(205 ILCS 660/1) (from Ch. 17, par. 5201)
Sec. 1.
This Act shall be known and may be cited as the Sales Finance Agency Act.
(Source: Laws 1967, p. 2062.)
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(205 ILCS 660/2) (from Ch. 17, par. 5202)
Sec. 2.
Definitions.
In this Act, unless the context otherwise requires:
"Sales finance agency" means a person, irrespective of his or her state of
domicile or place of business, engaged in this State, in
whole or in part, in the business of purchasing, or making loans secured
by, retail installment contracts, retail charge agreements or the
outstanding balances under such contracts or agreements entered into in this
State.
"Holder" of a retail installment contract or a retail charge
agreement means the retail seller of the goods or services under the
contract or charge agreement, or if the outstanding balances thereunder are
purchased by or transferred as security to a sales finance agency or other
assignee, the sales finance agency or other assignee.
"Person" means an individual, corporation, partnership, limited liability
company, joint venture, or any other form of business association.
"Department" means the Department of Financial Institutions.
"Director" means the Director of Financial Institutions.
"Motor Vehicle Retail Installment Sales Act" and "Retail
Installment Sales Act" refer to the Acts having those titles enacted by
the 75th General Assembly.
"Retail installment contract" and "retail charge agreement" have the
meanings ascribed to them in the Motor Vehicle Retail Installment Sales Act
and the Retail Installment Sales Act.
"Special purpose vehicle" means an entity that, in connection with a
securitization, private placement, or similar type of investment transaction,
is
administered by a State or national bank under a management agreement for the
purpose of purchasing, making loans against, or in pools of, receivables,
general intangibles, and other financial assets including retail installment
contracts, retail charge agreements, or the outstanding balances or any
portion of the outstanding balances under those
contracts or agreements.
"Net Worth" means total assets minus total liabilities.
(Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)
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(205 ILCS 660/3) (from Ch. 17, par. 5203)
Sec. 3.
No person may engage in the business of a sales finance agency in
this State without first obtaining a license as provided in this Act. A
licensee under the Consumer Installment Loan Act may
engage in the business of a sales finance agency without securing a license
under this Act.
A Consumer Installment Loan Act licensee engaged in the business of a sales
finance agency is required to comply with this Act and violations of this Act
may result in penalties, revocation of the licensee's authority to engage in
sales finance agency activity, or revocation or suspension of the Consumer
Installment Loan Act license.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/4) (from Ch. 17, par. 5204)
Sec. 4.
After December 31, 1967, a person who is required to be licensed
under this Act must display at each of his places of business a
non-transferable and non-assignable license. A licensee who operates more
than one place of business may obtain additional licenses upon compliance
with this Act as to each place of business. Application for a license must
be on a form prescribed and furnished by the Department. A licensee may
move his place or places of business from one location to another within a
county without obtaining a new license if he gives the Department at least
10 days' prior written notice of the relocation.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/5) (from Ch. 17, par. 5205)
Sec. 5.
If a licensee fails to renew his or her license by the 31st day of
December, it shall automatically expire and the licensee is not entitled to a
hearing; however, the Director in his or her discretion, may reinstate an
expired
license upon payment of the annual renewal fee and proof of good cause for
failure to renew.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/6) (from Ch. 17, par. 5206)
Sec. 6.
A license fee of $300 for the applicant's principal place of
business and $100 for each additional place of business for which a license is
sought must be submitted with an application for license made before July 1 of
any year. If application for a license is made on July 1 or thereafter, a
license fee of $150 for the principal place of business and of $50 for each
additional place of business must accompany the application. Each license
remains in force until surrendered, suspended, or revoked. If the application
for license is denied, the original license fee shall be retained by the State
in reimbursement of its costs of investigating that application.
Before the license is granted, the applicant shall prove in form satisfactory
to the Director, that the applicant has a positive net worth of a minimum of
$30,000.
A licensee must pay to the Department, and the Department must receive,
by December 1 of each year, the renewal license application on forms
prescribed by the Director and
$300 for the license for his principal place of business and $100 for each
additional license held as a renewal license fee for the succeeding
calendar year.
(Source: P.A. 92-398, eff. 1-1-02.)
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(205 ILCS 660/6.1)
Sec. 6.1.
All moneys received by the Department of Financial Institutions
under this Act shall be deposited in the Financial Institution Fund created
under Section 6z-26 of the State Finance Act.
(Source: P.A. 98-463, eff. 8-16-13.)
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(205 ILCS 660/7) (from Ch. 17, par. 5207)
Sec. 7.
The Department shall examine each licensee annually to determine if
it is in compliance with this Act. The expense of this annual examination shall
be
paid to the Department by the licensee in accordance with a schedule of
fees established by the Department as reasonably reflecting the actual cost
of the examination.
