Full Text of HB0641 97th General Assembly
HB0641ham001 97TH GENERAL ASSEMBLY | Rep. Daniel J. Burke Filed: 3/9/2011
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| 1 | | AMENDMENT TO HOUSE BILL 641
| 2 | | AMENDMENT NO. ______. Amend House Bill 641 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Consumer Installment Loan Act is amended by | 5 | | changing Sections 1, 17.2, and 17.3 as follows:
| 6 | | (205 ILCS 670/1) (from Ch. 17, par. 5401)
| 7 | | (Text of Section before amendment by P.A. 96-936 ) | 8 | | Sec. 1. License required to engage in business. No person, | 9 | | partnership, association, limited liability
company, or | 10 | | corporation shall engage in
the business of making loans of | 11 | | money in a principal amount not
exceeding $25,000, and charge, | 12 | | contract for, or receive on any
such loan a
greater rate of | 13 | | interest, discount, or consideration therefor than the
lender | 14 | | would be permitted by law to charge if he were not a licensee
| 15 | | hereunder, except as authorized by this Act after first | 16 | | obtaining a license
from the Director of Financial Institutions |
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| 1 | | (hereinafter called the Director).
| 2 | | (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.) | 3 | | (Text of Section after amendment by P.A. 96-936 ) | 4 | | Sec. 1. License required to engage in business. No person, | 5 | | partnership, association, limited liability
company, or | 6 | | corporation shall engage in
the business of making loans of | 7 | | money in a principal amount not
exceeding $40,000, and charge, | 8 | | contract for, or receive on any
such loan a
greater rate of | 9 | | interest, discount, or consideration therefor than the
lender | 10 | | would be permitted by law to charge if he were not a licensee
| 11 | | hereunder, except as authorized by this Act after first | 12 | | obtaining a license
from the Director of Financial Institutions | 13 | | (hereinafter called the Director). No licensee, or employee or | 14 | | affiliate thereof, that is licensed under the Payday Loan | 15 | | Reform Act shall obtain a license under this Act except that a | 16 | | licensee under the Payday Loan Reform Act may obtain a license | 17 | | under this Act for the exclusive purpose and use of making | 18 | | title-secured loans, as defined in subsection (a) of Section 15 | 19 | | of this Act and governed by Title 38, Section 110.300 of the | 20 | | Illinois Administrative Code.
| 21 | | (Source: P.A. 96-936, eff. 3-21-11.)
| 22 | | (205 ILCS 670/17.2)
| 23 | | (This Section may contain text from a Public Act with a | 24 | | delayed effective date ) |
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| 1 | | Sec. 17.2. Small consumer loans; charges permitted. | 2 | | (a) With respect to a small consumer loan of $1,500 or | 3 | | less: | 4 | | (1) A licensee may charge, contract for and receive | 5 | | interest at an annual percentage rate of no more than 99% | 6 | | calculated in accordance with the federal Truth in Lending | 7 | | Act. | 8 | | (2) A licensee may charge an acquisition charge not to | 9 | | exceed 10% of the amount financed. The acquisition charge | 10 | | is in lieu of the fee permitted under Section 15d(5) and is | 11 | | fully earned at the time the loan is made and shall not be | 12 | | subject to refund. | 13 | | (b) With respect to a small consumer loan over $1,500: | 14 | | (1) A licensee may charge the following finance | 15 | | charges: | 16 | | (A) an acquisition charge for making the original | 17 | | loan, not to exceed $100; for purposes of this | 18 | | subsection (b), "original loan" means a loan in which | 19 | | none of the proceeds are used by the licensee to pay | 20 | | off the outstanding balance of another small consumer | 21 | | loan made to the same consumer by the same licensee or | 22 | | any employee or affiliate of the licensee ; | 23 | | (B) an acquisition charge for the first time that | 24 | | an original loan is refinanced, not to exceed $50; | 25 | | (C) an acquisition charge for any subsequent | 26 | | refinancing not to exceed $25; for purposes of this |
