SB3561 104TH GENERAL ASSEMBLY

LRB104 20058 SPS 33509 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3561

Introduced 2/5/2026, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2MMMM new

Creates the Buy-Now-Pay-Later Loan Regulation Act. Provides that it is unlawful for a person to act as a buy-now-pay-later lender unless the person registers with the Division of Financial Institutions of the Department of Financial and Professional Regulation. Sets forth requirements for registration; duties and powers of the Secretary of Financial and Professional Regulation; and administrative procedures. Provides that a buy-now-pay-lender shall provide specified disclosures to recipients. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Buy-Now-Pay-Later Loan Regulation Act.

Section 5. Definitions. As used in this Act:

"Applicant" means a person who has submitted an application for a registration under this Act.

"Buy-now-pay-later loan" means closed-end credit provided to a consumer in connection with the consumer's particular purchase of goods or service. "Buy-now-pay-later loan" does not include credit where the creditor is the seller of the goods or services, unless it is credit pursuant to an agreement whereby, at a consumer's request, the creditor purchases a specific good or service from a seller and resells the specific good or service to the consumer on closed-end credit. "Buy-now-pay-later loan" includes:

(1) a buy-now-pay-later loan payable in one or more installments without any interest or finance charge;

(2) a buy-now-pay-later loan with either interest or finance charges or both; and

(3) any other subset of buy-now-pay-later loans the Secretary may classify as a separate category by rule.

"Buy-now-pay-later lender" means a person who offers buy-now-pay-later loans in this State. For purposes of this definition, "offer" means offering to make a buy-now-pay-later loan by extending credit directly to a consumer or operating a platform, software, or system with which a consumer interacts and the primary purpose of which is to allow third parties to offer buy-now-pay-later loans, or both. For the purposes of this definition, a person shall not be considered a buy-now-pay-later lender on the basis of isolated, incidental, or occasional transactions.

"Closed-end financing" means a closed-end extension of credit, secured or unsecured, recourse or nonrecourse, including equipment financing that does not meet the definition of a lease under Section 2A-103 of the Uniform Commercial Code, that the recipient does not intend to use for personal, family, or household purposes. "Closed-end financing" includes financing with an established principal amount and duration.

"Department" means the Department of Financial and Professional Regulation.

"Division" means the Division of Financial Institutions of the Department of Financial and Professional Regulation. "Finance charge" means the cost of financing as a dollar amount.

"Finance charge" includes any charge payable directly or indirectly by the recipient and imposed directly or indirectly by the provider as an incident to or a condition of the extension of financing. "Finance charge" also includes any charges as determined by the Secretary.

"Person" means an individual, entity, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, or unincorporated organization, including, but not limited to, a sole proprietorship.

"Provider" means a person who extends a specific offer of buy-now-pay-later financing to a recipient. "Provider" includes a person who solicits and presents specific offers of financing on behalf of a third party.

"Recipient" means a person located in this State who applies for buy-now-pay-later loan and is made a specific offer of buy-now-pay-later financing by a provider.

"Secretary" means the Secretary of Financial and Professional Regulation or a person authorized by the Secretary to perform the Secretary's responsibilities under this Act.

"Specific offer" means the specific terms of buy-now-pay-later lending, including price or amount, that is quoted to a recipient based on information obtained from or about the recipient that, if accepted by a recipient, shall be binding on the provider, as applicable, subject to any specific requirements stated in the specific terms.

Section 10. Applicability. This Act does not apply to:

(1) a bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate or charter issued by the United States, this State, or any other state, district, territory, or commonwealth of the United States that is authorized to transact business in this State;

(2) a federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this State;

(3) a savings and loan association, savings bank, or credit union organized under the laws of this State or any other state that is authorized to transact business in this State;

(4) a lender regulated under the federal Farm Credit Act; and

(5) a person acting in the person's capacity as a technology services provider to an entity for use as part of that entity's commercial financing program, provided the person has no interest, or arrangement, or agreement to purchase any interest in the commercial financing extended by the entity in connection with the program.

Section 15. Administration. This Act shall be administered by the Division on behalf of the Secretary.

Section 20. Registration requirement.

