Rep. Curtis J. Tarver, II
Filed: 5/7/2024
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1 | AMENDMENT TO SENATE BILL 3314 | ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 3314 by replacing | ||||||
3 | everything after the enacting clause with the following: | ||||||
4 | "Section 5. The Consumer Legal Funding Act is amended by | ||||||
5 | changing Sections 5, 25, 30, 55, 65, 135, 165, and 170 as | ||||||
6 | follows: | ||||||
7 | (815 ILCS 121/5) | ||||||
8 | Sec. 5. Definitions. | ||||||
9 | "Advertise" means publishing or disseminating any written, | ||||||
10 | electronic, or printed communication, or any communication by | ||||||
11 | means of recorded telephone messages or transmitted on radio, | ||||||
12 | television, the Internet, or similar communications media, | ||||||
13 | including film strips, motion pictures, and videos, published, | ||||||
14 | disseminated, circulated, or placed before the public, | ||||||
15 | directly or indirectly, for the purpose of inducing a consumer | ||||||
16 | to enter into a consumer legal funding. |
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1 | "Charges" means the fees, as set forth in Section 25, to be | ||||||
2 | paid to the consumer legal funding company by or on behalf of | ||||||
3 | the consumer above the funded amount provided by or on behalf | ||||||
4 | of the company to an Illinois consumer pursuant to this Act. | ||||||
5 | "Consumer" means a natural person who has a pending legal | ||||||
6 | claim and who resides or is domiciled in Illinois. | ||||||
7 | "Consumer legal funding" or "funding" means a nonrecourse | ||||||
8 | transaction in which a company purchases and a consumer | ||||||
9 | transfers to the company an unvested, contingent future | ||||||
10 | interest in the potential net proceeds of a settlement or | ||||||
11 | judgment obtained from the consumer's legal claim; and in | ||||||
12 | which, if no proceeds are obtained from the consumer's legal | ||||||
13 | claim, the consumer is not required to repay the company the | ||||||
14 | consumer legal funding amount or charges. | ||||||
15 | "Consumer legal funding company" or "company" means a | ||||||
16 | person or entity that enters into, purchases, or services a | ||||||
17 | consumer legal funding transaction with an Illinois consumer. | ||||||
18 | "Consumer legal funding company" does not include: | ||||||
19 | (1) an immediate family member of the consumer; | ||||||
20 | (2) a bank, lender, financing entity, or other special | ||||||
21 | purpose entity: | ||||||
22 | (A) that provides financing to a consumer legal | ||||||
23 | funding company; or | ||||||
24 | (B) to which a consumer legal funding company | ||||||
25 | grants a security interest or transfers any rights or | ||||||
26 | interest in a consumer legal funding; or |
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1 | (3) an attorney or accountant who provides services to | ||||||
2 | a consumer. | ||||||
3 | "Department" means the Department of Financial and | ||||||
4 | Professional Regulation. | ||||||
5 | "Funded amount" means the amount of moneys provided to, or | ||||||
6 | on behalf of, the consumer in the consumer legal funding. | ||||||
7 | "Funded amount" does not include charges except for charges | ||||||
8 | that are deducted from the funded amount. | ||||||
9 | "Funding date" means the date on which the funded amount | ||||||
10 | is transferred to the consumer by the consumer legal funding | ||||||
11 | company either by personal delivery; via wire, ACH, or other | ||||||
12 | electronic means; or mailed by insured, certified, or | ||||||
13 | registered United States mail. | ||||||
14 | "Immediate family member" means a parent; sibling; child | ||||||
15 | by blood, adoption, or marriage; spouse; grandparent; or | ||||||
16 | grandchild. | ||||||
17 | "Legal claim" means a bona fide civil claim or cause of | ||||||
18 | action. | ||||||
19 | "Resolution amount" means the funded amount plus the | ||||||
20 | agreed-upon charges that are delivered to the consumer legal | ||||||
21 | funding company on the resolution date. | ||||||
