Public Act 90-0437 of the 90th General Assembly
Public Act 90-0437
HB2211 Enrolled (corrected) LRB9004659SMdv
AN ACT concerning financial transactions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Sales Finance Agency Act is amended by
changing Sections 2, 3, 4, 5, 6, 7, 8, 8.1, 8.2, 8.3, 8.4,
8.6, 8.8, 8.9, 8.10, 8.11, 8.13, 10, 10.1, 10.2, 11, 12, 13,
14, and 15 and by adding Sections 8.14, 15.5, 16.5, 18, 19,
and 20 as follows:
(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 irrespective of the state of domicile or place of
business of such person. The term does not include a person
who makes, other than in the regular course of business, only
isolated purchases of or loans secured by retail installment
contracts, retail charge agreements or the outstanding
balances under such contracts or agreements to secure a bona
fide loan thereon.
"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.)
(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 or licensee under the Consumer
Finance Act that is authorized to do business in this State
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., however, and to the extent so
engaged is considered as a licensee under this Act which is
required to comply with this Act and which is subject to
revocation, for any of the grounds and in the manner provided
in this Act, of its privilege to engage in the business of a
sales finance agency in this State.
(Source: P.A. 76-1496.)
(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 removal.
(Source: Laws 1967, p. 2062.)
(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. Licenses issued under this
Act expire annually on December 31. 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 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.
(Source: P.A. 85-716.)
(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, by December 1 of
each year, $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. Failure
to pay the license fee within the time prescribed
automatically revokes renewal of the license as of the last
day of the calendar year for which it issued.
(Source: P.A. 85-716.)
(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.
In the course of that examination, insofar as feasible, the
Department shall give particular attention to whether the
licensee has complied with Sections 8.2 through 8.5 and 8.9
through 8.13 of 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 hereunder.
Instead of requiring a licensee to have an annual
examination conducted by the Department, the Director may
accept the report of a registered public accountant licensed
in Illinois if:
(1) the costs of the examination and report are borne by
the licensee;
(2) the scope of the examination is at least equal in
scope to the examination made by the Department;
(3) the report is made on forms approved by the
Director; and
(4) the Director gives prior permission for the
examination and prior approval of the registered public
accountant making the examination. The cost of any other
examination or investigation of the licensee conducted under
this Act may not be charged to the licensee.
(Source: P.A. 76-996.)
(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. Renewal of a license originally
granted under this Act may be denied, or a license may be
denied, suspended or revoked by the Department on any of the
grounds listed in Sections 8.1 to 8.13.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.1) (from Ch. 17, par. 5209)
Sec. 8.1. Material misstatement in the application or
renewal, for original license or in any form which may be
prescribed by the Director for the renewal of a license, or
in any amendment made to the application for original license
or form for renewal.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.2) (from Ch. 17, par. 5210)
Sec. 8.2. Violating Willful violation or aiding any
person in the willful violation of this Act or of any rule or
regulation promulgated by the Director.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.3) (from Ch. 17, par. 5211)
Sec. 8.3. Aiding or conspiring to aid any person in the
willful violation of the Retail Installment Sales Act or of
the Motor Vehicle Retail Installment Sales Act.
(Source: Laws 1967, p. 2062.)
(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 which on its face violates this
Act, the Retail Installment Sales Act or the Motor Vehicle
Retail Installment Sales Act.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.6) (from Ch. 17, par. 5214)
Sec. 8.6. Use of collection process that which violates
any of the laws of this State with respect to garnishment,
wage deduction orders or wage assignments.
(Source: Laws 1967, p. 2062.)
(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 the offense of defrauding
another person any retail buyer to his damage.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.9) (from Ch. 17, par. 5217)
Sec. 8.9. Fraud, Fraudulent misrepresentation,
circumvention or concealment by the licensee of material
facts that are required to be disclosed through whatever
subterfuge or device of any of the material particulars or
the nature thereof required to be stated or furnished to a
retail buyer under the Retail Installment Sales Act or the
Motor Vehicle Retail Installment Sales Act.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.10) (from Ch. 17, par. 5218)
Sec. 8.10. Conducting Holding any license to do 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 that 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: Laws 1967, p. 2062.)
(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. 77-1165.)
(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 possess the financial responsibility,
experience, character and general fitness necessary to
command the confidence of the community and to warrant belief
that the business will be operated honestly, fairly and
efficiently within the purposes of this Act.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/8.14 new)
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.
(205 ILCS 660/10) (from Ch. 17, par. 5223)
Sec. 10. Denial, revocation, or suspension of license.
(a) The Director may revoke or suspend a license if the
licensee violates any provisions of this Act.
(b) In every case in which a license is revoked or
suspended, 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. The Department
shall, after 5 days notice by certified mail, return receipt
requested, sent to the licensee at the address set forth in
the license, stating the contemplated action and in general
the grounds therefor and the date, time and place of a
hearing thereon, and after providing the licensee with a
reasonable opportunity to be heard prior to the action,
suspend or revoke any license issued hereunder if it finds
that the licensee has violated any of Sections 8.1 through
8.12 or Section 9.
(Source: Laws 1967, p. 2062.)
(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 therefor
occur or 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: Laws 1967, p. 2062.)
(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) 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. Any licensee may surrender a
license by delivering to the Department written notice that
he thereby surrenders the license, but surrender does 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.
(Source: Laws 1967, p. 2062.)
(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
hereunder, 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 used therein, of every licensee and of every person,
co-partnership, association and corporation which is a sales
finance agency as defined in Section 2 of this Act, whether
that person, co-partnership, association or corporation acts
or claims to act as principal or agent or within or without
the authority of this Act. For that purpose the Department
shall have free access to the offices and places of business,
books, accounts, papers, records, files, safes and vaults of
those persons, co-partnerships, associations, and
corporations.
In connection with this investigation the Department may
examine witnesses under oath and subpoena compel the
production of books and papers pertinent to the
investigation. The Director, the Supervisor of Sales Finance
Agencies and any employee of the Department designated for
that purpose by the Director may administer oaths in these
investigations or at any hearing held under this Act.
Upon the application of the licensee or of the
Department, any circuit court may enter an order requiring
the attendance of witnesses and the production of relevant
books and papers before the Department at any hearing held
under this Act. The court may compel obedience to its order
by proceedings for contempt.
(Source: Laws 1967, p. 2062.)
(205 ILCS 660/12) (from Ch. 17, par. 5230)
Sec. 12. Every licensee shall retain and use in his
business such records as are required by the Department to
enable the Department to determine the licensee is complying
with this Act and the rules and regulations lawfully made by
the Department hereunder. 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: Laws 1967, p. 2062.)
(205 ILCS 660/13) (from Ch. 17, par. 5231)
Sec. 13. 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. All such
rules, regulations, directions, orders, decisions and
findings shall be filed with the Secretary of State as
provided in "The Illinois Administrative Procedure Act",
approved September 22, 1975, as amended, and filed and
entered by the Department in an indexed permanent book or
record, with the effective date thereof suitably indicated.
All rules and, regulations and directions of a general
character shall be printed and copies thereof mailed to all
licensees within 10 days after such filing.
(Source: P.A. 83-333.)
(205 ILCS 660/14) (from Ch. 17, par. 5232)
Sec. 14. All final administrative decisions of the
Department hereunder shall be subject to judicial review
pursuant to the "Administrative Review Law", and all
amendments and modifications thereof, and any rules adopted
pursuant thereto. The term "administrative decision" is
defined as in Section 3-101 of the "Administrative Review
Law".
(Source: P.A. 83-1539.)
(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 A misdemeanor.
(Source: P.A. 77-2264.)
(205 ILCS 660/15.5 new)
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.
(205 ILCS 660/16.5 new)
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.
(205 ILCS 660/18 new)
Sec. 18. Penalties. The Director may set by rule
penalties for violations of this Act or rules promulgated
under this Act.
(205 ILCS 660/19 new)
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.
(205 ILCS 660/20 new)
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.
(205 ILCS 660/8.7 rep.)
(205 ILCS 660/9 rep.)
(205 ILCS 660/10.5 rep.)
(205 ILCS 660/16 rep.)
Section 10. The Sales Finance Agency Act is amended by
repealing Sections 8.7, 9, 10.5, and 16.
Section 15. The Consumer Installment Loan Act is amended
by changing the title of the Act and Sections 1, 2, 4, 5, 7,
8, 9, 10, 11, 12, 13, 14, 15, 15a, 15b, 15d, 15e, 16, 17, 18,
19.1, 20, 21, 22, and 23, and by adding Sections 9.1, 12.5,
20.5, 20.7, and 24.5 as follows:
(205 ILCS 670/Act title)
An Act in relation to the business of making installment
loans in a principal amount exceeding $800 and not exceeding
$25,000 $10,000 at rates of interest charge greater than
otherwise allowed by law, requiring lenders making loans
under this Act to be licensed and providing penalties.
(Source: L. 1963, p. 3526. Title amended by P.A. 78-1257.)
(205 ILCS 670/1) (from Ch. 17, par. 5401)
Sec. 1. License required to engage in business. No
person, partnership co-partnership, association, limited
liability company, or corporation shall engage in the
business of making loans of money in a principal amount not
exceeding $25,000 $10,000, and charge, contract for, or
receive on any such loan a greater rate of interest,
discount, or consideration therefor than the lender would be
permitted by law to charge if he were not a licensee
hereunder, except as authorized by this Act after first
obtaining a license from the Director of Financial
Institutions (hereinafter called the Director).
No license may be issued under this Act for a location
outside of Illinois.
(Source: P.A. 89-400, eff. 8-20-95.)
