means any natural person.
    "Secretary" means the Secretary of Financial and 
Professional Regulation or a person authorized by the 
Secretary.   
    "Loan" means money or credit provided to a consumer in 
exchange for the consumer's agreement to a certain set of 
terms, including, but not limited to, any finance charges, 
interest, or other conditions. "Loan" includes closed-end and 
open-end credit, retail installment sales contracts, motor 
vehicle retail installment sales contracts, and any 
transaction conducted via any medium whatsoever, including, 
but not limited to, paper, facsimile, Internet, or telephone. 
"Loan" does not include a commercial loan. 
 
    Section 15-1-15. Applicability. 
    (a) Except as otherwise provided in this Section, this Act 
applies to any person or entity that offers or makes a loan to 
a consumer in Illinois.
    (b) The provisions of this Act apply to any person or 
entity that seeks to evade its applicability by any device, 
subterfuge, or pretense whatsoever.
    (c) Banks, savings banks, savings and loan associations, 
credit unions, and insurance companies organized, chartered, 
or holding a certificate of authority to do business under the 
laws of this State or any other state or under the laws of the 
United States are exempt from the provisions of this Act.
 
Division 5.  Predatory Loan Prevention

 
    Section 15-5-5. Rate cap.  Notwithstanding any other 
provision of law, for loans made or renewed on and after the 
effective date of this Act, 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. For purposes 
of this Section, the annual percentage rate shall be calculated 
as such rate is calculated using the system for calculating a 
military annual percentage rate under Section 232.4 of Title 32 
of the  Code of Federal Regulations as in effect on the 
effective date of this Act. Nothing in this Act shall be 
construed to permit a person or entity to contract for or 
receive a charge exceeding that permitted by the Interest Act 
or other law.
 
    Section 15-5-10. Violation.  Any loan made in violation of 
this Act is null and void and 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.
 
    Section 15-5-15. No evasion.  
    (a) No  person or entity may engage in any device, 
subterfuge, or pretense to evade the requirements of this Act, 
including, but not limited to, making loans disguised as a 
personal property sale and leaseback transaction; disguising 
loan proceeds as a cash rebate for the pretextual installment 
sale of goods or services; or making, offering, assisting, or 
arranging a debtor to obtain a loan with a greater rate or 
interest, consideration, or charge than is permitted by this 
Act through any method including mail, telephone, internet, or 
any electronic means regardless of whether the person or entity 
has a physical location in the State.
    (b)  If a loan exceeds the rate permitted by Section 15-5-5, 
a person or entity is a lender subject to the requirements of 
this Act notwithstanding the fact that the person or entity 
purports to act as an agent, service provider, or in another 
capacity for another entity that is exempt from this Act, if, 
among other things:
        (1) the person or entity holds, acquires, or maintains, 
    directly or indirectly, the predominant economic interest 
    in the loan; or
        (2) the person or entity markets, brokers, arranges, or 
    facilitates the loan and holds the right, requirement, or 
    first right of refusal to purchase loans, receivables, or 
    interests in the loans; or
        (3) the totality of the circumstances indicate that the 
    person or entity is the lender and the transaction is 
    structured to evade the requirements of this Act.  
    Circumstances that weigh in favor of a person or entity 
    being a lender include, without limitation, where the 
    person or entity:
            (i) indemnifies, insures, or protects an exempt 
        person or entity for any costs or risks related to the 
        loan; 
            (ii) predominantly designs, controls, or operates 
        the loan program; or
            (iii) purports to act as an agent, service 
        provider, or in another capacity for an exempt entity 
        while acting directly as a lender in other states.
 
    Section 15-5-20. Rules.  The Secretary may adopt rules 
consistent with this Act and rescind or amend rules that are 
inconsistent. The adoption, amendment, or rescission of rules 
shall be in conformity with the Illinois Administrative 
Procedure Act.
 
Division 10.  Administrative Provisions

 
    Section 15-10-5. Enforcement and remedies. 
    (a) The remedies provided in this Act are cumulative and 
apply to persons or entities subject to this Act.
    (b) Any violation of this Act, including the commission of 
an act prohibited under Article 5, constitutes a violation of 
the Consumer Fraud and Deceptive Business Practices Act.
    (c) Subject to the Illinois Administrative Procedure Act, 
the Secretary may hold hearings, make findings of fact, 
conclusions of law, issue cease and desist orders, have the 
power to issue fines of up to $10,000 per violation, and refer 
the matter to the appropriate law enforcement agency for 
prosecution under this Act. All proceedings shall be open to 
the public.
    (d) The Secretary may issue a cease and desist order to any 
person or entity, when in the opinion of the Secretary the 
person or entity is violating or is about to violate any 
provision of this Act. The cease and desist order permitted by 
this subsection (d) may be issued prior to a hearing.
    The Secretary shall serve notice of the action, including, 
but not limited to, a statement of the reasons for the action, 
either personally or by certified mail. Service by certified 
mail shall be deemed completed when the notice is deposited in 
the U.S. Mail.
    Within 10 days of service of the cease and desist order, 
the person or entity may request a hearing in writing.
    If it is determined that the Secretary had the authority to 
issue the cease and desist order, the Secretary may issue such 
orders as may be reasonably necessary to correct, eliminate, or 
remedy the conduct.
    The powers vested in the Secretary by this subsection (d) 
are additional to any and all other powers and remedies vested 
in the Secretary by law, and nothing in this subsection (d) 
shall be construed as requiring that the Secretary shall employ 
the power conferred in this subsection instead of or as a 
condition precedent to the exercise of any other power or 
remedy vested in the Secretary.
    (e) After 10 days' notice by certified mail to the person 
or entity stating the contemplated action and in general the 
grounds therefor, the Secretary may fine the person or entity 
an amount not exceeding $10,000 per violation if the person or 
entity has failed to comply with any provision of this Act or 
any order, decision, finding, rule, regulation, or direction of 
the Secretary lawfully made in accordance with the authority of 
this Act. Service by certified mail shall be deemed completed 
when the notice is deposited in the U.S. Mail.
    (f) A violation of this Act by a person or entity licensed 
under another Act including, but not limited to, the Consumer 
Installment Loan Act, the Payday Loan Reform Act, and the Sales 
Finance Agency Act shall subject the person or entity to 
discipline in accordance with  the Act or Acts under which the 
person or entity is licensed.
 
    Section 15-10-10. Preemption of administrative rules.  Any 
administrative rule regarding loans that is adopted by the 
Department prior to the effective date of this Act and that is 
inconsistent with the provisions of this Act is hereby 
preempted to the extent of the inconsistency.
 
    Section 15-10-15. Reporting of violations.  The Department 
shall report to the Attorney General all material violations of 
this Act of which it becomes aware.
 
    Section 15-10-20. Judicial review.  All final 
administrative decisions of the Department under this Act are 
subject to judicial review under the Administrative Review Law 
and any rules adopted under the Administrative Review Law.
 
    Section 15-10-25. No waivers.  There shall be no waiver of 
any provision of this Act.
 
    Section 15-10-30. Superiority of Act.  To the extent this 
Act conflicts with any other State laws, this Act is superior 
and supersedes those laws, except that nothing in this Act 
applies to any lender that is a bank, savings bank, savings and 
loan association, or credit union chartered under laws of the 
United States.
 
    Section 15-10-35. Severability.  The provisions of this Act 
are severable under Section 1.31 of the Statute on Statutes.
 
Division 90.  Amendatory Provisions

  
 
    Section 15-90-5. The Financial Institutions Code is 
amended by changing Section 6 as follows:
 



    (20 ILCS 1205/6)  (from Ch. 17, par. 106)


    Sec. 6. In addition to the duties imposed elsewhere in this 
Act, the
Department has the following powers:

    (1) To exercise the rights, powers and duties vested by law 
in the
Auditor of Public Accounts under "An Act to provide for 
the incorporation,
management and regulation of pawners' 
societies and limiting the rate of
compensation to be paid for 
advances, storage and insurance on pawns and
pledges and to 
allow the loaning of money upon personal property", approved

March 29, 1899, as amended.

    (2) To exercise the rights, powers and duties vested by law 
in the
Auditor of Public Accounts under "An Act in relation to 
the definition,
licensing and regulation of community currency 
exchanges and ambulatory
currency exchanges, and the operators 
and employees thereof, and to make an
appropriation therefor, 
and to provide penalties and remedies for the
violation 
thereof", approved June 30, 1943, as amended.

    (3) To exercise the rights, powers, and duties vested by 
law in the
Auditor of Public Accounts under "An Act in relation 
to the buying and
selling of foreign exchange and the 
transmission or transfer of money to
foreign countries", 
approved June 28, 1923, as amended.

    (4) To exercise the rights, powers, and duties vested by 
law in the
Auditor of Public Accounts under "An Act to provide 
for and regulate the
business of guaranteeing titles to real 
estate by corporations", approved
May 13, 1901, as amended.

    (5) To exercise the rights, powers and duties vested by law 
in the
Department of Insurance under "An Act to define, 
license, and regulate the
business of making loans of eight 
hundred dollars or less, permitting an
interest charge thereon 
greater than otherwise allowed by law, authorizing
and 
regulating the assignment of wages or salary when taken as 
security for
any such loan or as consideration for a payment of 
eight hundred dollars or
less, providing penalties, and to 
repeal Acts therein named", approved July
11, 1935, as amended.

    (6) To administer and enforce "An Act to license and 
regulate the
keeping and letting of safety deposit boxes, 
safes, and vaults, and the
opening thereof, and to repeal a 
certain Act therein named", approved June
13, 1945, as amended.

    (7) Whenever the Department is authorized or required by 
law to consider
some aspect of criminal history record 
information for the purpose of
carrying out its statutory 
powers and responsibilities, then, upon request
and payment of 
fees in conformance with the requirements of Section 2605-400 
of the Department of State Police Law
(20 ILCS 2605/2605-400), 
the
Department of State Police is authorized to furnish, 
pursuant to positive
identification, such information 
contained in State files as is necessary
to fulfill the 
request.

    (8) To administer the Payday Loan Reform Act, the Consumer 
Installment Loan Act, the Predatory Loan Prevention Act, the 
Motor Vehicle Retail Installment Sales Act, and the Retail 
Installment Sales Act.

(Source: P.A. 94-13, eff. 12-6-05.)