22 | "Resolution date" means the date the resolution amount is | ||||||
23 | delivered to the consumer legal funding company. | ||||||
24 | "Secretary" means the Secretary of Financial and | ||||||
25 | Professional Regulation or the Secretary's designee. | ||||||
26 | (Source: P.A. 102-987, eff. 5-27-22.) |
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1 | (815 ILCS 121/25) | ||||||
2 | Sec. 25. Fees. | ||||||
3 | (a) The fee charged by a consumer legal funding company to | ||||||
4 | the consumer shall be calculated as not more than 18% of the | ||||||
5 | funded amount, assessed on the outset of every 6 months. | ||||||
6 | (b) In addition, a consumer legal funding company may | ||||||
7 | charge a document preparation fee not to exceed $75, which may | ||||||
8 | be deducted from the funded amount. This fee is to be used to | ||||||
9 | defray the ordinary cost of opening, administering, and | ||||||
10 | terminating a consumer legal funding. | ||||||
11 | (c) A consumer legal funding company shall not collect any | ||||||
12 | additional fees unless otherwise specified in this Act. | ||||||
13 | (d) No charges may accrue on a consumer legal funding for | ||||||
14 | more than 42 months after the funding date of the consumer | ||||||
15 | legal funding. No consumer legal funding may be refinanced | ||||||
16 | except as authorized by rule. Notwithstanding the foregoing, a | ||||||
17 | consumer legal funding company may assess charges on any | ||||||
18 | additional amounts provided after the funding date for 42 | ||||||
19 | months after the additional funding date. | ||||||
20 | (e) Notwithstanding any other law, a consumer legal | ||||||
21 | funding may be refinanced as authorized by rule. The | ||||||
22 | Department shall publish first notice of a rule concerning the | ||||||
23 | refinancing of consumer legal fundings in the Illinois | ||||||
24 | Register in accordance with the Illinois Administrative | ||||||
25 | Procedure Act within 120 days after the effective date of this |
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1 | amendatory Act of the 103rd General Assembly. | ||||||
2 | (Source: P.A. 102-987, eff. 5-27-22.) | ||||||
3 | (815 ILCS 121/30) | ||||||
4 | Sec. 30. Disclosures. All consumer legal funding contracts | ||||||
5 | shall contain the disclosures specified in this Section, which | ||||||
6 | shall constitute material terms of the contract. Unless | ||||||
7 | otherwise specified, the disclosures shall be typed in at | ||||||
8 | least 12-point bold-type font and be placed clearly and | ||||||
9 | conspicuously within the contract as follows: | ||||||
10 | (1) On the front page under appropriate headings, | ||||||
11 | language specifying: | ||||||
12 | (A) the funded amount to be paid to the consumer or | ||||||
13 | on the consumer's behalf by the consumer legal funding | ||||||
14 | company; | ||||||
15 | (B) an itemization of charges; | ||||||
16 | (C) the maximum total amount to be paid by the | ||||||
17 | consumer to the company, including the funded amount | ||||||
18 | and all fees; and | ||||||
19 | (D) a payment schedule to include the resolution | ||||||
20 | amount, listing dates, and the amount due at the end of | ||||||
21 | each 6-month period from the funding date, until the | ||||||
22 | date the maximum amount is due to the company by the | ||||||
23 | consumer to satisfy the amount due pursuant to the | ||||||
24 | contract. | ||||||
25 | (2) Pursuant to the provisions set forth in paragraph |
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1 | (2) of subsection (a) of Section 10, within the body of the | ||||||
2 | contract: "CONSUMER'S RIGHT TO CANCELLATION: You may | ||||||
3 | cancel this contract without penalty or further obligation | ||||||
4 | within 14 business days after the funding date if you | ||||||
5 | either: | ||||||
6 | (A) return to the consumer legal funding company | ||||||
7 | the full amount of the funds disbursed to you or on | ||||||
8 | your behalf by delivering the company's uncashed check | ||||||
9 | to the company's office in person; or | ||||||