(205 ILCS 670/2) (from Ch. 17, par. 5402)
Sec. 2. Application; fees; positive net worth Assets.
Application for such license shall be in writing, and in the
form prescribed by the Director, and shall contain the full
name and address (both of the residence and place of
business) of the applicant and, if the applicant is a
co-partnership or association, of every member thereof, and,
if a corporation, of each officer, director and owner of 5%
or more of the capital stock thereof; also the county and
municipality with street and number, if any, where the
business is to be conducted and such further information as
the Director may reasonably require. Such applicant at the
time of making such application shall pay to the Director the
sum of $300 as a fee for investigating the applicant and the
additional sum of $300 as an annual license fee, for a period
terminating on the last day of the current calendar year;
provided that if the application is filed after June 30th in
any year, such license fee shall be 1/2 of the annual license
fee for such year.
Before the license is granted, every applicant shall
prove in form satisfactory to the Director that the applicant
he has a positive net worth of a minimum of $30,000 available
for the operation of such business at the location specified
in the application, assets of at least $25,000. Every
applicant shall maintain a surety bond in the principal sum
of $1,000 issued by a bonding company authorized to do
business in this State and which shall be approved by the
Director. Such bond shall run to the Director and shall be
for the benefit of any person who incurs damages as a result
of the actions of a licensee and who is lawfully awarded such
damages pursuant to an appropriate court order. If the
Director finds at any time that a bond is of insufficient
size, is insecure, exhausted, or otherwise doubtful, an
additional bond in such amount as determined by the Director
shall be filed by the licensee within 30 days after written
demand therefor by the Director. "Net worth" means total
assets minus total liabilities.
(Source: P.A. 84-1004.)
(205 ILCS 670/4) (from Ch. 17, par. 5404)
Sec. 4. Investigation to determine whether license shall
be issued.
(a) Upon the filing of an application and the payment of
the fee, if the Director shall investigate to determine upon
investigation finds (1) that the financial responsibility and
reputation of the applicant, including managers of a limited
liability company, partners, and of the members thereof (if
the applicant be a co-partnership or association) and of the
owners, officers or and directors thereof is (if the
applicant be a corporation) are such as to warrant belief
that the business will be operated honestly and fairly within
the purposes of this Act and (2) that the applicant meets the
positive net worth requirement set forth in Section 2 of this
Act has available for the operation of such business at the
specified location assets of at least $25,000, it shall
thereupon issue and deliver a license to the applicant to
make loans in accordance with the provisions of this Act at
the location specified in the application. The license shall
remain in effect until it is surrendered by the licensee or
suspended or revoked by the Director as hereinafter provided.
Unless the Director makes both findings hereinabove
enumerated, he or she it shall not issue a license and shall
notify the applicant of the denial and return to the
applicant the sum paid by the applicant as a license fee, but
shall retain the $300 investigation fee. The Director shall
approve or deny every application for license hereunder
within 60 days from the filing thereof with the fee.
(b) No application shall be denied until the applicant
shall have had a notice of a hearing on the application and
an opportunity to be heard thereon. Whenever an application
is denied, the Director shall, within 20 days thereafter,
prepare and keep on file in its office a written order of
denial thereof. The order shall contain its findings with
respect thereto and the reasons supporting the denial, and
the Director shall send a copy thereof by registered mail to
the applicant at the address set forth in the application
within 5 days after the filing of such order.
(c) Any request for a hearing shall be accompanied by a
surety in which the applicant shall be obligor in the amount
of $500 guaranteeing payment of costs of such hearing. This
surety may be in the form of a bond, money order, or
certified check, payable to the Director, and shall be
returned upon proof of payment of costs. If costs are not
paid within 20 days after the end of the hearing, the
Director may authorize their payment from the surety,
returning any balance to the applicant.
(Source: P.A. 84-1004.)
(205 ILCS 670/5) (from Ch. 17, par. 5405)
Sec. 5. License. The license shall state the address,
including city and state, at which the business is to be
conducted and shall state fully the name of the licensee. The
license shall be conspicuously posted in the place of
business of the licensee and shall not be transferable or
assignable.
(Source: Laws 1963, p. 3526.)
(205 ILCS 670/7) (from Ch. 17, par. 5407)
Sec. 7. More than one license to same licensee - Changing
place of business.
(a) Not more than one place of business shall be
maintained under the same license, but the Director may issue
more than one license to the same licensee upon compliance
with all the provisions of this Act governing an original
issuance of a license.
(b) Whenever a licensee changes his place of business to
a location other than that set forth in his license, he shall
request written approval of the change and give written
notice thereof to the Director, at least 10 days prior to the
relocation. However, if the new location is in excess of 15
miles from the previous location, the licensee shall obtain
written approval from the Director prior to the relocation.
who, upon approving the change, shall note the change and
amend the license accordingly.
(Source: P.A. 84-1004.)
(205 ILCS 670/8) (from Ch. 17, par. 5408)
Sec. 8. Annual license fee - Expenses. Every licensee
shall, on or before the 15th day of each December, pay to the
Director the annual license fee required by Section 2 for the
next succeeding calendar year. The license shall expire on
the first of January unless the license fee has been paid
prior thereto.
In addition to such license fee, the reasonable expense
of any examination, investigation or custody by the Director
under any provisions of this Act shall be borne by the
licensee.
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. 84-1004.)
(205 ILCS 670/9) (from Ch. 17, par. 5409)
Sec. 9. Fines, Suspension or Revocation of license
Surrender of license.
(a) The Director may, after 10 days notice by registered
mail to the licensee at the address set forth in the license,
stating the contemplated action and in general the grounds
therefor and the date, time and place of a hearing thereon,
and after providing the licensee with a reasonable
opportunity to be heard prior to such action, fine such
licensee an amount not exceeding $10,000 per violation, or
revoke or suspend any license issued hereunder if he or she
it finds that:
(1) The licensee has failed to comply with any provision
of this Act or any order, decision, finding, rule, regulation
or direction of the Director lawfully made pursuant to the
authority of this Act; or
(2) Any fact or condition exists which, if it had
existed at the time of the original application for the
license, clearly would have warranted the Director in
refusing to issue the license.
(b) The Director may fine, suspend, or revoke only the
particular license with respect to which grounds for the
fine, revocation or suspension occur or exist, but if the
Director shall find that grounds for revocation are of
general application to all offices or to more than one office
of the licensee, the Director shall fine, suspend, or revoke
every license to which such grounds apply.
(c) (Blank). Any licensee may surrender a license by
delivering to the Director written notice that he thereby
surrenders such license, but surrender 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.
(d) No revocation, suspension, or surrender of any
license shall impair or affect the obligation of any
pre-existing lawful contract between the licensee and any
obligor.
(e) The Director may issue a new license to a licensee
whose license has been revoked when facts or conditions which
clearly would have warranted the Director in refusing
originally to issue the license no longer exist.
(f) (Blank). No licensee shall be fined and no license
shall be revoked or suspended until the licensee receives the
notice of hearing and an opportunity to be heard thereat.
Whenever a licensee is fined or a license is revoked or
suspended, the Director shall, within 20 days thereafter,
prepare and keep on file in its office a written order of the
fine, revocation or suspension. The order shall contain the
Director's findings with respect thereto and the reasons
supporting the fine, suspension, or revocation, and the
Director shall send a copy thereof by registered mail to the
licensee at the address set forth in the license within 5
days after the filing of such order. The cost of such hearing
shall be borne by the licensee.
(g) In every case in which a license is suspended or
revoked or an application for a license or renewal of a
license is denied, the Director shall serve the licensee with
notice of his or her action, including a statement of the
reasons for his or her actions, 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.
(h) An order assessing a fine, 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.
(i) 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.
(j) 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.
(k) The costs for the administrative hearing shall be
set by rule.
(l) The Director shall have the authority to prescribe
rules for the administration of this Section.
(Source: P.A. 84-1004.)
(205 ILCS 670/9.1 new)
Sec. 9.1. 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) 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.
(205 ILCS 670/10) (from Ch. 17, par. 5410)
Sec. 10. Investigation of conduct of business. For the
purpose of discovering violations of this Act or securing
information lawfully required by it hereunder, the Director
may at any time investigate the loans and business and
examine the books, accounts, records, and files used therein,
of every licensee and of every person, partnership
co-partnership, association, limited liability company, and
corporation engaged in the business described in Section 1 of
this Act, whether such person, partnership co-partnership,
association, limited liability company, or corporation shall
act or claim to act as principal or agent or within or
without the authority of this Act. For such purpose the
Director shall have free access to the offices and places of
business, books, accounts, papers, records, files, safes, and
vaults of such persons, partnerships co-partnerships,
associations, limited liability companies, and corporations.
The Director may require the attendance of and examine under
oath all persons whose testimony he or she it may require
relative to such loans or such business, and in such cases
the Director and the Supervisor of Consumer Credit shall each
have power to administer oaths to all persons called as
witnesses; and the Director or his designee may conduct such
examinations.
The Director or his designee shall make an examination of
the affairs, business, office and records of each licensee as
considered necessary, and at least once each year. The
Director shall by rule and regulation set the fee to be
charged for each examination day, including travel expenses
for out-of-state licensed locations. The fee shall
reasonably reflect actual costs. The Director shall also
have authority to examine the books and records of any
business made by a former licensee which is being liquidated,
as the Director deems necessary, and may charge the
examination fees otherwise required for licensees.
(Source: P.A. 84-1004.)
(205 ILCS 670/11) (from Ch. 17, par. 5411)
Sec. 11. Books and records - Reports.