(a) It is unlawful for a person to act as a buy-now-pay-later lender unless the person registers with the Division under this Section and maintains a valid registration. An officer or employee of a person required to register under this Act is not required to register if the person for whom the individual is an officer or employee is registered.

(b) Application for registration and renewal of registration shall be made in accordance with this Act and with the requirements of the multistate licensing system, if required by the Secretary. The application shall be in writing, under oath, and on a form obtained from and prescribed by the Secretary.

(c) Registrants shall apply to renew their registration every calendar year. Registrants may submit properly completed renewal application forms and filing fees 60 days before the registration expiration date, and the same shall be received by the Secretary at least 30 days before the registration expiration date. Absent a written extension from the Department, a registration shall expire on December 31 of each year if a registrant fails to timely submit a properly completed renewal application and fees.

(d) Upon receipt of the registration, a registrant is authorized to engage in conduct regulated by this Act. The registration shall remain in full force and effect until it expires, is withdrawn by the registrant, or is revoked or suspended as provided in this Act.

(e) To register under this Section, an applicant shall pay a registration fee of $5,000 to the Department and submit a registration statement containing the information described in subsection (g).

(f) To renew a registration under this Section, a person shall pay the annual fee of $5,000 to the Department and submit a renewal statement containing the information described in subsection (g).

(g) A registration or renewal statement shall be submitted to the Secretary or to a multistate licensing system as approved by the Secretary. The registration or renewal statement shall include:

(1) the name of the person;

(2) the name in which the business will be transacted if different from that required in paragraph (1), which shall be properly registered as an assumed corporate name under the Business Corporation Act of 1983, an assumed limited liability company name under the Limited Liability Company Act, or an assumed business name under the Assumed Business Name Act;

(3) the address of the person's principal business office;

(4) the address of each office in this State at which the person engages in buy-now-pay-later lending transactions;

(5) if the person engages in buy-now-pay-later lending transactions in this State but does not maintain an office in this State, a brief description of the manner in which the business is conducted;

(6) if the person conducts business through an agent located in this State, the name and address in this State of the person's agent properly registered with the Secretary of State;

(7) for a registration application, whether the person, an officer, director, manager, operator, or principal of the person, or an employee of the person engaged in the business of buy-now-pay-later lending has been convicted of a crime involving an act of fraud, dishonesty, breach of trust, or money laundering; if the applicant answers yes to this paragraph, then the applicant shall report the names, titles or relationship to the applicant or registrant, and the nature of the covered crime;

(8) for a renewal application, whether, in the past year, the person, an officer, director, manager, operator, or principal of the person, or an employee of the person engaged in the business of buy-now-pay-later lending has been convicted of a crime involving an act of fraud, dishonesty, breach of trust, or money laundering; if the registrant answers yes to this paragraph, then the registrant shall report the names, titles or relationship to the applicant or registrant, and the nature of the covered crime;

(9) a statement of the person's commitment to abide by the requirements of registering persons under this Act;

(10) a copy of disclosure form to be used for each type of buy-now-pay-later loan that the person offers or intends to offer, and a description of when the disclosure will be provided to the recipient;

(11) information on financing offers presented by registrant in Illinois in the previous calendar year, including the number of buy-now-pay-later loans made and accepted by recipients; and

(12) any other information deemed necessary by the Secretary.

(h) The Secretary may refuse to accept or renew a registration if:

(1) the Secretary determines that the person has not complied with the provisions of this Act, its implementing rules, or other laws that apply to the person; or

(2) the Secretary determines that there is substantial continuity between the person and any violator of this Act, its implementing rules, or other laws that apply to the person or related violator.

(i) The Department shall adopt and amend the rules as may be required for the proper administration and enforcement of this Section, including rules providing for the form, content, and filing of a registration and renewal statement.

Section 25. Additional registration information.

(a) In order to fulfill the purposes of this Act, the Secretary may establish relationships or contracts with a multistate licensing system or other persons to collect and maintain records and process fees related to registrants or other persons subject to this Act.

(b) For the purposes of this Section, and to reduce the points of contact that the Secretary may have to maintain, the Secretary may use a multistate licensing system as a channeling agent for requesting and distributing information to and from any source.