10 | (B) place in the mail, by mail service materially | ||||||
11 | equivalent to United States Postal Service certified | ||||||
12 | mail, addressed to the company at the address | ||||||
13 | specified in the contract, a notice of cancellation | ||||||
14 | and include in such mailing a return of the full amount | ||||||
15 | of funds disbursed to you or on your behalf in the form | ||||||
16 | of the company's uncashed check or a registered or | ||||||
17 | certified check or money order." | ||||||
18 | (3) Within the body of the contract: "The consumer | ||||||
19 | legal funding company shall have no role in deciding | ||||||
20 | whether, when, and how much the legal claim is settled | ||||||
21 | for, however, the consumer and consumer's attorney must | ||||||
22 | notify the company of the outcome of the legal claim by | ||||||
23 | settlement or adjudication before the resolution date. The | ||||||
24 | company may seek updated information about the status of | ||||||
25 | the legal claim but in no event shall the company | ||||||
26 | interfere with the independent professional judgment of |
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1 | the attorney in the handling of the legal claim or any | ||||||
2 | settlement thereof." | ||||||
3 | (4) Within the body of the contract, in all capital | ||||||
4 | letters in at least 12-point bold-type font contained | ||||||
5 | within a box: "THE FUNDED AMOUNT AND AGREED-UPON CHARGES | ||||||
6 | SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, | ||||||
7 | AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE | ||||||
8 | AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE | ||||||
9 | [INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY] | ||||||
10 | ANYTHING IF THERE ARE NO REMAINING PROCEEDS AVAILABLE FROM | ||||||
11 | YOUR LEGAL CLAIM, UNLESS YOU OR YOUR ATTORNEY HAVE | ||||||
12 | COMMITTED FRAUD AGAINST THE CONSUMER LEGAL FUNDING | ||||||
13 | COMPANY. NOTWITHSTANDING ANYTHING TO THE CONTRARY, YOU MAY | ||||||
14 | REFINANCE THE FUNDED AMOUNT AND AGREED UPON CHARGES AS | ||||||
15 | AUTHORIZED BY RULE. " | ||||||
16 | (5) Located immediately above the place on the | ||||||
17 | contract where the consumer's signature is required, in | ||||||
18 | 12-point font: "Do not sign this contract before you read | ||||||
19 | it completely or if it contains any blank spaces. You are | ||||||
20 | entitled to a completely filled-in copy of the contract. | ||||||
21 | Before you sign this contract, you should obtain the | ||||||
22 | advice of an attorney. Depending on the circumstances, you | ||||||
23 | may want to consult a tax, public or private benefits | ||||||
24 | planning, or financial professional. You acknowledge that | ||||||
25 | your attorney in the legal claim has provided no tax, | ||||||
26 | public or private benefit planning, or financial advice |
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1 | regarding this transaction." | ||||||
2 | (6) The consumer legal funding company shall provide | ||||||
3 | the consumer with information on accessing a financial | ||||||
4 | coaching program no later than the funding date. | ||||||
5 | (Source: P.A. 102-987, eff. 5-27-22.) | ||||||
6 | (815 ILCS 121/55) | ||||||
7 | Sec. 55. Consumer legal funding license scope. | ||||||
8 | (a) It shall be unlawful for any person or entity to | ||||||
9 | operate as a consumer legal funding company provider in this | ||||||
10 | State except as authorized by this Act and without first | ||||||
11 | having obtained a license in accordance with this Act. No | ||||||
12 | person or entity may engage in any device, subterfuge, or | ||||||
13 | pretense to evade the requirements of this Act. However, any | ||||||
14 | company that has a license in good standing under the Consumer | ||||||
15 | Installment Loan Act on the effective date of this Act shall be | ||||||
16 | entitled to make consumer legal fundings under the terms of | ||||||
17 | this Act upon the effective date of this Act if that company | ||||||
18 | files an application for a consumer legal funding license | ||||||
