Full Text of HB3935 97th General Assembly
HB3935enr 97TH GENERAL ASSEMBLY |
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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 20 as follows:
| 6 | | (205 ILCS 670/20) (from Ch. 17, par. 5426)
| 7 | | Sec. 20. Penalties for violation.
| 8 | | (a) Any person who engages in business as a Consumer | 9 | | Installment Loan
lender without the license required by this | 10 | | Act shall be guilty of a Class 4
felony.
| 11 | | (b) The obligor, prior to
the expiration of 2 years after | 12 | | the date of his last scheduled payment, may
recover such | 13 | | reasonable attorney's fees and court costs as a
court may | 14 | | assess against such licensee or lender for a violation of | 15 | | Sections
1, 12, 15, 15a, 15b, 15d, 15e, 16, 17, 18, or 19.1. | 16 | | The balance due under the
terms of the loan contract shall be | 17 | | reduced by the amount which the obligor is
thus entitled to | 18 | | recover. A bona fide error by a licensee in calculating
charges | 19 | | or rebates is not a violation if the licensee corrects the | 20 | | error within
a reasonable time, after discovery.
| 21 | | (b-5) A license issued under this Act may be revoked if the | 22 | | licensee, or
any directors, managers of a limited liability | 23 | | company, partners, or officer
thereof is convicted of a felony.
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| 1 | | (c) No provision of this Section imposing any liability | 2 | | shall apply to
any act done or omitted in conformity with any | 3 | | rule or regulation or written
interpretation thereof by the | 4 | | Department of Financial and Professional Regulation, Division | 5 | | of Financial Institutions,
notwithstanding that after such act
| 6 | | or omission has occurred, such rule, regulation or | 7 | | interpretation is amended,
rescinded or determined by judicial | 8 | | or other authority to be invalid for any
reason. All | 9 | | interpretations issued after January 1, 1998 must be written | 10 | | and
signed by the Department's Chief Counsel and approved by | 11 | | the Director.
| 12 | | (d) Notwithstanding any other provision of this Section, if | 13 | | any person who does not have a license issued under this Act | 14 | | makes a loan pursuant to this Act to an Illinois consumer, then | 15 | | the loan shall be null and void and the person who made the | 16 | | loan shall have no right to collect, receive, or retain any | 17 | | principal, interest, or charges related to the loan. | 18 | | (Source: P.A. 90-437, eff. 1-1-98.)
| 19 | | Section 10. The Payday Loan Reform Act is amended by | 20 | | changing Section 4-10 as follows: | 21 | | (815 ILCS 122/4-10)
| 22 | | Sec. 4-10. Enforcement and remedies. | 23 | | (a) The remedies provided in this Act are cumulative and | 24 | | apply to persons
or entities subject to this Act.
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| 1 | | (b) Any material violation of this Act, including the | 2 | | commission of an act prohibited under Section 4-5, constitutes | 3 | | a violation of the Consumer Fraud
and Deceptive Business | 4 | | Practices Act.
| 5 | | (c) If any provision of the written agreement described in | 6 | | subsection (b) of
Section 2-20 violates this Act, then that | 7 | | provision is unenforceable against the consumer. | 8 | | (d) Subject to the Illinois Administrative Procedure Act, | 9 | | the Secretary may hold hearings, make findings of fact, | 10 | | conclusions of law, issue cease
and desist orders, have the | 11 | | power to issue fines of up to $10,000 per violation, refer the | 12 | | matter to the appropriate law enforcement agency
for | 13 | | prosecution under this Act, and suspend or revoke a license | 14 | | granted
under this Act. All proceedings shall be open to the | 15 | | public. | 16 | | (e) The Secretary may issue a cease and desist order to any | 17 | | licensee or other person doing business without the required | 18 | | license, when in the opinion of the Secretary the licensee or | 19 | | other person is violating or is about to violate any provision | 20 | | of this Act or any rule or requirement imposed in writing by | 21 | | the Department as a condition of granting any authorization | 22 | | permitted by this Act. The cease and desist order permitted by | 23 | | this subsection (e) may be issued prior to a hearing. | 24 | | The Secretary shall serve notice of his or her action, | 25 | | including, but not limited to, a statement of the reasons for | 26 | | the action, either personally or by certified mail, return |
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| 1 | | receipt requested. Service by certified mail shall be deemed | 2 | | completed when the notice is deposited in the U.S. Mail. | 3 | | Within 10 days of service of the cease and desist order, | 4 | | the licensee or other person may request a hearing in writing.
