97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4122

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 670/17.3

    Amends the Consumer Installment Loan Act. Prohibits a licensee from refinancing a small consumer loan during the first 70 days (now, 75 days) of the loan term.


LRB097 18125 PJG 63349 b

 

 

A BILL FOR

 

HB4122LRB097 18125 PJG 63349 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Consumer Installment Loan Act is amended by
5changing Section 17.3 as follows:
 
6    (205 ILCS 670/17.3)
7    Sec. 17.3. Small consumer loans; terms.
8    (a) A small consumer loan shall be fully amortizing and be
9repayable in its entirety in a minimum of 6 substantially equal
10and consecutive payments with a period of not less than 180
11days to maturity.
12    (b) No licensee, or employee or affiliate thereof, may
13extend to or have open with a consumer more than one small
14consumer loan at any time; provided, however, that loans
15acquired by a licensee from another licensee are not included
16within this prohibition.
17    (c) A licensee is prohibited from refinancing a small
18consumer loan during the first 70 75 days of the loan term. For
19purposes of this Act, a refinancing occurs when an existing
20small consumer loan is satisfied and replaced by a new small
21consumer loan made to the same consumer by the same licensee or
22any employee or affiliate of the licensee.
23    (d) Except for the deferment charge permitted by item (5)

 

 

HB4122- 2 -LRB097 18125 PJG 63349 b

1of subsection (f) of Section 15, a licensee is prohibited from
2collecting any fee, charge, or remuneration of any sort for
3renewing, amending, or extending a small consumer loan beyond
4its original term.
5    (e) Before entering into a small consumer loan agreement, a
6licensee must provide to the consumer a pamphlet, prepared by
7the Director, describing general information about consumer
8credit and about the consumer's rights and responsibilities in
9a small consumer loan transaction. Each small consumer loan
10agreement executed by a licensee shall include a statement,
11located just above the signature line for the consumer, and
12shall provide as follows: "In addition to agreeing to the terms
13of this agreement, I acknowledge, by my signature below,
14receipt from (name of lender) a pamphlet regarding small
15consumer loans.".
16    (f) Each small consumer loan agreement entered into between
17a licensee and a consumer shall include a notification, in such
18loan agreement, of a toll-free number furnished by the
19Department of Financial and Professional Regulation, Division
20of Financial Institutions that the consumer may contact for the
21purpose of receiving information from the Division regarding
22credit or assistance with credit problems.
23(Source: P.A. 96-936, eff. 3-21-11.)