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| 1 | | subsection (b), "refinancing" occurs when an existing | 2 | | small consumer loan is satisfied and replaced by a new | 3 | | small consumer loan made to the same consumer by the | 4 | | same licensee or any employee or affiliate of the | 5 | | licensee ; and | 6 | | (D) a monthly installment account handling charge, | 7 | | not to exceed the following amounts: | |
8 | | Amount financed | Per month charge | |
9 | | $1,500.01 - $1,600 | $69 | |
10 | | $1,600.01 - $1,700 | $72 | |
11 | | $1,700.01 - $1,800 | $75 | |
12 | | $1,800.01 - $1,900 | $78 | |
13 | | $1,900.01 - $2,000 | $81 | |
14 | | $2,000.01 - $2,100 | $84 | |
15 | | $2,100.01 - $2,200 | $87 | |
16 | | $2,200.01 - $2,300 | $90 | |
17 | | $2,300.01 - $2,400 | $92 | |
18 | | $2,400.01 - $2,500 | $94 | |
19 | | $2,500.01 - $2,600 | $96 | |
20 | | $2,600.01 - $2,700 | $98 | |
21 | | $2,700.01 - $2,800 | $100 | |
22 | | $2,800.01 - $2,900 | $102 | |
23 | | $2,900.01 - $3,000 | $104 | |
24 | | $3,000.01 - $3,100 | $106 | |
25 | | $3,100.01 - $3,200 | $108 | |
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| 1 | | $3,200.01 - $3,300 | $110 | |
2 | | $3,300.01 - $3,400 | $112 | |
3 | | $3,400.01 - $3,500 | $114 | |
4 | | $3,500.01 - $3,600 | $116 | |
5 | | $3,600.01 - $3,700 | $118 | |
6 | | $3,700.01 - $3,800 | $120 | |
7 | | $3,800.01 - $3,900 | $122 | |
8 | | $3,900.01 - $4,000 | $124 |
| 9 | | (2) The acquisition charge is in lieu of the fee | 10 | | permitted under Section 15d(5) and is fully earned at the | 11 | | time the loan is made and shall not be subject to refund; | 12 | | except that, if the loan is paid in full within the first | 13 | | 60 days of the loan term, the first $25 of the acquisition | 14 | | charge may be retained by the licensee and the remainder of | 15 | | the acquisition charge shall be refunded at a rate of | 16 | | one-sixtieth of the remainder of the acquisition charge per | 17 | | day, beginning on the day after the date of the prepayment | 18 | | and ending on the sixtieth day after the loan was made. | 19 | | (3) In no event shall the annual percentage rate on the | 20 | | loan transaction as calculated in accordance with the | 21 | | federal Truth in Lending Act exceed 99%. | 22 | | (c) In addition to the charges permitted in subsections (a) | 23 | | and (b) of this Section, a licensee may charge a consumer a fee | 24 | | not to exceed $1 to cover the licensee's cost of submitting | 25 | | loan information into the consumer reporting service, as |
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| 1 | | required under Section 17.5 of this Act. Only one such fee may | 2 | | be collected by the licensee with respect to a particular loan. | 3 | | (d) When any loan contract is paid in full by cash, | 4 | | renewal, or refinancing, or a new loan, the licensee shall | 5 | | refund any unearned interest or unearned portion of the monthly | 6 | | installment account handling charge, whichever is applicable. | 7 | | The unearned interest or unearned portion of the monthly | 8 | | installment account handling charge that is refunded shall be | 9 | | calculated based on a method that is at least as favorable to | 10 | | the consumer as the actuarial method, as defined by the federal | 11 | | Truth in Lending Act. The sum of the digits or rule of 78ths | 12 | | method of calculating prepaid interest refunds is prohibited. | 13 | | (e) The maximum acquisition charges that are expressed as | 14 | | flat dollar amounts under this Section shall be subject to an | 15 | | annual adjustment as of the first day of each year following | 16 | | the effective date of this amendatory Act of the 96th General | 17 | | Assembly equal to the percentage change in the Consumer Price | 18 | | Index compiled by the Bureau of Labor Statistics, United States | 19 | | Department of Labor, or, if that index is canceled or | 20 | | superseded, the index chosen by the Bureau of Labor Statistics | 21 | | as most accurately reflecting the changes in the purchasing | 22 | | power of the dollar for consumers, or, if no such index is | 23 | | chosen by the Bureau of Labor Statistics, the index chosen by | 24 | | the Department as most accurately reflecting the changes in the | 25 | | purchasing power of the dollar for consumers. The adjusted | 26 | | amounts shall take effect on July 1 of the year of the |
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| 1 | | computations.