(a) Every licensee shall retain and use in his business
or at another location approved by the Director such records
as are required by the Director to enable the Director to
determine whether the licensee is complying with the
provisions of this Act and the rules and regulations
promulgated pursuant to this Act hereunder. Every licensee
shall preserve the records of any loan for at least 2 years
after making the final entry for such loan. Accounting
systems maintained in whole or in part by mechanical or
electronic data processing methods which provide information
equivalent to that otherwise required and follow generally
accepted accounting principles are acceptable for that
purpose, if approved by the Director in writing.
(b) Each licensee shall annually, on or before the first
day of March, file a report with the Director (which shall be
used only for the official purposes of the Director) giving
such relevant information as the Director may reasonably
require concerning the business and operations during the
preceding calendar year of each licensed place of business
conducted by the licensee within the State. The report shall
be made under oath and in a form prescribed by the Director.
Whenever a licensee operates 2 or more licensed offices or
whenever 2 or more affiliated licensees operate licensed
offices, a composite report of such group of licensed offices
may be filed in lieu of individual reports. The Director may
shall make and publish annually an analysis and
recapitulation of such reports. The Director may shall fine
each licensee $25 for each day beyond March 1 such report is
filed.
(Source: P.A. 84-1004.)
(205 ILCS 670/12) (from Ch. 17, par. 5412)
Sec. 12. Other business.
(a) Upon application by the licensee, and approval by
the Director, the Director may approve the conduct of other
businesses not specifically permitted by this Act in the
licensee's place of business including, but not limited to,
brokering, making, buying, selling or otherwise dealing in
any loans and soliciting, effecting or selling any type of
insurance provided that all such insurance transactions are
conducted in accordance with and are regulated under the
"Illinois Insurance Code", approved June 29, 1937, as
amended, unless the Director finds that such conduct will
conceal or facilitate evasion or violation of this Act. Such
approval shall be in writing and shall describe the other
businesses which may be conducted in the licensed office. A
licensee under this Act may, without the written approval of
the Director, conduct the business of a sales finance agency
in compliance with the "Sales Finance Agency Act", approved
July 26, 1967, as amended, and the business of extending
revolving credit in compliance with the provisions of "An Act
in relation to the rate of interest and other charges in
connection with sales on credit and the lending of money",
approved May 24, 1879, as amended.
(b) A licensee may without notice to and approval of the
Director, in addition to the business permitted by this Act,
conduct the following business:
(1) The business of a sales finance agency as
defined in the Sales Finance Agency Act.
(2) The business of soliciting or selling any type
of insurance provided that all such insurance
transactions are conducted in accordance with and are
regulated under the Illinois Insurance Code.
(3) The business of financing premiums for
insurance.
(4) Making loans pursuant to the Financial Services
Development Act.
The Director shall make and enforce such reasonable rules and
regulations for the conduct of business under this Act in the
same office with other businesses as may be necessary to
prevent evasions or violations of this Act. The Director may
investigate any business conducted in the licensed office to
determine whether any evasion or violation of this Act has
occurred.
(Source: P.A. 85-1264.)
(205 ILCS 670/12.5 new)
Sec. 12.5. Limited purpose branch.
(a) Upon the written approval of the Director, a
licensee may maintain a limited purpose branch for the sole
purpose of making loans as permitted by this Act. A limited
purpose branch may include an automatic loan machine. No
other activity shall be conducted at the site, including but
not limited to, accepting payments, servicing the accounts,
or collections.
(b) The licensee must submit an application for a
limited purpose branch to the Director on forms prescribed by
the Director with an application fee of $300. The approval
for the limited purpose branch must be renewed concurrently
with the renewal of the licensee's license along with a
renewal fee of $300 for the limited purpose branch.
(c) The books, accounts, records, and files of the
limited purpose branch's transactions shall be maintained at
the licensee's licensed location. The licensee shall notify
the Director of the licensed location at which the books,
accounts, records, and files shall be maintained.
(d) The licensee shall prominently display at the
limited purpose branch the address and telephone number of
the licensee's licensed location.
(e) No other business shall be conducted at the site of
the limited purpose branch unless authorized by the Director.
(f) The Director shall make and enforce reasonable rules
for the conduct of a limited purpose branch.
(g) A limited purpose branch may not be located within
1,000 feet of a facility operated by an inter-track wagering
licensee or an organization licensee subject to the Illinois
Horse Racing Act of 1975, on a riverboat subject to the
Riverboat Gambling Act, or within 1,000 feet of the location
at which the riverboat docks.
(205 ILCS 670/13) (from Ch. 17, par. 5413)
Sec. 13. Prohibition against taking power of attorney. No
licensee shall take any power of attorney except to cancel
any policies of insurance financed by the licensee as
permitted by this Act and to receive either rebate of
unearned premiums or loss payments acknowledge the execution
of an instrument or to confess judgment.
(Source: Laws 1963, p. 3526.)
(205 ILCS 670/14) (from Ch. 17, par. 5414)
Sec. 14. Pledge or sale of note. No licensee or other
person shall pledge, hypothecate or sell a note entered into
under the provisions of this Act executed or security
deposited by an obligor except by an agreement authorizing
the Director in his discretion to examine the documents so
hypothecated, pledged or sold. No licensee shall sell such
note or security except to another licensee under this Act, a
licensee under the Sales Finance Agency Act, a bank, savings
bank, savings and loan association, or credit union created
under the laws of this State or the United States, the
Collection Agency Act, or to other persons or entities
authorized by the Director in writing. Sales of such notes
by licensees under this Act or other persons shall be made by
agreement in writing and shall authorize the Director to
examine the loan documents so hypothecated, pledged, or sold.
(Source: P.A. 84-1004.)
(205 ILCS 670/15) (from Ch. 17, par. 5415)
Sec. 15. Charges Rates of charge permitted.
(a) Every licensee hereunder may lend a principal amount
not exceeding $25,000 $10,000 and may charge, contract for
and receive thereon interest at the actuarial rate or rates
agreed upon by the licensee and the borrower, subject to the
provisions of this Act.
(b) For purpose of this Section, the following terms
shall have the meanings ascribed herein.
"Actuarial method" means the method of allocating
payments made on a loan between the principal amount and
interest whereby a payment is applied first to the
accumulated interest and then to the unpaid principal amount.
"Applicable interest" for a precomputed loan contract
means the amount of interest attributable to each monthly
installment period. It is computed as if each installment
period were one month and any interest charged for extending
the first installment period beyond one month is ignored.
The applicable interest for any monthly installment period is
that portion of the precomputed interest that bears the same
ratio to the total precomputed interest as the balances
scheduled to be outstanding during that month bear to the sum
of all scheduled monthly outstanding balances in the original
contract.
"Interest-bearing loan" means a loan in which the debt is
expressed as a principal amount plus interest charged on
actual unpaid principal balances for the time actually
outstanding.
"Precomputed loan" means a loan in which the debt is
expressed as the sum of the original principal amount plus
interest computed actuarially in advance, assuming all
payments will be made when scheduled.
(c) Loans may be interest-bearing or precomputed.
(d) To compute time for either interest-bearing or
precomputed loans for the calculation of interest and other
purposes, a month shall be a calendar month and a day shall
be considered 1/30th of a month when calculation is made for
a fraction of a month. A month shall be 1/12th of a year. A
calendar month is that period from a given date in one month
to the same numbered date in the following month, and if
there is no same numbered date, to the last day of the
following month. When a period of time includes a month and
a fraction of a month, the fraction of the month is
considered to follow the whole month. In the alternative,
for interest-bearing loans, the licensee may charge interest
at the rate of 1/365th of the agreed annual rate for each day
actually elapsed.
(e) With respect to interest-bearing loans:
(1) Interest shall be computed on unpaid principal
balances outstanding from time to time, for the time
outstanding, until fully paid. Each payment shall be applied
first to the accumulated interest and the remainder of the
payment applied to the unpaid principal balance; provided
however, that if the amount of the payment is insufficient to
pay the accumulated interest, the unpaid interest continues
to accumulate to be paid from the proceeds of subsequent
payments and is not added to the principal balance.
(2) Interest shall not be payable in advance or
compounded. However, if part or all of the consideration for
a new loan contract is the unpaid principal balance of a
prior loan, then the principal amount payable under the new
loan contract may include any unpaid interest which has
accrued. The unpaid principal balance of a precomputed loan
is the balance due after refund or credit of unearned
interest as provided in paragraph (f), clause (3). The
resulting loan contract shall be deemed a new and separate
loan transaction for all purposes.
(3) Loans may be payable as agreed between the parties,
including payment at irregular times or in unequal amounts
and rates that may vary with an index that is independently
verifiable and beyond the control of the licensee.
(4) The lender or creditor may, if the contract
provides, collect a delinquency or collection charge on each
installment in default for a period of not less than 10 days
in an amount not exceeding 5% of the installment on
installments in excess of $200, or $10 on installments of
$200 or less, but only one delinquency and collection charge
may be collected on any installment regardless of the period
during which it remains in default.
(f) With respect to precomputed loans:
(1) Loans shall be repayable in substantially equal and
consecutive monthly installments of principal and interest
combined, except that the first installment period may be
longer than one month by not more than 15 days, and the first
installment payment amount may be larger than the remaining
payments by the amount of interest charged for the extra
days; and provided further that monthly installment payment
dates may be omitted to accommodate borrowers with seasonal
income.
(2) Payments may be applied to the combined total of
principal and precomputed interest until the loan is fully
paid. Payments shall be applied in the order in which they
become due, except that any insurance proceeds received as a
result of any claim made on any insurance, unless sufficient
to prepay the contract in full, may be applied to the unpaid
installments of the total of payments in inverse order.