(c) Each registrant shall furnish to the Secretary or multistate licensing system an updated business address within 10 days after any change of business address.

Section 30. Registration expiration. No activity regulated by this Act shall be conducted by a registrant whose registration has expired. The Secretary may, within the Secretary's discretion, reinstate an expired registration upon payment of the renewal fee, payment of a reactivation fee, submission of a completed renewal application, and an affidavit of good cause for late renewal.

Section 35. Functions; powers; duties. The functions, powers, and duties of the Secretary include, but are not limited to, the following:

(1) to issue or refuse to issue any registration or renewal;

(2) to revoke or suspend for cause any registration issued under this Act;

(3) to keep records of all registrations issued under this Act;

(4) to receive, consider, investigate, and act upon complaints made by any person in connection with any registration in this State or unregistered buy-now-pay-later lending activity of any person;

(5) to adopt rules necessary and proper for the administration of this Act, to protect consumers and financing recipients, to promote fair competition, and as otherwise authorized by this Act;

(6) to subpoena documents and witnesses and compel their attendance and production, to administer oaths, and to require the production of any books, papers, or other materials relevant to any inquiry authorized by this Act or its implementing rules;

(7) to issue orders against any person if the Secretary has reasonable cause to believe that an unsafe, unsound, or unlawful practice has occurred, is occurring, or is about to occur; if any person is violating, or is about to violate any law, rule, or written agreement with the Secretary; or for the purpose of administering the provisions of this Act and any rule adopted in accordance with this Act;

(8) to address any inquiries to any registrant, or the owners, officers, or directors thereof, in relation to its activities and conditions, or any other matter connected with its affairs, and any registrant or person so addressed shall promptly reply in writing to those inquiries. The Secretary may also require reports from any registrant at any time the Secretary deems desirable;

(9) to enforce provisions of this Act and its implementing rules;

(10) to levy fees, including, but not limited to, assessments, registration fees, civil penalties, and charges for services performed in administering this Act. The Secretary may establish and modify fees by rule;

(11) to issue refunds to registrants of any overpayment for good cause shown;

(12) to appoint experts and special assistants as needed to effectively and efficiently administer this Act;

(13) to conduct hearings for the purpose of suspensions, denials, or revocations of registrations, fining, or other discipline of registrants or unregistered persons or entities;

(14) to exercise visitorial power over a registrant: (i) if the Secretary has reasonable cause to believe that an unsafe, unsound, or unlawful practice has occurred, is occurring, or is about to occur; or (ii) if a person is violating or is about to violate any law, rule, or written agreement with the Secretary;

(15) to enter into cooperative agreements with state regulatory authorities of other states to provide for examination of corporate offices or branches of those states, participate in joint examinations with other regulators, and to accept reports of the examinations;

(16) to impose civil penalties of up to $500 per day against a registrant for failing to respond to a regulatory request or reporting requirement; and

(17) to enter into agreements in connection with a multistate licensing system.

Section 40. Subpoena power of the Secretary.

(a) The Secretary may issue and serve subpoenas and subpoenas duces tecum to compel the attendance of witnesses and the production of all books, accounts, records, and other documents and materials relevant to an investigation. The Secretary, or the Secretary's duly authorized representative, may administer oaths and affirmations to any person.

(b) If a person does not comply with the Secretary's subpoena or subpoena duces tecum, the Secretary may, through the Attorney General, petition the circuit court of the county in which the subpoenaed person resides or has its principal place of business for an order requiring the subpoenaed person to testify and to comply with the subpoena duces tecum. The court may grant injunctive relief restraining the person from engaging in activity regulated by this Act. The court may grant other relief, including, but not limited to, the restraint, by injunction or appointment of a receiver, of any transfer, pledge, assignment, or other disposition of the person's assets, concealment, destruction, or other disposition of books, accounts, records, or other documents and materials, as the court deems appropriate, until the person has fully complied with the subpoena or subpoena duces tecum and the Secretary has completed an investigation.

