Full Text of HB3177 98th General Assembly
HB3177 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3177 Introduced , by Rep. Robert Rita SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Installment Loan Act. Prohibits a licensee from refinancing a small consumer loan during the first 70 days (now, 75 days) of the loan term.
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| | A BILL FOR |
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| | | HB3177 | | LRB098 11175 OMW 41893 b |
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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 Consumer Installment Loan Act is amended by | 5 | | changing Section 17.3 as follows: | 6 | | (205 ILCS 670/17.3) | 7 | | Sec. 17.3. Small consumer loans; terms. | 8 | | (a) A small consumer loan shall be fully amortizing and be | 9 | | repayable in its entirety in a minimum of 6 substantially equal | 10 | | and consecutive payments with a period of not less than 180 | 11 | | days to maturity. | 12 | | (b) No licensee, or employee or affiliate thereof, may | 13 | | extend to or have open with a consumer more than one small | 14 | | consumer loan at any time; provided, however, that loans | 15 | | acquired by a licensee from another licensee are not included | 16 | | within this prohibition. | 17 | | (c) A licensee is prohibited from refinancing a small | 18 | | consumer loan during the first 70 75 days of the loan term. For | 19 | | purposes of this Act, a refinancing occurs when an existing | 20 | | small consumer loan is satisfied and replaced by a new small | 21 | | consumer loan made to the same consumer by the same licensee or | 22 | | any employee or affiliate of the licensee. | 23 | | (d) Except for the deferment charge permitted by item (5) |
| | | HB3177 | - 2 - | LRB098 11175 OMW 41893 b |
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| 1 | | of subsection (f) of Section 15, a licensee is prohibited from | 2 | | collecting any fee, charge, or remuneration of any sort for | 3 | | renewing, amending, or extending a small consumer loan beyond | 4 | | its original term. | 5 | | (e) Before entering into a small consumer loan agreement, a | 6 | | licensee must provide to the consumer a pamphlet, prepared by | 7 | | the Director, describing general information about consumer | 8 | | credit and about the consumer's rights and responsibilities in | 9 | | a small consumer loan transaction. Each small consumer loan | 10 | | agreement executed by a licensee shall include a statement, | 11 | | located just above the signature line for the consumer, and | 12 | | shall provide as follows: "In addition to agreeing to the terms | 13 | | of this agreement, I acknowledge, by my signature below, | 14 | | receipt from (name of lender) a pamphlet regarding small | 15 | | consumer loans.". | 16 | | (f) Each small consumer loan agreement entered into between | 17 | | a licensee and a consumer shall include a notification, in such | 18 | | loan agreement, of a toll-free number furnished by the | 19 | | Department of Financial and Professional Regulation, Division | 20 | | of Financial Institutions that the consumer may contact for the | 21 | | purpose of receiving information from the Division regarding | 22 | | credit or assistance with credit problems.
| 23 | | (Source: P.A. 96-936, eff. 3-21-11 .)
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