(3) When any loan contract is paid in full by cash,
renewal or refinancing, or a new loan, one month or more
before the final installment due date, a licensee shall
refund or credit the obligor borrower with the total of the
applicable interest for all fully unexpired installment
periods, as originally scheduled or as deferred, which follow
the day of prepayment; provided, if the prepayment occurs
prior to the first installment due date, the licensee may
retain 1/30 of the applicable interest for a first
installment period of one month for each day from the date of
the loan to the date of prepayment, and shall refund or
credit the obligor borrower with the balance of the total
interest contracted for. If the maturity of the loan is
accelerated for any reason and judgment is entered, the
licensee shall credit the borrower with the same refund as if
prepayment in full had been made on the date the judgement is
entered.
(4) The lender or creditor may, if the contract
provides, collect a delinquency or collection charge on each
installment in default for a period of not less than 10 days
in an amount not exceeding 5% of the installment on
installments in excess of $200, or $10 on installments of
$200 or less, but only one delinquency or collection charge
may be collected on any installment regardless of the period
during which it remains in default. If an installment is not
paid in full within 10 days of its scheduled due date, a
licensee may contract for and receive a default charge not
exceeding 5% of the amount of the installment.
(5) If the parties agree in writing, either in the loan
contract or in a subsequent agreement, to a deferment of
wholly unpaid installments, a licensee may grant a deferment
and may collect a deferment charge as provided in this
Section. A deferment postpones the scheduled due date of the
earliest unpaid installment and all subsequent installments
as originally scheduled, or as previously deferred, for a
period equal to the deferment period. The deferment period
is that period during which no installment is scheduled to be
paid by reason of the deferment. The deferment charge for a
one month period may not exceed the applicable interest for
the installment period immediately following the due date of
the last undeferred payment. A proportionate charge may be
made for deferment for periods of more or less than one
month. A deferment charge is earned pro rata during the
deferment period and is fully earned on the last day of the
deferment period. Should a loan be prepaid in full during a
deferment period, the licensee shall credit to the obligor
borrower a refund of the unearned deferment charge in
addition to any other refund or credit made for prepayment of
the loan in full.
(6) If two or more installments are delinquent one full
month or more on any due date, and if the contract so
provides, the licensee may reduce the unpaid balance by the
refund credit which would be required for prepayment in full
on the due date of the most recent maturing installment in
default. Thereafter, and in lieu of any other default or
deferment charges, the agreed rate of interest may be charged
on the unpaid balance until fully paid.
(7) Fifteen days after the final installment as
originally scheduled or deferred, the licensee, for any loan
contract which has not previously been converted to
interest-bearing under paragraph (f), clause (6), may compute
and charge interest on any balance remaining unpaid,
including unpaid default or deferment charges, at the agreed
rate of interest until fully paid. At the time of payment of
said final installment, the licensee shall give notice to the
obligor borrower stating any amounts unpaid and that the
borrower has fifteen days to pay such amount without having
interest computed and charged on such amount.
(Source: P.A. 84-1004.)
(205 ILCS 670/15a) (from Ch. 17, par. 5416)
Sec. 15a. Credit insurance. Voluntary credit life
insurance, and credit accident and health insurance,
involuntary unemployment insurance, credit property
insurance, or other credit insurance policies approved or
permitted by the Director of Insurance and any charge
therefor which is deducted from the loan or paid by the
obligor shall comply with the Illinois Insurance Code Article
IX1/2 of the "Illinois Insurance Code", approved June 29,
1937, as heretofore and hereafter amended, and all lawful
requirements of the Director of Insurance related thereto.
When there are 2 or more obligors on the loan contract, only
one charge for credit life insurance and credit accident and
health insurance may be made and only one of the obligors
need be required to be insured, except that joint credit
insurance may cover two obligors. Insurance obtained from, by
or through a licensee shall be in effect when the loan is
transacted. The purchase of such insurance through the
licensee or from an agent, broker or insurer specified by the
licensee shall not be a condition precedent to the granting
of the loan.
(Source: P.A. 84-1004.)
(205 ILCS 670/15b) (from Ch. 17, par. 5417)
Sec. 15b. Property insurance.
(a) A licensee may require the obligor to provide
property damage insurance on real and personal property, all
or part of which serves as security against reasonable risks
of loss, damage, and destruction in connection with loans
exceeding an original principal amount of $500. The amount
and term of the insurance shall be reasonable in relation to
the amount and term of the loan contract and the type and
value of the property, and the insurance shall be procured in
accordance with the insurance laws of this State. The
purchase of such insurance through the licensee or from an
agent, broker or insurer specified by the licensee shall not
be a condition precedent to the granting of the loan. The
premium charged shall not exceed that charged by the
insurance company.
(b) If the obligor fails to furnish evidence that he has
procured insurance on the property, the licensee may purchase
substitute insurance that may be substantially equivalent to
or more limited than coverage the obligor is required to
maintain. Such insurance must comply with the Collateral
Protection Act.
(Source: P.A. 84-1004.)
(205 ILCS 670/15d) (from Ch. 17, par. 5419)
Sec. 15d. Extra charges prohibited; exceptions. No amount
in addition to the charges authorized by this Act shall be
directly or indirectly charged, contracted for, or received,
except (1) lawful fees paid to any public officer or agency
to record, file or release security; (2) (i) costs and
disbursements actually incurred in connection with a real
estate loan, for any title insurance, title examination,
abstract of title, survey, or appraisal, or paid to a trustee
in connection with a trust deed, and (ii) in connection with
a real estate loan those charges authorized by Section 4.1a
of the Interest Act, whether called "points" or otherwise,
which charges are imposed as a condition for making the loan
and are not refundable in the event of prepayment of the
loan; (3) costs and disbursements, including reasonable
attorney's fees, incurred in legal proceedings to collect a
loan or to realize on a security after default; and (4) an
amount not exceeding $25 $10, plus any actual expenses
incurred in connection therewith, if any check given to a
licensee in connection with a check or draft that loan is not
honored because of insufficient or uncollected funds or
because no such account exists; and (5) a document
preparation fee not to exceed $25 for obtaining and reviewing
credit reports and preparation of other documents. This
Section does not prohibit the receipt of a commission,
dividend, charge, or other benefit by the licensee or by an
employee, affiliate, or associate of the licensee from the
insurance permitted by Sections 15a and 15b of this Act or
from insurance in lieu of perfecting a security interest
provided that the premiums for such insurance do not exceed
the fees that otherwise could be contracted for by the
licensee under this Section item (1). Obtaining any of the
items referred to in clause (i) of item (2) of this Section
through the licensee or from any person specified by the
licensee shall not be a condition precedent to the granting
of the loan.
(Source: P.A. 89-400, eff. 8-20-95.)
(205 ILCS 670/15e) (from Ch. 17, par. 5419.1)
Sec. 15e. Other Insurance.
(a) A licensee shall not be considered to be the
obligor's borrower's agent or broker in connection with the
purchase or sale of insurance under this Act for any purpose.
(b) Consideration or another thing of value may be paid
to or retained by the licensee, or an affiliate of the
licensee, in connection with any insurance, debt cancellation
contract, or other such product purchased pursuant to the
loan made or held by the licensee, and all or a portion of
the consideration may be included in the amount charged to
the obligor, so long as the licensee discloses to the obligor
that either the licensee or an affiliate may receive
something of value in connection with the purchase by the
obligor.
(Source: P.A. 83-657.)
(205 ILCS 670/16) (from Ch. 17, par. 5420)
Sec. 16. Disclosure of Terms of Contract. In any loan
transaction under this Act, the licensee must disclose the
following items to the obligor of the loan before the
transaction is consummated:
(a) The amount and date of the loan contract;
(b) The amount of the loan credit using the term "amount
financed";
(c) Any Every deduction from the amount financed or
payment made by the obligor for insurance and the type of
insurance for which each deduction or payment was made;
(d) Any additional Every other deduction from the loan
or payment made by the obligor in connection with obtaining
the loan;
(e) The date on which the finance charge begins to
accrue if different from the date of the transaction;
(f) The total amount of the loan charge with a
description of each amount included using the term "finance
charge";
(g) The finance charge expressed as an annual percentage
rate using the term "annual percentage rate".
"Annual percentage rate" means the nominal annual
percentage rate of finance charge determined in accordance
with the actuarial method of computation with an accuracy at
least to the nearest 1/4 of 1%; or at the option of the
licensee by application of the United States rule so that it
may be disclosed with an accuracy at least to the nearest 1/4
of 1%;
(h) The number, amount and due dates or periods of
payments scheduled to repay the loan and the sum of such
payments using the term "total of payments";
(i) The amount, or method of computing the amount of any
default, delinquency or similar charges payable in the event
of late payments;
(j) The right of the obligor to prepay the loan in full
on any installment date and the fact that such prepayment in
full will reduce the insurance charge for the loan;
(k) A description or identification of the type of any
security interest held or to be retained or acquired by the
licensee in connection with the loan and a clear
identification of the property to which the security interest
relates. If after-acquired property will be subject to the
security interest, or if other or future indebtedness is or
may be secured by any such property, this fact shall be
clearly set forth in conjunction with the description or
identification of the type of security interest held,
retained or acquired;
(l) A description of any penalty charge that may be
imposed by the licensee for prepayment of the principal of
the obligation with an explanation of the method of
computation of such penalty and the conditions under which it
may be imposed;
(m) Identification and description of the method of
computing any unearned portion of the finance charge in the
event of prepayment of the loan, and if the licensee uses the
"Rule of 78THS" method, including a statement explaining such
method substantially as follows:
Unearned finance charges under the Rule of 78ths are
computed by calculating for all fully unexpired monthly
installment periods, as originally scheduled or deferred,
which follow the day of prepayment, the portion of the
precomputed interest that bears the same ratio to the
total precomputed interest as the balances scheduled to
be outstanding during that monthly installment period
bear to the sum of all scheduled monthly outstanding
balances originally contracted for.