(c) If it appears to the Secretary that the compliance with a subpoena or subpoena duces tecum issued or caused to be issued by the Secretary under this Section is essential to an investigation, the Secretary, in addition to the other remedies provided for in this Act, may, through the Attorney General, apply for relief to the circuit court of the county in which the subpoenaed person resides or has its principal place of business. The court shall thereupon direct the issuance of an order against the subpoenaed person requiring sufficient bond conditioned on compliance with the subpoena or subpoena duces tecum. The court shall cause to be endorsed on the order a suitable amount of bond or payment pursuant to which the person named be freed, having a due regard to the nature of the case.

(d) The Secretary may, through the Attorney General, seek a writ of attachment or an equivalent order from the circuit court having jurisdiction over the person who has refused to obey a subpoena, who has refused to give testimony, or who has refused to produce the matters described in the subpoena duces tecum.

Section 45. Consumer protections.

(a) A buy-now-pay-lender subject to this Act shall provide the following disclosures to a recipient, in a clear and conspicuous manner, as prescribed by the Secretary, if any, at the time of extending a specific offer of a buy-now-pay-later loan:

(1) the terms of buy-now-pay-later loan, including cost, such as interest and fees, repayment schedule, the means by which a consumer may dispute billing practices, whether the transaction will or will not be reported to a credit reporting agency, and other material conditions, in a clear and conspicuous manner;

(2) policies and procedures for underwriting buy-now-pay-later loans, and factors considered in the underwriting process;

(3) the annual percentage rate, using only the words annual percentage rate or the abbreviation "APR", expressed as a yearly rate, inclusive of any fees and finance charges that cannot be avoided by a recipient;

(4) the total repayment amount, which is the disbursement amount plus the finance charge;

(5) the term of the financing;

(6) the payment amounts;

(A) for payment amounts that are fixed, the payment amounts and frequency, such as daily, weekly, monthly, and, if the term is longer than one month, the average monthly payment amount; or

(B) for payment amounts that are variable, a full payment schedule or a description of the method used to calculate the amounts and frequency of payments, and, if the term is longer than one month, the estimated average monthly payment amount;

(7) a description of all other potential fees and charges that can be avoided by the recipient, including, but not limited to, late payment fees and returned payment fees;

(8) if the recipient elects to pay off or refinance the loan before full repayment, the provider shall disclose:

(A) whether the recipient would be required to pay any finance charges other than interest accrued since their last payment; if so, disclosure of the percentage of any unpaid portion of the finance charge and maximum dollar amount the recipient could be required to pay; and

(B) whether the recipient would be required to pay any additional fees not already included in the finance charge;

(9) a description of collateral requirements or security interests, if any; and

(10) the finance charge.

(b) A buy-now-pay-later lender shall, before providing a buy-now-pay-later loan to a consumer, perform reasonable risk-based underwriting.

(c) A buy-now-pay-later lender shall maintain policies and procedures for maintaining accurate data that may be reported to credit reporting agencies.

(d) A buy-now-pay-later lender shall resolve disputes in a manner that is fair and transparent to consumers. A buy-now-pay-later lender shall create a readily available and prominently disclosed method for consumers to bring a dispute to the buy-now-pay-later lender. A buy-now-pay-later lender shall maintain policies and procedures for handling consumer disputes. A buy-now-pay-later lender shall apply to buy-now-pay-later loans the dispute rights and unauthorized charges requirements that apply to credit cards under the Truth in Lending Act, regardless of whether the law applies to buy-now-pay-later loans or whether the buy-now-pay-later lender offers a credit card within the scope of the law.

(e) A buy-now-pay-later lender shall provide refunds or credits for goods or services purchased in connection with a buy-now-pay-later loan, if the consumer requests and is entitled to a refund, in a manner that is fair, transparent, and not unduly burdensome to consumers. A buy-now-pay-later lender shall maintain policies and procedures to provide the refunds or credits. The policies and procedures shall be fair, transparent, and not unduly burdensome to the consumer. A buy-now-pay-later lender shall disclose to consumers, in a clear and conspicuous manner, the process by which they can obtain refunds or credits for goods or services they have purchased in connection with a buy-now-pay-later loan

(f) The registration of a buy-now-pay-later lender shall be kept conspicuously posted on the mobile application, website, or other consumer interface of the buy-now-pay-later lender, as well as listed in the terms and conditions of any buy-now-pay-later loan offered or entered into by the registration.