19 | within 60 days after the Department issues forms for the | ||||||
20 | filing of that application and until the Department approves | ||||||
21 | or denies the application for a funding license. Any consumer | ||||||
22 | legal funding contract made by any person or entity in | ||||||
23 | violation of this subsection shall be null and void and the | ||||||
24 | person or entity who entered into the consumer legal funding | ||||||
25 | transaction shall have no right to collect, attempt to |
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1 | collect, receive, or retain any principal, interest, or | ||||||
2 | charges related to the consumer legal funding transaction. | ||||||
3 | (b) The provisions of this Act do not apply to a bank, | ||||||
4 | savings bank, savings association, or credit union organized | ||||||
5 | under the laws of this State, any other state, or under the | ||||||
6 | laws of the United States. | ||||||
7 | (c) Any consumer legal funding made by a person not | ||||||
8 | licensed under this Act, including a person holding an | ||||||
9 | inactive license, and not exempt under this Act shall be null | ||||||
10 | and void, and no person or entity shall have any right to | ||||||
11 | collect, attempt to collect, receive, or retain any principal, | ||||||
12 | fee, interest, or charges related to the funding. | ||||||
13 | (Source: P.A. 102-987, eff. 5-27-22.) | ||||||
14 | (815 ILCS 121/65) | ||||||
15 | Sec. 65. License application process; investigation. | ||||||
16 | (a) The Secretary may issue a license upon completion of | ||||||
17 | all of the following: | ||||||
18 | (1) the filing of an application for a license with | ||||||
19 | the Secretary or the Nationwide Multistate Licensing | ||||||
20 | System and Registry as required by the Secretary; | ||||||
21 | (2) the filing with the Secretary of a listing of | ||||||
22 | judgments entered against and bankruptcy petitions by the | ||||||
23 | license applicant for the preceding 10 years; | ||||||
24 | (3) the filing of an audited balance sheet, including | ||||||
25 | all footnotes prepared by a certified public accountant in |
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1 | accordance with generally accepted accounting principles | ||||||
2 | and generally accepted auditing standards; notwithstanding | ||||||
3 | the requirements of this subsection, an applicant that is | ||||||
4 | a subsidiary may submit audited consolidated financial | ||||||
5 | statements of its parent, intermediary parent, or ultimate | ||||||
6 | parent if the consolidated statements are supported by | ||||||
7 | consolidating statements that include the applicant's | ||||||
8 | financial statement; if the consolidating statements are | ||||||
9 | unaudited, the applicant's chief financial officer shall | ||||||
10 | attest to the applicant's financial statements disclosed | ||||||
11 | in the consolidating statements; and | ||||||
12 | (4) an investigation of the averments required by | ||||||
13 | Section 80, which investigation must allow the Secretary | ||||||
14 | to issue positive findings stating that the financial | ||||||
15 | responsibility, experience, character, and general fitness | ||||||
16 | of the license applicant; of the members thereof if the | ||||||
17 | license applicant is a partnership or association; of the | ||||||
18 | officers and directors thereof if the license applicant is | ||||||
19 | a corporation; and of the managers and members that retain | ||||||
20 | any authority or responsibility under the operating | ||||||
21 | agreement if the license applicant is a limited liability | ||||||
22 | company are such as to command the confidence of the | ||||||
23 | community and to warrant belief that the business will be | ||||||
24 | operated honestly, fairly, and efficiently within the | ||||||
25 | purpose of this Act; if the Secretary does not so find, he | ||||||
26 | or she shall not issue the license and shall notify the |
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1 | license applicant of the denial. The Secretary may impose | ||||||
2 | conditions on a license if the Secretary determines that | ||||||