 
    Section 15-90-10. The Consumer Installment Loan Act is 
amended by changing Sections 1, 15, 15d, and 17.5 as follows:
 



    (205 ILCS 670/1)  (from Ch. 17, par. 5401)


    Sec. 1. License required to engage in business. No person, 
partnership, association, limited liability
company, or 
corporation shall engage in
the business of making loans of 
money in a principal amount  not
exceeding $40,000, and charge, 
contract for, or receive on any
such loan a
greater annual 
percentage rate than 9% rate of interest, discount, or 
consideration therefor than the
lender would be permitted by 
law to charge if he were not a licensee
hereunder, except as 
authorized by this Act after first obtaining a license
from the 
Director of Financial Institutions (hereinafter called the 
Director). No licensee, or employee or affiliate thereof, that 
is licensed under the Payday Loan Reform Act shall obtain a 
license under this Act except that a licensee under the Payday 
Loan Reform Act may obtain a license under this Act for the 
exclusive purpose and use of making title-secured loans, as 
defined in subsection (a) of Section 15 of this Act and 
governed by Title 38, Section 110.300 of the Illinois 
Administrative Code. For the purpose of this Section, 
"affiliate" 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.

    In this Act, "Director" means the Director of Financial 
Institutions of the Department of Financial and Professional 
Regulation. 
(Source: P.A. 96-936, eff. 3-21-11; 97-420, eff. 1-1-12.)

 



    (205 ILCS 670/15)  (from Ch. 17, par. 5415)



    Sec. 15. Charges permitted. 

    (a) Every licensee may
lend a principal amount not 
exceeding $40,000 and, except as to small consumer loans as 
defined in this Section, may charge,
contract for
and receive 
thereon interest at an annual percentage rate of no more than 
36%, subject to the provisions of this Act; provided, however, 
that the limitation on the annual percentage rate contained in 
this subsection (a) does not apply to title-secured loans, 
which are loans upon which interest is charged at an annual 
percentage rate exceeding 36%, 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, 
and upon which a licensee may charge, contract for, and receive 
thereon interest at the rate agreed upon by the licensee and 
borrower.  For purposes of this Section, the annual percentage 
rate shall be calculated as such rate is calculated using the 
system for calculating a military annual percentage rate under 
Section 232.4 of Title 32 of the Code of Federal Regulations as 
in effect on the effective date of this amendatory Act of the 
101st General Assembly in accordance with the federal Truth in 
Lending Act.

    (b) For purpose of this Section, the following terms shall 
have the
meanings ascribed herein.

    "Applicable interest" for a precomputed loan contract 
means the amount of
interest attributable to each monthly 
installment period.  It is computed
as if each installment 
period were one month and any interest charged for
extending 
the first installment period beyond one month is ignored.  The

applicable interest for any monthly installment period is, for 
loans other than small consumer loans as defined in this 
Section, that portion of
the precomputed interest that bears 
the same ratio to the total precomputed
interest as the 
balances scheduled to be outstanding during that month bear
to 
the sum of all scheduled monthly outstanding balances in the 
original
contract. With respect to a small consumer loan, the 
applicable interest for any installment period is that portion 
of the precomputed monthly installment account handling charge 
attributable to the installment period calculated based on a 
method at least as favorable to the consumer as the actuarial 
method, as defined by the federal Truth in Lending Act. 

    "Interest-bearing loan" means a loan in which the debt is

expressed as a principal amount plus interest charged on actual 
unpaid
principal balances for the time actually outstanding.

    "Precomputed loan" means a loan in which the debt is 
expressed as the sum
of the original principal amount plus 
interest computed actuarially in
advance, assuming all 
payments will be made when scheduled.

    "Small consumer loan" means a loan upon which interest is 
charged at an annual percentage rate exceeding 36% and with an 
amount financed of $4,000 or less. "Small consumer loan" does 
not include a title-secured loan as defined by subsection (a) 
of this Section or a payday loan as defined by the Payday Loan 
Reform Act. 
    "Substantially equal installment" includes a last 
regularly scheduled payment that may be less than, but not more 
than 5% larger than,  the previous scheduled payment according 
to a disclosed payment schedule agreed to by the parties.
    (c) Loans may be interest-bearing or precomputed.

    (d) To compute time for either interest-bearing or 
precomputed loans for
the calculation of interest and other 
purposes, a month shall be a calendar
month and a day shall be 
considered 1/30th of a month when calculation is
made for a 
fraction of a month.  A month shall be 1/12th of a year.  A

calendar month is that 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, to the last day of the following month.  
When a period of time
includes a month and a fraction of a 
month, the fraction of the month is
considered to follow the 
whole month.  In the alternative, for
interest-bearing loans, 
the licensee may charge interest at the rate of
1/365th of the 
agreed annual rate for each day actually
elapsed.

    (d-5) No licensee or other person may condition an 
extension of credit to a consumer on the consumer's repayment 
by preauthorized electronic fund transfers. Payment options, 
including, but not limited to, electronic fund transfers and 
Automatic Clearing House (ACH) transactions may be offered to 
consumers as a choice and method of payment chosen by the 
consumer. 
    (e) With respect to interest-bearing loans:

        (1) Interest shall be computed on unpaid principal 
    balances outstanding
from time to time, for the time 
    outstanding, until fully paid.  Each
payment shall be 
    applied first to the accumulated interest and the
remainder 
    of the payment applied to the unpaid principal balance; 
    provided
however, that if the amount of the payment is 
    insufficient to pay the
accumulated interest, the unpaid 
    interest continues to accumulate to be
paid from the 
    proceeds of subsequent payments and is not added to the 
    principal
balance.

        (2) Interest shall not be payable in advance or 
    compounded.  However, if
part or all of the consideration 
    for a new loan contract is the unpaid
principal balance of 
    a prior loan, then the principal amount payable under
the 
    new loan contract may include any unpaid interest which has 
    accrued.
The unpaid principal balance of a precomputed loan 
    is the balance due
after refund or credit of unearned 
    interest as provided in paragraph (f),
clause (3).  The 
    resulting loan contract shall be deemed a new and separate

    loan transaction for all purposes.

        (3) Loans must be fully amortizing and be repayable in 
    substantially equal and consecutive weekly, biweekly, 
    semimonthly, or monthly installments. Notwithstanding this 
    requirement, rates may vary according to an
index that is 
    independently verifiable and beyond the control of the 
    licensee.

        (4) The lender or creditor may, if the contract 
    provides, collect a
delinquency or collection charge on 
    each installment in default for a period of
not less than 
    10 days in an amount not exceeding 5% of the installment on

    installments in excess of $200, or $10 on installments of 
    $200 or less, but
only
one delinquency and collection 
    charge may be collected on any installment
regardless of 
    the period during which it remains in default.

    (f) With respect to precomputed loans:

        (1) Loans shall be repayable in substantially equal and 
    consecutive weekly, biweekly, semimonthly, or
monthly 
    installments of principal and interest combined, except 
    that the
first installment period may be longer than one 
    month by not more than 15
days, and the first installment 
    payment amount may be larger than the
remaining payments by 
    the amount of interest charged for the extra days;
and 
    provided further that monthly installment payment dates 
    may be omitted
to accommodate borrowers with seasonal 
    income.

        (2) Payments may be applied to the combined total of 
    principal and
precomputed interest until the loan is fully 
    paid.  Payments shall be
applied in the order in which they 
    become due, except that any insurance
proceeds received as 
    a result of any claim made on any insurance, unless

    sufficient to prepay the contract in full, may be applied 
    to the unpaid
installments of the total of payments in 
    inverse order.

        (3) When any loan contract is paid in full by cash, 
    renewal or
refinancing, or a new loan, one month or more 
    before the final installment
due date, a licensee shall 
    refund or credit the obligor with
the total of
the 
    applicable interest for all fully unexpired installment 
    periods, as
originally scheduled or as deferred, which 
    follow the day of prepayment;
provided, if the prepayment 
    occurs prior to the first installment due date,
the 
    licensee may retain 1/30 of the applicable interest for a 
    first
installment period of one month for each day from the 
    date of the loan to
the date of prepayment, and shall 
    refund or credit the obligor
with the
balance of the total 
    interest contracted for.  If the maturity of the loan
is 
    accelerated for any reason and judgment is entered, the 
    licensee shall
credit the borrower with the same refund as 
    if prepayment in full had been
made on the date the 
    judgement is entered.

        (4) The lender or creditor may, if the contract 
    provides, collect a
delinquency or collection charge on 
    each installment in default for a period of
not less than 
    10 days in an amount not exceeding 5% of the installment on

    installments in excess of $200, or $10 on installments of 
    $200 or less, but
only
one delinquency or collection charge 
    may be collected on any installment
regardless of the 
    period during which it remains in default.

        (5) If the parties agree in writing, either in the loan 
    contract or in a
subsequent agreement, to a deferment of 
    wholly unpaid installments, a
licensee may grant a 
    deferment and may collect a deferment charge as
provided in 
    this Section.  A deferment postpones the scheduled due date 
    of
the earliest unpaid installment and all subsequent 
    installments as
originally scheduled, or as previously 
    deferred, for a period equal to the
deferment period.  The 
    deferment period is that period during which no
installment 
    is scheduled to be paid by reason of the deferment.  The

    deferment charge for a one month period may not exceed the 
    applicable
interest for the installment period immediately 
    following the due date of
the last undeferred payment.  A 
    proportionate charge may be made for
deferment for periods 
    of more or less than one month.  A deferment charge
is 
    earned pro rata during the deferment period and is fully 
    earned on the
last day of the deferment period.  Should a 
    loan be prepaid in full during
a deferment period, the 
    licensee shall credit to the obligor a
refund of the 
    unearned deferment charge in addition to any other refund 
    or
credit made for prepayment of the loan in full.

        (6) If two or more installments are delinquent one full 
    month or more on
any due date, and if the contract so 
    provides, the licensee may reduce the
unpaid balance by the 
    refund credit which would be required for prepayment
in 
    full on the due date of the most recent maturing 
    installment in default.
Thereafter, and in lieu of any 
    other default or deferment charges, the
agreed rate of 
    interest or, in the case of small consumer loans,  interest 
    at the rate of 18% per annum, may be charged on the unpaid 
    balance until fully paid.