The description shall also include an example of its
application solely for purposes of illustration in
substantially the following form:
PREPAYMENT - "RULE OF 78THS"
Unearned Original Sum of balances due every month after
prepayment
= X ___________________________________
Charge Charge* Sum of balances due every month of
contract
*for Finance Charge (excluding any charges added for a first
payment period of more than one month) or credit insurance
charges.
Example: 12 monthly payments of $10 (balance is $120 1st
month, $110 2nd month, and so on), $20 Finance Charge. If 5
payments are prepaid in full, unearned Finance Charge is:
50+40+30+20+10
$20 x _________________________________ =$3.85
120+110+100+90+80+70+60+50+40+30+20+10
The terms "finance charge" and "annual percentage rate"
shall be printed more conspicuously than other terminology
required by this Section.
At the time disclosures are made, the licensee shall
deliver to the obligor a duplicate of the instrument or
statement by which the required disclosures are made and on
which the licensee and obligor are identified and their
addresses stated. All of the disclosures shall be made
clearly, conspicuously and in meaningful sequence and made
together on either:
(i) the note or other instrument evidencing the
obligation. Where a creditor elects to combine disclosures
with the contract, security agreement, and evidence of a
transaction in a single document, the disclosures required
under Section 16 shall be made on the face of the document,
on the reverse side, or on both sides, provided that the
amount of the finance charge and the annual percentage rate
shall appear on the face of the document, and, if the reverse
side is used, the printing on both sides of the document
shall be equally clear and conspicuous, both sides shall
contain the statement, "NOTICE: See other side for important
information", and the place for the obligor's customer's
signature shall be provided following the full content of the
document; or
(ii) One side of a separate statement which identifies
the transaction.
The amount of the finance charge shall be determined as
the sum of all charges, payable directly or indirectly by the
obligor and imposed directly or indirectly by the licensee as
an incident to or as a condition to the extension of credit,
whether paid or payable by the obligor, any other person on
behalf of the obligor, to the licensee or to a third party,
including any of the following types of charges:
(1) Interest, time price differential, and any amount
payable under a discount or other system of additional
charges.
(2) Service, transaction, activity, or carrying charge.
(3) Loan fee, points, finder's fee, or similar charge.
(4) Fee for an appraisal, investigation, or credit
report.
(5) Charges or premiums for credit life, accident,
health, or loss of income insurance, written in connection
with any credit transaction unless:
(i) the insurance coverage is not required by the
licensee and this fact is clearly and conspicuously disclosed
in writing to the obligor; and
(ii) any obligor desiring such insurance coverage gives
specific dated and separately signed affirmative written
indication of such desire after receiving written disclosure
to him of the cost of such insurance.
(6) Charges or premiums for insurance, written in
connection with any credit transaction, against loss of or
damage to property or against liability arising out of the
ownership or use of property unless a clear, conspicuous, and
specific statement in writing is furnished by the licensee to
the obligor setting forth the cost of the insurance if
obtained from or through the licensee and stating that the
obligor may choose the person through which the insurance is
to be obtained.
(7) Premium or other charge for any other guarantee or
insurance protecting the licensee against the obligor's
default or other credit loss.
(8) Any charge imposed by a licensee upon another
licensee for purchasing or accepting an obligation of an
obligor if the obligor is required to pay any part of that
charge in cash, as an addition to the obligation, or as a
deduction from the proceeds of the obligation.
A late payment, delinquency, default, reinstatement or
other charge is not a finance charge if imposed for actual
unanticipated late payment, delinquency, default or other
occurrence.
A licensee who complies with the federal Truth in Lending
Act, amendments thereto, and any regulations issued or which
may be issued thereunder, shall be deemed to be in compliance
with the provisions of this Section, except with respect to
the disclosure in paragraph (m), which may be set forth in
any manner.
(Source: P.A. 86-385.)
(205 ILCS 670/17) (from Ch. 17, par. 5423)
Sec. 17. Maximum term and amount. The loan contract shall
provide for repayment of the principal and charges within 181
121 months from the date of the loan contract or the last
advance, if any, required by the loan contract. No licensee
shall permit an obligor to owe such licensee or an affiliate
(including a corporation owned or managed by the licensee) or
agent of such licensee an aggregate principal amount of more
than $25,000 $10,000 at any time for loans transacted
pursuant to this Act.
(Source: P.A. 84-1004.)
(205 ILCS 670/18) (from Ch. 17, par. 5424)
Sec. 18. Advertising. Advertising for loans transacted
under this Act may not be false, misleading or deceptive.
That advertising, if it states a rate or rates or amount of
charge for a loan, must state the rate or rates as an annual
percentage rate or rates. No licensee person whose loans are
regulated under this Act may advertise in any manner so as to
indicate or imply that his interest rates or charges for
loans are in any way "recommended", "approved", "set" or
"established" by the State government or by this Act. The
Director may issue a cease and desist order for any violation
of this Section.
If any advertisement to which this Section applies states
the amount of any installment payment, the dollar amount of
any finance charge, or the number of installments or the
period of repayment, then the advertisement shall state all
of the following items:
(1) The amount of the loan.
(2) The number, amount, and due dates or period of
payments scheduled to repay the indebtedness if the credit is
extended.
(3) The rate of the finance charge expressed as an
annual percentage rate.
(Source: P.A. 84-1004.)
(205 ILCS 670/19.1) (from Ch. 17, par. 5425.1)
Sec. 19.1. Where the licensee repossesses a motor vehicle
that was used as collateral and which is used primarily for
the obligor's borrower's personal, family or household
purposes, and the obligor borrower at the time of
repossession has paid an amount equal to 30% or more of the
total of payments due, the obligor borrower may, within 15
days, reinstate the contract and recover redeem the motor
vehicle from the licensee by tendering:
(a) the total of all unpaid amounts, including any
unpaid delinquency or deferral charges due, without
acceleration; and
(b) performance necessary to cure any default other than
nonpayment of the amounts due; and
(c) any reasonable cost or fees incurred by the licensee
in the retaking of the goods. Tender of payment and
performance pursuant to this Section restores to the obligor
borrower his rights under the loan as though no default had
occurred. The obligor borrower has a right to reinstate the
contract and recover redeem the collateral from the licensee
only once under this Section.
The licensee must give written notice to the obligor
borrower, within 3 days of the repossession, of the obligor's
borrower's right to reinstate the contract and recover redeem
the collateral pursuant to this Section. The Written notice
shall be in substantially the following form:
NOTICE OF RIGHT TO RECOVER VEHICLE
Your car was repossessed on (specify date) for failure to
make payments on the loan (or other reason).
Under Illinois law, because you have paid at least 30% of
the loan before repossession, you may be able to get the car
back. To recover the car and reinstate the loan you must do
the following within 15 days of the date of repossession:
1. Make payment of all back payments as
of the date of this notice so that
you are current on the loan. $...........
2. Pay any late charge due. $...........
3. Pay the costs of repossession. $...........
Total due as of the date of this
notice plus any additional amounts
which may become due between the date
of the notice and the date of
reinstatement. $...........
Total $...........
Bring cash, a certified check or money order for the
total amount plus any amounts which may become due between
the date of the notice and the date of reinstatement listed
above to our office located at (specify address) by (specify
date) to get your car back.
(Source: P.A. 86-421.)
(205 ILCS 670/20) (from Ch. 17, par. 5426)
Sec. 20. Penalties for violation.
(a) Any person who engages in business as a Consumer
Installment Loan lender without the license required by this
Act shall be guilty of a Class 4 felony., co-partnership,
association, or corporation and the several members,
officers, directors, agents, and employees thereof, who
violates or participates in the violation of a provision of
Section 1, 15, 15a, 15b, 15d, 16b, 17, 18 or 19.1 of this
Act, shall be guilty of a business offense and punishable by
a fine of not less than $100 nor more than $1000 for each
offense; a natural person convicted of such violations shall
be guilty of a Class A misdemeanor.
(b) Any person, co-partnership, association, or
corporation who violates a provision of Section 1, 15, 15a,
15b, 15d, 16b, or 17 of this Act, in connection with
transacting or collecting a loan regulated by this Act, shall
not be entitled to collect any interest on such loan. The
obligor, prior to the expiration of 2 years after the date of
his last scheduled payment, may recover any such interest
paid plus such reasonable attorney's fees and court costs as
a court may assess against such licensee or lender for a
violation of Sections 1, 12, 15, 15a, 15b, 15d, 15e, 16, 17,
18, or 19.1. The balance due under the terms of the loan
contract shall be reduced by the amount which the obligor is
thus entitled to recover. A bona fide error by a licensee in
calculating charges or rebates is not a violation if the
licensee corrects the error within a reasonable time, after
discovery.
(b-5) A license issued under this Act may be revoked if
the licensee, or any directors, managers of a limited
liability company, partners, or officer thereof is convicted
of a felony.
(c) No provision of this Section imposing any liability
shall apply to any act done or omitted in good faith in
conformity with any rule or regulation or written
interpretation thereof by the Department of Financial
Institutions or any other department or agency of the State,
notwithstanding that after such act or omission has occurred,
such rule, regulation or interpretation is amended, rescinded
or determined by judicial or other authority to be invalid
for any reason. All interpretations issued after January 1,
1998 must be written and signed by the Department's Chief
Counsel and approved by the Director.
(Source: P.A. 86-421; 86-1222.)
(205 ILCS 670/20.5 new)
Sec. 20.5. Cease and desist.