In addition, the Department may charge all licensees in
accordance with its schedule of fees for the examinations or
re-examinations made pursuant to Section 11 of this Act. This expense and
cost of examination is in addition to the license fees.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8) (from Ch. 17, par. 5208) Sec. 8. The Department may deny an application for a license, deny an application for renewal of a license, or suspend or revoke a license on any of the grounds listed in Sections 8.1 through 8.14 and the Financial Institutions Act.(Source: P.A. 103-1014, eff. 8-9-24.) |
(205 ILCS 660/8.1) (from Ch. 17, par. 5209)
Sec. 8.1.
Material misstatement in the application or renewal,
in any form prescribed by the Director for the renewal of
a license, or in any amendment made to the application.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.2) (from Ch. 17, par. 5210)
Sec. 8.2.
Violating or aiding any person in the violation
of this Act or any rule or regulation promulgated by the Director.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.3) (from Ch. 17, par. 5211)
Sec. 8.3.
Aiding or conspiring to aid any person in the violation
of the Retail Installment Sales Act or of the Motor Vehicle Retail
Installment Sales Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.4) (from Ch. 17, par. 5212)
Sec. 8.4.
Except for an honest mistake, purchase of any retail contract,
retail charge agreement, or evidence of indebtedness thereunder, that on
its face violates this Act, the Retail Installment Sales Act or the Motor
Vehicle Retail Installment Sales Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.5) (from Ch. 17, par. 5213)
Sec. 8.5.
Purchase of any retail contract, retail charge agreement, or
evidence of indebtedness thereunder after actual knowledge that the
contract, agreement or evidence of indebtedness violates this Act, the
Retail Installment Sales Act or the Motor Vehicle Retail Installment
Sales Act.
(Source: Laws 1967, p. 2062.)
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(205 ILCS 660/8.6) (from Ch. 17, par. 5214)
Sec. 8.6.
Use of collection process that violates any of the
laws of this
State with respect to garnishment, wage deduction orders or wage
assignments.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.7) (from Ch. 17, par. 5215)
Sec. 8.7.
(Repealed).
(Source: Laws 1967, p. 2062. Repealed by P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.8) (from Ch. 17, par. 5216)
Sec. 8.8.
Conviction in a criminal matter or final judgment in a
civil action of
defrauding another person.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.9) (from Ch. 17, par. 5217)
Sec. 8.9.
Fraud, misrepresentation, or
concealment by the
licensee of material facts that are required to be disclosed to a
retail buyer under the Retail Installment Sales Act or the Motor
Vehicle Retail Installment Sales Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.10) (from Ch. 17, par. 5218)
Sec. 8.10.
Conducting business as a sales
finance agency,
bank, savings and loan association, consumer finance company, or credit
union, under the laws of this or any other State or of the United States of
America, when the license to conduct that business has been
cancelled, revoked, suspended or denied
for reasons other than failure to pay the required fees for that license.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.11) (from Ch. 17, par. 5219)
Sec. 8.11.
Purchase of a retail installment contract creating or providing
for a security interest in a motor vehicle that qualifies as consumer goods
under the Uniform Commercial Code, or purchase of the evidence of
indebtedness under such a contract, from a person who is not licensed under
the Illinois Vehicle Code, not licensed under this Act, and not exempt from
licensure under this Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.12) (from Ch. 17, par. 5220)
Sec. 8.12.
Ownership by the applicant or licensee or by a shareholder,
partner or beneficiary thereof of a substantial or controlling interest in
the business of a retail seller from which it purchases any retail
contracts, retail charge agreements or evidences of indebtedness unless the
retail contracts, retail charge agreements or evidences of indebtedness
used in the retail installment transaction provide expressly and
prominently that all defenses of the retail buyer may be asserted equally
against the sales finance agency and the retail seller involved in the
transaction.
(Source: Laws 1967, p. 2062.)
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(205 ILCS 660/8.13) (from Ch. 17, par. 5221)
Sec. 8.13.
Failure to maintain a positive net worth of $30,000 without
having
access to sources of funding approved by the Director.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/8.14)
Sec. 8.14.
Conviction of a felony.
Conviction of a felony of any
applicant or licensee, or of any
partner, manager of a limited liability company, officer, or director of a
sales finance agency.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/9) (from Ch. 17, par. 5222)
Sec. 9.
(Repealed).
(Source: Laws 1967, p. 2062. Repealed by P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/10) (from Ch. 17, par. 5223)
Sec. 10.
Denial, revocation, fine, or suspension of license.
(a) The Director may revoke or suspend a license or fine a
licensee if the licensee violates
any provisions of this Act.
(b) In every case in which a license is revoked or suspended, a licensee
is fined, or an
application for a license or renewal of a license is denied, the Director shall
serve notice of his or her action, including a statement of the reasons for the
action
either personally or by certified mail, return receipt requested. Service by
certified mail shall be deemed completed when the notice is deposited in the
U.S. mail.
