Illinois General Assembly - Full Text of HB0537
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Full Text of HB0537  96th General Assembly


Sen. Kimberly A. Lightford

Filed: 5/5/2010





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2     AMENDMENT NO. ______. Amend House Bill 537, AS AMENDED,
3 with reference to page and line numbers of Senate Amendment No.
4 2, as follows:
5 on page 4, line 25, by replacing "financial institution" with
6 "licensee"; and
7 on page 28, by replacing lines 2 through 11 with the following:
8     "No loan shall be made to a consumer who has an outstanding
9 balance on 2 payday loans, except that, for a period of 12
10 months after the effective date of this amendatory Act of the
11 96th General Assembly, consumers with an existing CILA loan may
12 be issued an installment loan issued under this Act from the
13 company from which their CILA loan was issued.
14     (e-5) No lender may charge more than $15.50 per $100 loaned
15 on any payday loan, or more than $15.50 per $100 on the initial
16 principal balance and on the principal balances scheduled to be



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1 outstanding during any installment period on any installment
2 payday loan over the term of the loan. Except for installment
3 payday loans and except as provided in Section 2-25, this
4 charge is considered fully earned as of the date on which the
5 loan is made. For purposes of determining the finance charge
6 earned on an installment payday loan, the disclosed annual
7 percentage rate shall be applied to the principal balances
8 outstanding from time to time until the loan is paid in full,
9 or until the maturity date, which ever occurs first. No finance
10 charge may be imposed after the final scheduled maturity date.
11     When any loan contract is paid in full, the licensee shall
12 refund any unearned finance charge. The unearned finance charge
13 that is refunded shall be calculated based on a method that is
14 at least as favorable to the consumer as the actuarial method,
15 as defined by the federal Truth in Lending Act. The sum of the
16 digits or rule of 78ths method of calculating prepaid interest
17 refunds is prohibited.".