3 | those conditions are necessary or appropriate. These | ||||||
4 | conditions shall be imposed in writing and shall continue | ||||||
5 | in effect for a period prescribed by the Secretary. | ||||||
6 | (b) All licenses shall be issued to the license applicant. | ||||||
7 | Upon receipt of the license, a consumer legal funding licensee | ||||||
8 | shall be authorized to engage in the business regulated by | ||||||
9 | this Act. The license shall remain in full force and effect | ||||||
10 | until it expires, it is surrendered by the licensee, or it is | ||||||
11 | revoked or suspended as provided by this Act. | ||||||
12 | (c) The Secretary may, for good cause shown, waive, in | ||||||
13 | part, any of the requirements of this Section. | ||||||
14 | (Source: P.A. 102-987, eff. 5-27-22.) | ||||||
15 | (815 ILCS 121/135) | ||||||
16 | Sec. 135. Suspension; revocation of licenses; fines. | ||||||
17 | (a) Upon written notice to a licensee, the Secretary may | ||||||
18 | suspend or revoke any license issued pursuant to this Act if, | ||||||
19 | in the notice, he or she makes a finding of one or more of the | ||||||
20 | following: | ||||||
21 | (1) that through separate acts or an act or a course of | ||||||
22 | conduct, the licensee has violated any provisions of this | ||||||
23 | Act, any rule adopted by the Department, or any other law, | ||||||
24 | rule, or regulation of this State or the United States; | ||||||
25 | (2) that any fact or condition exists that, if it had |
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1 | existed at the time of the original application for the | ||||||
2 | license, would have warranted the Secretary in refusing | ||||||
3 | originally to issue the license; or | ||||||
4 | (3) that if a licensee is other than an individual, | ||||||
5 | any ultimate equitable owner, officer, director, or member | ||||||
6 | of the licensed partnership, association, corporation, or | ||||||
7 | other entity has acted or failed to act in a way that would | ||||||
8 | be cause for suspending or revoking a license to that | ||||||
9 | party as an individual. | ||||||
10 | (b) No license shall be suspended or revoked, except as | ||||||
11 | provided in this Section, nor shall any licensee be fined | ||||||
12 | without notice of his or her right to a hearing as provided in | ||||||
13 | subsection (n). | ||||||
14 | (c) The Secretary, on good cause shown that an emergency | ||||||
15 | exists, may suspend any license for a period not exceeding 180 | ||||||
16 | days, pending investigation. | ||||||
17 | (d) The provisions of subsection (d) of Section 95 shall | ||||||
18 | not affect a licensee's civil or criminal liability for acts | ||||||
19 | committed before surrender of a license. | ||||||
20 | (e) No revocation, suspension, or surrender of any license | ||||||
21 | shall impair or affect the obligation of any preexisting | ||||||
22 | lawful contract between the licensee and any person. | ||||||
23 | (f) Every license issued under this Act shall remain in | ||||||
24 | force and effect until the license expires without renewal, is | ||||||
25 | surrendered, is revoked, or is suspended in accordance with | ||||||
26 | the provisions of this Act, but the Secretary shall have |
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1 | authority to reinstate a suspended license or to issue a new | ||||||
2 | license to a licensee whose license has been revoked if no fact | ||||||
3 | or condition then exists which would have warranted the | ||||||
4 | Secretary in refusing originally to issue that license under | ||||||
5 | this Act. | ||||||
6 | (g) Whenever the Secretary revokes or suspends a license | ||||||
7 | issued pursuant to this Act or fines a licensee under this Act, | ||||||
8 | he or she shall execute a written order to that effect. The | ||||||
9 | Secretary shall serve a copy of the order upon the licensee. | ||||||
10 | Any such order may be reviewed in the manner provided by | ||||||
11 | Section 170. | ||||||
12 | (h) If the Secretary finds any person in violation of the | ||||||
