| |||||||
| |||||||
| |||||||
1 | AN ACT concerning business.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Payday Loan Reform Act is amended by | ||||||
5 | changing Sections 2-10 and 2-15 as follows: | ||||||
6 | (815 ILCS 122/2-10)
| ||||||
7 | Sec. 2-10. Permitted fees. | ||||||
8 | (a) If there are insufficient funds to pay a check, | ||||||
9 | Automatic Clearing House (ACH) debit, or any other item | ||||||
10 | described in the definition of payday loan under Section 1-10 | ||||||
11 | on the day of presentment and only after the lender has | ||||||
12 | incurred an expense, a lender may charge a fee not to exceed | ||||||
13 | $25. Only one such fee may be collected by the lender with | ||||||
14 | respect to a particular check, ACH debit, or item even if it | ||||||
15 | has been deposited and returned more than once. A lender shall | ||||||
16 | present the check, ACH debit, or other item described in the | ||||||
17 | definition of payday loan under Section 1-10 for payment not | ||||||
18 | more than twice. A fee charged under this subsection (a) is a | ||||||
19 | lender's exclusive charge for late payment. | ||||||
20 | (a-5) A lender may charge a borrower a fee not to exceed $1 | ||||||
21 | for the
verification required under Section 2-15 of this Act in | ||||||
22 | connection with a payday loan and, until July 1, 2020, in | ||||||
23 | connection with an installment payday loan. Beginning July 1, |
| |||||||
| |||||||
1 | 2020, a lender may charge a borrower a fee not to exceed $3 for | ||||||
2 | the verification required under Section 2-15 of this Act in | ||||||
3 | connection with an installment payday loan. In no event may a | ||||||
4 | fee be greater than the amount charged by the certified | ||||||
5 | consumer reporting service . Only one such fee may
be collected | ||||||
6 | by the lender with respect to a particular loan. | ||||||
7 | (b) Except for the finance charges described in Section 2-5 | ||||||
8 | and as specifically allowed by this Section, a lender may not | ||||||
9 | impose on a consumer any additional finance charges, interest, | ||||||
10 | fees, or charges of any sort for any purpose.
| ||||||
11 | (Source: P.A. 96-936, eff. 3-21-11 .) | ||||||
12 | (815 ILCS 122/2-15)
| ||||||
13 | Sec. 2-15. Verification. | ||||||
14 | (a) Before entering into a loan agreement with a consumer, | ||||||
15 | a lender must use a commercially reasonable method of | ||||||
16 | verification to verify that the proposed loan agreement is | ||||||
17 | permissible under this Act. | ||||||
18 | (b) Within 6 months after the effective date of this Act, | ||||||
19 | the Department shall certify that one or more consumer | ||||||
20 | reporting service databases are commercially reasonable | ||||||
21 | methods of verification. Upon certifying that a consumer | ||||||
22 | reporting service database is a commercially reasonable method | ||||||
23 | of verification, the Department shall:
| ||||||
24 | (1) provide reasonable notice to all licensees | ||||||
25 | identifying the commercially reasonable methods of |
| |||||||
| |||||||
1 | verification that are available; and
| ||||||
2 | (2) immediately upon certification, require each | ||||||
3 | licensee to use a commercially reasonable method of | ||||||
4 | verification as a means of complying with subsection (a) of | ||||||
5 | this Section. | ||||||
6 | (c) Except as otherwise provided in this Section, all | ||||||
7 | personally identifiable information regarding any consumer | ||||||
8 | obtained by way of the certified database and maintained by the | ||||||
9 | Department is strictly confidential and shall be exempt from | ||||||
10 | disclosure under Section 7(1)(b)(i) of the Freedom of | ||||||
11 | Information Act. | ||||||
12 | (d) Notwithstanding any other provision of law to the | ||||||
13 | contrary, a consumer seeking a payday loan may make a direct | ||||||
14 | inquiry to the consumer reporting service to request a more | ||||||
15 | detailed explanation of the basis for a consumer reporting | ||||||
16 | service's determination that the consumer is ineligible for a | ||||||
17 | new payday loan. | ||||||
18 | (e) In certifying a commercially reasonable method of | ||||||
19 | verification, the Department shall ensure that the certified | ||||||
20 | database: | ||||||
21 | (1) provides real-time access through an Internet | ||||||
22 | connection or, if real-time access through an Internet | ||||||
23 | connection becomes unavailable to lenders due to a consumer | ||||||
24 | reporting service's technical problems incurred by the | ||||||
25 | consumer reporting service, through alternative | ||||||
26 | verification mechanisms, including, but not limited to, |
| |||||||
| |||||||
1 | verification by telephone; | ||||||
2 | (2) is accessible to the Department and to licensees in | ||||||
3 | order to ensure
compliance with this Act and in order to | ||||||
4 | provide any other information that the Department deems | ||||||
5 | necessary; | ||||||
6 | (3) requires licensees to input whatever information | ||||||
7 | is required by the Department; | ||||||
8 | (4) maintains a real-time copy of the required | ||||||
9 | reporting information that is available to the Department | ||||||
10 | at all times and is the property of the Department; | ||||||
11 | (5) provides licensees only with a statement that a | ||||||
12 | consumer is eligible or ineligible for a new payday loan | ||||||
13 | and a description of the reason for the determination; and | ||||||
14 | (6) contains safeguards to ensure that all information | ||||||
15 | contained in the database regarding consumers is kept | ||||||
16 | strictly confidential.
| ||||||
17 | (f) The licensee shall update the certified database by | ||||||
18 | inputting all information required under item (3) of subsection | ||||||
19 | (e): | ||||||
20 | (1) on the same day that a payday loan is made; | ||||||
21 | (2) on the same day that a consumer elects a repayment | ||||||
22 | plan, as provided in Section 2-40; and | ||||||
23 | (3) on the same day that a consumer's payday loan is | ||||||
24 | paid in full,
including the refinancing of an installment | ||||||
25 | payday loan as permitted under subsection (c) of
Section | ||||||
26 | 2-5. |
| |||||||
| |||||||
1 | (g) A licensee may rely on the information contained in the | ||||||
2 | certified database as accurate and is not subject to any | ||||||
3 | administrative penalty or liability as a result of relying on | ||||||
4 | inaccurate information contained in the database. | ||||||
5 | (h) The certified consumer reporting service shall | ||||||
6 | indemnify the licensee against all claims and actions arising | ||||||
7 | from illegal or willful or wanton acts on the part of the | ||||||
8 | certified consumer reporting service.
| ||||||
9 | (i) The certified consumer reporting service may charge a | ||||||
10 | verification
fee not to exceed $1 upon a loan being made or | ||||||
11 | entered into in the
database. Beginning July 1, 2020, the | ||||||
12 | certified consumer reporting service may charge a verification | ||||||
13 | fee not to exceed $3 for an installment payday loan being made | ||||||
14 | or entered into the data base. The certified consumer reporting | ||||||
15 | service shall not charge any
additional fees or charges. | ||||||
16 | (Source: P.A. 96-936, eff. 3-21-11 .)
|