(c) An order revoking or suspending a license or an order denying renewal of
a license shall take effect upon service of the order, unless the licensee
requests, in writing, within 10 days after the date of service, a hearing. In
the event a hearing is requested, the order shall be stayed until a final
administrative order is entered.
(d) If the licensee requests a hearing, the Director shall schedule a
hearing within 30 days after the request for a hearing unless otherwise agreed
to by the parties.
(e) The hearing shall be held at the time and place designated by the
Director. The Director and any administrative law judge designated by him or
her shall have the power to administer oaths and affirmations, subpoena
witnesses and compel their attendance, take evidence, and require the
production of books, papers, correspondence, and other records or information
that he or she considers relevant or material to the inquiry.
(f) The costs for the administrative hearing shall be set by rule.
(g) The Director shall have the authority to prescribe rules for the
administration of this Section.
(Source: P.A. 92-398, eff. 1-1-02.)
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(205 ILCS 660/10.1) (from Ch. 17, par. 5224)
Sec. 10.1.
The Department may suspend or revoke only the particular license
with respect to which grounds exist, but if it finds that
those grounds are of general application to all offices or to more than one
office of the licensee, the Department shall suspend or revoke every
license to which those grounds apply.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/10.2) (from Ch. 17, par. 5225)
Sec. 10.2.
Closing of business; surrender of license.
At least 10 days
prior to a licensee ceasing operations, closing business, or filing for
bankruptcy, the licensee shall:
(a) Notify the Department of its action in writing.
(b) With the exception of filing for bankruptcy, surrender its license
to the Director for cancellation. The surrender
of the license shall not affect the licensee's civil or criminal liability for
acts committed prior to surrender or entitle the licensee to a return of any
part of the annual license fee.
(c) The licensee shall notify the department of the location where the
books, accounts, contracts, and records will be maintained and the procedure to
ensure prompt return of contracts, titles, and releases to the customers.
(d) The accounts, books, records, and contracts shall be maintained and
serviced by the licensee or another licensee under this Act, or an entity
exempt from licensure under this Act.
(e) The Department shall have the authority to conduct examinations of the
books, records, and loan documents at any time after surrender of the license,
filing of bankruptcy, or the cessation of operations.
(Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.)
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(205 ILCS 660/10.3) (from Ch. 17, par. 5226)
Sec. 10.3.
No suspension, revocation or surrender of a license issued under
this Act impairs or affects the obligation of any retail installment
contract, retail charge agreement or evidence of indebtedness acquired
previously thereto by the licensee.
(Source: Laws 1967, p. 2062.)
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(205 ILCS 660/10.4) (from Ch. 17, par. 5227)
Sec. 10.4.
The Department may issue a new license to a licensee whose
license has been revoked when facts or conditions which clearly would have
warranted the Department in refusing originally to issue the license no
longer exist.
(Source: Laws 1967, p. 2062.)
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(205 ILCS 660/10.5) (from Ch. 17, par. 5228)
Sec. 10.5.
(Repealed).
(Source: Laws 1967, p. 2062. Repealed by P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/10.6) Sec. 10.6. Companion animals. (a) No sales finance agency shall purchase: (1) a retail installment contract for the sale of a | ||
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(2) a retail charge agreement for the sale of a | ||
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(3) the outstanding balance under a retail | ||
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(b) No sales finance agency shall make a loan secured by: (1) a retail installment contract for the sale of a | ||
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(2) a retail charge agreement for the sale of a | ||
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(3) the outstanding balance under a retail | ||
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(c) Any sales finance agency that purchases a contract or agreement subject to subsection (a) or makes a loan subject to subsection (b) has no right to collect, receive, or retain any principal, interest, or charges related to the contract, agreement, or loan, and any such loan is null and void. (d) The changes made to this Section by this amendatory Act of the 103rd General Assembly shall apply prospectively and shall not apply retroactively. This Section shall not impair or affect the obligation of any retail installment transaction or secured loan entered into before the effective date of this amendatory Act of the 103rd General Assembly.
(Source: P.A. 102-128, eff. 1-1-22; 103-339, eff. 1-1-24.) |
(205 ILCS 660/11) (from Ch. 17, par. 5229)
Sec. 11.
For the purpose of discovering violations of this Act or securing
information lawfully required by it, the Department may at any
time investigate the business and examine the books, accounts, records, and
files of any person acting as a sales finance agency without a license.
In connection with this investigation the Department may examine
witnesses under oath and subpoena the production of books and
papers
pertinent to the investigation. The Director may administer oaths in these
investigations or at
any hearing held under this Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/12) (from Ch. 17, par. 5230)
Sec. 12.
