HB1323 EngrossedLRB098 07738 MGM 37816 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 Payday Loan Reform Act is amended by
5changing Section 4-10 as follows:
 
6    (815 ILCS 122/4-10)
7    Sec. 4-10. Enforcement and remedies.
8    (a) The remedies provided in this Act are cumulative and
9apply to persons or entities subject to this Act.
10    (b) Any material violation of this Act, including the
11commission of an act prohibited under Section 4-5, constitutes
12a violation of the Consumer Fraud and Deceptive Business
13Practices Act.
14    (c) If any provision of the written agreement described in
15subsection (b) of Section 2-20 violates this Act, then that
16provision is unenforceable against the consumer.
17    (d) Subject to the Illinois Administrative Procedure Act,
18the Secretary may hold hearings, make findings of fact,
19conclusions of law, issue cease and desist orders, have the
20power to issue fines of up to $10,000 per violation, refer the
21matter to the appropriate law enforcement agency for
22prosecution under this Act, and suspend or revoke a license
23granted under this Act. All proceedings shall be open to the

 

 

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1public.
2    (e) The Secretary may issue a cease and desist order to any
3licensee or other person doing business without the required
4license, when in the opinion of the Secretary the licensee or
5other person is violating or is about to violate any provision
6of this Act or any rule or requirement imposed in writing by
7the Department as a condition of granting any authorization
8permitted by this Act. The cease and desist order permitted by
9this subsection (e) may be issued prior to a hearing.
10    The Secretary shall serve notice of his or her action,
11including, but not limited to, a statement of the reasons for
12the action, either personally or by certified mail, return
13receipt requested. Service by certified mail shall be deemed
14completed when the notice is deposited in the U.S. Mail.
15    Within 10 days of service of the cease and desist order,
16the licensee or other person may request a hearing in writing.
17The Secretary shall schedule a hearing within 30 days after the
18request for a hearing unless otherwise agreed to by the
19parties.
20    If it is determined that the Secretary had the authority to
21issue the cease and desist order, he or she may issue such
22orders as may be reasonably necessary to correct, eliminate, or
23remedy the conduct.
24    The powers vested in the Secretary by this subsection (e)
25are additional to any and all other powers and remedies vested
26in the Secretary by law, and nothing in this subsection (e)

 

 

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1shall be construed as requiring that the Secretary shall employ
2the power conferred in this subsection instead of or as a
3condition precedent to the exercise of any other power or
4remedy vested in the Secretary.
5    (f) The Secretary may, after 10 days notice by registered
6mail to the licensee at the address set forth in the license
7stating the contemplated action and in general the grounds
8therefore, fine the licensee an amount not exceeding $10,000
9per violation, or revoke or suspend any license issued
10hereunder if he or she finds that:
11        (1) the licensee has failed to comply with any
12    provision of this Act or any order, decision, finding,
13    rule, regulation, or direction of the Secretary lawfully
14    made pursuant to the authority of this 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    The Secretary may fine, suspend, or revoke only the
20particular license with respect to which grounds for the fine,
21revocation, or suspension occur or exist, but if the Secretary
22finds that grounds for revocation are of general application to
23all offices or to more than one office of the licensee, the
24Secretary shall fine, suspend, or revoke every license to which
25the grounds apply.
26    The Department shall establish by rule and publish a

 

 

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1schedule of fines that are reasonably tailored to ensure
2compliance with the provisions of this Act and which include
3remedial measures intended to improve licensee compliance.
4Such rules shall set forth the standards and procedures to be
5used in imposing any such fines and remedies.
6    No revocation, suspension, or surrender of any license
7shall impair or affect the obligation of any pre-existing
8lawful contract between the licensee and any obligor.
9    The Secretary may issue a new license to a licensee whose
10license has been revoked when facts or conditions which clearly
11would have warranted the Secretary in refusing originally to
12issue the license no longer exist.
13    In every case in which a license is suspended or revoked or
14an application for a license or renewal of a license is denied,
15the Secretary shall serve the licensee with notice of his or
16her action, including a statement of the reasons for his or her
17actions, either personally, or by certified mail, return
18receipt requested. Service by certified mail shall be deemed
19completed when the notice is deposited in the U.S. Mail.
20    An order assessing a fine, an order revoking or suspending
21a license, or an order denying renewal of a license shall take
22effect upon service of the order unless the licensee requests a
23hearing, in writing, within 10 days after the date of service.
24In the event a hearing is requested, the order shall be stayed
25until a final administrative order is entered.
26    If the licensee requests a hearing, the Secretary shall

