Full Text of HB4873 100th General Assembly
HB4873 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4873 Introduced , by Rep. Lou Lang SYNOPSIS AS INTRODUCED: |
| 815 ILCS 122/2-10 | | 815 ILCS 122/2-15 | |
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Amends the Payday Loan Reform Act. Authorizes a lender to charge a borrower for the verification that the proposed loan agreement is permissible: a fee not to exceed $1 for a payday loan or a fee not to exceed $1 for each month that a balance is scheduled to be outstanding on an installment payday loan (rather than a fee not to exceed $1). Authorizes a certified consumer reporting service to charge the following verification fees upon a loan being made or entered into a certified database: a fee not to exceed $1 for a payday loan or a fee not to exceed $1 for each month that a balance is scheduled to be outstanding on an installment payday loan (rather than a fee not to exceed $1). Effective immediately.
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| | A BILL FOR |
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| 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 Sections 2-10 and 2-15 as follows: | 6 | | (815 ILCS 122/2-10)
| 7 | | Sec. 2-10. Permitted fees. | 8 | | (a) If there are insufficient funds to pay a check, | 9 | | Automatic Clearing House (ACH) debit, or any other item | 10 | | described in the definition of payday loan under Section 1-10 | 11 | | on the day of presentment and only after the lender has | 12 | | incurred an expense, a lender may charge a fee not to exceed | 13 | | $25. Only one such fee may be collected by the lender with | 14 | | respect to a particular check, ACH debit, or item even if it | 15 | | has been deposited and returned more than once. A lender shall | 16 | | present the check, ACH debit, or other item described in the | 17 | | definition of payday loan under Section 1-10 for payment not | 18 | | more than twice. A fee charged under this subsection (a) is a | 19 | | lender's exclusive charge for late payment. | 20 | | (a-5) A lender may charge a borrower the following fees a | 21 | | fee not to exceed $1 for the
verification required under | 22 | | Section 2-15 of this Act : (1) a fee not to exceed $1 for a | 23 | | payday loan or (2) a fee not to exceed $1 for each month that a |
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| 1 | | balance is scheduled to be outstanding on an installment payday | 2 | | loan. In no event may a fee be greater than the amount charged | 3 | | by the certified consumer reporting service . Only one such fee | 4 | | may
be collected by the lender with respect to a particular | 5 | | loan. | 6 | | (b) Except for the finance charges described in Section 2-5 | 7 | | and as specifically allowed by this Section, a lender may not | 8 | | impose on a consumer any additional finance charges, interest, | 9 | | fees, or charges of any sort for any purpose.
| 10 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 11 | | (815 ILCS 122/2-15)
| 12 | | Sec. 2-15. Verification. | 13 | | (a) Before entering into a loan agreement with a consumer, | 14 | | a lender must use a commercially reasonable method of | 15 | | verification to verify that the proposed loan agreement is | 16 | | permissible under this Act. | 17 | | (b) Within 6 months after the effective date of this Act, | 18 | | the Department shall certify that one or more consumer | 19 | | reporting service databases are commercially reasonable | 20 | | methods of verification. Upon certifying that a consumer | 21 | | reporting service database is a commercially reasonable method | 22 | | of verification, the Department shall:
| 23 | | (1) provide reasonable notice to all licensees | 24 | | identifying the commercially reasonable methods of | 25 | | verification that are available; and
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| 1 | | (2) immediately upon certification, require each | 2 | | licensee to use a commercially reasonable method of | 3 | | verification as a means of complying with subsection (a) of | 4 | | this Section. | 5 | | (c) Except as otherwise provided in this Section, all | 6 | | personally identifiable information regarding any consumer | 7 | | obtained by way of the certified database and maintained by the | 8 | | Department is strictly confidential and shall be exempt from | 9 | | disclosure under Section 7(1)(b)(i) of the Freedom of | 10 | | Information Act. | 11 | | (d) Notwithstanding any other provision of law to the | 12 | | contrary, a consumer seeking a payday loan may make a direct | 13 | | inquiry to the consumer reporting service to request a more | 14 | | detailed explanation of the basis for a consumer reporting | 15 | | service's determination that the consumer is ineligible for a | 16 | | new payday loan. | 17 | | (e) In certifying a commercially reasonable method of | 18 | | verification, the Department shall ensure that the certified | 19 | | database: | 20 | | (1) provides real-time access through an Internet | 21 | | connection or, if real-time access through an Internet | 22 | | connection becomes unavailable to lenders due to a consumer | 23 | | reporting service's technical problems incurred by the | 24 | | consumer reporting service, through alternative | 25 | | verification mechanisms, including, but not limited to, | 26 | | verification by telephone; |
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| 1 | | (2) is accessible to the Department and to licensees in | 2 | | order to ensure
compliance with this Act and in order to | 3 | | provide any other information that the Department deems | 4 | | necessary; | 5 | | (3) requires licensees to input whatever information | 6 | | is required by the Department; | 7 | | (4) maintains a real-time copy of the required | 8 | | reporting information that is available to the Department | 9 | | at all times and is the property of the Department; | 10 | | (5) provides licensees only with a statement that a | 11 | | consumer is eligible or ineligible for a new payday loan | 12 | | and a description of the reason for the determination; and | 13 | | (6) contains safeguards to ensure that all information | 14 | | contained in the database regarding consumers is kept | 15 | | strictly confidential.
| 16 | | (f) The licensee shall update the certified database by | 17 | | inputting all information required under item (3) of subsection | 18 | | (e): | 19 | | (1) on the same day that a payday loan is made; | 20 | | (2) on the same day that a consumer elects a repayment | 21 | | plan, as provided in Section 2-40; and | 22 | | (3) on the same day that a consumer's payday loan is | 23 | | paid in full,
including the refinancing of an installment | 24 | | payday loan as permitted under subsection (c) of
Section | 25 | | 2-5. | 26 | | (g) A licensee may rely on the information contained in the |
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| 1 | | certified database as accurate and is not subject to any | 2 | | administrative penalty or liability as a result of relying on | 3 | | inaccurate information contained in the database. | 4 | | (h) The certified consumer reporting service shall | 5 | | indemnify the licensee against all claims and actions arising | 6 | | from illegal or willful or wanton acts on the part of the | 7 | | certified consumer reporting service.
| 8 | | (i) The certified consumer reporting service may charge the | 9 | | following a verification fees
fee not to exceed $1 upon a loan | 10 | | being made or entered into in the
database : (1) a fee not to | 11 | | exceed $1 for a payday loan or (2) a fee not to exceed $1 for | 12 | | each month that a balance is scheduled to be outstanding on an | 13 | | installment payday loan . The certified consumer reporting | 14 | | service shall not charge any
additional fees or charges. | 15 | | (Source: P.A. 96-936, eff. 3-21-11 .)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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