Illinois General Assembly - Full Text of HB2660
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Full Text of HB2660  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Robert Rita


205 ILCS 675/3
205 ILCS 675/4  from Ch. 17, par. 7004
205 ILCS 675/6  from Ch. 17, par. 7006

    Amends the Illinois Financial Services Development Act. In the definition of "financial institution", provides that certain lenders are prohibited from charging an annual percentage rate in excess of 36% (rather than prohibited from charging interest in excess of 36% per annum) for any extension of credit under the Act. Further provides that any financial institution may charge and collect interest and other charges under a revolving credit plan provided that any finance charges or charges representing the cost of credit are included in the annual percentage rate calculation. Limits the amount of certain fees that a financial institution may charge and collect from a borrower under a revolving credit plan.

LRB099 08929 MGM 29102 b





HB2660LRB099 08929 MGM 29102 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 Illinois Financial Services Development Act
5is amended by changing Sections 3, 4, and 6 as follows:
6    (205 ILCS 675/3)
7    Sec. 3. As used in this Section:
8    (a) "Financial institution" means any bank with its main
9office or, after May 31, 1997, a branch in this State, any
10state or federal savings and loan association or savings bank
11with its main office or branch in this State, any state or
12federal credit union with its main office in this State, and
13any lender licensed under the Consumer Installment Loan Act or
14the Sales Finance Agency Act; provided, however, that lenders
15licensed under the Consumer Installment Loan Act or the Sales
16Finance Agency Act are prohibited from charging an annual
17percentage rate interest in excess of 36% per annum for any
18extension of credit under this Act.
19    (b) "Revolving credit plan" or "plan" means a plan
20contemplating the extension of credit under an account governed
21by an agreement between a financial institution and a borrower
22who is a natural person pursuant to which:
23        (1) The financial institution permits the borrower



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1    and, if the agreement governing the plan so provides,
2    persons acting on behalf of or with authorization from the
3    borrower, from time to time to make purchases and to obtain
4    loans by any means whatsoever, including use of a credit
5    device primarily for personal, family or household
6    purposes;
7        (2) the amounts of such purchases and loans are charged
8    to the borrower's account under the revolving credit plan;
9        (3) the borrower is required to pay the financial
10    institution the amounts of all purchases and loans charged
11    to such borrower's account under the plan but has the
12    privilege of paying such amounts outstanding from time to
13    time in full or installments; and
14        (4) interest may be charged and collected by the
15    financial institution from time to time on the outstanding
16    unpaid indebtedness under such plan.
17    (c) "Credit device" means any card, check, identification
18code or other means of identification contemplated by the
19agreement governing the plan.
20    (d) "Outstanding unpaid indebtedness" means on any day an
21amount not in excess of the total amount of purchases and loans
22charged to the borrower's account under the plan which is
23outstanding and unpaid at the end of the day, after adding the
24aggregate amount of any new purchases and loans charged to the
25account as of that day and deducting the aggregate amount of
26any payments and credits applied to that indebtedness as of



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1that day and, if the agreement governing the plan so provides,
2may include the amount of any billed and unpaid interest and
3other charges.
4    (e) "Credit card" means any instrument or device, whether
5known as a credit card, credit device, credit plate, charge
6plate, or any other name, issued with or without fee by an
7issuer for the use of the borrower in obtaining money, goods,
8services, or anything else of value on credit, but does not
9include any negotiable instrument as defined in the Uniform
10Commercial Code, as now or hereafter amended, or a debit card
11that may indirectly access an overdraft line of credit through
12a debit to a deposit account.
13    (f) "Credit card account" means a revolving credit plan
14accessed by a credit card.
15(Source: P.A. 96-936, eff. 3-21-11; 96-1193, eff. 7-22-10;
1697-333, eff. 8-12-11.)
17    (205 ILCS 675/4)  (from Ch. 17, par. 7004)
18    Sec. 4. Notwithstanding the provisions of any other laws in
19connection with revolving credit plans, any financial
20institution may, subject to the other provisions of this
21Section 4, offer and extend credit under a revolving credit
22plan to a borrower and in connection therewith may charge and
23collect interest and other charges, provided that any finance
24charges or charges representing the cost of credit are included
25in the annual percentage rate calculation, may take real and



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1personal property as security therefor, and may provide in the
2agreement governing the revolving credit plan for such other
3terms and conditions as the financial institution and borrower
4may agree upon from time to time. A financial institution
5offering or soliciting a revolving credit plan involving a
6credit card, or extending credit pursuant to the use of a
7credit card under any such plan, shall comply with provisions
8of "An Act relating to the issuance and use of credit cards",
9approved September 16, 1969, as now or hereafter amended.
10(Source: P.A. 85-1432.)
11    (205 ILCS 675/6)  (from Ch. 17, par. 7006)
12    Sec. 6. In addition to or in lieu of interest at a periodic
13rate or rates as provided in Section 5, and without limitation
14of the foregoing Section 4, a financial institution may, if the
15agreement governing the revolving credit plan so provides and
16clearly discloses, charge and collect as interest, in such
17manner or form as the plan may provide, an annual or other
18periodic fee for the privileges made available to the borrower
19under the plan, a transaction charge or charges, late fees or
20delinquency charges not to exceed $25 per billing cycle,
21returned payment charges not to exceed $25 per payment due,
22over limit charges not to exceed $25 per billing cycle, and
23fees for services rendered.
24(Source: P.A. 85-1432.)