Full Text of HB4210 95th General Assembly
HB4210 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB4210
Introduced , by Rep. Robert S. Molaro SYNOPSIS AS INTRODUCED: |
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Amends the Payday Loan Reform Act. Provides that no payday lender shall offer or make a consumer installment loan exceeding a double digit (99.99%) annual percentage rate from or upon the same location or premises as it offers or makes a payday loan. Provides that "payday loan" or "loan" means a loan with a finance charge exceeding a double digit (99.99%) annual percentage rate (instead of 36% for a term that does not exceed 120 days).
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A BILL FOR
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HB4210 |
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LRB095 15468 RLC 41461 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Payday Loan Reform Act is amended by | 5 |
| changing Section 1-10 as follows: | 6 |
| (815 ILCS 122/1-10)
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| Sec. 1-10. Definitions. As used in this Act: | 8 |
| "Check" means a "negotiable instrument", as defined in | 9 |
| Article 3 of the Uniform Commercial Code, that is drawn on a | 10 |
| financial institution. | 11 |
| "Commercially reasonable method of verification" or | 12 |
| "certified database" means a consumer reporting service | 13 |
| database certified by the Department as effective in verifying | 14 |
| that a proposed loan agreement is permissible under this Act, | 15 |
| or, in the absence of the Department's certification, any | 16 |
| reasonably reliable written verification by the consumer | 17 |
| concerning (i) whether the consumer has any outstanding payday | 18 |
| loans, (ii) the principal amount of those outstanding payday | 19 |
| loans, and (iii) whether any payday loans have been paid in | 20 |
| full by the consumer in the preceding 7 days. | 21 |
| "Consumer" means any natural person who, singly or jointly | 22 |
| with another consumer, enters into a loan. | 23 |
| "Consumer reporting service" means an entity that provides |
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HB4210 |
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LRB095 15468 RLC 41461 b |
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| a database certified by the Department. | 2 |
| "Department" means the Department of Financial and | 3 |
| Professional Regulation. | 4 |
| "Secretary" means the Secretary of Financial and | 5 |
| Professional Regulation. | 6 |
| "Gross monthly income" means monthly income as | 7 |
| demonstrated by official documentation of the income, | 8 |
| including, but not limited to, a pay stub or a receipt | 9 |
| reflecting payment of government benefits, for the period 30 | 10 |
| days prior to the date on which the loan is made. | 11 |
| "Lender" and "licensee" mean any person or entity, | 12 |
| including any affiliate or subsidiary of a lender or licensee, | 13 |
| that offers or makes a payday loan, buys a whole or partial | 14 |
| interest in a payday loan, arranges a payday loan for a third | 15 |
| party, or acts as an agent for a third party in making a payday | 16 |
| loan, regardless of whether approval, acceptance, or | 17 |
| ratification by the third party is necessary to create a legal | 18 |
| obligation for the third party, and includes any other person | 19 |
| or entity if the Department determines that the person or | 20 |
| entity is engaged in a transaction that is in substance a | 21 |
| disguised payday loan or a subterfuge for the purpose of | 22 |
| avoiding this Act. To avoid a transaction that is in substance | 23 |
| a disguised payday loan or subterfuge for the purpose of | 24 |
| avoiding this Act, no payday lender shall offer or make a | 25 |
| consumer installment loan exceeding a double digit (99.99%) | 26 |
| annual percentage rate, from or upon the same location or |
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HB4210 |
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LRB095 15468 RLC 41461 b |
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| premises as it offers or makes a payday loan. | 2 |
| "Loan agreement" means a written agreement between a lender | 3 |
| and consumer to make a loan to the consumer, regardless of | 4 |
| whether any loan proceeds are actually paid to the consumer on | 5 |
| the date on which the loan agreement is made. | 6 |
| "Member of the military" means a person serving in the | 7 |
| armed forces of the United States, the Illinois National Guard, | 8 |
| or any reserve component of the armed forces of the United | 9 |
| States. "Member of the military" includes those persons engaged | 10 |
| in (i) active duty, (ii) training or education under the | 11 |
| supervision of the United States preliminary to induction into | 12 |
| military service, or (iii) a period of active duty with the | 13 |
| State of Illinois under Title 10 or Title 32 of the United | 14 |
| States Code pursuant to order of the President or the Governor | 15 |
| of the State of Illinois. | 16 |
| "Outstanding balance" means the total amount owed by the | 17 |
| consumer on a loan to a lender, including all principal, | 18 |
| finance charges, fees, and charges of every kind. | 19 |
| "Payday loan" or "loan" means a loan with a finance charge | 20 |
| exceeding a double digit (99.99%) an annual percentage rate of | 21 |
| 36% and with a term that does not exceed 120 days , including | 22 |
| any transaction conducted via any medium whatsoever, | 23 |
| including, but not limited to, paper, facsimile, Internet, or | 24 |
| telephone, in which: | 25 |
| (1) A lender accepts one or more checks dated on the | 26 |
| date written and agrees to hold them for a period of days |
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LRB095 15468 RLC 41461 b |
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| before deposit or presentment, or accepts one or more | 2 |
| checks dated subsequent to the date written and agrees to | 3 |
| hold them for deposit; or | 4 |
| (2) A lender accepts one or more authorizations to | 5 |
| debit a consumer's bank account; or | 6 |
| (3) A lender accepts an interest in a consumer's wages, | 7 |
| including, but not limited to, a wage assignment. | 8 |
| "Principal amount" means the amount received by the | 9 |
| consumer from the lender due and owing on a loan, excluding any | 10 |
| finance charges, interest, fees, or other loan-related | 11 |
| charges. | 12 |
| "Rollover" means to refinance, renew, amend, or extend a | 13 |
| loan beyond its original term.
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| (Source: P.A. 94-13, eff. 12-6-05.)
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