Rep. Maria Antonia Berrios

Filed: 4/12/2013

 

 


 

 


 
09800HB1323ham001LRB098 07738 MGM 44296 a

1
AMENDMENT TO HOUSE BILL 1323

2    AMENDMENT NO. ______. Amend House Bill 1323 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

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1    (d) Subject to the Illinois Administrative Procedure Act,
2the Secretary may hold hearings, make findings of fact,
3conclusions of law, issue cease and desist orders, have the
4power to issue fines of up to $10,000 per violation, refer the
5matter to the appropriate law enforcement agency for
6prosecution under this Act, and suspend or revoke a license
7granted under this Act. All proceedings shall be open to the
8public.
9    (e) The Secretary may issue a cease and desist order to any
10licensee or other person doing business without the required
11license, when in the opinion of the Secretary the licensee or
12other person is violating or is about to violate any provision
13of this Act or any rule or requirement imposed in writing by
14the Department as a condition of granting any authorization
15permitted by this Act. The cease and desist order permitted by
16this subsection (e) may be issued prior to a hearing.
17    The Secretary shall serve notice of his or her action,
18including, but not limited to, a statement of the reasons for
19the action, either personally or by certified mail, return
20receipt requested. Service by certified mail shall be deemed
21completed when the notice is deposited in the U.S. Mail.
22    Within 10 days of service of the cease and desist order,
23the licensee or other person may request a hearing in writing.
24The Secretary shall schedule a hearing within 30 days after the
25request for a hearing unless otherwise agreed to by the
26parties.

 

 

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1    If it is determined that the Secretary had the authority to
2issue the cease and desist order, he or she may issue such
3orders as may be reasonably necessary to correct, eliminate, or
4remedy the conduct.
5    The powers vested in the Secretary by this subsection (e)
6are additional to any and all other powers and remedies vested
7in the Secretary by law, and nothing in this subsection (e)
8shall be construed as requiring that the Secretary shall employ
9the power conferred in this subsection instead of or as a
10condition precedent to the exercise of any other power or
11remedy vested in the Secretary.
12    (f) The Secretary may, after 10 days notice by registered
13mail to the licensee at the address set forth in the license
14stating the contemplated action and in general the grounds
15therefore, fine the licensee an amount not exceeding $10,000
16per violation, or revoke or suspend any license issued
17hereunder if he or she finds that:
18        (1) the licensee has failed to comply with any
19    provision of this Act or any order, decision, finding,
20    rule, regulation, or direction of the Secretary lawfully
21    made pursuant to the authority of this Act; or
22        (2) any fact or condition exists which, if it had
23    existed at the time of the original application for the
24    license, clearly would have warranted the Secretary in
25    refusing to issue the license.
26    The Secretary may fine, suspend, or revoke only the

 

 

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1particular license with respect to which grounds for the fine,
2revocation, or suspension occur or exist, but if the Secretary
3finds that grounds for revocation are of general application to
4all offices or to more than one office of the licensee, the
5Secretary shall fine, suspend, or revoke every license to which
6the grounds apply.
7    The Department shall establish by rule and publish a
8schedule of fines that are reasonably tailored to ensure
9compliance with the provisions of this Act and which include
10remedial measures intended to improve licensee compliance.
11Such rules shall set forth the standards and procedures to be
12used in imposing any such fines and remedies.
13    No revocation, suspension, or surrender of any license
14shall impair or affect the obligation of any pre-existing
15lawful contract between the licensee and any obligor.
16    The Secretary may issue a new license to a licensee whose
17license has been revoked when facts or conditions which clearly
18would have warranted the Secretary in refusing originally to
19issue the license no longer exist.
20    In every case in which a license is suspended or revoked or
21an application for a license or renewal of a license is denied,
22the Secretary shall serve the licensee with notice of his or
23her action, including a statement of the reasons for his or her
24actions, either personally, or by certified mail, return
25receipt requested. Service by certified mail shall be deemed
26completed when the notice is deposited in the U.S. Mail.