| 2 | | (Source: P.A. 96-936, eff. 3-21-11.) | 3 | | (205 ILCS 670/17.3) | 4 | | (This Section may contain text from a Public Act with a | 5 | | delayed effective date ) | 6 | | Sec. 17.3. Small consumer loans; terms. | 7 | | (a) A small consumer loan shall be fully amortizing and be | 8 | | repayable in its entirety in a minimum of 6 substantially equal | 9 | | and consecutive payments with a period of not less than 180 | 10 | | days to maturity. | 11 | | (b) No licensee , or employee or affiliate thereof, may | 12 | | extend to or have open with a consumer more than one small | 13 | | consumer loan at any time; provided, however, that loans | 14 | | acquired by a licensee from another licensee are not included | 15 | | within this prohibition. | 16 | | (c) A licensee is prohibited from refinancing a small | 17 | | consumer loan during the first 75 days of the loan term. For | 18 | | purposes of this Act, a refinancing occurs when an existing | 19 | | small consumer loan is satisfied and replaced by a new small | 20 | | consumer loan made to the same consumer by the same licensee or | 21 | | any employee or affiliate of the licensee . | 22 | | (d) Except for the deferment charge permitted by item (5) | 23 | | of subsection (f) of Section 15, a licensee is prohibited from | 24 | | collecting any fee, charge, or remuneration of any sort for | 25 | | renewing, amending, or extending a small consumer loan beyond |
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| 1 | | its original term. | 2 | | (e) Before entering into a small consumer loan agreement, a | 3 | | licensee must provide to the consumer a pamphlet, prepared by | 4 | | the Director, describing general information about consumer | 5 | | credit and about the consumer's rights and responsibilities in | 6 | | a small consumer loan transaction. Each small consumer loan | 7 | | agreement executed by a licensee shall include a statement, | 8 | | located just above the signature line for the consumer, and | 9 | | shall provide as follows: "In addition to agreeing to the terms | 10 | | of this agreement, I acknowledge, by my signature below, | 11 | | receipt from (name of lender) a pamphlet regarding small | 12 | | consumer loans.". | 13 | | (f) Each small consumer loan agreement entered into between | 14 | | a licensee and a consumer shall include a notification, in such | 15 | | loan agreement, of a toll-free number furnished by the | 16 | | Department of Financial and Professional Regulation, Division | 17 | | of Financial Institutions that the consumer may contact for the | 18 | | purpose of receiving information from the Division regarding | 19 | | credit or assistance with credit problems.
| 20 | | (Source: P.A. 96-936, eff. 3-21-11.) | 21 | | Section 10. The Payday Loan Reform Act is amended by | 22 | | changing Sections 1-10, 3-5, and 4-5 as follows: | 23 | | (815 ILCS 122/1-10)
| 24 | | (Text of Section before amendment by P.A. 96-936 ) |
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| 1 | | Sec. 1-10. Definitions. As used in this Act: | 2 | | "Check" means a "negotiable instrument", as defined in | 3 | | Article 3 of the Uniform Commercial Code, that is drawn on a | 4 | | financial institution. | 5 | | "Commercially reasonable method of verification" or | 6 | | "certified database" means a consumer reporting service | 7 | | database certified by the Department as effective in verifying | 8 | | that a proposed loan agreement is permissible under this Act, | 9 | | or, in the absence of the Department's certification, any | 10 | | reasonably reliable written verification by the consumer | 11 | | concerning (i) whether the consumer has any outstanding payday | 12 | | loans, (ii) the principal amount of those outstanding payday | 13 | | loans, and (iii) whether any payday loans have been paid in | 14 | | full by the consumer in the preceding 7 days. | 15 | | "Consumer" means any natural person who, singly or jointly | 16 | | with another consumer, enters into a loan. | 17 | | "Consumer reporting service" means an entity that provides | 18 | | a database certified by the Department. | 19 | | "Department" means the Department of Financial and | 20 | | Professional Regulation. | 21 | | "Secretary" means the Secretary of Financial and | 22 | | Professional Regulation. | 23 | | "Gross monthly income" means monthly income as | 24 | | demonstrated by official documentation of the income, | 25 | | including, but not limited to, a pay stub or a receipt | 26 | | reflecting payment of government benefits, for the period 30 |
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| 1 | | days prior to the date on which the loan is made. | 2 | | "Lender" and "licensee" mean any person or entity, | 3 | | including any affiliate or subsidiary of a lender or licensee, | 4 | | that offers or makes a payday loan, buys a whole or partial | 5 | | interest in a payday loan, arranges a payday loan for a third | 6 | | party, or acts as an agent for a third party in making a payday | 7 | | loan, regardless of whether approval, acceptance, or | 8 | | ratification by the third party is necessary to create a legal | 9 | | obligation for the third party, and includes any other person | 10 | | or entity if the Department determines that the person or | 11 | | entity is engaged in a transaction that is in substance a | 12 | | disguised payday loan or a subterfuge for the purpose of | 13 | | avoiding this Act. | 14 | | "Loan agreement" means a written agreement between a lender | 15 | | and consumer to make a loan to the consumer, regardless of | 16 | | whether any loan proceeds are actually paid to the consumer on | 17 | | the date on which the loan agreement is made. | 18 | | "Member of the military" means a person serving in the | 19 | | armed forces of the United States, the Illinois National Guard, | 20 | | or any reserve component of the armed forces of the United | 21 | | States. "Member of the military" includes those persons engaged | 22 | | in (i) active duty, (ii) training or education under the | 23 | | supervision of the United States preliminary to induction into | 24 | | military service, or (iii) a period of active duty with the | 25 | | State of Illinois under Title 10 or Title 32 of the United | 26 | | States Code pursuant to order of the President or the Governor |
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| 1 | | of the State of Illinois. | 2 | | "Outstanding balance" means the total amount owed by the | 3 | | consumer on a loan to a lender, including all principal, | 4 | | finance charges, fees, and charges of every kind. | 5 | | "Payday loan" or "loan" means a loan with a finance charge | 6 | | exceeding an annual percentage rate of 36% and with a term that | 7 | | does not exceed 120 days, including any transaction conducted | 8 | | via any medium whatsoever, including, but not limited to, | 9 | | paper, facsimile, Internet, or telephone, in which: | 10 | | (1) A lender accepts one or more checks dated on the | 11 | | date written and agrees to hold them for a period of days | 12 | | before deposit or presentment, or accepts one or more | 13 | | checks dated subsequent to the date written and agrees to | 14 | | hold them for deposit; or | 15 | | (2) A lender accepts one or more authorizations to | 16 | | debit a consumer's bank account; or | 17 | | (3) A lender accepts an interest in a consumer's wages, | 18 | | including, but not limited to, a wage assignment. | 19 | | "Principal amount" means the amount received by the | 20 | | consumer from the lender due and owing on a loan, excluding any | 21 | | finance charges, interest, fees, or other loan-related | 22 | | charges. | 23 | | "Rollover" means to refinance, renew, amend, or extend a | 24 | | loan beyond its original term.