13 | grounds set forth in subsection (p), he or she may enter an | ||||||
14 | order imposing one or more of the following penalties: | ||||||
15 | (1) revocation of license; | ||||||
16 | (2) suspension of a license subject to reinstatement | ||||||
17 | upon satisfying all reasonable conditions the Secretary | ||||||
18 | may specify; | ||||||
19 | (3) placement of the licensee or applicant on | ||||||
20 | probation for a period of time and subject to all | ||||||
21 | reasonable conditions as the Secretary may specify; | ||||||
22 | (4) issuance of a reprimand; | ||||||
23 | (5) imposition of a fine not to exceed $25,000 for | ||||||
24 | each count of separate offense; except that a fine may be | ||||||
25 | imposed that shall not exceed $75,000 for each separate | ||||||
26 | count of offense in violation of paragraph (2) or (14) of |
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1 | subsection (p) (i) ; | ||||||
2 | (6) denial of a license; or | ||||||
3 | (7) restitution for the benefit of consumers. | ||||||
4 | (i) (Blank). The Secretary may, after 10 days' notice by | ||||||
5 | certified mail to the licensee at the address set forth in the | ||||||
6 | license stating the contemplated action and in general the | ||||||
7 | grounds therefor, fine the licensee an amount not exceeding | ||||||
8 | $10,000 per violation or revoke or suspend any license issued | ||||||
9 | under this Act if he or she finds that: | ||||||
10 | (1) the licensee has failed to comply with any | ||||||
11 | provision of this Act, any rule adopted pursuant to this | ||||||
12 | Act, or any order, decision, finding, or direction of the | ||||||
13 | Secretary lawfully made pursuant to the authority of this | ||||||
14 | Act; or | ||||||
15 | (2) any fact or condition exists which, if it had | ||||||
16 | existed at the time of the original application for the | ||||||
17 | license, clearly would have warranted the Secretary in | ||||||
18 | refusing to issue the license. | ||||||
19 | (j) The Secretary may fine, suspend, or revoke only the | ||||||
20 | particular license with respect to which grounds for the fine, | ||||||
21 | revocation, or suspension occur or exist, but if the Secretary | ||||||
22 | finds that grounds for revocation are of general application | ||||||
23 | to all offices or to more than one office of the licensee, the | ||||||
24 | Secretary shall fine, suspend, or revoke every license to | ||||||
25 | which the grounds apply. | ||||||
26 | (k) No revocation, suspension, or surrender of any license |
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1 | shall impair or affect the obligation of any preexisting | ||||||
2 | lawful contract between the licensee and any obligor. | ||||||
3 | (l) The Secretary may issue a new license to a licensee | ||||||
4 | whose license has been revoked when facts or conditions which | ||||||
5 | clearly would have warranted the Secretary in refusing | ||||||
6 | originally to issue the license no longer exist. | ||||||
7 | (m) In every case in which a license is suspended or | ||||||
8 | revoked or an application for a license or renewal of a license | ||||||
9 | is denied, the Secretary shall serve the licensee with notice | ||||||
10 | of his or her action, including a statement of the reasons for | ||||||
11 | his or her actions, either personally or by certified mail. | ||||||
12 | Service by certified mail shall be deemed completed when the | ||||||
13 | notice is deposited in the U.S. mail. | ||||||
14 | (n) An order assessing a fine, an order revoking or | ||||||
15 | suspending a license, or an order denying renewal of a license | ||||||
16 | shall take effect upon service of the order unless the | ||||||
17 | licensee requests a hearing, in writing, within 10 days after | ||||||
18 | the date of service. If a hearing is requested, the order shall | ||||||
19 | be stayed until a final administrative order is entered. | ||||||
20 | (1) If the licensee requests a hearing, the Secretary | ||||||
21 | shall schedule a hearing within 30 days after the request | ||||||
22 | for a hearing unless otherwise agreed to by the parties. | ||||||