 

 

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1schedule a hearing within 30 days after the request for a
2hearing unless otherwise agreed to by the parties.
3    The hearing shall be held at the time and place designated
4by the Secretary. The Secretary and any administrative law
5judge designated by him or her shall have the power to
6administer oaths and affirmations, subpoena witnesses and
7compel their attendance, take evidence, and require the
8production of books, papers, correspondence, and other records
9or information that he or she considers relevant or material to
10the inquiry.
11    (g) The costs of administrative hearings conducted
12pursuant to this Section shall be paid by the licensee.
13    (h) Notwithstanding any other provision of this Section, if
14a lender who does not have a license issued under this Act
15makes a loan pursuant to this Act to an Illinois consumer, then
16the loan shall be null and void and the lender who made the
17loan shall have no right to collect, receive, or retain any
18principal, interest, or charges related to the loan.
19(Source: P.A. 97-1039, eff. 1-1-13.)
 
20    Section 10. The Consumer Installment Loan Act is amended by
21changing Section 9 as follows:
 
22    (205 ILCS 670/9)  (from Ch. 17, par. 5409)
23    Sec. 9. Fines, Suspension or Revocation of license.
24    (a) The Director may, after 10 days notice by registered

 

 

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1mail to the licensee at the address set forth in the license,
2stating the contemplated action and in general the grounds
3therefor, fine such licensee an amount not exceeding $10,000
4per violation, or revoke or suspend any license issued
5hereunder if he or she finds that:
6        (1) The licensee has failed to comply with any
7    provision of this Act or any order, decision, finding,
8    rule, regulation or direction of the Director lawfully made
9    pursuant to the authority of this Act; or
10        (2) Any fact or condition exists which, if it had
11    existed at the time of the original application for the
12    license, clearly would have warranted the Director in
13    refusing to issue the license.
14    (b) The Director may fine, suspend, or revoke only the
15particular license with respect to which grounds for the fine,
16revocation or suspension occur or exist, but if the Director
17shall find that grounds for revocation are of general
18application to all offices or to more than one office of the
19licensee, the Director shall fine, suspend, or revoke every
20license to which such grounds apply.
21    (c) (Blank).
22    (d) No revocation, suspension, or surrender of any license
23shall impair or affect the obligation of any pre-existing
24lawful contract between the licensee and any obligor.
25    (e) The Director may issue a new license to a licensee
26whose license has been revoked when facts or conditions which

 

 

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1clearly would have warranted the Director in refusing
2originally to issue the license no longer exist.
3    (f) (Blank).
4    (g) In every case in which a license is suspended or
5revoked or an application for a license or renewal of a license
6is denied, the Director shall serve the licensee with notice of
7his or her action, including a statement of the reasons for his
8or her actions, either personally, or by certified mail, return
9receipt requested. Service by certified mail shall be deemed
10completed when the notice is deposited in the U.S. Mail.
11    (h) An order assessing a fine, an order revoking or
12suspending a license or, an order denying renewal of a license
13shall take effect upon service of the order unless the licensee
14requests, in writing, within 10 days after the date of service,
15a hearing. In the event a hearing is requested, the order shall
16be stayed until a final administrative order is entered.
17    (i) If the licensee requests a hearing, the Director shall
18schedule a hearing within 30 days after the request for a
19hearing unless otherwise agreed to by the parties.
20    (j) The hearing shall be held at the time and place
21designated by the Director. The Director and any administrative
22law judge designated by him or her shall have the power to
23administer oaths and affirmations, subpoena witnesses and
24compel their attendance, take evidence, and require the
25production of books, papers, correspondence, and other records
26or information that he or she considers relevant or material to

 

 

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1the inquiry.
2    (k) The costs for the administrative hearing shall be set
3by rule.
4    (l) The Director shall have the authority to prescribe
5rules for the administration of this Section.
6    (m) The Department shall establish by rule and publish a
7schedule of fines that are reasonably tailored to ensure
8compliance with the provisions of this Act and which include
9remedial measures intended to improve licensee compliance.
10Such rules shall set forth the standards and procedures to be
11used in imposing any such fines and remedies.
12(Source: P.A. 90-437, eff. 1-1-98.)