Full Text of HB3257 97th General Assembly
HB3257 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3257 Introduced 2/24/2011, by Rep. Robert W. Pritchard SYNOPSIS AS INTRODUCED: |
| 815 ILCS 122/2-51 new | | 815 ILCS 122/4-5 | | 815 ILCS 122/2-50 rep. | |
|
Amends the Payday Loan Reform Act. Provides that notwithstanding any other provision of law, a violation of any provision of Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007, Public Law 109-364, or any regulation adopted pursuant thereto shall be deemed to be a violation of the Payday Loan Reform Act. Strikes language regarding limiting collection efforts of payday loan lenders against consumers who are members of the military.
|
| |
| | A BILL FOR |
|
| | | HB3257 | | LRB097 10949 AEK 51532 b |
|
| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Payday Loan Reform Act is amended by | 5 | | changing Section 4-5 and by adding Section 2-51 as follows: | 6 | | (815 ILCS 122/2-51 new) | 7 | | Sec. 2-51. Violation of Federal law constitutes a violation | 8 | | of this Act with respect to practices concerning members of the | 9 | | military and their dependents. Notwithstanding any other | 10 | | provision of law, a violation of any provision of Section 670 | 11 | | of the John Warner National Defense Authorization Act for | 12 | | Fiscal Year 2007, Public Law 109-364, or any regulation adopted | 13 | | pursuant thereto shall be deemed to be a violation of this Act. | 14 | | (815 ILCS 122/4-5)
| 15 | | (Text of Section after amendment by P.A. 96-936 ) | 16 | | Sec. 4-5. Prohibited acts. A licensee or unlicensed person | 17 | | or entity making payday
loans may not commit, or have committed | 18 | | on behalf of the
licensee
or unlicensed person or entity, any | 19 | | of the following acts: | 20 | | (1) Threatening to use or using the criminal process in | 21 | | this or any
other state to collect on the loan.
| 22 | | (2) Using any device or agreement that would have the |
| | | HB3257 | - 2 - | LRB097 10949 AEK 51532 b |
|
| 1 | | effect of
charging or collecting more fees or charges than | 2 | | allowed by this
Act, including, but not limited to, | 3 | | entering into a different type of
transaction
with the | 4 | | consumer.
| 5 | | (3) Engaging in unfair, deceptive, or fraudulent | 6 | | practices in the
making or collecting of a payday loan.
| 7 | | (4) Using or attempting to use the check provided by | 8 | | the consumer in
a payday loan as collateral for a | 9 | | transaction not related to a payday loan.
| 10 | | (5) Knowingly accepting payment in whole or in part of | 11 | | a payday
loan through the proceeds of another payday loan | 12 | | provided by any licensee, except
as provided in subsection | 13 | | (c) of Section 2.5.
| 14 | | (6) Knowingly accepting any security, other than that | 15 | | specified in the
definition of payday loan in Section 1-10, | 16 | | for a payday loan.
| 17 | | (7) Charging any fees or charges other than those | 18 | | specifically
authorized by this Act.
| 19 | | (8) Threatening to take any action against a consumer | 20 | | that is
prohibited by this Act or making any misleading or | 21 | | deceptive statements
regarding the payday loan or any | 22 | | consequences thereof.
| 23 | | (9) Making a misrepresentation of a material fact by an | 24 | | applicant for licensure in
obtaining or attempting to | 25 | | obtain a license.
| 26 | | (10) Including any of the following provisions in loan |
| | | HB3257 | - 3 - | LRB097 10949 AEK 51532 b |
|
| 1 | | documents
required by subsection (b) of Section 2-20:
| 2 | | (A) a confession of judgment clause;
| 3 | | (B) a waiver of the right to a jury trial, if | 4 | | applicable, in any action
brought by or against a | 5 | | consumer, unless the waiver is included in an | 6 | | arbitration clause allowed under
subparagraph (C) of | 7 | | this paragraph (11);
| 8 | | (C) a mandatory arbitration clause that is | 9 | | oppressive, unfair,
unconscionable, or substantially | 10 | | in derogation of the rights of consumers; or
| 11 | | (D) a provision in which the consumer agrees not to | 12 | | assert any claim
or defense arising out of the | 13 | | contract.
| 14 | | (11) Selling any insurance of any kind whether or not | 15 | | sold in
connection with the making or collecting of a | 16 | | payday loan.
| 17 | | (12) Taking any power of attorney.
| 18 | | (13) Taking any security interest in real estate.
| 19 | | (14) Collecting a delinquency or collection charge on | 20 | | any installment
regardless of the period in which it | 21 | | remains in default.
| 22 | | (15) Collecting treble damages on an amount owing from | 23 | | a payday loan.
| 24 | | (16) Refusing, or intentionally delaying or
| 25 | | inhibiting, the consumer's right to enter into a repayment | 26 | | plan pursuant to this
Act. |
| | | HB3257 | - 4 - | LRB097 10949 AEK 51532 b |
|
| 1 | | (17) Charging for, or attempting to
collect, | 2 | | attorney's fees, court costs, or arbitration costs | 3 | | incurred in connection with the
collection of a payday | 4 | | loan. | 5 | | (18) (Blank). Making a loan in violation of this Act. | 6 | | (19) (Blank). Garnishing the wages or salaries of a | 7 | | consumer who is a member of the military. | 8 | | (20) (Blank). Failing to suspend or defer collection | 9 | | activity against a consumer who is a member of the military | 10 | | and who has been deployed to a combat or combat-support | 11 | | posting. | 12 | | (Blank). (21) Contacting the military chain of command | 13 | | of a consumer who is a member of the military in an effort | 14 | | to collect on a payday loan.
| 15 | | (22) Making or offering to make any loan other than a | 16 | | payday loan or
a title-secured loan, provided however, that | 17 | | to make or offer to make a
title-secured loan, a licensee | 18 | | must obtain a license under the Consumer
Installment Loan | 19 | | Act. | 20 | | (Source: P.A. 96-936, eff. 3-21-11.) | 21 | | (815 ILCS 122/2-50 rep.) | 22 | | Section 10. The Payday Loan Reform Act is amended by | 23 | | repealing Section 2-50.
|
|