| 25 | | (Source: P.A. 94-13, eff. 12-6-05.) |
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| 1 | | (Text of Section after amendment by P.A. 96-936 ) | 2 | | Sec. 1-10. Definitions. As used in this Act: | 3 | | "Check" means a "negotiable instrument", as defined in | 4 | | Article 3 of the Uniform Commercial Code, that is drawn on a | 5 | | financial institution. | 6 | | "Commercially reasonable method of verification" or | 7 | | "certified database" means a consumer reporting service | 8 | | database certified by the Department as effective in verifying | 9 | | that a proposed loan agreement is permissible under this Act, | 10 | | or, in the absence of the Department's certification, any | 11 | | reasonably reliable written verification by the consumer | 12 | | concerning (i) whether the consumer has any outstanding payday | 13 | | loans, (ii) the principal amount of those outstanding payday | 14 | | loans, and (iii) whether any payday loans have been paid in | 15 | | full by the consumer in the preceding 7 days. | 16 | | "Consumer" means any natural person who, singly or jointly | 17 | | with another consumer, enters into a loan. | 18 | | "Consumer reporting service" means an entity that provides | 19 | | a database certified by the Department. | 20 | | "Department" means the Department of Financial and | 21 | | Professional Regulation. | 22 | | "Secretary" means the Secretary of Financial and | 23 | | Professional Regulation. | 24 | | "Gross monthly income" means monthly income as | 25 | | demonstrated by official documentation of the income, | 26 | | including, but not limited to, a pay stub or a receipt |
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| 1 | | reflecting payment of government benefits, for the period 30 | 2 | | days prior to the date on which the loan is made. | 3 | | "Lender" and "licensee" mean any person or entity, | 4 | | including any affiliate or subsidiary of a lender or licensee, | 5 | | that offers or makes a payday loan, buys a whole or partial | 6 | | interest in a payday loan, arranges a payday loan for a third | 7 | | party, or acts as an agent for a third party in making a payday | 8 | | loan, regardless of whether approval, acceptance, or | 9 | | ratification by the third party is necessary to create a legal | 10 | | obligation for the third party, and includes any other person | 11 | | or entity if the Department determines that the person or | 12 | | entity is engaged in a transaction that is in substance a | 13 | | disguised payday loan or a subterfuge for the purpose of | 14 | | avoiding this Act. | 15 | | "Loan agreement" means a written agreement between a lender | 16 | | and consumer to make a loan to the consumer, regardless of | 17 | | whether any loan proceeds are actually paid to the consumer on | 18 | | the date on which the loan agreement is made. | 19 | | "Member of the military" means a person serving in the | 20 | | armed forces of the United States, the Illinois National Guard, | 21 | | or any reserve component of the armed forces of the United | 22 | | States. "Member of the military" includes those persons engaged | 23 | | in (i) active duty, (ii) training or education under the | 24 | | supervision of the United States preliminary to induction into | 25 | | military service, or (iii) a period of active duty with the | 26 | | State of Illinois under Title 10 or Title 32 of the United |
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| 1 | | States Code pursuant to order of the President or the Governor | 2 | | of the State of Illinois. | 3 | | "Outstanding balance" means the total amount owed by the | 4 | | consumer on a loan to a lender, including all principal, | 5 | | finance charges, fees, and charges of every kind. | 6 | | "Payday loan" or "loan" means a loan with a finance charge | 7 | | exceeding an annual percentage rate of 36% and with a term that | 8 | | does not exceed 120 days, including any transaction conducted | 9 | | via any medium whatsoever, including, but not limited to, | 10 | | paper, facsimile, Internet, or telephone, in which: | 11 | | (1) A lender accepts one or more checks dated on the | 12 | | date written and agrees to hold them for a period of days | 13 | | before deposit or presentment, or accepts one or more | 14 | | checks dated subsequent to the date written and agrees to | 15 | | hold them for deposit; or | 16 | | (2) A lender accepts one or more authorizations to | 17 | | debit a consumer's bank account; or | 18 | | (3) A lender accepts an interest in a consumer's wages, | 19 | | including, but not limited to, a wage assignment. | 20 | | The term "payday loan" includes "installment payday loan", | 21 | | unless otherwise specified in
this Act. | 22 | | "Principal amount" means the amount received by the | 23 | | consumer from the lender due and owing on a loan, excluding any | 24 | | finance charges, interest, fees, or other loan-related | 25 | | charges. | 26 | | "Rollover" means to refinance, renew, amend, or extend a |
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| 1 | | loan beyond its original term.