        (7) Fifteen days after the final installment as 
    originally scheduled or
deferred, the licensee, for any 
    loan contract which has not previously been
converted to 
    interest-bearing under paragraph (f), clause (6), may 
    compute
and charge interest on any balance remaining 
    unpaid, including unpaid
default or deferment charges, at 
    the agreed rate of interest or, in the case of small 
    consumer loans, interest at the rate of 18% per annum, 
    until fully
paid.   At the time of payment of said final 
    installment, the licensee shall
give notice to the obligor 
    stating any amounts unpaid.

(Source: P.A. 101-563, eff. 8-23-19.)

 



    (205 ILCS 670/15d)  (from Ch. 17, par. 5419)



    Sec. 15d. Extra charges prohibited; exceptions. No amount 
in addition to the charges authorized by this Act shall be

directly or indirectly charged, contracted for, or received, 
except (1) lawful
fees paid to any public officer or agency to 
record, file or release
security; (2) (i) costs and 
disbursements actually incurred in connection
with a real 
estate loan, for any title insurance, title examination, 
abstract
of title, survey, or appraisal, or paid to a trustee 
in connection with
a trust deed, and (ii) in connection with a 
real estate loan those
charges authorized by Section 4.1a of 
the Interest Act, whether called
"points" or otherwise, which 
charges are imposed as a condition for making
the loan and are 
not refundable in the event of prepayment of the loan;
(3) 
costs and disbursements, including reasonable
attorney's fees, 
incurred in legal proceedings to collect a loan or to
realize 
on a security after default; and (4) an amount not exceeding

$25,
plus any actual expenses incurred in connection with a 
check or draft that is
not honored because of
insufficient or 
uncollected funds or because no such account exists; and (5)
a 
document preparation fee not to exceed $25 for obtaining and 
reviewing credit
reports and preparation of other documents. 
This
Section does not prohibit the
receipt of a commission, 
dividend, charge, or other benefit by
the licensee or by
an 
employee, affiliate, or associate of the licensee from the 
insurance
permitted by Sections 15a and 15b of this Act or from 
insurance in lieu of
perfecting a security interest provided 
that the premiums for such insurance do
not exceed the fees 
that otherwise could be contracted for by the licensee
under 
this Section.  Obtaining any of the items
referred to in clause 
(i) of item (2)  of this Section through the licensee
or from 
any person specified by the licensee shall not be a condition

precedent to the granting of the loan.

(Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)

 
    (205 ILCS 670/17.5)
    Sec. 17.5. Consumer reporting service.
    (a) For the purpose of this Section, "certified database" 
means the consumer reporting
service database established 
pursuant to the Payday Loan Reform
Act. "Title-secured loan" 
means a loan in which, at commencement, a consumer provides to 
the licensee, as security for the loan, physical possession of 
the consumer's title to a motor vehicle.
    (b) Licensees shall enter information regarding each loan 
into the certified database and shall follow the Department's 
related rules. Within 90 days after making a small consumer 
loan, a licensee shall enter information about the loan into 
the certified database.
    (c) For every title-secured loan small consumer loan made, 
the licensee shall input information as provided in 38 Ill. 
Adm. Code 110.420. the following information into the certified 
database within 90 days after the loan is made:
        (i)  the consumer's name and official identification 
    number (for purposes of this Act, "official identification 
    number" includes a Social Security Number, an Individual 
    Taxpayer Identification Number, a Federal Employer 
    Identification Number, an Alien Registration Number, or an 
    identification number imprinted on a passport or consular 
    identification document issued by a foreign government);
        (ii) the consumer's gross monthly income;
        (iii) the date of the loan;
        (iv) the amount financed;
        (v) the term of the loan;
        (vi) the acquisition charge;
        (vii) the monthly installment account handling charge;
        (viii) the verification fee;
        (ix) the number and amount of payments; and
        (x)  whether  the  loan  is  a  first  or subsequent 
    refinancing of a prior small consumer loan.
    (d) Once a loan is entered with the certified database, the 
certified database shall provide to the licensee a dated, 
time-stamped statement acknowledging the certified database's 
receipt of the information and assigning each loan a unique 
loan number. 
    (e) The licensee shall update the certified database within 
90 days if any of the following events occur: 
        (i) the loan is paid in full by cash;
        (ii) the loan is refinanced;
        (iii) the loan is renewed;
        (iv)  the loan is satisfied in full or in part by 
    collateral being sold after default;
        (v) the loan is cancelled or rescinded; or
        (vi) the consumer's obligation on the loan is otherwise 
    discharged by the licensee. 
    (f) To the extent a licensee sells a product or service to 
a consumer, other than a small consumer loan, and finances any 
portion of the cost of the product or service, the licensee 
shall, in addition to and at the same time as the information 
inputted under subsection (d) of this Section, enter into the 
certified database:
        (i) a description of the product or service sold;
        (ii) the charge for the product or service; and
        (iii) the portion of the charge for the product or 
    service, if any, that is included in the amount financed by


    a small consumer loan. 
    (d)  (g) 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 (d) of this Section. The database provider 
shall not charge any additional fees or charges to the 
licensee.
    (h) 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 subsection (c) of Section 7 of 
the Freedom of Information Act.
    (i) 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 such subsequent release or 
disclosure was lawful, authorized, or intentional. 
    (j)  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 or the certified database 
is decertified, the requirements of this Section and Section 
17.4 of this Act are suspended until such time as the certified 
database becomes available. 

(Source: P.A. 96-936, eff. 3-21-11; 97-813, eff. 7-13-12.)
 
    (205 ILCS 670/17.1 rep.)
    (205 ILCS 670/17.2 rep.)
    (205 ILCS 670/17.3 rep.)
    (205 ILCS 670/17.4 rep.)
    Section 15-90-15. The Consumer Installment Loan Act is 
amended by repealing Sections 17.1, 17.2, 17.3, and 17.4.
 
    Section 15-90-20. The Payday Loan Reform Act is amended by 
changing Sections 1-10, 2-5, 2-10, 2-15, 2-20, 2-30, 2-40, 
2-45, and 4-5 as follows:
 
    (815 ILCS 122/1-10)

    Sec. 1-10. Definitions. As used in this Act:
    "Check" means a "negotiable instrument", as defined in 
Article 3 of the Uniform Commercial Code, that is drawn on a 
financial institution.
    "Commercially reasonable method of verification" or 
"certified database" means a consumer reporting service 
database certified by the Department as effective in verifying 
that a proposed loan agreement is permissible under this Act, 
or, in the absence of the Department's certification, any 
reasonably reliable written verification by the consumer 
concerning (i) whether the consumer has any outstanding payday 
loans, (ii) the principal amount of those outstanding payday 
loans, and (iii) whether any payday loans have been paid in 
full by the consumer in the preceding 7 days.
    "Consumer" means any natural person who, singly or jointly 
with another consumer, enters into a loan.
    "Consumer reporting service" means an entity that provides 
a database certified by the Department.
    "Department" means the Department of Financial and 
Professional Regulation.
    "Secretary" means the Secretary of Financial and 
Professional Regulation.
    "Gross monthly income" means monthly income as 
demonstrated by official documentation of the income, 
including, but not limited to, a pay stub or a receipt 
reflecting payment of government benefits, for the period 30 
days prior to the date on which the loan is made.
    "Lender" and "licensee" mean any person or entity, 
including any affiliate or subsidiary of a lender or licensee, 
that offers or makes a payday loan, buys a whole or partial 
interest in a payday loan, arranges a payday loan for a third 
party, or acts as an agent for a third party in making a payday 
loan, regardless of whether approval, acceptance, or 
ratification by the third party is necessary to create a legal 
obligation for the third party, and includes any other person 
or entity if the Department determines that the person or 
entity is engaged in a transaction that is in substance a 
disguised payday loan or a subterfuge for the purpose of 
avoiding this Act.
    "Loan agreement" means a written agreement between a lender 
and consumer to make a loan to the consumer, regardless of 
whether any loan proceeds are actually paid to the consumer on 
the date on which the loan agreement is made.
    "Member of the military" means a person serving in the 
armed forces of the United States, the Illinois National Guard, 
or any reserve component of the armed forces of the United 
States. "Member of the military" includes those persons engaged 
in (i) active duty, (ii) training or education under the 
supervision of the United States preliminary to induction into 
military service, or (iii) a period of active duty with the 
State of Illinois under Title 10 or Title 32 of the United 
States Code pursuant to order of the President or the Governor 
of the State of Illinois.
    "Outstanding balance" means the total amount owed by the 
consumer on a loan to a lender, including all principal, 
finance charges, fees, and charges of every kind.
    "Payday loan" or "loan" means a loan with a finance charge 
exceeding an annual percentage rate of 36% and with a term that 
does not exceed 120 days, including any transaction conducted 
via any medium whatsoever, including, but not limited to, 
paper, facsimile, Internet, or telephone, in which:
        (1)   A lender accepts one or more checks dated on the 
    date written and agrees to hold them for a period of days 
    before deposit or presentment, or accepts one or more 
    checks dated subsequent to the date written and agrees to 
    hold them for deposit; or
        (2)   A lender accepts one or more authorizations to 
    debit a consumer's bank account; or
        (3)   A lender accepts an interest in a consumer's wages, 
    including, but not limited to, a wage assignment.
    The term "payday loan" includes "installment payday loan", 
unless otherwise specified in
this Act. 
    "Principal amount" means the amount received by the 
consumer from the lender due and owing on a loan, excluding any 
finance charges, interest, fees, or other loan-related 
charges.
    "Rollover" means to refinance, renew, amend, or extend a 
loan beyond its original term.