Section 50. Notification.

(a) A registrant shall advise the Secretary in writing of any changes to the information submitted on its most recent registration or renewal of registration within 30 days after the change.

(b) A registrant shall advise the Secretary in writing that the registrant has been disciplined, including denial of licensure, by a licensing authority of this State or another state within 10 days after entry of the discipline.

Section 55. Disciplinary actions.

(a) The Secretary may enter an order imposing one or more of the following penalties:

(1) revocation of registration;

(2) suspension of a registration subject to reinstatement upon satisfying all reasonable conditions the Secretary may specify;

(3) placement of the registrant or applicant on probation for a period of time and subject to all reasonable conditions as the Secretary may specify;

(4) imposition of civil monetary penalties not to exceed $10,000 for each separate offense, but civil penalties may not exceed $50,000 for all violations arising from the use of the same single transaction, including for financing offers that are not consummated;

(5) restitution, refunds, or any other relief necessary to protect recipients; and

(6) denial of a registration.

(b) Grounds for penalties include:

(1) if a registrant has violated or aided another to violate any provision of this Act, any rule adopted by the Secretary, or any other law, rule, or regulation of this State, any other state, or the United States;

(2) if a person has violated or aided another to violate any provision of this Act or any rule adopted by the Secretary under this Act;

(3) if a fact or condition exists that, if it had existed at the time of the original application for registration, would have warranted the Secretary in refusing issue the original registration;

(4) that a registrant that is not an individual has acted or failed to act in a way that would be cause for suspending or revoking a registration to an individual;

(5) that a person engaged in unsafe, unsound, unfair, deceptive, or abusive business practices related to the activity covered by this Act;

(6) that a registrant or an officer, director, manager, operator, or principal of the registrant, or an employee of the registrant engaged in the business of buy-now-pay-later financing has been adjudicated guilty of a crime against the law of this State, any other state, or of the United States involving moral turpitude, abusive, deceptive, fraudulent, or dishonest dealing;

(7) that a final judgment has been entered against registrant or an officer, director, manager, operator, or principal of the registrant, or an employee of the registrant engaged in the business of commercial financing in a civil action upon grounds of abusive conduct, conversion, fraud, misrepresentation, or deceit;

(8) that an applicant made a material misstatement in the applicant's application for registration or any other communication to the Secretary;

(9) that a person has demonstrated, by course of conduct, negligence or incompetence in performing any act for which it is required to hold a registration under this Act;

(10) that a person has failed to advise the Secretary in writing of any changes to the information submitted on the person's most recent registration or renewal of registration within 30 days after the change;

(11) that a registrant had a license, registration, or the equivalent, to practice any profession, occupation, other industry or activity requiring licensure revoked, suspended, disciplined, or otherwise acted against, including the denial of licensure by a licensing authority of this State or another state, territory, or country for fraud, dishonest dealing, misrepresentations, incompetence, conversion, any act of moral turpitude or any other grounds that would constitute grounds for discipline under this Act;

(12) that a person registered under this Act failed to timely notify the Secretary that the person has been disciplined, including denial of licensure, by a licensing authority of this State or another state;

(13) that a person engaged in activities regulated by this Act without a current, active registration unless specifically exempted by this Act;

(14) that a person failed to timely pay any fee, charge, or civil penalty assessed under this Act; and

(15) that a person refused, obstructed, evaded, or unreasonably delayed an investigation or information request authorized under this Act, or refused, obstructed, evaded, or unreasonably delayed compliance with the Secretary's subpoena or subpoena duces tecum.

(c) No registration shall be suspended or revoked, except as provided in this Section, or any person be assessed a civil penalty without notice of the registrant's right to a hearing.

(d) The Secretary may suspend any registration for a period not exceeding 180 days pending investigation for good cause shown that an emergency exists.