| 2 | | (Source: P.A. 96-936, eff. 3-21-11.) | 3 | | (815 ILCS 122/3-5)
| 4 | | (Text of Section before amendment by P.A. 96-936 ) | 5 | | Sec. 3-5. Licensure. | 6 | | (a) A license to make a payday loan shall state the | 7 | | address,
including city and state, at which
the business is to | 8 | | be conducted and shall state fully the name of the licensee.
| 9 | | The license shall be conspicuously posted in the place of | 10 | | business of the
licensee and shall not be transferable or | 11 | | assignable.
| 12 | | (b) An application for a license shall be in writing and in | 13 | | a form
prescribed by the Secretary. The Secretary may not issue | 14 | | a payday loan
license unless and until the following findings | 15 | | are made:
| 16 | | (1) that the financial responsibility, experience, | 17 | | character, and general
fitness of the applicant are such as | 18 | | to command the confidence of the public
and to warrant the | 19 | | belief that the business will be operated lawfully and
| 20 | | fairly and within the provisions and purposes of this Act; | 21 | | and
| 22 | | (2) that the applicant has submitted such other | 23 | | information as the
Secretary may deem necessary.
| 24 | | (c) A license shall be issued for no longer than one year, | 25 | | and no renewal
of a license may be provided if a licensee has |
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| 1 | | substantially violated this
Act and has not cured the violation | 2 | | to the satisfaction of the Department.
| 3 | | (d) A licensee shall appoint, in writing, the Secretary as | 4 | | attorney-in-fact
upon whom all lawful process against the | 5 | | licensee may be served with the
same legal force and validity | 6 | | as if served on the licensee. A copy of the
written | 7 | | appointment, duly certified, shall be filed in the office of | 8 | | the
Secretary, and a copy thereof certified by the Secretary | 9 | | shall be sufficient
evidence to subject a licensee to | 10 | | jurisdiction in a court of law. This appointment shall remain | 11 | | in effect while any liability remains
outstanding in this State | 12 | | against the licensee. When summons is served upon
the Secretary | 13 | | as attorney-in-fact for a licensee, the Secretary shall | 14 | | immediately
notify the licensee by registered mail, enclosing | 15 | | the summons and specifying
the hour and day of service.
| 16 | | (e) A licensee must pay an annual fee of $1,000. In | 17 | | addition to the
license fee, the reasonable expense of any | 18 | | examination or hearing
by the Secretary under any provisions of | 19 | | this Act shall be borne by
the licensee. If a licensee fails to | 20 | | renew its license by December 31,
its license
shall | 21 | | automatically expire; however, the Secretary, in his or her | 22 | | discretion,
may reinstate an expired license upon:
| 23 | | (1) payment of the annual fee within 30 days of the | 24 | | date of
expiration; and
| 25 | | (2) proof of good cause for failure to renew.
| 26 | | (f) Not more than one place of business shall be maintained |
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| 1 | | under the
same license, but the Secretary may issue more than | 2 | | one license to the same
licensee upon compliance with all the | 3 | | provisions of this Act governing
issuance of a single license. | 4 | | The location, except those locations already in
existence as of | 5 | | June 1, 2005, may not be within one mile of a
horse race track | 6 | | subject to the Illinois Horse Racing Act of 1975,
within one | 7 | | mile of a facility at which gambling is conducted under the
| 8 | | Riverboat Gambling Act, within one mile of the location at | 9 | | which a
riverboat subject to the Riverboat Gambling Act docks, | 10 | | or within one mile of
any State of Illinois or United States | 11 | | military base or naval installation.
| 12 | | (g) No licensee shall conduct the business of making loans | 13 | | under this
Act within any office, suite, room, or place of | 14 | | business in which any other
business is solicited or engaged in | 15 | | unless the other business is licensed by the Department or, in | 16 | | the opinion of the Secretary, the
other business would not be | 17 | | contrary to the best interests of consumers and
is authorized | 18 | | by the Secretary in writing.