(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-5)

    Sec. 2-5. Loan terms. 
    (a) Without affecting the right of a consumer to prepay at 
any time without cost or penalty, no payday loan may have a 
minimum term of less than 13 days.
    (b)  No Except for an installment payday loan as defined in 
this Section,
no payday loan may be made to a consumer if the 
loan would result in the consumer being indebted to one or more 
payday lenders for a period in excess of 45 consecutive days.  
Except as provided under subsection (c) of this Section and 
Section 2-40, if a consumer has or has had loans outstanding 
for a period in excess of 45 consecutive days, no payday lender 
may offer or make a loan to the consumer for at least 7 
calendar days after the date on which the outstanding balance 
of all payday loans made during the 45 consecutive day period  
is paid in full.  For purposes of this subsection, the term 
"consecutive days" means a series of continuous calendar days 
in which the consumer has an outstanding balance on one or more 
payday loans;  however, if a payday loan is made to a consumer 
within 6 days or less after the outstanding balance of all 
loans is paid in full, those days are counted as "consecutive 
days" for purposes of this subsection.
    (c) (Blank). Notwithstanding anything in this Act to the 
contrary, a payday loan
shall also include any installment loan 
otherwise meeting the definition of
payday loan contained in 
Section 1-10, but that has a term agreed by the
parties of not 
less than 112 days and not exceeding 180 days; hereinafter an

"installment payday loan". The following provisions shall 
apply:

        (i) Any installment payday loan must be fully 
    amortizing, with a finance
charge calculated on the 
    principal balances scheduled to be outstanding and
be 
    repayable in substantially equal and consecutive 
    installments, according
to a payment schedule agreed by the 
    parties with not less than 13 days and
not more than one 
    month between payments; except that the first installment

    period may be longer than the remaining installment periods 
    by not more than
15 days, and the first installment payment 
    may be larger than the remaining
installment payments by 
    the amount of finance charges applicable to the
extra days. 
    In calculating finance charges under this subsection, when 
    the first installment period is longer than the remaining 
    installment periods, the amount of the finance charges 
    applicable to the extra days shall not be greater than 
    $15.50 per $100 of the original principal balance divided 
    by the number of days in a regularly scheduled installment 
    period and multiplied by the number of extra days 
    determined by subtracting the number of days in a regularly 
    scheduled installment period from the number of days in the 
    first installment period.
        (ii) An installment payday loan may be refinanced by a 
    new installment
payday loan one time during the term of the 
    initial loan; provided that the
total duration of 
    indebtedness on the initial installment payday loan 
    combined
with the total term of indebtedness of the new 
    loan refinancing that initial
loan, shall not exceed 180 
    days. For purposes of this Act, a refinancing
occurs when 
    an existing installment payday loan is paid from the 
    proceeds of
a new installment payday loan.
        (iii) In the event an installment payday loan is paid 
    in full prior to
the date on which the last scheduled 
    installment payment before maturity is
due, other than 
    through a refinancing, no licensee may offer or make a 
    payday
loan to the consumer for at least 2 calendar days 
    thereafter.
        (iv) No installment payday loan may be made to a 
    consumer if the loan would
result in the consumer being 
    indebted to one or more payday lenders for a
period in 
    excess of 180 consecutive days. The term "consecutive days" 
    does not include the date on which a consumer makes the 
    final installment payment.
    (d) (Blank).
    (e) No lender may make a payday loan to a consumer if the 
total of all payday loan payments coming due within the first 
calendar month of the loan, when combined with the payment 
amount of all of the consumer's other outstanding payday loans 
coming due within the same month, exceeds the lesser of:
        (1) $1,000; or
        (2) in the case of one or more payday loans, 25% of the 
    consumer's gross monthly income. ; or
        (3) in the case of one or more installment payday 
    loans, 22.5% of the consumer's gross monthly income; or
        (4) in the case of a payday loan and an installment 
    payday loan, 22.5% of the consumer's gross monthly income.
    No loan shall be made to a consumer who has an outstanding 
balance on 2 payday loans, except that, for a period of 12 
months after March 21, 2011 (the effective date of Public Act 
96-936), consumers with an existing CILA loan may be issued an 
installment loan issued under this Act from the company from 
which their CILA loan was issued.
    (e-5) A lender shall not contract for or receive a charge 
exceeding a 36% annual percentage rate on the unpaid balance of 
the amount financed for a payday loan. For purposes of this 
Section, the annual percentage rate shall be calculated as such 
rate is calculated using the system for calculating a military 
annual percentage rate under 32 CFR 232.4 as in effect on the 
effective date of this amendatory Act of the 101st General 
Assembly. Except as provided in subsection (c)(i), no lender 
may charge more than $15.50 per $100 loaned on any payday loan, 
or more than $15.50 per $100 on the initial principal balance 
and on the principal balances scheduled to be outstanding 
during any installment period on any installment payday loan. 
Except for installment payday loans and except as provided in 
Section 2-25, this charge is considered fully earned as of the 
date on which the loan is made. For purposes of determining the 
finance charge earned on an installment payday loan, the 
disclosed annual percentage rate shall be applied to the 
principal balances outstanding from time to time until the loan 
is paid in full, or until the maturity date, whichever occurs 
first.  No finance charge may be imposed after the final 
scheduled maturity date. 
    When any loan contract is paid in full, the licensee shall 
refund any unearned finance charge. The unearned finance charge 
that is refunded shall be calculated based on a method that is 
at least as favorable to the consumer as the actuarial method, 
as defined by the federal Truth in Lending Act. The sum of the 
digits or rule of 78ths method of calculating prepaid interest 
refunds is prohibited. 
    (f) A lender may not take or attempt to take an interest in 
any of the consumer's personal property to secure a payday 
loan.
    (g) A consumer has the right to redeem a check or any other 
item described in the definition of payday loan under Section 
1-10 issued in connection with a payday loan from the lender 
holding the check or other item at any time before the payday 
loan becomes payable by paying the full amount of the check or 
other item.


    (h) (Blank). For the purpose of this Section, 
"substantially equal installment" includes a last regularly 
scheduled payment that may be less than, but no more than 5% 
larger than, the previous scheduled payment according to a 
disclosed payment schedule agreed to by the parties. 
(Source: P.A. 100-201, eff. 8-18-17; 101-563, eff. 8-23-19.)
 
    (815 ILCS 122/2-10)
    Sec. 2-10. Permitted fees. 
    (a) If there are insufficient funds to pay a check, 
Automatic Clearing House (ACH) debit, or any other item 
described in the definition of payday loan under Section 1-10 
on the day of presentment and only after the lender has 
incurred an expense, a lender may charge a fee not to exceed 
$25.  Only one such fee may be collected by the lender with 
respect to a particular check, ACH debit, or item even if it 
has been deposited and returned more than once. A lender shall 
present the check, ACH debit, or other item described in the 
definition of payday loan under Section 1-10 for payment not 
more than twice. A fee charged under this subsection (a) is a 
lender's exclusive charge for late payment.
    (a-5) A lender may charge a borrower a fee not to exceed $1 
for the
verification required under Section 2-15 of this Act in 
connection with a payday loan. and, until July 1, 2020, in 
connection with an installment payday loan. Beginning July 1, 
2020, a lender may charge a borrower a fee not to exceed $3 for 
the verification required under Section 2-15 of this Act in 
connection with an installment payday loan. In no event may a 
fee be greater than the amount charged by the certified 
consumer reporting service. Only one such fee may
be collected 
by the lender with respect to a particular loan. 
    (b) Except for the finance charges described in Section 2-5  
and as specifically allowed by this Section, a lender may not 
impose on a consumer any additional finance charges, interest, 
fees, or charges of any sort for any purpose.

(Source: P.A. 100-1168, eff. 6-1-19.)
 
    (815 ILCS 122/2-15)
    Sec. 2-15. Verification. 
    (a) Before entering into a loan agreement with a consumer, 
a lender must use a commercially reasonable method of 
verification to verify that the proposed loan agreement is 
permissible under this Act.
    (b) Within 6 months after the effective date of this Act, 
the Department shall certify that one or more consumer 
reporting service databases are commercially reasonable 
methods of verification.  Upon certifying that a consumer 
reporting service database is a commercially reasonable method 
of verification, the Department shall:


        (1) provide reasonable notice to all licensees 
    identifying the commercially reasonable methods of 
    verification that are available; and


        (2) immediately upon certification, require each 
    licensee to use a commercially reasonable method of 
    verification as a means of complying with subsection (a) of 
    this Section.
    (c) Except as otherwise provided in this Section, 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)(b)(i) of the Freedom of 
Information Act.
    (d) Notwithstanding any other provision of law to the 
contrary, a consumer seeking a payday loan may make a direct 
inquiry to the consumer reporting service to request a more 
detailed explanation of the basis for a consumer reporting 
service's determination that the consumer is ineligible for a 
new payday loan.
    (e) In certifying a commercially reasonable method of 
verification, the Department shall ensure that the certified 
database:
        (1) provides real-time access through an Internet 
    connection or, if real-time access through an Internet 
    connection becomes unavailable to lenders due to a consumer 
    reporting service's technical problems incurred by the 
    consumer reporting service, through alternative 
    verification mechanisms, including, but not limited to, 
    verification by telephone;
        (2) is accessible to the Department and to licensees in 
    order to ensure
compliance with this Act and in order to 
    provide any other information that the Department deems 
    necessary;
        (3) requires licensees to input whatever information 
    is required by the Department;
        (4) maintains a real-time copy of the required 
    reporting information that is available to the Department 
    at all times and is the property of the Department;
        (5) provides licensees only with a statement that a 
    consumer is eligible or ineligible for a new payday loan 
    and a description of the reason for the determination; and
        (6) contains safeguards to ensure that all information 
    contained in the database regarding consumers is kept 
    strictly confidential.

    (f) The licensee shall update the certified database by 
inputting all information required under item (3) of subsection 
(e):
        (1) on the same day that a payday loan is made; 
        (2) on the same day that a consumer elects a repayment 
    plan, as provided in Section 2-40; and 
        (3) on the same day that a consumer's payday loan is 
    paid in full. ,
including the refinancing of an installment 
    payday loan as permitted under subsection (c) of
Section 
    2-5.
    (g) A licensee may rely on the information contained in the 
certified 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.
    (h) The certified consumer reporting service shall 
indemnify the licensee against all claims and actions arising 
from illegal or willful or wanton acts on the part of the 
certified consumer reporting service.

    (i) The certified consumer reporting service may charge a 
verification
fee not to exceed $1 upon a loan being made or 
entered into in the
database. Beginning July 1, 2020, the 
certified consumer reporting service may charge a verification 
fee not to exceed $3 for an installment payday loan being made 
or entered into the data base. The certified consumer reporting 
service shall not charge any
additional fees or charges. 
(Source: P.A. 100-1168, eff. 6-1-19.)
 
    (815 ILCS 122/2-20)

    Sec. 2-20. Required disclosures. 
    (a) Before a payday loan is made, a lender shall
deliver to 
the consumer a pamphlet prepared by the Secretary that:

        (1) explains, in simple English and Spanish, all of the 
    consumer's
rights and responsibilities in a payday loan 
    transaction;

        (2) includes a toll-free number to the Secretary's 
    office to handle
concerns or provide information about 
    whether a lender is licensed, whether
complaints have been 
    filed with the Secretary, and the resolution of those

    complaints; and

        (3) provides information regarding the availability of 
    debt
management services.