(e) No revocation, suspension, or surrender of any registration shall impair or affect the obligation of any preexisting lawful contract between the registrant and any person. The Secretary's approval of a registrant's application to surrender its registration shall not affect the registrant's civil or criminal liability for acts committed prior to surrender. Surrender of a registration does not entitle the registrant to a return of any part of the registration fee.

(f) Every registration issued under this Act shall remain in force and effect until the registration expires, is surrendered, is revoked, or is suspended in accordance with the provisions of this Act. The Secretary shall have authority to reinstate a suspended registration or to issue a new registration to a registrant whose registration has been revoked or surrendered if no fact or condition then exists which would have warranted the Secretary in refusing originally to issue that registration under this Act.

(g) If the Secretary imposes discipline authorized by this Section, the Secretary shall execute a written order to that effect. The Secretary shall serve a copy of the order upon the person. The Secretary shall serve the person with notice of the order, including a statement of the reasons for the order personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. Mail.

(h) An order assessing a civil penalty, an order revoking or suspending a registration, or an order denying renewal of a registration shall take effect upon service of the order unless the registrant serves the Department with a written request for a hearing in the manner required by the order within 10 days after the date of service of the order. If a person requests a hearing, the order shall be stayed from its date of service until the Department enters a final administrative order. Hearings shall be conducted as follows:

(1) If the registrant requests a hearing, then the Secretary shall schedule a hearing within 90 days after the request for a hearing unless otherwise agreed to by the parties.

(2) The hearing shall be held at the time and place designated by the Secretary. The Secretary and any administrative law judge designated by the Secretary shall have the power to administer oaths and affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of books, papers, correspondence, and other records or information that they consider relevant or material to the inquiry.

(i) The costs of administrative hearings conducted under this Section shall be paid by the registrant or other person subject to the hearing.

(j) Registrants and other persons subject to this Act shall be subject to the disciplinary actions specified in this Act for any violations conducted by any officer, director, shareholder, joint venture, partner, owner, including, but not limited to, ultimate equitable owner.

Section 60. Investigation of complaints. The Secretary may investigate any complaints and inquiries made concerning this Act and any registrants or persons the Secretary believes may be required to register under this Act. Each registrant or person the Secretary believes may be required to register under this Act shall open the registrant's or person's books, records, documents, and offices wherever situated to the Secretary as needed to facilitate the investigations.

Section 65. Additional investigation authority. In addition to any authority allowed under this Act, the Secretary may conduct investigations as follows:

(1) For purposes of initial registration, registration renewal, registration suspension, registration conditioning, registration probation, registration revocation or termination, or general or specific inquiry or investigation to determine compliance with this Act, the Secretary may access, receive, and use any books, accounts, records, files, documents, information, or evidence, including, but not limited to, the following:

(A) criminal, civil, registration, and administrative history information, including non-conviction data;

(B) personal history and experience information, including independent credit reports obtained from a consumer reporting agency; and

(C) any other documents, information, or evidence the Secretary deems relevant to the inquiry or investigation, regardless of the location, possession, control, or custody of the documents, information, or evidence.

(2) For the purposes of investigating violations or complaints arising under this Act, the Secretary may review or investigate any registrant or person subject to this Act as necessary in order to carry out the purposes of this Act. The Secretary may direct, subpoena, or order the attendance of, and examine under oath all persons and order any person to produce records, files, and any other documents the Secretary deems relevant to an inquiry.

(3) Each person subject to this Act shall make available to the Secretary upon request the books and records relating to the operations of the person subject to this Act. The Secretary shall have access to those books and records and may interview the owners, officers, principals, employees, independent contractors, agents, vendors, and customers of any registrant or person subject to this Act.

(4) In making any investigation authorized by this Act, the Secretary may control access to any documents and records of the registrant or person under investigation. The Secretary may take possession of the documents and records or otherwise take constructive control of the documents. During the period of control, no person shall remove or alter any of the documents or records, except pursuant to a court order or with the consent of the Secretary. Unless the Secretary has reasonable grounds to believe the documents or records of the registrant have been or are at risk of being altered or destroyed for purposes of concealing a violation of this Act, the registrant or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.

