Full Text of HB2660 99th General Assembly
HB2660 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB2660 Introduced , by Rep. Robert Rita SYNOPSIS AS INTRODUCED: |
| 205 ILCS 675/3 | | 205 ILCS 675/4 | from Ch. 17, par. 7004 | 205 ILCS 675/6 | from Ch. 17, par. 7006 |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Financial Services Development Act | 5 | | is 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 | 9 | | office or, after May 31, 1997, a branch in this State, any | 10 | | state or
federal savings and loan
association or savings bank | 11 | | with its main office or branch in this State,
any state or | 12 | | federal credit
union with its main office in this State, and | 13 | | any lender licensed under the
Consumer Installment Loan Act or | 14 | | the Sales Finance Agency Act; provided, however, that lenders | 15 | | licensed under the Consumer Installment Loan Act or the Sales | 16 | | Finance Agency Act are prohibited from charging an annual | 17 | | percentage rate interest in excess of 36% per annum for any | 18 | | extension of credit under this Act.
| 19 | | (b) "Revolving credit plan" or "plan" means a plan | 20 | | contemplating the
extension of credit under an account governed | 21 | | by an agreement between a
financial institution and a borrower | 22 | | who 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 | 18 | | code or other
means of identification contemplated by the | 19 | | agreement governing the plan.
| 20 | | (d) "Outstanding unpaid indebtedness" means on any day an | 21 | | amount not in
excess of the total amount of purchases and loans | 22 | | charged to the borrower's
account under the plan which is | 23 | | outstanding and unpaid at the end of the day,
after adding the | 24 | | aggregate amount of any new purchases and loans charged to
the | 25 | | account as of that day and deducting the aggregate amount of | 26 | | any
payments and credits applied to that indebtedness as of |
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| 1 | | that day and, if
the agreement governing the plan so provides, | 2 | | may include the amount of any
billed and unpaid interest and | 3 | | other charges.
| 4 | | (e) "Credit card" means any instrument or device, whether | 5 | | known as a credit card, credit device, credit plate, charge | 6 | | plate, or any other name, issued with or without fee by an | 7 | | issuer for the use of the borrower in obtaining money, goods, | 8 | | services, or anything else of value on credit, but does not | 9 | | include any negotiable instrument as defined in the Uniform | 10 | | Commercial Code, as now or hereafter amended, or a debit card | 11 | | that may indirectly access an overdraft line of credit through | 12 | | a debit to a deposit account. | 13 | | (f) "Credit card account" means a revolving credit plan | 14 | | accessed by a credit card. | 15 | | (Source: P.A. 96-936, eff. 3-21-11; 96-1193, eff. 7-22-10; | 16 | | 97-333, 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
| 19 | | connection with revolving credit plans, any financial | 20 | | institution may,
subject to the other provisions of this | 21 | | Section 4 , offer and extend credit
under a revolving credit | 22 | | plan to a borrower and in connection therewith may
charge and | 23 | | collect interest and other charges, provided that any finance | 24 | | charges or charges representing the cost of credit are included | 25 | | in the annual percentage rate calculation, may take real and |
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| 1 | | personal
property as security therefor , and may provide in the | 2 | | agreement governing
the revolving credit plan for such other
| 3 | | terms and conditions as the financial institution and borrower | 4 | | may agree
upon from time to time. A financial institution | 5 | | offering or soliciting a
revolving credit plan involving a | 6 | | credit card, or extending credit pursuant
to the use of a | 7 | | credit card under any such plan, shall comply with
provisions | 8 | | of "An Act relating to the issuance and use of credit cards",
| 9 | | approved 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 | 13 | | rate or
rates as provided in Section 5, and without limitation | 14 | | of the foregoing
Section 4, a financial institution may, if the | 15 | | agreement governing the
revolving credit plan so provides and | 16 | | clearly discloses , charge and collect as interest, in such
| 17 | | manner or form as the plan
may provide, an annual or other | 18 | | periodic fee for the privileges made
available to the borrower | 19 | | under the plan, a transaction charge or charges,
late fees or | 20 | | delinquency charges not to exceed $25 per billing cycle , | 21 | | returned payment charges not to exceed $25 per payment due , | 22 | | over limit
charges not to exceed $25 per billing cycle, and | 23 | | fees for services rendered.
| 24 | | (Source: P.A. 85-1432.)
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