(a) The Director may issue a cease and desist order to
any licensee, 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 rule or requirement
imposed in writing by the Department as a condition of
granting any authorization permitted by this Act.
(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 licensee 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 power 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.
(205 ILCS 670/20.7 new)
Sec. 20.7. Civil action. A claim of violation of this
Act may be asserted in a civil action.
(205 ILCS 670/21) (from Ch. 17, par. 5427)
Sec. 21. Application of act. This Act does not apply to
any person, partnership co-partnership, association, limited
liability company, or corporation doing business under and as
permitted by any law of this State or of the United States
relating to banks trust companies, savings and loan
associations, savings banks, pawnbrokers, or credit unions,
or licensees under the Residential Mortgage License Act for
residential mortgage loans made pursuant to that Act. This
Act does not apply to business loans, meaning either loans to
corporations or loans to a business association or
co-partnership or to a person owning and operating a business
as sole proprietor if transacted solely for the purpose of
carrying on or acquiring the business of such business
association, co-partnership or person. A bank authorized to
transact business by the laws of this State or of the United
States may contract for and receive the charges authorized by
this Act without being licensed pursuant to this Act, but
shall comply with all other provisions of this Act when
contracting for or receiving charges on loans regulated by
this Act.
(Source: Laws 1963, p. 3526.)
(205 ILCS 670/22) (from Ch. 17, par. 5428)
Sec. 22. Rules and regulations. The Department may make
and enforce such reasonable rules, regulations, directions,
orders, decisions, and findings as the execution and
enforcement of the provisions of this Act require, and as are
not inconsistent therewith. All such rules, regulations,
directions, orders, decisions, and findings shall be filed
and entered by the Department in an indexed permanent book or
record, with the effective date thereof suitably indicated.
All rules, regulations and directions of a general character
shall be printed and copies thereof mailed to all licensees
within 10 days after such filing.
(Source: Laws 1963, p. 3526.)
(205 ILCS 670/23) (from Ch. 17, par. 5429)
Sec. 23. Judicial review. All final administrative
decisions of the Department hereunder shall be subject to
judicial review pursuant to the provisions of the
Administrative Review Law, and all amendments and
modifications thereof, and any rules adopted pursuant
thereto. The term "administrative decision" is defined as in
Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
(205 ILCS 670/24.5 new)
Sec. 24.5. Injunction; civil penalty; costs. If it
appears to the Director that a person or any entity 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 or entity 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.
(205 ILCS 670/4.1 rep.)
(205 ILCS 670/6 rep.)
(205 ILCS 670/19 rep.)
(205 ILCS 670/24 rep.)
Section 20. The Consumer Installment Loan Act is amended
by repealing Sections 4.1, 6, 19, and 24.
Section 23. The Interest Act is amended by changing
Section 4a as follows:
(815 ILCS 205/4a) (from Ch. 17, par. 6410)
Sec. 4a. Installment loan rate.
(a) On money loaned to or in any manner owing from any
person, whether secured or unsecured, except where the money
loaned or in any manner owing is directly or indirectly for
the purchase price of real estate or an interest therein and
is secured by a lien on or retention of title to that real
estate or interest therein, to an amount not more than
$25,000 (excluding interest) which is evidenced by a written
instrument providing for the payment thereof in 2 or more
periodic installments over a period of not more than 181
months from the date of the execution of the written
instrument, it is lawful to receive or to contract to receive
and collect either:
(i) interest in an amount equivalent to interest
computed at a rate not exceeding 9% per year on the
entire principal amount of the money loaned or in any
manner owing for the period from the date of the making
of the loan or the incurring of the obligation for the
amount owing evidenced by the written instrument until
the date of the maturity of the last installment thereof,
and to add that amount to the principal, except that
there shall be no limit on the rate of interest which may
be received or contracted to be received and collected by
(1) any bank that has its main office or, after May 31,
1997, a branch in this State; (2) a savings and loan
association chartered under the Illinois Savings and Loan
Act of 1985 or a federal savings and loan association
established under the laws of the United States and
having its main office in this State; or (3) any lender
licensed under either the Consumer Finance Act or, the
Consumer Installment Loan Act or the Sales Finance Agency
Act, but in any case in which interest is received,
contracted for or collected on the basis of this clause
(i), the debtor may satisfy in full at any time before
maturity the debt evidenced by the written instrument,
and in so satisfying must receive a refund credit against
the total amount of interest added to the principal
computed in the manner provided under Section 15(f)(3) of
the Consumer Installment Loan Act for refunds or credits
of applicable interest on payment in full of precomputed
loans before the final installment due date; or
(ii) interest accrued on the principal balance from
time to time remaining unpaid, from the date of making of
the loan or the incurring of the obligation to the date
of the payment of the debt in full, at a rate not
exceeding the annual percentage rate equivalent of the
rate permitted to be charged under clause (i) above, but
in any such case the debtor may, provided that the debtor
shall have paid in full all interest and other charges
accrued to the date of such prepayment, prepay the
principal balance in full or in part at any time, and
interest shall, upon any such prepayment, cease to accrue
on the principal amount which has been prepaid.
(b) Whenever the principal amount of an installment loan
is $300 or more and the repayment period is 6 months or more,
a minimum charge of $15 may be collected instead of interest,
but only one minimum charge may be collected from the same
person during one year. When the principal amount of the loan
(excluding interest) is $800 or less, the lender or creditor
may contract for and receive a service charge not to exceed
$5 in addition to interest; and that service charge may be
collected when the loan is made, but only one service charge
may be contracted for, received, or collected from the same
person during one year.
(c) Credit life insurance and credit accident and health
insurance, and any charge therefor which is deducted from the
loan or paid by the obligor, must comply with Article IX 1/2
of the Illinois Insurance Code and all lawful requirements of
the Director of Insurance related thereto. When there are 2
or more obligors on the loan contract, only one charge for
credit life insurance and credit accident and health
insurance may be made and only one of the obligors may be
required to be insured. Insurance obtained from, by or
through the lender or creditor must be in effect when the
loan is transacted. The purchase of that insurance from an
agent, broker or insurer specified by the lender or creditor
may not be a condition precedent to the granting of the loan.
(d) The lender or creditor may require the obligor to
provide property insurance on security other than household
goods, furniture and personal effects. The amount and term of
the insurance must be reasonable in relation to the amount
and term of the loan contract and the type and value of the
security, and the insurance must be procured in accordance
with the insurance laws of this State. The purchase of that
insurance from an agent, broker or insurer specified by the
lender or creditor may not be a condition precedent to the
granting of the loan.
(e) The lender or creditor may, if the contract
provides, collect a delinquency and collection charge on each
installment in default for a period of not less than 10 days
in an amount not exceeding 5% of the installment on
installments in excess of $200 or $10 on installments of $200
or less, but only one delinquency and collection charge may
be collected on any installment regardless of the period
during which it remains in default. In addition, the contract
may provide for the payment by the borrower or debtor of
attorney's fees incurred by the lender or creditor. The
lender or creditor may enforce such a provision to the extent
of the reasonable attorney's fees incurred by him in the
collection or enforcement of the contract or obligation.
Whenever interest is contracted for or received under this
Section, no amount in addition to the charges authorized by
this Section may be directly or indirectly charged,
contracted for or received, except lawful fees paid to a
public officer or agency to record, file or release security,
and except costs and disbursements including reasonable
attorney's fees, incurred in legal proceedings to collect a
loan or to realize on a security after default. This Section
does not prohibit the receipt of any commission, dividend or
other benefit by the creditor or an employee, affiliate or
associate of the creditor from the insurance authorized by
this Section.
(f) When interest is contracted for or received under
this Section, the lender must disclose the following items to
the obligor in a written statement before the loan is
consummated:
(1) the amount and date of the loan contract;
(2) the amount of loan credit using the term
"amount financed";
(3) every deduction from the amount financed or
payment made by the obligor for insurance and the type of
insurance for which each deduction or payment was made;
(4) every other deduction from the loan or payment
made by the obligor in connection with obtaining the
loan;
(5) the date on which the finance charge begins to
accrue if different from the date of the transaction;
(6) the total amount of the loan charge for the
scheduled term of the loan contract with a description of
each amount included using the term "finance charge";
(7) the finance charge expressed as an annual
percentage rate using the term "annual percentage rate".
"Annual percentage rate" means the nominal annual
percentage rate of finance charge determined in
accordance with the actuarial method of computation with
an accuracy at least to the nearest 1/4 of 1%; or at the
option of the lender by application of the United States
rule so that it may be disclosed with an accuracy at
least to the nearest 1/4 of 1%;
(8) the number, amount and due dates or periods of
payments scheduled to repay the loan and the sum of such
payments using the term "total of payments";
(9) the amount, or method of computing the amount
of any default, delinquency or similar charges payable in
the event of late payments;
(10) the right of the obligor to prepay the loan
and the fact that such prepayment will reduce the charge
for the loan;
(11) a description or identification of the type of
any security interest held or to be retained or acquired
by the lender in connection with the loan and a clear
identification of the property to which the security
interest relates. If after-acquired property will be
subject to the security interest, or if other or future
indebtedness is or may be secured by any such property,
this fact shall be clearly set forth in conjunction with
the description or identification of the type of security
interest held, retained or acquired;
(12) a description of any penalty charge that may
be imposed by the lender for prepayment of the principal
of the obligation with an explanation of the method of
computation of such penalty and the conditions under
which it may be imposed;
(13) unless the contract provides for the accrual
and payment of the finance charge on the balance of the
amount financed from time to time remaining unpaid, an
identification of the method of computing any unearned
portion of the finance charge in the event of prepayment
of the loan.
