HB3393eng 101ST GENERAL ASSEMBLY

HB3393 Engrossed LRB101 10436 JLS 55542 b

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Consumer Installment Loan Act is amended by changing Section 18 as follows:

(205 ILCS 670/18) (from Ch. 17, par. 5424)

Sec. 18. Advertising; unsolicited checks.

(a) Advertising for loans transacted under this Act may not be false, misleading or deceptive. That advertising, if it states a rate or amount of charge for a loan, must state the rate as an annual percentage rate. No licensee may advertise in any manner so as to indicate or imply that his interest rates or charges for loans are in any way "recommended", "approved", "set" or "established" by the State government or by this Act.

(b) If any advertisement to which this Section applies states the amount of any installment payment, the dollar amount of any finance charge, or the number of installments or the period of repayment, then the advertisement shall state all of the following items:

(1) The amount of the loan.

(2) The number, amount, and due dates or period of payments scheduled to repay the indebtedness if the credit is extended.

(3) The rate of the finance charge expressed as an annual percentage rate.

(c) No person shall deliver to a consumer an unsolicited check payable to the consumer that, upon cashing, obligates the consumer to repay the amount of the check plus interest and fees unless the check bears the following statement printed in 18-point type in uppercase print on the face of the check: "THIS IS A LOAN.".

This subsection does not apply to a transaction in which a consumer has submitted an application for, or requested an extension of, credit from the person before receiving the check or instrument or when the consumer has an existing relationship with the person.

(Source: P.A. 90-437, eff. 1-1-98.)