| 5 | | The Secretary shall schedule a hearing within 30 days after the | 6 | | request for a hearing unless otherwise agreed to by the | 7 | | parties. | 8 | | If it is determined that the Secretary had the authority to | 9 | | issue the cease and desist order, he or she may issue such | 10 | | orders as may be reasonably necessary to correct, eliminate, or | 11 | | remedy the conduct. | 12 | | The powers vested in the Secretary by this subsection (e) | 13 | | are additional to any and all other powers and remedies vested | 14 | | in the Secretary by law, and nothing in this subsection (e) | 15 | | shall be construed as requiring that the Secretary shall employ | 16 | | the power conferred in this subsection instead of or as a | 17 | | condition precedent to the exercise of any other power or | 18 | | remedy vested in the Secretary. | 19 | | (f) The Secretary may, after 10 days notice by registered | 20 | | mail to the licensee at the address set forth in the license | 21 | | stating the contemplated action and in general the grounds | 22 | | therefore, fine the licensee an amount not exceeding $10,000 | 23 | | per violation, or revoke or suspend any license issued | 24 | | hereunder if he or she finds that: | 25 | | (1) the licensee has failed to comply with any | 26 | | provision of this Act or any order, decision, finding, |
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| 1 | | rule, regulation, or direction of the Secretary lawfully | 2 | | made pursuant to the authority of this Act; or | 3 | | (2) any fact or condition exists which, if it had | 4 | | existed at the time of the original application for the | 5 | | license, clearly would have warranted the Secretary in | 6 | | refusing to issue the license. | 7 | | The Secretary may fine, suspend, or revoke only the | 8 | | particular license with respect to which grounds for the fine, | 9 | | revocation, or suspension occur or exist, but if the Secretary | 10 | | finds that grounds for revocation are of general application to | 11 | | all offices or to more than one office of the licensee, the | 12 | | Secretary shall fine, suspend, or revoke every license to which | 13 | | the grounds apply. | 14 | | No revocation, suspension, or surrender of any license | 15 | | shall impair or affect the obligation of any pre-existing | 16 | | lawful contract between the licensee and any obligor. | 17 | | The Secretary may issue a new license to a licensee whose | 18 | | license has been revoked when facts or conditions which clearly | 19 | | would have warranted the Secretary in refusing originally to | 20 | | issue the license no longer exist. | 21 | | In every case in which a license is suspended or revoked or | 22 | | an application for a license or renewal of a license is denied, | 23 | | the Secretary shall serve the licensee with notice of his or | 24 | | her action, including a statement of the reasons for his or her | 25 | | actions, either personally, or by certified mail, return | 26 | | receipt requested. Service by certified mail shall be deemed |
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| 1 | | completed when the notice is deposited in the U.S. Mail. | 2 | | An order assessing a fine, an order revoking or suspending | 3 | | a license, or an order denying renewal of a license shall take | 4 | | effect upon service of the order unless the licensee requests a | 5 | | hearing, in writing, within 10 days after the date of service. | 6 | | In the event a hearing is requested, the order shall be stayed | 7 | | until a final administrative order is entered. | 8 | | If the licensee requests a hearing, the Secretary shall | 9 | | schedule a hearing within 30 days after the request for a | 10 | | hearing unless otherwise agreed to by the parties. | 11 | | The hearing shall be held at the time and place designated | 12 | | by the Secretary. The Secretary and any administrative law | 13 | | judge designated by him or her shall have the power to | 14 | | administer oaths and affirmations, subpoena witnesses and | 15 | | compel their attendance, take evidence, and require the | 16 | | production of books, papers, correspondence, and other records | 17 | | or information that he or she considers relevant or material to | 18 | | the inquiry. | 19 | | (g) The costs of administrative hearings conducted | 20 | | pursuant to this Section shall be paid by the licensee.
| 21 | | (h) Notwithstanding any other provision of this Section, if | 22 | | a lender who does not have a license issued under this Act | 23 | | makes a loan pursuant to this Act to an Illinois consumer, then | 24 | | the loan shall be null and void and the lender who made the | 25 | | loan shall have no right to collect, receive, or retain any | 26 | | principal, interest, or charges related to the loan. |
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| 1 | | (Source: P.A. 94-13, eff. 12-6-05.)
| 2 | | Section 99. Effective date. This Act takes effect January | 3 | | 1, 2013.
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