 

 

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1    An order assessing a fine, an order revoking or suspending
2a license, or an order denying renewal of a license shall take
3effect upon service of the order unless the licensee requests a
4hearing, in writing, within 10 days after the date of service.
5In the event a hearing is requested, the order shall be stayed
6until a final administrative order is entered.
7    If the licensee requests a hearing, the Secretary shall
8schedule a hearing within 30 days after the request for a
9hearing unless otherwise agreed to by the parties.
10    The hearing shall be held at the time and place designated
11by the Secretary. The Secretary and any administrative law
12judge designated by him or her shall have the power to
13administer oaths and affirmations, subpoena witnesses and
14compel their attendance, take evidence, and require the
15production of books, papers, correspondence, and other records
16or information that he or she considers relevant or material to
17the inquiry.
18    (g) The costs of administrative hearings conducted
19pursuant to this Section shall be paid by the licensee.
20    (h) Notwithstanding any other provision of this Section, if
21a lender who does not have a license issued under this Act
22makes a loan pursuant to this Act to an Illinois consumer, then
23the loan shall be null and void and the lender who made the
24loan shall have no right to collect, receive, or retain any
25principal, interest, or charges related to the loan.
26(Source: P.A. 97-1039, eff. 1-1-13.)
 

 

 

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1    Section 10. The Consumer Installment Loan Act is amended by
2changing Section 9 as follows:
 
3    (205 ILCS 670/9)  (from Ch. 17, par. 5409)
4    Sec. 9. Fines, Suspension or Revocation of license.
5    (a) The Director 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
8therefor, fine such 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 Director lawfully made
14    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 Director in
18    refusing to issue the license.
19    (b) The Director 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 Director
22shall find that grounds for revocation are of general
23application to all offices or to more than one office of the
24licensee, the Director shall fine, suspend, or revoke every

 

 

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1license to which such grounds apply.
2    (c) (Blank).
3    (d) No revocation, suspension, or surrender of any license
4shall impair or affect the obligation of any pre-existing
5lawful contract between the licensee and any obligor.
6    (e) The Director may issue a new license to a licensee
7whose license has been revoked when facts or conditions which
8clearly would have warranted the Director in refusing
9originally to issue the license no longer exist.
10    (f) (Blank).
11    (g) In every case in which a license is suspended or
12revoked or an application for a license or renewal of a license
13is denied, the Director shall serve the licensee with notice of
14his or her action, including a statement of the reasons for his
15or her actions, either personally, or by certified mail, return
16receipt requested. Service by certified mail shall be deemed
17completed when the notice is deposited in the U.S. Mail.
18    (h) An order assessing a fine, an order revoking or
19suspending a license or, an order denying renewal of a license
20shall take effect upon service of the order unless the licensee
21requests, in writing, within 10 days after the date of service,
22a hearing. In the event a hearing is requested, the order shall
23be stayed until a final administrative order is entered.
24    (i) If the licensee requests a hearing, the Director shall
25schedule a hearing within 30 days after the request for a
26hearing unless otherwise agreed to by the parties.

 

 

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1    (j) The hearing shall be held at the time and place
2designated by the Director. The Director and any administrative
3law judge designated by him or her shall have the power to
4administer oaths and affirmations, subpoena witnesses and
5compel their attendance, take evidence, and require the
6production of books, papers, correspondence, and other records
7or information that he or she considers relevant or material to
8the inquiry.
9    (k) The costs for the administrative hearing shall be set
10by rule.
11    (l) The Director shall have the authority to prescribe
12rules for the administration of this Section.
13    (m) The Department shall establish by rule and publish a
14schedule of fines that are reasonably tailored to ensure
15compliance with the provisions of this Act and which include
16remedial measures intended to improve licensee compliance.
17Such rules shall set forth the standards and procedures to be
18used in imposing any such fines and remedies.
19(Source: P.A. 90-437, eff. 1-1-98.)".