    (b) Lenders shall provide consumers with a written 
agreement that may be kept by the
consumer. The written 
agreement must include the following information in
English and 
in the language in which the loan was negotiated:

        (1) the name and address of the lender making the 
    payday loan, and the name and title of the individual 
    employee who signs the
agreement on behalf of the lender;

        (2) disclosures required by the federal Truth in 
    Lending Act;

        (3) a clear description of the consumer's payment 
    obligations under
the loan;

        (4) the following statement, in at least 14-point bold 
    type face: "You
cannot be prosecuted in criminal court to 
    collect this loan."   The
information required to be 
    disclosed under this subdivision (4) must be
conspicuously 
    disclosed
in the loan document and shall be located 
    immediately preceding
the signature of the consumer; and

        (5) the following statement, in at least 14-point bold 
    type face:

        "WARNING: This loan is not intended to meet long-term 
    financial needs. This
loan should be used only to meet 
    short-term cash needs. The cost of your loan may be higher 
    than loans offered by other lending
institutions. This loan 
    is regulated by the Department of Financial
and 
    Professional Regulation."
    (c) The following notices in English and Spanish must be 
conspicuously posted by a lender in each location of
a business 
providing payday loans:

        (1) A notice that informs consumers that the lender 
    cannot use the
criminal process against a consumer to 
    collect any payday loan.

        (2) The schedule of all  finance charges to be charged 
    on loans with an
example of the amounts that would be 
    charged on a $100 loan payable in 13
days and , a $400 loan 
    payable in 30 days, and an installment payday loan of
$400 
    payable on a monthly basis over 180 days, giving the 
    corresponding annual
percentage rate.

        (3) In one-inch bold type, a notice to the public in 
    the lending
area of each business location containing the 
    following
statement:

        "WARNING: This loan is not intended to meet long-term 
    financial needs. This
loan should be used only to meet 
    short-term cash needs. The cost of your loan may be higher 
    than loans offered by other lending
institutions. This loan 
    is regulated by the Department of Financial
and 
    Professional Regulation."
        (4) In one-inch bold type, a notice to the public in 
    the lending area of each business location containing the 
    following statement:
        "INTEREST-FREE REPAYMENT PLAN:  If you still owe on one 
    or more payday loans, other than an installment payday 
    loan, after 35 days, you are entitled to enter into a 
    repayment plan.  The repayment plan will give you at least 
    55 days to repay your loan in installments with no 
    additional finance charges, interest, fees, or other 
    charges of any kind."

(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-30)

    Sec. 2-30. Rollovers prohibited.  Rollover of a payday loan 
by any lender is prohibited. , except as provided in subsection 
(c) of Section 2-5. This Section does not prohibit entering 
into a repayment plan, as provided under Section 2-40.

(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-40)

    Sec. 2-40. Repayment plan. 
    (a) At the time a payday loan is made, the lender must 
provide the consumer with a separate written notice signed by 
the consumer of the consumer's right to request a repayment 
plan. The written notice must comply with the requirements of 
subsection (c).
    (b) The loan agreement must include the following language 
in at least 14-point bold type:  IF YOU STILL OWE ON ONE OR MORE 
PAYDAY LOANS AFTER 35 DAYS, YOU ARE ENTITLED TO ENTER INTO A 
REPAYMENT PLAN.  THE REPAYMENT PLAN WILL GIVE YOU AT LEAST 55 
DAYS TO REPAY YOUR LOAN IN INSTALLMENTS WITH NO ADDITIONAL 
FINANCE CHARGES, INTEREST, FEES, OR OTHER CHARGES OF ANY KIND.
    (c) At the time a payday loan is made, on the first page of 
the loan agreement and in a separate document signed by the 
consumer, the following shall be inserted in at least 14-point 
bold type:  I UNDERSTAND THAT IF I STILL OWE ON ONE OR MORE 
PAYDAY LOANS AFTER 35 DAYS, I AM ENTITLED TO ENTER INTO A 
REPAYMENT PLAN THAT WILL GIVE ME AT LEAST 55 DAYS TO REPAY THE 
LOAN IN INSTALLMENTS WITH NO ADDITIONAL FINANCE CHARGES, 
INTEREST, FEES, OR OTHER CHARGES OF ANY KIND.
    (d) If the consumer has or has had one or more payday loans 
outstanding for 35 consecutive days, any payday loan 
outstanding on the 35th consecutive day shall be payable under 
the terms of a repayment plan as provided for in this Section, 
if the consumer requests the repayment plan. As to any loan 
that becomes eligible for a repayment plan under this 
subsection, the consumer has until 28 days after the default 
date of the loan to request a repayment plan. Within 48 hours 
after the request for a repayment plan is made, the lender must 
prepare the repayment plan agreement and both parties must 
execute the agreement. Execution of the repayment plan 
agreement shall be made in the same manner in which the loan 
was made and shall be evidenced in writing.
    (e) The terms of the repayment plan for a payday loan must 
include the following:
        (1) The lender may not impose any charge on the 
    consumer for requesting or using a repayment plan. 
    Performance of the terms of the repayment plan extinguishes 
    the consumer's obligation on the loan.
        (2) No lender shall charge the consumer any finance 
    charges, interest, fees, or other charges of any kind, 
    except a fee for insufficient funds, as provided under 
    Section 2-10.

        (3) The consumer shall be allowed to repay the loan in 
    at least 4 equal installments with at least 13 days between 
    installments, provided that the term of the repayment plan 
    does not exceed 90 days.  The first payment under the 
    repayment plan shall not be due before at least 13 days 
    after the repayment plan is signed by both parties.  The 
    consumer may prepay the amount due under the repayment plan 
    at any time, without charge or penalty.
        (4) The length of time between installments may be 
    extended by the parties so long as the total period of 
    repayment does not exceed 90 days.  Any such modification 
    must be in writing and signed by both parties.
    (f) Notwithstanding any provision of law to the contrary, a 
lender is prohibited from making a payday loan to a consumer 
who has a payday loan outstanding under a repayment plan and 
for at least 14 days after the outstanding balance of the loan 
under the repayment plan and the outstanding balance of all 
other payday loans outstanding during the term of the repayment 
plan are paid in full.
    (g) A lender may not accept postdated checks for payments 
under a repayment plan.
    (h) Notwithstanding any provision of law to the contrary, a 
lender may voluntarily agree to enter into a repayment plan 
with a consumer at any time.
If a consumer is eligible for a 
repayment plan under subsection (d), any repayment agreement 
constitutes a repayment plan under this Section and all 
provisions of this Section apply to that agreement.

    (i) (Blank). The provisions of this Section 2-40 do not 
apply to an installment
payday loan, except for subsection (f) 
of this Section. 
(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-45)

    Sec. 2-45. Default. 
    (a) No legal proceeding of any kind, including, but not 
limited to, a lawsuit or arbitration, may be filed or initiated 
against a consumer to collect on a payday loan until 28 days 
after the default date of the loan, or, in the case of a payday 
loan under a repayment plan, for 28 days after the default date 
under the terms of the repayment plan. , or in the case of an

installment payday loan, for 28 days after default in making a 
scheduled
payment.
    (b) Upon and after default, a lender shall not charge the 
consumer any finance charges, interest, fees, or charges of any 
kind, other than the insufficient fund fee described in Section 
2-10.

    (c) Notwithstanding whether a loan is or has been in 
default, once the loan becomes subject to a repayment plan, the 
loan shall not be construed to be in default until the default 
date provided under the terms of the repayment plan.

(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/4-5)

    Sec. 4-5. Prohibited acts. A licensee or unlicensed person 
or entity making payday
loans may not commit, or have committed 
on behalf of the
licensee
or unlicensed person or entity, any 
of the following acts:
        (1) Threatening to use or using the criminal process in 
    this or any
other state to collect on the loan.

        (2) Using any device or agreement that would have the 
    effect of
charging or collecting more fees or charges than 
    allowed by this
Act, including, but not limited to, 
    entering into a different type of
transaction
with the 
    consumer.

        (3) Engaging in unfair, deceptive, or fraudulent 
    practices in the
making or collecting of a payday loan.

        (4) Using or attempting to use the check provided by 
    the consumer in
a payday loan as collateral for a 
    transaction not related to a payday loan.

        (5) Knowingly accepting payment in whole or in part of 
    a payday
loan through the proceeds of another payday loan 
    provided by any licensee, except
as provided in subsection 
    (c) of Section 2.5.

        (6) Knowingly accepting any security, other than that 
    specified in the
definition of payday loan in Section 1-10, 
    for a payday loan.

        (7) Charging any fees or charges other than those 
    specifically
authorized by this Act.

        (8) Threatening to take any action against a consumer 
    that is
prohibited by this Act or making any misleading or 
    deceptive statements
regarding the payday loan or any 
    consequences thereof.

        (9) Making a misrepresentation of a material fact by an 
    applicant for licensure in
obtaining or attempting to 
    obtain a license.

        (10) Including any of the following provisions in loan 
    documents
required by subsection (b) of Section 2-20:

            (A) a confession of judgment clause;

            (B) a waiver of the right to a jury trial, if 
        applicable, in any action
brought by or against a 
        consumer, unless the waiver is included in an 
        arbitration clause allowed under
subparagraph (C) of 
        this paragraph (11);

            (C) a mandatory arbitration clause that is 
        oppressive, unfair,
unconscionable, or substantially 
        in derogation of the rights of consumers; or

            (D) a provision in which the consumer agrees not to 
        assert any claim
or defense arising out of the 
        contract.

        (11) Selling any insurance of any kind whether or not 
    sold in
connection with the making or collecting of a 
    payday loan.

        (12) Taking any power of attorney.

        (13) Taking any security interest in real estate.

        (14) Collecting a delinquency or collection charge on 
    any installment
regardless of the period in which it 
    remains in default.

        (15) Collecting treble damages on an amount owing from 
    a payday loan.