23 | (2) The hearing shall be held at the time and place | ||||||
24 | designated by the Secretary. The Secretary and any | ||||||
25 | administrative law judge designated by him or her shall | ||||||
26 | have the power to administer oaths and affirmations, |
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1 | subpoena witnesses and compel their attendance, take | ||||||
2 | evidence, and require the production of books, papers, | ||||||
3 | correspondence, and other records or information that he | ||||||
4 | or she considers relevant or material to the inquiry. | ||||||
5 | (o) The costs of administrative hearings conducted | ||||||
6 | pursuant to this Section shall be paid by the licensee. | ||||||
7 | (p) The following acts shall constitute grounds for which | ||||||
8 | the disciplinary actions specified in subsection (h) may be | ||||||
9 | taken: | ||||||
10 | (1) being convicted or found guilty, regardless of | ||||||
11 | pendency of an appeal, of a crime in any jurisdiction that | ||||||
12 | involves fraud, dishonest dealing, or any other act of | ||||||
13 | moral turpitude; | ||||||
14 | (2) fraud, misrepresentation, deceit, or negligence in | ||||||
15 | any relation to any consumer legal funding; | ||||||
16 | (3) a material or intentional misstatement of fact on | ||||||
17 | an initial or renewal application; | ||||||
18 | (3.5) any fact or condition exists that, if it had | ||||||
19 | existed at the time of the original application for the | ||||||
20 | license, would have warranted the Secretary in refusing to | ||||||
21 | originally issue the license; | ||||||
22 | (4) insolvency or filing under any provision of the | ||||||
23 | United States Bankruptcy Code as a debtor; | ||||||
24 | (5) failure to account or deliver to any person any | ||||||
25 | property, such as any money, fund, deposit, check, draft, | ||||||
26 | or other document or thing of value, that has come into his |
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1 | or her hands and that is not his or her property or that he | ||||||
2 | or she is not in law or equity entitled to retain, under | ||||||
3 | the circumstances and at the time which has been agreed | ||||||
4 | upon or is required by law, or, in the absence of a fixed | ||||||
5 | time, upon demand of the person entitled to such | ||||||
6 | accounting and delivery; | ||||||
7 | (6) failure to disburse funds in accordance with | ||||||
8 | agreements; | ||||||
9 | (7) having a license, or the equivalent, to practice | ||||||
10 | any profession or occupation revoked, suspended, or | ||||||
11 | otherwise acted against, including the denial of licensure | ||||||
12 | by a licensing authority of this State or another state, | ||||||
13 | territory, or country, for fraud, dishonest dealing, or | ||||||
14 | any other act of moral turpitude; | ||||||
15 | (8) failure to comply with an order of the Secretary | ||||||
16 | or rule adopted under the provisions of this Act; | ||||||
17 | (9) engaging in activities regulated by this Act | ||||||
18 | without a current, active license unless specifically | ||||||
19 | exempted by this Act; | ||||||
20 | (10) failure to pay in a timely manner any fee, | ||||||
21 | charge, or fine under this Act; | ||||||
22 | (11) failure to maintain, preserve, and keep available | ||||||
23 | for examination all books, accounts, or other documents | ||||||
24 | required by the provisions of this Act and the rules of the | ||||||
25 | Department; | ||||||
26 | (12) refusing, obstructing, evading, or unreasonably |
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1 | delaying an investigation, information request, or | ||||||
2 | examination authorized under this Act, or refusing, | ||||||
3 | obstructing, evading, or unreasonably delaying compliance | ||||||
4 | with the Secretary's subpoena or subpoena duces tecum; | ||||||
5 | (13) failure to comply with or a violation of any | ||||||
6 | provision of this Act; and | ||||||
7 | (14) any unfair, deceptive, or abusive business | ||||||
8 | practice. | ||||||
9 | (q) A licensee shall be subject to the disciplinary | ||||||