(5) In order to carry out the purposes of this Section, the Secretary may:

(A) retain attorneys, accountants, or other professionals and specialists as auditors or investigators to conduct or assist in the conduct of investigations;

(B) enter into agreements or relationships with other government officials or regulatory associations to protect consumers or financing recipients, improve efficiencies, and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this Section;

(C) use, hire, contract, or employ publicly or privately available analytical systems, methods, or software or investigate the registrant or person subject to this Act;

(D) accept and rely on examination or investigation reports made by other government officials, within or outside this State; or

(E) accept audit reports made by an independent certified public accountant for the person subject to this Act and may incorporate the audit report in the report of the investigation or other writing of the Secretary.

(6) The authority of this Section shall remain in effect, whether the person subject to this Act acts or claims to act under any licensing or registration law of this State or claims to act without the authority.

(7) No registrant or person subject to investigation or under this Section may knowingly withhold, alter, abstract, remove, mutilate, destroy, hide, or conceal any books, records, computer records, or other information or take actions designed to delay or complicate review of records.

Section 70. Confidentiality. To promote more effective regulation, protect consumers and financing recipients, and reduce regulatory burden through inter-regulatory sharing of confidential supervisory information:

(1) The privacy or confidentiality of any information or material provided to a multistate licensing system, including all privileges arising under federal or State court rules, shall continue to apply to the information or material after the information or material has been disclosed to the multistate licensing system. Information and material may be shared with a multistate licensing system, federal and State regulatory officials with relevant oversight authority, and law enforcement without the loss of privilege or the loss of confidentiality protections.

(2) The Secretary may enter into agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, and other associations representing governmental agencies.

(3) Information or material that is privileged or confidential under this Act as determined by the Secretary is not subject to the following:

(A) disclosure under any State law governing the disclosure to the public of information held by an officer or an agency of the State; or

(B) subpoena, discovery, or admission into evidence, in any private civil action or administrative process except as authorized by the Secretary.

(4) Any other law relating to the disclosure of confidential supervisory information that is inconsistent with this Act shall be superseded by the requirements of this Section to the extent the other law provides less confidentiality or a weaker privilege for information that is privileged or confidential under this Act.

(5) Confidential or privileged information received from a multistate licensing system, another licensing body, federal and State regulatory officials, or law enforcement shall be protected to the same extent as the Secretary's confidential and privileged information is protected under this Act. The Secretary may also protect from disclosure confidential or privileged information that would be exempt from disclosure to the extent it is held directly by the multistate licensing system, another licensing body, federal and State regulatory officials, or law enforcement.

Section 75. Appeal and review.

(a) The Secretary may, in accordance with the Illinois Administrative Procedure Act, adopt rules to provide for review within the Department of the Secretary's decisions affecting the rights of persons under this Act. The review shall provide for, at a minimum:

(1) appointment of a hearing officer;

(2) appropriate procedural rules, specific deadlines for filings, and standards of evidence and of proof; and

(3) provisions for apportioning costs among parties to the appeal.

(b) All final agency determinations of appeals to decisions of the Secretary may be reviewed in accordance with and under the provisions of the Administrative Review Law. Appeals from all final orders and judgments entered by a court in review of any final administrative decision of the Secretary or of any final agency review of a decision of the Secretary may be taken as in other civil cases.

Section 80. Registration fees.

(a) The fee for initial registration is $5,000. The fee is nonrefundable.

(b) The fee for annual application renewal is $5,000. The fee is nonrefundable.

(c) The Department shall impose a contingent fee sufficient to cover its operating expenses in administering this Act not otherwise covered by all other revenue collected under this Act. Each registrant shall pay to the Division its pro rata share, based on number or volume of transactions or revenue, of the cost for administration of this Act that exceeds other fees listed in this Section, as estimated by the Division, for the current year and any deficit actually incurred in the administration of this Act in prior years.

Section 85. Cease and desist order.

(a) The Secretary may issue a cease and desist order to any registrant or person doing business without the required registration when, in the opinion of the Secretary, the registrant or other person has violated, is violating, or is about to violate any provision of this Act or any rule adopted by the Department under this Act or any requirement imposed in writing by the Department as a condition of granting any authorization permitted by this Act. The cease and desist order authorized by this Section may be issued prior to a hearing.