        (16) Refusing, or intentionally delaying or

    inhibiting, the consumer's right to enter into a repayment 
    plan pursuant to this
Act.
        (17) Charging for, or attempting to
collect, 
    attorney's fees, court costs, or arbitration costs 
    incurred in connection with the
collection of a payday 
    loan.
        (18) Making a loan in violation of this Act.
        (19) Garnishing the wages or salaries of a consumer who 
    is a member of the military.
        (20) Failing to suspend or defer collection activity 
    against a consumer who is a member of the military and who 
    has been deployed to a combat or combat-support posting.
        (21) Contacting the military chain of command of a 
    consumer who is a member of the military in an effort to 
    collect on a payday loan.

        (22) Making or offering to make any loan other than a 
    payday loan or
a title-secured loan, provided however, that 
    to make or offer to make a
title-secured loan, a licensee 
    must obtain a license under the Consumer
Installment Loan 
    Act. 
        (23) Making or offering a loan in violation of the 
    Predatory Loan Prevention Act. 
(Source: P.A. 96-936, eff. 3-21-11.)
 
    Section 15-90-25. The Interest Act is amended by changing 
Sections 4 and  4a as follows:
 
    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
    Sec. 4. General interest rate. 
    (1) Except as otherwise provided in Section 4.05, in all 
written contracts it shall be lawful for the parties to

stipulate or agree that an annual percentage rate of 9% per 
annum, or any less sum of interest, shall be
taken and paid 
upon every $100 of money loaned or in any manner due and
owing 
from any person to any other person or corporation in this 
state, and
after that rate for a greater or less sum, or for a 
longer or shorter time,
except as herein provided.
    The maximum rate of interest that may lawfully be 
contracted for is
determined by the law applicable thereto at 
the time the contract is
made.  Any provision in any contract, 
whether made before or after July
1, 1969, which provides for 
or purports to authorize, contingent upon a
change in the 
Illinois law after the contract is made, any rate of
interest 
greater than the maximum lawful rate at the time the contract

is made, is void.
    It is lawful for a state bank or a branch of an 
out-of-state bank, as those
terms are defined in Section 2 of 
the Illinois Banking Act, to receive or to
contract to receive

and collect interest and charges at any rate or rates agreed 
upon by
the bank or branch and the borrower.
It is lawful for a 
savings bank chartered under the Savings Bank Act or a
savings 
association chartered under the Illinois Savings and Loan Act 
of 1985
to receive or contract to receive and collect interest 
and charges at any rate
agreed upon by the savings bank or 
savings association and the borrower.
    It is lawful to receive or to contract to receive and 
collect
interest and charges as authorized by this Act and as 
authorized by the
Consumer Installment Loan Act, and by the 
"Consumer Finance Act", approved July
10,
1935, as now or 
hereafter amended, or by the Payday Loan Reform Act, the Retail 
Installment Sales Act, the Illinois Financial Services 
Development Act, or the Motor Vehicle Retail Installment Sales 
Act.  It is lawful to charge, contract
for, and receive any rate 
or amount of interest or compensation, except as otherwise 
provided in the Predatory Loan Prevention Act, with
respect to 
the following transactions:
        (a) Any loan made to a corporation;
        (b) Advances of money, repayable on demand, to an 
    amount not less
than $5,000, which are made upon warehouse 
    receipts, bills of lading,
certificates of stock, 
    certificates of deposit, bills of exchange, bonds
or other 
    negotiable instruments pledged as collateral security for 
    such
repayment, if evidenced by a writing;
        (c) Any credit transaction between a merchandise 
    wholesaler and
retailer; any business loan to a business 
    association or copartnership
or to a person owning and 
    operating a business as sole proprietor or to
any persons 
    owning and operating a business as joint venturers, joint

    tenants or tenants in common, or to any limited 
    partnership, or to any
trustee owning and operating a 
    business or whose beneficiaries own and
operate a business, 
    except that any loan which is secured (1) by an
assignment 
    of an individual obligor's salary, wages, commissions or

    other compensation for services, or (2) by his household 
    furniture or
other goods used for his personal, family or 
    household purposes shall be
deemed not to be a loan within 
    the meaning of this subsection; and
provided further that a 
    loan which otherwise qualifies as a business
loan within 
    the meaning of this subsection shall not be deemed as not 
    so
qualifying because of the inclusion, with other security 
    consisting of
business assets of any such obligor, of real 
    estate occupied by an
individual obligor solely as his 
    residence.  The term "business" shall
be deemed to mean a 
    commercial, agricultural or industrial enterprise
which is 
    carried on for the purpose of investment or profit, but 
    shall
not be deemed to mean the ownership or maintenance of 
    real estate
occupied by an individual obligor solely as his 
    residence;
        (d) Any loan made in accordance with the provisions of 
    Subchapter I
of Chapter 13 of Title 12 of the United States 
    Code, which is designated
as "Housing Renovation and 
    Modernization";
        (e) Any mortgage loan insured or upon which a 
    commitment to insure
has been issued under the provisions 
    of the National Housing Act,
Chapter 13 of Title 12 of the 
    United States Code;
        (f) Any mortgage loan guaranteed or upon which a 
    commitment to
guaranty has been issued under the provisions 
    of the Veterans' Benefits
Act, Subchapter II of Chapter 37 
    of Title 38 of the United States Code;
        (g) Interest charged by a broker or dealer registered 
    under the
Securities Exchange Act of 1934, as amended, or 
    registered under the
Illinois Securities Law of 1953, 
    approved July 13, 1953, as now or
hereafter amended, on a 
    debit balance in an account for a customer if
such debit 
    balance is payable at will without penalty and is secured 
    by
securities as defined in Uniform Commercial 
    Code-Investment Securities;
        (h) Any loan made by a participating bank as part of 
    any loan
guarantee program which provides for loans and for 
    the refinancing of
such loans to medical students, interns 
    and residents and which are
guaranteed by the American 
    Medical Association Education and Research
Foundation;
        (i) Any loan made, guaranteed, or insured in accordance 
    with the
provisions of the Housing Act of 1949, Subchapter 
    III of Chapter 8A of
Title 42 of the United States Code and 
    the Consolidated Farm and Rural
Development Act, 
    Subchapters I, II, and III of Chapter 50 of Title 7 of
the 
    United States Code;
        (j) Any loan by an employee pension benefit plan, as 
    defined in Section
3 (2) of the Employee Retirement Income 
    Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an 
    individual participating in such plan, provided that such

    loan satisfies the prohibited transaction exemption 
    requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 
    (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) 
    (1)) of the Employee Retirement Income Security Act of 
    1974;
        (k) Written contracts, agreements or bonds for deed 
    providing for
installment purchase of real estate, 
    including a manufactured home as defined in subdivision 
    (53) of Section 9-102 of the Uniform Commercial Code that 
    is real property as defined in the Conveyance and 
    Encumbrance of Manufactured Homes as Real Property and 
    Severance Act;
        (l) Loans secured by a mortgage on real estate, 
    including a manufactured home as defined in subdivision 
    (53) of Section 9-102 of the Uniform Commercial Code that 
    is real property as defined in the Conveyance and 
    Encumbrance of Manufactured Homes as Real Property and 
    Severance Act;
        (m) Loans made by a sole proprietorship, partnership, 
    or corporation to
an employee or to a person who has been 
    offered employment by such sole
proprietorship, 
    partnership, or corporation made for the sole purpose of

    transferring an employee or person who has been offered 
    employment to another
office maintained and operated by the 
    same sole proprietorship, partnership,
or corporation;
        (n) Loans to or for the benefit of students made by an 
    institution of
higher education.
    (2) Except for loans described in subparagraph (a), (c), 
(d),
(e), (f) or (i) of subsection (1) of this Section, and 
except to the
extent permitted by the applicable statute for 
loans made pursuant to
Section 4a or pursuant to the Consumer 
Installment Loan Act:
        (a) Whenever the rate of interest exceeds an annual 
    percentage rate of 8% per annum on any
written contract, 
    agreement or bond for deed providing for the installment

    purchase of residential real estate, or on any loan secured 
    by a mortgage
on residential real estate, it shall be 
    unlawful to provide for a
prepayment penalty or other 
    charge for prepayment.
        (b) No agreement, note or other instrument evidencing a 
    loan
secured by a mortgage on residential real estate, or 
    written contract,
agreement or bond for deed providing for 
    the installment purchase of
residential real estate, may 
    provide for any change in the contract rate of
interest 
    during the term thereof.  However, if the Congress of the 
    United
States or any federal agency authorizes any class of 
    lender to enter, within
limitations, into mortgage 
    contracts or written contracts, agreements or
bonds for 
    deed in which the rate of interest may be changed during 
    the
term of the contract, any person, firm, corporation or 
    other entity
not otherwise prohibited from entering into 
    mortgage contracts or
written contracts, agreements or 
    bonds for deed in Illinois may enter
into mortgage 
    contracts or written contracts, agreements or bonds
for 
    deed in which the rate of interest may be changed during 
    the term
of the contract, within the same limitations.
    (3) In any contract or loan which is secured by a mortgage, 
deed of
trust, or conveyance in the nature of a mortgage, on 
residential real
estate, the interest which is computed, 
calculated, charged, or collected
pursuant to such contract or 
loan, or pursuant to any regulation or rule
promulgated 
pursuant to this Act, may not be computed, calculated, charged

or collected for any period of time occurring after the date on 
which the
total indebtedness, with the exception of late 
payment penalties, is paid
in full.
    (4) For purposes of this Section, a prepayment shall mean 
the payment of the
total indebtedness, with the exception of 
late payment penalties if
incurred or charged, on any date 
before the date specified in the contract
or loan agreement on 
which the total indebtedness shall be paid in full, or
before 
the date on which all payments, if timely made, shall have been

made.  In the event of a prepayment of the indebtedness which is 
made on a
date after the date on which interest on the 
indebtedness was last
computed, calculated, charged, or 
collected but before the next date on
which interest on the 
indebtedness was to be calculated, computed, charged,
or 
collected, the lender may calculate, charge and collect 
interest on the
indebtedness for the period which elapsed 
between the date on which the
prepayment is made and the date 
on which interest on the indebtedness was
last computed, 
calculated, charged or collected at a rate equal to 1/360 of

the annual rate for each day which so elapsed, which rate shall 
be applied
to the indebtedness outstanding as of the date of 
prepayment.  The lender
shall refund to the borrower any 
interest charged or collected which
exceeds that which the 
lender may charge or collect pursuant to the
preceding 
sentence. The provisions of this amendatory Act of 1985 shall

apply only to contracts or loans entered into on or after the 
effective
date of this amendatory Act, but shall not apply to 
contracts or loans
entered into on or after that date that are 
subject to Section 4a of this
Act, the Consumer Installment 
Loan Act, the Payday Loan Reform Act, the Predatory Loan 
Prevention Act, or the Retail Installment Sales
Act, or that 
provide for the refund of precomputed interest on prepayment
in 
the manner provided by such Act.
    (5) For purposes of items (a) and (c) of subsection (1) of 
this Section, a rate or amount of interest may be lawfully 
computed when applying the ratio of the annual interest rate 
over a year based on 360 days.  The provisions of this 
amendatory Act of the 96th General Assembly are declarative of 
existing law. 
    (6)  For purposes of this Section, "real estate" and "real 
property" include a manufactured home, as defined in 
subdivision (53) of Section 9-102 of the Uniform Commercial 
Code that is real property as defined in the Conveyance and 
Encumbrance of Manufactured Homes as Real Property and 
Severance Act. 
(Source: P.A. 98-749, eff. 7-16-14.)
 