10 | actions specified in this Act for violations of subsection (i) | ||||||
11 | by any officer, director, shareholder, joint venture, partner, | ||||||
12 | ultimate equitable owner, or employee of the licensee. | ||||||
13 | (r) A licensee shall be subject to suspension or | ||||||
14 | revocation for unauthorized employee actions only if there is | ||||||
15 | a pattern of repeated violations by employees, the licensee | ||||||
16 | has knowledge of the violations, or there is substantial harm | ||||||
17 | to a consumer. A licensee may be subject to fine for employee | ||||||
18 | actions, whether authorized or unauthorized, whether there is | ||||||
19 | a pattern of repeated violations or no pattern of repeated | ||||||
20 | violations. | ||||||
21 | (s) Any licensee may submit an application to surrender a | ||||||
22 | license, but, upon the Secretary approving the surrender, it | ||||||
23 | shall not affect the licensee's civil or criminal liability | ||||||
24 | for acts committed before surrender or entitle the licensee to | ||||||
25 | a return of any part of the license fee. | ||||||
26 | (Source: P.A. 102-987, eff. 5-27-22.) |
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1 | (815 ILCS 121/165) | ||||||
2 | Sec. 165. Rules of the Department. | ||||||
3 | (a) In addition to such powers as may be prescribed by this | ||||||
4 | Act, the Department is hereby authorized and empowered to | ||||||
5 | adopt rules consistent with the purposes of this Act, | ||||||
6 | including, but not limited to: | ||||||
7 | (1) rules in connection with the activities of | ||||||
8 | licensees or unlicensed consumer legal funding companies | ||||||
9 | as may be necessary and appropriate for the protection of | ||||||
10 | consumers in this State; | ||||||
11 | (2) rules as may be necessary and appropriate to | ||||||
12 | define improper or fraudulent business practices in | ||||||
13 | connection with the activities of licensees in servicing | ||||||
14 | consumer legal fundings; | ||||||
15 | (3) rules that define the terms used in this Act and as | ||||||
16 | may be necessary and appropriate to interpret and | ||||||
17 | implement the provisions of this Act; and | ||||||
18 | (4) rules as may be necessary for the enforcement and | ||||||
19 | administration of this Act ; and . | ||||||
20 | (5) rules to permit the refinancing of consumer legal | ||||||
21 | fundings. | ||||||
22 | (b) The Secretary is hereby authorized and empowered to | ||||||
23 | make specific rulings, demands, and findings that he or she | ||||||
24 | deems necessary for the proper conduct of the consumer legal | ||||||
25 | funding company industry. |
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1 | (Source: P.A. 102-987, eff. 5-27-22.) | ||||||
2 | (815 ILCS 121/170) | ||||||
3 | Sec. 170. Appeal and review. | ||||||
4 | (a) The Department may, in accordance with the Illinois | ||||||
5 | Administrative Procedure Act, adopt rules to provide for | ||||||
6 | review within the Department of the Secretary's decisions | ||||||
7 | affecting the rights of persons or entities under this Act. | ||||||
8 | The review shall provide for, at a minimum: | ||||||
9 | (1) appointment of a hearing officer other than a | ||||||
10 | regular employee of the Division of Financial Institutions | ||||||
11 | Department ; | ||||||
12 | (2) appropriate procedural rules, specific deadlines | ||||||
13 | for filings, and standards of evidence and of proof; and | ||||||
14 | (3) provision for apportioning costs among parties to | ||||||
15 | the appeal. | ||||||
16 | (b) All final agency determinations of appeals to | ||||||
17 | decisions of the Secretary may be reviewed in accordance with | ||||||
18 | and under the provisions of the Administrative Review Law. | ||||||
19 | Appeals from all final orders and judgments entered by a court | ||||||
20 | in review of any final administrative decision of the | ||||||
21 | Secretary or of any final agency review of a decision of the | ||||||
22 | Secretary may be taken as in other civil cases. | ||||||
23 | (Source: P.A. 102-987, eff. 5-27-22.)". |