Every licensee shall retain such records
as are required by the Department. Every licensee shall preserve the records
of each of its transactions for at least 2 years after making the final
entry for that transaction.
With the Director's approval, a licensee may maintain these records at a
location other than the licensed facility.
With the Director's approval, a licensee may contract for servicing of these
accounts.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/13) (from Ch. 17, par. 5231)
Sec. 13. Rules. The Department may make and enforce such reasonable
rules,
regulations, directions, orders, decisions and findings as the execution
and enforcement of this Act require, and as are not inconsistent therewith.
In addition, the Department may promulgate rules in connection with the
activities of licensees that are necessary and appropriate for the protection
of consumers in this State.
All rules and
regulations shall be sent electronically to all licensees.
(Source: P.A. 98-44, eff. 6-28-13.)
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(205 ILCS 660/14) (from Ch. 17, par. 5232)
Sec. 14.
All final administrative decisions of the Department
shall be subject to judicial review pursuant to the "Administrative Review
Law", and all amendments and modifications thereof,
and any rules adopted pursuant thereto.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/15) (from Ch. 17, par. 5233)
Sec. 15.
Any person who engages in business as a sales finance agency without the
license required by this Act shall be guilty of a Class 4 felony.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/15.5)
Sec. 15.5.
Civil action.
A claim of violation of
this Act may be asserted in a civil action. Additionally, a court may award
reasonable attorney's fees and court costs.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/16) (from Ch. 17, par. 5234)
Sec. 16.
(Repealed).
(Source: P.A. 84-704. Repealed by P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/16.5)
Sec. 16.5.
Cease and desist orders.
(a) The Director may issue a cease and desist order to a sales finance
agency or other person doing business without the required license when, in the
opinion of the director, the licensee or other person is violating or is
about to violate any provision of this Act or any law, rule,
or requirement imposed in writing by the Department.
(b) The Director may issue a cease and desist order prior to a hearing.
(c) The Director shall serve notice of his or her action, designated as a
cease and
desist order made pursuant to this Section, including a statement of the
reasons for the action, either personally or by certified mail, return
receipt requested. Service by certified mail shall be deemed completed when
the notice is deposited in the U.S. mail.
(d) Within 15 days of service of the cease and desist order, the sales
finance agency or other person may request, in writing, a hearing.
(e) The Director shall schedule a hearing within 30 days after the request
for a hearing unless otherwise agreed to by the parties.
(f) The Director shall have the authority to prescribe rules for the
administration of this Section.
(g) If it is determined that the Director had the authority to issue the
cease and desist order, he or she may issue such orders as may be reasonably
necessary to correct, eliminate, or remedy such conduct.
(h) The powers vested in the Director by this Section are additional to any
and all other powers and remedies vested in the Director by law, and nothing in
this Section shall be construed as requiring that the Director shall employ the
powers conferred in this Section instead of or as a condition precedent to the
exercise of any other power or remedy vested in the Director.
(i) The cost for the administrative hearing shall be set by rule.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/17) (from Ch. 17, par. 5235)
Sec. 17.
Application of Act.
(a) This Act does not apply to any credit union, bank, banking
association, trust company, savings bank, or savings and loan
association authorized to do
business under the laws of this State or of the United States.
(b) This Act does not apply to a person or entity that, in connection
with a securitization, private placement, or similar type of investment
transaction, lends against or purchases from an Illinois licensed sales finance
agency retail installment contracts, retail charge agreements, or the
outstanding balances or any portion of the outstanding balances under those
contracts or agreements, provided that the licensed sales finance agency
retains the servicing of the agreements or contracts and maintains the records
for those agreements and contracts.
(c) This Act does not apply to a special purpose vehicle.
(Source: P.A. 89-400, eff. 8-20-95.)
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(205 ILCS 660/18)
Sec. 18.
Penalties.
The Director may set by rule penalties for
violations of this Act or rules promulgated under this Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/19)
Sec. 19.
Injunction; civil penalty; costs.
If it appears to the Director
that a person has committed or is about to commit a violation of this Act, a
rule promulgated under this Act, or an order of the Director, the Director may
apply to the circuit court for an order enjoining the person from violating or
continuing to violate this Act, the rule, or order and for injunctive or other
relief that the nature of the case may require and may, in addition, request
the court to assess a civil penalty up to $1,000 along with costs and
attorney's fees.
(Source: P.A. 90-437, eff. 1-1-98.)
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(205 ILCS 660/20)
Sec. 20.
Conformance with Department rule does not violate Act.
No
provision of this Act imposing any civil liability shall apply to any act done
or omitted in conformity with any rule promulgated under this Act by the
Department of Financial Institutions, notwithstanding that, after the act or
omission has occurred, the rule or regulation is amended, rescinded, or
determined by judicial or other authority to be invalid for any reason.
(Source: P.A. 90-437, eff. 1-1-98.)
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