    (815 ILCS 205/4a)  (from Ch. 17, par. 6410)



    Sec. 4a. Installment loan rate. 

    (a) On money loaned to or in any manner owing from any 
person, whether
secured or unsecured, except where the money 
loaned or in any manner owing
is directly or indirectly for the 
purchase price of real estate or an
interest therein and is 
secured by a lien on or retention of title to that
real estate 
or interest therein, to an amount not more than $25,000

(excluding interest) which is evidenced by a written instrument 
providing
for the payment thereof in 2 or more periodic 
installments over a period of
not more than 181 months from the 
date of the execution of the written
instrument, it is lawful 
to receive or to contract to receive and collect
either of the 
following:


        (i) Interest interest in an amount equivalent to 
    interest computed at a rate not
exceeding an annual 
    percentage rate of 9% per year on the entire principal 
    amount of the money loaned or
in any manner owing for the 
    period from the date of the making of the loan
or the 
    incurring of the obligation for the amount owing evidenced 
    by the
written instrument until the date of the maturity of 
    the last installment
thereof, and to add that amount to the 
    principal,  except that there shall
be no limit on the rate 
    of interest which may be received or contracted to
be 
    received and collected by (1) any bank that has its main 
    office
or, after May 31, 1997, a branch in this State; or 
    (2) a savings and loan
association chartered under the

    Illinois Savings and Loan Act of 1985, or a savings bank 
    chartered under the
Savings Bank Act,  or a federal savings 
    and loan
association established under the laws of the 
    United States and having its
main office in this State.
        It is lawful to receive or to contract to receive and 
    collect interest and charges as authorized by the Interest 
    Act, the Consumer Installment Loan Act, the Retail 
    Installment Sales Act, the Motor Vehicle Retail 
    Installment Sales Act, the Payday Loan Reform Act, and the 
    Illinois Financial Services Development Act.
        In any case in which interest is received, contracted 
    for, or collected on the basis of paragraph (i) of 
    subsection (a) of Section 4a, the debtor may satisfy in 
    full at any time before maturity the debt evidenced by the 
    written instrument, and in so satisfying must receive a 
    refund credit against the total amount of interest added to 
    the principal computed in the manner provided under 
    paragraph (3) of subsection (f) of Section 15 of the 
    Consumer Installment Loan Act for refunds or credits of 
    applicable interest on payment in full of precomputed loans 
    before the final installment due date. ; or (3) any lender 
    licensed under either the
Consumer Finance Act or the 
    Consumer Installment Loan Act, but in any case in which 
    interest is received,
contracted for or collected on the 
    basis of this clause (i), the debtor may
satisfy in full at 
    any time before maturity the debt evidenced by the
written 
    instrument, and in so satisfying must receive a refund 
    credit
against the total amount of interest added to the 
    principal computed in
the manner provided under Section 
    15(f)(3) of the Consumer Installment
Loan Act for refunds 
    or credits of applicable interest on payment in full
of 
    precomputed loans before the final installment due date; or


        (ii) Interest interest accrued on the principal 
    balance from time to time
remaining unpaid, from the date 
    of making of the loan or the incurring of
the obligation to 
    the date of the payment of the debt in full, at a rate
not 
    exceeding the annual percentage rate equivalent of the rate 
    permitted
to be charged under clause (i) above, but in any 
    such case the debtor may,
provided that the debtor shall 
    have paid in full all interest and other
charges accrued to 
    the date of such prepayment, prepay the principal
balance 
    in full or in part at any time, and interest shall, upon 
    any such
prepayment, cease to accrue on the principal 
    amount which has been prepaid.

    (b) Whenever the principal amount of an installment loan is 
$300 or
more and the repayment period is 6 months or more, a 
minimum charge of
$15 may be collected instead of interest, but 
only one minimum charge
may be collected from the same person 
during one year. When the
principal amount of the loan 
(excluding interest) is $800 or less, the
lender or creditor 
may contract for and receive a service charge not to
exceed $5 
in addition to interest; and that service charge may be

collected when the loan is made, but only one service charge 
may be
contracted for, received, or collected from the same 
person during one year.

    (c) Credit life insurance and credit accident and health 
insurance,
and any charge therefor which is deducted from the 
loan or paid by the
obligor, must comply with Article IX 1/2 of 
the Illinois Insurance
Code and all lawful requirements of the 
Director of Insurance related
thereto. When there are 2 or more 
obligors on the loan contract, only
one charge for credit life 
insurance and credit accident and health
insurance may be made 
and only one of the obligors may be required to be
insured. 
Insurance obtained from, by or through the lender or creditor

must be in effect when the loan is transacted. The purchase of 
that
insurance from an agent, broker or insurer specified by 
the lender or
creditor may not be a condition precedent to the 
granting of the loan.

    (d) The lender or creditor may require the obligor to 
provide
property insurance on security other than household 
goods, furniture and
personal effects. The amount and term of 
the insurance must be
reasonable in relation to the amount and 
term of the loan contract and
the type and value of the 
security, and the insurance must be procured
in accordance with 
the insurance laws of this State. The purchase of
that 
insurance from an agent, broker or insurer specified by the 
lender
or creditor may not be a condition precedent to the 
granting of the loan.

    (e) The lender or creditor may, if the contract provides, 
collect a
delinquency and collection charge on each installment 
in default for a
period of not less than 10 days in an amount 
not exceeding 5% of the
installment on installments in excess 
of $200 or $10 on
installments of
$200 or less, but only one 
delinquency and collection charge may
be
collected on any 
installment regardless of the period during which it
remains in 
default. In addition, the contract may provide for the payment

by the borrower or debtor of attorney's fees incurred by the 
lender or
creditor. The lender or creditor may enforce such a 
provision to the extent
of the reasonable attorney's fees 
incurred by him in the collection or
enforcement of the 
contract or obligation. Whenever interest is contracted
for or 
received under this Section, no amount in addition to the 
charges
authorized by this Section may be directly or 
indirectly charged,
contracted for or received, except lawful 
fees paid to a public officer or
agency to record, file or 
release security, and except costs and
disbursements including 
reasonable attorney's fees, incurred in legal
proceedings to 
collect a loan or to realize on a security after default.
This 
Section does not prohibit the receipt of any commission, 
dividend or
other benefit by the creditor or an employee, 
affiliate or associate of the
creditor from the insurance 
authorized by this Section.

    (f) When interest is contracted for or received under this 
Section,
the lender must disclose the following items to the 
obligor in a written
statement before the loan is consummated:


        (1) the amount and date of the loan contract;


        (2) the amount of loan credit using the term "amount 
    financed";


        (3) every deduction from the amount financed or payment 
    made by the
obligor for insurance and the type of insurance 
    for which each deduction
or payment was made;


        (4) every other deduction from the loan or payment made 
    by the
obligor in connection with obtaining the loan;


        (5) the date on which the finance charge begins to 
    accrue if
different from the date of the transaction;


        (6) the total amount of the loan charge for the 
    scheduled term of
the loan contract with a description of 
    each amount included using the
term "finance charge";


        (7) the finance charge expressed as an annual 
    percentage rate using
the term "annual percentage rate". 
    "Annual percentage rate" means the
nominal annual 
    percentage rate of finance charge determined in accordance

    with the actuarial method of computation with an accuracy 
    at least to the
nearest 1/4 of 1%; or at the option of the 
    lender by application of the
United States rule so that it 
    may be disclosed with an accuracy at least to
the nearest 
    1/4 of 1%;


        (8) the number, amount and due dates or periods of 
    payments
scheduled to repay the loan and the sum of such 
    payments using the term
"total of payments";


        (9) the amount, or method of computing the amount of 
    any default,
delinquency or similar charges payable in the 
    event of late payments;


        (10) the right of the obligor to prepay the loan  and 
    the fact that
such prepayment will reduce the charge for 
    the loan;


        (11) a description or identification of the type of any 
    security
interest held or to be retained or acquired by the 
    lender in connection
with the loan and a clear 
    identification of the property to which the
security 
    interest relates. If after-acquired property will be 
    subject to
the security interest, or if other or future 
    indebtedness is or may be
secured by any such property, 
    this fact shall be clearly set forth in
conjunction with 
    the description or identification of the type of
security 
    interest held, retained or acquired;


        (12) a description of any penalty charge that may be 
    imposed by the
lender for prepayment of the principal of 
    the obligation with an
explanation of the method of 
    computation of such penalty and the
conditions under which 
    it may be imposed;


        (13) unless the contract provides for the accrual and 
    payment of the
finance charge on the balance of the amount 
    financed from time to time
remaining unpaid, an 
    identification of the method of computing any
unearned 
    portion of the finance charge in the event of prepayment of 
    the
loan.

    The terms "finance charge" and "annual percentage rate" 
shall be
printed more conspicuously than other terminology 
required by this Section.

    (g) At the time disclosures are made, the lender shall 
deliver to
the obligor a duplicate of the instrument or 
statement by which the
required disclosures are made and on 
which the lender and obligor are
identified and their addresses 
stated. All of the disclosures shall be
made clearly, 
conspicuously and in meaningful sequence and made together
on 
either:


        (i) the note or other instrument evidencing the 
    obligation on the
same side of the page and above or 
    adjacent to the place for the
obligor's signature; however, 
    where a creditor elects to combine
disclosures with the 
    contract, security agreement, and evidence of a

    transaction in a single document, the disclosures required 
    under this
Section shall be made on the face of the 
    document, on the reverse side,
or on both sides, provided 
    that the amount of the finance charge and the
annual 
    percentage rate shall appear on the face of the document, 
    and, if
the reverse side is used, the printing on both 
    sides of the document
shall be equally clear and 
    conspicuous, both sides shall contain the
statement, 
    "NOTICE: See other side for important information", and the

    place for the customer's signature shall be provided 
    following the full
content of the document; or


        (ii) one side of a separate statement which identifies 
    the
transaction.