The terms "finance charge" and "annual percentage rate"
shall be printed more conspicuously than other terminology
required by this Section.
(g) At the time disclosures are made, the lender shall
deliver to the obligor a duplicate of the instrument or
statement by which the required disclosures are made and on
which the lender and obligor are identified and their
addresses stated. All of the disclosures shall be made
clearly, conspicuously and in meaningful sequence and made
together on either:
(i) the note or other instrument evidencing the
obligation on the same side of the page and above or
adjacent to the place for the obligor's signature;
however, where a creditor elects to combine disclosures
with the contract, security agreement, and evidence of a
transaction in a single document, the disclosures
required under this Section shall be made on the face of
the document, on the reverse side, or on both sides,
provided that the amount of the finance charge and the
annual percentage rate shall appear on the face of the
document, and, if the reverse side is used, the printing
on both sides of the document shall be equally clear and
conspicuous, both sides shall contain the statement,
"NOTICE: See other side for important information", and
the place for the customer's signature shall be provided
following the full content of the document; or
(ii) one side of a separate statement which
identifies the transaction.
The amount of the finance charge shall be determined as
the sum of all charges, payable directly or indirectly by the
obligor and imposed directly or indirectly by the lender as
an incident to or as a condition to the extension of credit,
whether paid or payable by the obligor, any other person on
behalf of the obligor, to the lender or to a third party,
including any of the following types of charges:
(1) Interest, time price differential, and any
amount payable under a discount or other system of
additional charges.
(2) Service, transaction, activity, or carrying
charge.
(3) Loan fee, points, finder's fee, or similar
charge.
(4) Fee for an appraisal, investigation, or credit
report.
(5) Charges or premiums for credit life, accident,
health, or loss of income insurance, written in
connection with any credit transaction unless (a) the
insurance coverage is not required by the lender and this
fact is clearly and conspicuously disclosed in writing to
the obligor; and (b) any obligor desiring such insurance
coverage gives specific dated and separately signed
affirmative written indication of such desire after
receiving written disclosure to him of the cost of such
insurance.
(6) Charges or premiums for insurance, written in
connection with any credit transaction, against loss of
or damage to property or against liability arising out of
the ownership or use of property, unless a clear,
conspicuous, and specific statement in writing is
furnished by the lender to the obligor setting forth the
cost of the insurance if obtained from or through the
lender and stating that the obligor may choose the person
through which the insurance is to be obtained.
(7) Premium or other charges for any other
guarantee or insurance protecting the lender against the
obligor's default or other credit loss.
(8) Any charge imposed by a lender upon another
lender for purchasing or accepting an obligation of an
obligor if the obligor is required to pay any part of
that charge in cash, as an addition to the obligation, or
as a deduction from the proceeds of the obligation.
A late payment, delinquency, default, reinstatement or
other such charge is not a finance charge if imposed for
actual unanticipated late payment, delinquency, default or
other occurrence.
(h) Advertising for loans transacted under this Section
may not be false, misleading, or deceptive. That advertising,
if it states a rate or amount of interest, must state that
rate as an annual percentage rate of interest charged. In
addition, if charges other than for interest are made in
connection with those loans, those charges must be separately
stated. No advertising may indicate or imply that the rates
or charges for loans are in any way "recommended",
"approved", "set" or "established" by the State government or
by this Act.
(i) A lender or creditor who complies with the federal
Truth in Lending Act, amendments thereto, and any regulations
issued or which may be issued thereunder, shall be deemed to
be in compliance with the provisions of subsections (f), (g)
and (h) of this Section.
(Source: P.A. 88-348; 89-208, eff. 9-29-95.)
Section 25. The Motor Vehicle Retail Installment Sales
Act is amended by changing Sections 2, 2.5, 2.7, 2.9, 2.11,
2.12, 4, 5, 6, 7, 8, 9, 9.02, 10, 11, 13, 15, 20, and 21, and
by adding Sections 2.14, 2.15, 9.03, 11.2, and 17.1 as
follows:
(815 ILCS 375/2) (from Ch. 121 1/2, par. 562)
Sec. 2. For the purposes of this Act, unless the context
otherwise requires, the terms specified in the following
Sections preceding Section 3 2.1 through 2.12 have the
meanings ascribed to them in those Sections.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.5) (from Ch. 121 1/2, par. 562.5)
Sec. 2.5. "Retail Installment contract", "installment
contract" or "contract" means an instrument or instruments
prescribing the terms of a retail installment transaction and
entered into or to be performed in this State.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.7) (from Ch. 121 1/2, par. 562.7)
Sec. 2.7. "Official fees" means the taxes and fees
prescribed by law that actually are, or will be, paid to
public officials for determining the existence of, or for
perfecting, releasing, or satisfying a security interest the
fees required by law to be paid to the Secretary of State to
perfect a security interest in a motor vehicle retained or
taken by a seller under a retail installment contract and to
file a release or termination statement of a perfected
security interest.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.9) (from Ch. 121 1/2, par. 562.9)
Sec. 2.9. "Finance charge" means the sum of all charges
payable, directly or indirectly by the buyer and imposed
directly or indirectly by the seller as an incident to or as
a condition of the extension of credit, whether payable by
the buyer, the seller, or any other person on behalf of the
buyer to the seller or a third party including any of the
following types of charges:
(1) Interest, time price differential, and any amount
payable under a discount or other system of additional
charges.
(2) Service, transaction, activity, or carrying charge.
(3) Loan fee, points, finder's fee, or similar charge.
(4) Fee for an appraisal, investigation, or credit
report.
(5) Charges or premiums for credit life, accident,
health, or loss of income insurance, written in connection
with any credit transaction unless
(i) the insurance coverage is not required by the
creditor and this fact is clearly and conspicuously disclosed
in writing to the customer; and
(ii) any customer desiring such insurance coverage gives
specific dated and separately signed affirmative written
indication of such desire after receiving written disclosure
to him of the cost of such insurance.
(6) Charges or premiums for insurance, written in
connection with any credit transaction, against loss of or
damage to property or against liability arising out of the
ownership or use of property, unless a clear, conspicuous,
and specific statement in writing is furnished by the
creditor to the customer setting forth the cost of the
insurance if obtained from or through the creditor and
stating that the customer may choose the person through which
the insurance is to be obtained.
(7) Premium or other charge for any other guarantee or
insurance protecting the creditor against the customer's
default or other credit loss.
(8) Any charge imposed by a creditor upon another
creditor for purchasing or accepting an obligation of a
customer if the customer is required to pay any part of that
charge in cash, as an addition to the obligation, or as a
deduction from the proceeds of the obligation.
If itemized and disclosed to the customer, any charges of
the following types need not be included in the finance
charge:
(1) Fees and charges prescribed by law which
actually are or will be paid to public officials for
determining the existence of or for perfecting or re-
leasing or satisfying any security related to the
credit transaction.
(2) The premium payable for any insurance in lieu
of perfecting any security interest otherwise required
by the creditor in connection with the transaction,
if the premium does not exceed the fees and charges
described in subparagraph (1) of this paragraph which
would otherwise be payable.
(3) Taxes not included in the cash price.
(4) License, certificate of title, and registration
fees imposed by law.
(5) Other charges as authorized by this Act.
A late payment, delinquency, default, reinstatement, or
other such charge is not a finance charge if imposed for
actual unanticipated late payment, delinquency, default or
other such occurrence.
(Source: P.A. 76-1781.)
(815 ILCS 375/2.11) (from Ch. 121 1/2, par. 562.11)
Sec. 2.11. "Sales finance agency" means a person engaged,
in this State, in whole or in part, in the business of
purchasing or making loans upon the security of retail
installment contracts. The term includes, but is not limited
to, banks, trust companies, private bankers and industrial
bankers authorized to do business and to accept deposits in
this State, if so engaged. The term does not include a person
who makes, other than in the regular course of his business,
only isolated purchases of or isolated loans upon the
security of retail installment contracts or retail charge
agreements.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.12) (from Ch. 121 1/2, par. 562.12)
Sec. 2.12. "Holder" of a retail installment contract
means the retail seller of the motor vehicle under the
installment contract or sales finance agency or other
assignee which purchases or makes a loan upon the security of
the retail installment contract.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.14 new)
Sec. 2.14. Truth-in-Lending Act. "Truth-in-Lending Act"
means the federal Truth-in-Lending Act, 15 U.S.C. 1601 et
seq., and Regulation Z, 12 C.F.R. Part 226.
(815 ILCS 375/2.15 new)
Sec. 2.15. Precomputed. A contract is "precomputed" if
the debt is expressed as the sum of the amount financed plus
the amount of the finance charge computed in advance.
(815 ILCS 375/4) (from Ch. 121 1/2, par. 564)
Sec. 4. Every retail installment contract must contain
the names of the seller and of the buyer, the place of
business of the seller, the residence of the buyer as
specified by the buyer, and a description of the motor
vehicle. The contract must clearly state and describe any
security taken or retained by the seller. No charge may be
made to a buyer under an installment contract for insurance
against loss or damage caused to the motor vehicle, for
insurance against liability for personal injury or property
damage caused to others by reason of ownership or operation
of the motor vehicle, for credit life insurance, for credit
health and accident insurance or for any other kind of
insurance, unless the installment contract or charge
agreement separately specifies for each kind of insurance the
type of coverage, the term of coverage and the separate,
identified charge made therefor.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/5) (from Ch. 121 1/2, par. 565)
Sec. 5. Every retail installment contract shall disclose
the following items, as applicable:
(1) The cash price of the motor vehicle, using the term
"cash price".