| 19 | | (h) The Secretary shall maintain a list of licensees that | 20 | | shall be
available to interested consumers and lenders and the | 21 | | public. The Secretary
shall maintain a toll-free number whereby | 22 | | consumers may obtain
information about licensees. The | 23 | | Secretary shall also establish a complaint
process under which | 24 | | an aggrieved consumer
may file a complaint against a licensee | 25 | | or non-licensee who violates any
provision of this Act.
| 26 | | (Source: P.A. 94-13, eff. 12-6-05.) |
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| 1 | | (Text of Section after amendment by P.A. 96-936 ) | 2 | | Sec. 3-5. Licensure. | 3 | | (a) A license to make a payday loan shall state the | 4 | | address,
including city and state, at which
the business is to | 5 | | be conducted and shall state fully the name of the licensee.
| 6 | | The license shall be conspicuously posted in the place of | 7 | | business of the
licensee and shall not be transferable or | 8 | | assignable.
| 9 | | (b) An application for a license shall be in writing and in | 10 | | a form
prescribed by the Secretary. The Secretary may not issue | 11 | | a payday loan
license unless and until the following findings | 12 | | are made:
| 13 | | (1) that the financial responsibility, experience, | 14 | | character, and general
fitness of the applicant are such as | 15 | | to command the confidence of the public
and to warrant the | 16 | | belief that the business will be operated lawfully and
| 17 | | fairly and within the provisions and purposes of this Act; | 18 | | and
| 19 | | (2) that the applicant has submitted such other | 20 | | information as the
Secretary may deem necessary.
| 21 | | (c) A license shall be issued for no longer than one year, | 22 | | and no renewal
of a license may be provided if a licensee has | 23 | | substantially violated this
Act and has not cured the violation | 24 | | to the satisfaction of the Department.
| 25 | | (d) A licensee shall appoint, in writing, the Secretary as |
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| 1 | | attorney-in-fact
upon whom all lawful process against the | 2 | | licensee may be served with the
same legal force and validity | 3 | | as if served on the licensee. A copy of the
written | 4 | | appointment, duly certified, shall be filed in the office of | 5 | | the
Secretary, and a copy thereof certified by the Secretary | 6 | | shall be sufficient
evidence to subject a licensee to | 7 | | jurisdiction in a court of law. This appointment shall remain | 8 | | in effect while any liability remains
outstanding in this State | 9 | | against the licensee. When summons is served upon
the Secretary | 10 | | as attorney-in-fact for a licensee, the Secretary shall | 11 | | immediately
notify the licensee by registered mail, enclosing | 12 | | the summons and specifying
the hour and day of service.
| 13 | | (e) A licensee must pay an annual fee of $1,000. In | 14 | | addition to the
license fee, the reasonable expense of any | 15 | | examination or hearing
by the Secretary under any provisions of | 16 | | this Act shall be borne by
the licensee. If a licensee fails to | 17 | | renew its license by December 31,
its license
shall | 18 | | automatically expire; however, the Secretary, in his or her | 19 | | discretion,
may reinstate an expired license upon:
| 20 | | (1) payment of the annual fee within 30 days of the | 21 | | date of
expiration; and
| 22 | | (2) proof of good cause for failure to renew.
| 23 | | (f) Not more than one place of business shall be maintained | 24 | | under the
same license, but the Secretary may issue more than | 25 | | one license to the same
licensee upon compliance with all the | 26 | | provisions of this Act governing
issuance of a single license. |
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| 1 | | The location, except those locations already in
existence as of | 2 | | June 1, 2005, may not be within one mile of a
horse race track | 3 | | subject to the Illinois Horse Racing Act of 1975,
within one | 4 | | mile of a facility at which gambling is conducted under the
| 5 | | Riverboat Gambling Act, within one mile of the location at | 6 | | which a
riverboat subject to the Riverboat Gambling Act docks, | 7 | | or within one mile of
any State of Illinois or United States | 8 | | military base or naval installation.
| 9 | | (g) No licensee shall conduct the business of making loans | 10 | | under this
Act within any office, suite, room, or place of | 11 | | business in which (1) any loans are offered or made under the | 12 | | Consumer Installment Loan Act other than title secured loans as | 13 | | defined in subsection (a) of Section 15 of the Consumer | 14 | | Installment Loan Act and governed by Title 38, Section 110.330 | 15 | | of the Illinois Administrative Code or (2) any other
business | 16 | | is solicited or engaged in unless the other business is | 17 | | licensed by the Department or, in the opinion of the Secretary, | 18 | | the
other business would not be contrary to the best interests | 19 | | of consumers and
is authorized by the Secretary in writing.