(b) The Secretary shall serve notice of the cease and desist order, either personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. Mail. The Secretary's notice shall include a statement of the reasons for the action.

(c) Within 10 days after service of the cease and desist order, the person subject to the cease and desist order may request a hearing in writing. The Secretary shall schedule a preliminary hearing within 60 days after the request for a hearing unless the parties agree to a later date.

(d) If it is determined that the Secretary had the authority to issue the cease and desist order, the Secretary may issue the orders as may be reasonably necessary to correct, eliminate, deter, or remedy the conduct described in the order and resulting harms.

(e) The powers vested in the Secretary by this Section are additional to all other powers and remedies vested in the Secretary by any law. Nothing in this Section shall be construed as requiring that the Secretary shall employ the power conferred in this Section instead of or as a condition precedent to the exercise of any other power or remedy vested in the Secretary.

Section 90. Injunctions. The Secretary may maintain an action in the name of the people of this State and may apply for an injunction in the circuit court to enjoin a person from violating this Act or its implementing rules through the Attorney General.

Section 95. Exemptions. This Act does not apply to, and does not place any additional requirements or obligations upon, any of the following:

(1) any person or entity that is not a provider;

(2) a commercial financing transaction secured by real property;

(3) a lease as defined in Section 2A-103 of the Uniform Commercial Code, not including finance leases as defined in paragraph (g) of subsection (1) of Section 2A-103 of the Uniform Commercial Code; or

(4) a company primarily in the business of manufacturing equipment, or any subsidiary or affiliate of the company, when offering a commercial financing transaction for which the majority of the proceeds are used to finance nonfinancial products manufactured by the company, or any subsidiary or affiliate of the company, or the maintenance of or other services on the products;

(5) any person or provider who makes no more than 5 commercial financing transactions in this State in a 12-month period;

(6) a single, discrete commercial financing transaction in an amount over $500,000; or

(7) a commercial financing transaction in which the recipient is a vehicle dealer subject to Section 5-101 or 5-102 of the Illinois Vehicle Code, an affiliate of a dealer, a rental vehicle company as defined in Section 10 of the Renter's Financial Responsibility and Protection Act, or an affiliate of a company under a commercial financing agreement or commercial open-end credit plan of at least $50,000, including any commercial loan made under a commercial financing transaction.

Section 100. Complaint disclosure. All buy-now-pay-later lending offers shall include a clear and conspicuous notice on how to file a complaint with the Department.

Section 105. Rules. The Secretary may adopt rules to implement and enforce this Act, including, but not limited to:

(1) rules defining the terms used in this Act and as may be necessary and appropriate to interpret and implement the provisions of this Act;

(2) rules for the enforcement and administration of this Act;

(3) rules for the protection of consumers and recipients in this State; and

(4) rules defining improper or fraudulent business practices in connection with commercial financing.

Section 110. Enforcement. A violation of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by the Consumer Fraud and Deceptive Business Practices Act shall be available to the Attorney General for the enforcement of this Act.

Section 115. Limitation on liability. No provision of this Act imposes any liability on a provider as a result of the actual annual percentage rate charged by a provider differing from the estimated annual percentage rate disclosed in conformity with any regulation, order, or written interpretive opinion of the Secretary or any opinion of the Attorney General, whether or not the regulation, order, or written interpretive opinion is later amended, rescinded, or repealed or determined by judicial or other authority to be invalid for any reason.

Section 120. Relation to other laws. Nothing in this Act shall be construed to limit the obligations of a buy-now-pay-later lender to comply with any other applicable laws. Any protections, rights, and remedies provided in this Act to a consumer with respect to an agreement with a buy-now-pay-later lender shall be intended to supplement and not be exclusive of any protections, rights, and remedies otherwise available under any other law.

Section 900. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2MMMM as follows:

(815 ILCS 505/2MMMM new)

Sec. 2MMMM. Violations of the Buy-Now-Pay-Later Loan Regulation Act. A person who violates the Buy-Now-Pay-Later Loan Regulation Act commits an unlawful practice within the meaning of this Act.

Section 997. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.