    The amount of the finance charge shall be determined as the 
sum of
all charges, payable directly or indirectly by the 
obligor and imposed
directly or indirectly by the lender as an 
incident to or as a condition
to the extension of credit, 
whether paid or payable by the obligor, any
other person on 
behalf of the obligor, to the lender or to a third
party, 
including any of the following types of charges:


        (1) Interest, time price differential, and any amount 
    payable under
a discount or other system of additional 
    charges.


        (2) Service, transaction, activity, or carrying 
    charge.


        (3) Loan fee, points, finder's fee, or similar charge.


        (4) Fee for an appraisal, investigation, or credit 
    report.


        (5) Charges or premiums for credit life, accident, 
    health, or loss
of income insurance, written in connection 
    with any credit transaction
unless (a) the insurance 
    coverage is not required by the lender and this
fact is 
    clearly and conspicuously disclosed in writing to the 
    obligor;
and (b) any obligor desiring such insurance 
    coverage gives specific dated
and separately signed 
    affirmative written indication of such desire after

    receiving written disclosure to him of the cost of such 
    insurance.


        (6) Charges or premiums for insurance, written in 
    connection with
any credit transaction, against loss of or 
    damage to property or against
liability arising out of the 
    ownership or use of property, unless a
clear, conspicuous, 
    and specific statement in writing is furnished by
the 
    lender to the obligor setting forth the cost of the 
    insurance if
obtained from or through the lender and 
    stating that the obligor may
choose the person through 
    which the insurance is to be obtained.


        (7) Premium or other charges for any other guarantee or 
    insurance
protecting the lender against the obligor's 
    default or other credit loss.


        (8) Any charge imposed by a lender upon another lender 
    for
purchasing or accepting an obligation of an obligor if 
    the obligor is
required to pay any part of that charge in 
    cash, as an addition to the
obligation, or as a deduction 
    from the proceeds of the obligation.

    A late payment, delinquency, default, reinstatement or 
other such
charge is not a finance charge if imposed for actual 
unanticipated late
payment, delinquency, default or other 
occurrence.

    (h) Advertising for loans transacted under this Section may 
not be
false, misleading, or deceptive. That advertising, if it 
states a rate
or amount of interest, must state that rate as an 
annual percentage rate
of interest charged. In addition, if 
charges other than for interest are
made in connection with 
those loans, those charges must be separately
stated. No 
advertising may indicate or imply that the rates or charges
for 
loans are in any way "recommended", "approved", "set" or

"established" by the State government or by this Act.

    (i) A lender or creditor who complies with the federal 
Truth in Lending
Act, amendments thereto, and any regulations 
issued or which may be issued
thereunder, shall be deemed to be 
in compliance with the provisions of
subsections (f), (g) and 
(h) of this Section.

    (j)  For purposes of this  Section, "real estate"  and "real 
property"  include a manufactured home as defined in subdivision 
(53) of Section 9-102 of the Uniform Commercial Code that is 
real property as defined in the Conveyance and Encumbrance of 
Manufactured Homes as Real Property and Severance Act. 
(Source: P.A. 98-749, eff. 7-16-14.)

 
    Section 15-90-30. The Motor Vehicle Retail Installment 
Sales Act is amended by changing Section 21 and by adding 
Section 26.1 as follows:
 



    (815 ILCS 375/21)  (from Ch. 121 1/2, par. 581)



    Sec. 21. 
The finance charge on any motor vehicle retail 
installment contract shall be no more than the maximum rate 
permissible under the Predatory Loan Prevention Act. 
Notwithstanding the provisions of any other statute, for
motor 
vehicle retail installment contracts executed after September 
25, 1981,
there shall be no limit
on the finance charges which 
may be charged, collected, and received.

(Source: P.A. 90-437, eff. 1-1-98; 91-357, eff. 7-29-99.)

 
    (815 ILCS 375/26.1 new)
    Sec. 26.1. Rulemaking authority. The Secretary of 
Financial and Professional Regulation and his or her designees 
shall have authority to adopt and enforce reasonable rules, 
directions, orders, decisions, and findings necessary to 
execute and enforce this Act and protect consumers in this 
State. The Secretary's authority to adopt rules shall include, 
but not be limited to: licensing, examination, supervision, and 
enforcement.
 
    Section 15-90-35. The Retail Installment Sales Act is 
amended by changing Sections 27 and 28 and by adding Section 
33.1 as follows:
 



    (815 ILCS 405/27)  (from Ch. 121 1/2, par. 527)



    Sec. 27. 
The finance charge on any retail installment 
contract shall be no more than the maximum rate permissible 
under the Predatory Loan Prevention Act. Notwithstanding the 
provisions of any other statute, retail
installment contracts 
executed after the effective date of this
amendatory Act of 
1981, there shall be no limit on the finance
charges which may 
be charged, collected and received.

(Source: P.A. 90-437, eff. 1-1-98.)

 



    (815 ILCS 405/28)  (from Ch. 121 1/2, par. 528)



    Sec. 28. 
The finance charge on any retail charge agreement 
shall be no more than the maximum rate permissible under the 
Predatory Loan Prevention Act. Notwithstanding the provisions 
of any other statute, a retail
charge
agreement may provide for 
the charging, collection and receipt of finance
charges at any 
specified rate on the unpaid balances incurred after
the 
effective
date of this amendatory Act of 1981.  If a seller or 
holder under a retail
charge agreement entered into on, prior 
to or after the effective date of
this amendatory Act of 1981 
notifies the retail buyer at least 15
days in
advance of any 
lawful increase in the finance charges to be charged under the

agreement, and the retail buyer, after the effective date of 
such notice,
makes a new or additional purchase or incurs 
additional debt pursuant to
the agreement, the increased 
finance charges may be applied only to any
such new or 
additional purchase or additional debt incurred regardless of

any other terms of the agreement.  For purposes of determining 
the balances
to which the increased interest rate applies, all 
payments and other credits
may be deemed to be applied to the 
balance existing prior to the change
in rate until that balance 
is paid in full.

(Source: P.A. 90-437, eff. 1-1-98.)

 
    (815 ILCS 405/33.1 new)
    Sec. 33.1. Rulemaking authority. The Secretary of 
Financial and Professional Regulation and his or her designees 
shall have authority to adopt and enforce reasonable rules, 
directions, orders, decisions, and findings necessary to 
execute and enforce this Act and protect consumers in this 
State. The Secretary's authority to adopt rules shall include, 
but not be limited to: licensing, examination, supervision, and 
enforcement.
 
    Section 15-90-40. The Consumer Fraud and Deceptive 
Business Practices Act is amended  by changing Section 2Z as 
follows:
 



    (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)


    Sec. 2Z. Violations of other Acts. Any person who knowingly 
violates
the Automotive Repair Act, the Automotive Collision 
Repair Act,
the Home Repair and Remodeling Act,
the Dance 
Studio Act,
the Physical Fitness Services Act,
the Hearing 
Instrument Consumer Protection Act,
the Illinois Union Label 
Act, the Installment Sales Contract Act,
the Job Referral and 
Job Listing Services Consumer Protection Act,
the Travel 
Promotion Consumer Protection Act,
the Credit Services 
Organizations Act,
the Automatic Telephone Dialers Act,
the 
Pay-Per-Call Services Consumer Protection Act,
the Telephone 
Solicitations Act,
the Illinois Funeral or Burial Funds Act,

the Cemetery Oversight Act, the Cemetery Care Act,
the Safe and 
Hygienic Bed Act,
the Illinois Pre-Need Cemetery Sales Act,
the 
High Risk Home Loan Act,  the Payday Loan Reform Act, the 
Predatory Loan Prevention Act, the Mortgage Rescue Fraud Act, 
subsection (a) or (b) of Section 3-10 of the
Cigarette Tax Act, 
subsection
(a) or (b) of Section 3-10 of the Cigarette Use Tax 
Act, the Electronic
Mail Act, the Internet Caller 
Identification Act, paragraph (6)
of
subsection (k) of Section 
6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115, 
18d-120, 18d-125, 18d-135,  18d-150, or 18d-153 of the Illinois 
Vehicle Code, Article 3 of the Residential Real Property 
Disclosure Act,  the Automatic Contract Renewal Act, the Reverse 
Mortgage Act, Section 25 of the Youth Mental Health Protection 
Act, the Personal Information Protection Act, or the Student 
Online Personal Protection Act commits an unlawful practice 
within the meaning of this Act.

(Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642, 
eff. 7-28-16; 100-315, eff. 8-24-17; 100-416, eff. 1-1-18; 
100-863, eff. 8-14-18.)
 
Article 20. 

 
    Section  20-5. The Department of Commerce and Economic 
Opportunity Law of the
Civil Administrative Code of Illinois is 
amended by adding Section 605-1055 as follows:
 
    (20 ILCS 605/605-1055 new)
    Sec. 605-1055. Personal care products industry supplier 
disparity study.
    (a) The Department shall compile and publish a disparity 
study by December 31, 2022 that: (1) evaluates whether there 
exists intentional discrimination at the
supplier or 
distribution level for retailers of beauty products, 
cosmetics, hair
care supplies, and personal care products in 
the State of Illinois; and (2) if so,
evaluates the impact of 
such discrimination on the State and includes
recommendations 
for reducing or eliminating any barriers to entry to those

wishing to establish businesses at the retail level involving 
such products.
The Department shall forward a copy of its 
findings and recommendations to
the General Assembly and 
Governor.
    (b) The Department may compile, collect, or otherwise 
gather data necessary for the administration of this Section 
and to carry out the Department's duty relating to the 
recommendation of policy changes. The Department shall compile 
all of the data into a single report, submit the report to the 
Governor and the General Assembly, and publish the report on 
its website.
    (c) This Section is repealed on January 1, 2024.
 
Article 99. 

 
    Section 99-99. Effective date. This Act takes effect upon 
becoming law.