| 20 | | (g-5) (Blank). Notwithstanding subsection (g) of this | 21 | | Section, a licensee may obtain a license under the Consumer | 22 | | Installment Loan Act (CILA) for the exclusive purpose and use | 23 | | of making title secured loans, as defined in subsection (a) of | 24 | | Section 15 of CILA and governed by Title 38, Section 110.300 of | 25 | | the Illinois Administrative Code. A licensee may continue to | 26 | | service Consumer Installment Loan Act loans that were |
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| 1 | | outstanding as of the effective date of this amendatory Act of | 2 | | the 96th General Assembly. | 3 | | (h) The Secretary shall maintain a list of licensees that | 4 | | shall be
available to interested consumers and lenders and the | 5 | | public. The Secretary
shall maintain a toll-free number whereby | 6 | | consumers may obtain
information about licensees. The | 7 | | Secretary shall also establish a complaint
process under which | 8 | | an aggrieved consumer
may file a complaint against a licensee | 9 | | or non-licensee who violates any
provision of this Act.
| 10 | | (Source: P.A. 96-936, eff. 3-21-11.) | 11 | | (815 ILCS 122/4-5)
| 12 | | (Text of Section before amendment by P.A. 96-936 ) | 13 | | Sec. 4-5. Prohibited acts. A licensee or unlicensed person | 14 | | or entity making payday
loans may not commit, or have committed | 15 | | on behalf of the
licensee
or unlicensed person or entity, any | 16 | | of the following acts: | 17 | | (1) Threatening to use or using the criminal process in | 18 | | this or any
other state to collect on the loan.
| 19 | | (2) Using any device or agreement that would have the | 20 | | effect of
charging or collecting more fees or charges than | 21 | | allowed by this
Act, including, but not limited to, | 22 | | entering into a different type of
transaction
with the | 23 | | consumer.
| 24 | | (3) Engaging in unfair, deceptive, or fraudulent | 25 | | practices in the
making or collecting of a payday loan.
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| 1 | | (4) Using or attempting to use the check provided by | 2 | | the consumer in
a payday loan as collateral for a | 3 | | transaction not related to a payday loan.
| 4 | | (5) Knowingly accepting payment in whole or in part of | 5 | | a payday
loan through the proceeds of another payday loan | 6 | | provided by any licensee.
| 7 | | (6) Knowingly accepting any security, other than that | 8 | | specified in the
definition of payday loan in Section 1-10, | 9 | | for a payday loan.
| 10 | | (7) Charging any fees or charges other than those | 11 | | specifically
authorized by this Act.
| 12 | | (8) Threatening to take any action against a consumer | 13 | | that is
prohibited by this Act or making any misleading or | 14 | | deceptive statements
regarding the payday loan or any | 15 | | consequences thereof.
| 16 | | (9) Making a misrepresentation of a material fact by an | 17 | | applicant for licensure in
obtaining or attempting to | 18 | | obtain a license.
| 19 | | (10) Including any of the following provisions in loan | 20 | | documents
required by subsection (b) of Section 2-20:
| 21 | | (A) a confession of judgment clause;
| 22 | | (B) a waiver of the right to a jury trial, if | 23 | | applicable, in any action
brought by or against a | 24 | | consumer, unless the waiver is included in an | 25 | | arbitration clause allowed under
subparagraph (C) of | 26 | | this paragraph (11);
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| 1 | | (C) a mandatory arbitration clause that is | 2 | | oppressive, unfair,
unconscionable, or substantially | 3 | | in derogation of the rights of consumers; or
| 4 | | (D) a provision in which the consumer agrees not to | 5 | | assert any claim
or defense arising out of the | 6 | | contract.
| 7 | | (11) Selling any insurance of any kind whether or not | 8 | | sold in
connection with the making or collecting of a | 9 | | payday loan.
| 10 | | (12) Taking any power of attorney.
| 11 | | (13) Taking any security interest in real estate.
| 12 | | (14) Collecting a delinquency or collection charge on | 13 | | any installment
regardless of the period in which it | 14 | | remains in default.
| 15 | | (15) Collecting treble damages on an amount owing from | 16 | | a payday loan.
| 17 | | (16) Refusing, or intentionally delaying or
| 18 | | inhibiting, the consumer's right to enter into a repayment | 19 | | plan pursuant to this
Act. | 20 | | (17) Charging for, or attempting to
collect, | 21 | | attorney's fees, court costs, or arbitration costs | 22 | | incurred in connection with the
collection of a payday | 23 | | loan. | 24 | | (18) (Blank) Making a loan in violation of this Act . | 25 | | (19) Garnishing the wages or salaries of a consumer who | 26 | | is a member of the military. |
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| 1 | | (20) Failing to suspend or defer collection activity | 2 | | against a consumer who is a member of the military and who | 3 | | has been deployed to a combat or combat-support posting. | 4 | | (21) Contacting the military chain of command of a | 5 | | consumer who is a member of the military in an effort to | 6 | | collect on a payday loan.
| 7 | | (Source: P.A. 94-13, eff. 12-6-05.) | 8 | | (Text of Section after amendment by P.A. 96-936 ) | 9 | | Sec. 4-5. Prohibited acts. A licensee or unlicensed person | 10 | | or entity making payday
loans may not commit, or have committed | 11 | | on behalf of the
licensee
or unlicensed person or entity, any | 12 | | of the following acts: | 13 | | (1) Threatening to use or using the criminal process in | 14 | | this or any
other state to collect on the loan.
| 15 | | (2) Using any device or agreement that would have the | 16 | | effect of
charging or collecting more fees or charges than | 17 | | allowed by this
Act, including, but not limited to, | 18 | | entering into a different type of
transaction
with the | 19 | | consumer.
| 20 | | (3) Engaging in unfair, deceptive, or fraudulent | 21 | | practices in the
making or collecting of a payday loan.
| 22 | | (4) Using or attempting to use the check provided by | 23 | | the consumer in
a payday loan as collateral for a | 24 | | transaction not related to a payday loan.
| 25 | | (5) Knowingly accepting payment in whole or in part of |
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| 1 | | a payday
loan through the proceeds of another payday loan | 2 | | provided by any licensee, except
as provided in subsection | 3 | | (c) of Section 2.5.
| 4 | | (6) Knowingly accepting any security, other than that | 5 | | specified in the
definition of payday loan in Section 1-10, | 6 | | for a payday loan.
| 7 | | (7) Charging any fees or charges other than those | 8 | | specifically
authorized by this Act.
| 9 | | (8) Threatening to take any action against a consumer | 10 | | that is
prohibited by this Act or making any misleading or | 11 | | deceptive statements
regarding the payday loan or any | 12 | | consequences thereof.
| 13 | | (9) Making a misrepresentation of a material fact by an | 14 | | applicant for licensure in
obtaining or attempting to | 15 | | obtain a license.
| 16 | | (10) Including any of the following provisions in loan | 17 | | documents
required by subsection (b) of Section 2-20:
| 18 | | (A) a confession of judgment clause;
| 19 | | (B) a waiver of the right to a jury trial, if | 20 | | applicable, in any action
brought by or against a | 21 | | consumer, unless the waiver is included in an | 22 | | arbitration clause allowed under
subparagraph (C) of | 23 | | this paragraph (11);
| 24 | | (C) a mandatory arbitration clause that is | 25 | | oppressive, unfair,
unconscionable, or substantially | 26 | | in derogation of the rights of consumers; or
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| 1 | | (D) a provision in which the consumer agrees not to | 2 | | assert any claim
or defense arising out of the | 3 | | contract.
| 4 | | (11) Selling any insurance of any kind whether or not | 5 | | sold in
connection with the making or collecting of a | 6 | | payday loan.
| 7 | | (12) Taking any power of attorney.
| 8 | | (13) Taking any security interest in real estate.
| 9 | | (14) Collecting a delinquency or collection charge on | 10 | | any installment
regardless of the period in which it | 11 | | remains in default.
| 12 | | (15) Collecting treble damages on an amount owing from | 13 | | a payday loan.
| 14 | | (16) Refusing, or intentionally delaying or
| 15 | | inhibiting, the consumer's right to enter into a repayment | 16 | | plan pursuant to this
Act. | 17 | | (17) Charging for, or attempting to
collect, | 18 | | attorney's fees, court costs, or arbitration costs | 19 | | incurred in connection with the
collection of a payday | 20 | | loan. | 21 | | (18) (Blank) Making a loan in violation of this Act . | 22 | | (19) Garnishing the wages or salaries of a consumer who | 23 | | is a member of the military. | 24 | | (20) Failing to suspend or defer collection activity | 25 | | against a consumer who is a member of the military and who | 26 | | has been deployed to a combat or combat-support posting. |
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| 1 | | (21) Contacting the military chain of command of a | 2 | | consumer who is a member of the military in an effort to | 3 | | collect on a payday loan.
| 4 | | (22) (Blank) Making or offering to make any loan other | 5 | | than a payday loan or
a title-secured loan, provided | 6 | | however, that to make or offer to make a
title-secured | 7 | | loan, a licensee must obtain a license under the Consumer
| 8 | | Installment Loan Act . | 9 | | (Source: P.A. 96-936, eff. 3-21-11.)
| 10 | | Section 95. No acceleration or delay. Where this Act makes | 11 | | changes in a statute that is represented in this Act by text | 12 | | that is not yet or no longer in effect (for example, a Section | 13 | | represented by multiple versions), the use of that text does | 14 | | not accelerate or delay the taking effect of (i) the changes | 15 | | made by this Act or (ii) provisions derived from any other | 16 | | Public Act.".
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