(2) The amount of the down payment itemized, as
applicable, as down payment in money, using the term "cash
down payment", down payment in property, using the term
"trade-in" and the sum, using the term "total down payment".
(3) The difference between the amounts described in
subparagraphs (1) and (2) of this paragraph, using the term
"unpaid balance of cash price".
(4) All other charges, individually itemized, which are
included in the amount financed but which are not part of the
finance charge.
(5) The sum of the amounts determined under
subparagraphs (3) and (4) of this paragraph, using the term
"unpaid balance".
(6) Any finance charge paid separately, in cash or
otherwise, directly or indirectly to the seller or with the
seller's knowledge to another person, or withheld by the
seller from the proceeds of the credit extended and any
deposit balance or any investment which the seller requires
the buyer to make, maintain, or increase in a specified
amount or proportion as a condition to the extension of
credit, using as applicable, the terms "prepaid finance
charge" and "required deposit balance", and if both are
applicable, the total of such items using the term "total
prepaid finance charge and required deposit balance".
(7) The difference between the amounts determined under
subparagraphs (5) and (6) of this paragraph, using the term
"amount financed".
(8) The total amount of the finance charge, with
description of each amount included, using the term "finance
charge".
(9) The sum of the amounts determined under
subparagraphs (1), (4), and (8) of this paragraph, using the
term "deferred payment price".
(10) The finance charge expressed as an annual
percentage rate, using the term "annual percentage rate".
(11) The number, amount, and due dates or periods of
payments scheduled to repay the indebtedness and the sum of
such payments using the term, "total of payments". If
installment payments are stated in terms of a series of
scheduled amounts and if the amount of the final installment
payment does not exceed the scheduled amount of any preceding
installment payment, the maximum number of payments and the
amount and date of each payment need not be separately stated
and the amount of the scheduled final installment payment may
be stated as the remaining unpaid balance. The due date of
the first installment payment may be fixed by a calendar
date, by reference to the date of the contract or by
reference to the date of delivery or installation of the
goods.
(12) The amount, or method of computing the amount, of
any default, delinquency, or similar charges payable in the
event of late payments.
(13) A description or identification of the type of any
security interest held or to be retained or acquired by the
seller in connection with the extension of credit, and a
clear identification of the property to which the security
interest relates.
(14) A description of any penalty charge that may be
imposed by the seller or his assignee for prepayment of the
principal of the obligation (such as a real estate mortgage)
with an explanation of the method of computation of such
penalty and the conditions under which it may be imposed.
(15) Identification of the method of computing any
unearned portion of the finance charge in the event of
prepayment of the obligation and a statement of the amount or
method of computation of any charge that may be deducted from
the amount of any rebate of such unearned finance charge that
will be credited to the obligation or refunded to the buyer.
(16) The date on which the finance charge begins to
accrue if different from the date of the transaction.
The disclosures required to be given by this Section
shall be made clearly, conspicuously and in meaningful
sequence. Where the terms "finance charge" and "annual
percentage rate" are required to be used, they shall be
printed more conspicuously than other terminology required.
A retail installment contract which complies with the
federal Truth in Lending Act, amendments thereto, and any
regulations issued or which may be issued thereunder, shall
be deemed to be in compliance with the provisions of this
Section.
Notwithstanding any other provision of this Act or any
other law of this State, there is no obligation or duty to
disclose to an obligor under a retail installment contract:
(i) any agreement to sell, assign, or otherwise transfer the
contract to a third party for an amount which is equal to, in
excess of, or less than the amount financed under the
contract; or (ii) that the assignee of the contract or the
person who funded it may pay the seller or the person who
originated the contract all or a portion of the prepaid
finance charges and other fees or a portion of the finance
charge to be paid by the buyer over the term of the
transaction or any other compensation irrespective of how the
compensation is determined.
(Source: P.A. 82-169.)
(815 ILCS 375/6) (from Ch. 121 1/2, par. 566)
Sec. 6. (a) Except as provided under subsections
subsection (b) and (c), every retail installment contract
must provide for a schedule of periodic installment payments
in periodic, equal amounts, from the due date of the first
installment payment to the date of the final maturity of the
contract. The amount of the final installment payment may be
less than the amount of any of the periodic installment
payments in the contract.
(b) Retail installment contracts may provide for
balloon-note financing. For the purpose of this Section,
balloon-note financing shall mean the manner of purchase
whereby a consumer agrees to select and perform, at the
conclusion of a pre-determined schedule of installment
payments made in equal periodic or monthly amounts, one of
the following options:
(1) satisfy the balance of the contractual amount owing;
(2) refinance any balance owing, on the terms previously
agreed upon at the time of executing the retail installment
contract; or
(3) surrender the vehicle at such time and manner agreed
upon at the time of executing the retail installment
contract.
(c) Retail installment contracts may provide for
deferred payment of a down payment provided any deferred
portion of a down payment is payable not later than 10 days
prior to the due date of the first regularly scheduled
payment and is not subject to a finance charge.
(d) Retail installment contracts may be precomputed or
interest bearing.
(Source: P.A. 85-440.)
(815 ILCS 375/7) (from Ch. 121 1/2, par. 567)
Sec. 7. Notwithstanding the provisions of any retail
installment contract to the contrary, the buyer may prepay
the contract in full, whether by payment in cash, extension,
renewal or otherwise, at any time before maturity, and if he
does so shall receive a refund credit thereon for that
prepayment. The amount of refund credit shall represent at
least as great a proportion of the finance charge less an
acquisition cost of $25, as the sum of the periodical time
balances beginning with the next payment period bears to the
sum of all the periodical time balances under the schedule of
installment payments in the contract. In those instances
where a buyer's overpayment requires the refund credit to be
given through the issuance of a negotiable instrument by the
holder, no refund credit need be made if the amount of refund
credit is less than $5, provided that a buyer may obtain a
cash refund at the seller's or holder's location. In all
other cases where the buyer's prepayment permits the refund
credit to be given to the buyer as a credit on the buyer's
account, no refund credit need be made if the amount of
refund credit is less than $1. Where the amount of refund
credit is less than $1, no refund credit need be made.
(Source: P.A. 76-1781.)
(815 ILCS 375/8) (from Ch. 121 1/2, par. 568)
Sec. 8. (a) A seller under a retail installment contract
may require insurance against substantial risk of loss of or
damage to the motor vehicle, protecting the seller or holder
as well as the buyer, and may, if the buyer elects, include
therefor in the contract an amount not exceeding the premiums
chargeable for such insurance in accordance with rate filings
made with the Director of Insurance. No seller or holder may
require as a condition precedent to, or as a part of, a
retail installment transaction that such insurance be
purchased from or through the seller or holder, or any
employee, affiliate, or associate of seller or holder. A
seller under a retail installment contract may not require
other insurance; but if the buyer voluntarily contracts
therefor, the seller may then include in the contract an
amount for that other insurance not exceeding the premiums
paid or payable by the seller or holder. In those
transactions where the buyer elects to select the insurance
company, broker or agent for the purpose of obtaining
insurance required by the holder under this Section, the
buyer must, on or before the date when buyer takes possession
of the motor vehicle, furnish the holder with satisfactory
evidence of insurance in a company acceptable to the seller
or holder. If the buyer fails to furnish such evidence, the
holder may purchase such insurance, charge the premium
therefor to buyer, and prorate the cost of the insurance over
the remaining scheduled time payments.
(b) If the obligor fails to furnish evidence that he has
procured insurance on the property, the licensee may purchase
substitute insurance that may be substantially equivalent to
or more limited than coverage the obligor is required to
maintain. Such insurance must comply with the Collateral
Protection Act.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/9) (from Ch. 121 1/2, par. 569)
Sec. 9. The seller may not decline existing required
insurance and must afford the buyer the privilege of
purchasing any required insurance from an insurance company
authorized to do business in this State, from or through any
broker or agent selected by the buyer, if the insurance
company is approved by the holder and satisfactory evidence
of binding coverage is furnished the seller or holder. The
inclusion in a contract of an amount for required insurance
when the buyer selects the insurance company, broker or agent
is optional with the seller. Such approval may not be
arbitrarily or unreasonably withheld by the holder. All
insurance which is purchased by the seller or holder and for
which an amount is included in a contract must be written by
an insurance company authorized to do business in the State
and the seller or holder is responsible as though such
insurance were in force from the date the buyer takes
possession of the vehicle. The holder of a contract which
includes an amount for insurance purchased by the seller or
holder must, within 30 days after the date of the contract,
cause to be sent to the buyer the policies or certificates of
insurance clearly setting forth the amount of the premium,
the types of insurance, the coverages and all the terms,
exceptions, limitations, restrictions and conditions of the
insurance or, in respect to group credit life insurance and
credit accident and health insurance, a notice or statement
for that insurance clearly setting forth the name of the
insurer, the identity of the insured buyer by name or
otherwise and a description of the coverage. If, however, the
holder or seller is unable to obtain insurance for the buyer
within a reasonable time, the holder or seller shall notify
the buyer by certified mail of this fact, and 10 days after
this notification the seller or holder of the contract shall
cease to be liable for the insurance except for the credit or
refund to the buyer of the premiums included in the contract.
(Source: P.A. 76-1208.)
(815 ILCS 375/9.02) (from Ch. 121 1/2, par. 569.02)
Sec. 9.02. In any situation in which a person has
purchased a motor vehicle under an installment sales
contract agreement and has purchased credit life or credit
disability insurance with such contract agreement, the
installment sales contract agreement must include a notice
containing the following information:
(1) IF YOU HAVE PURCHASED EITHER CREDIT LIFE OR CREDIT
DISABILITY INSURANCE, OR BOTH, TO GUARANTEE PAYMENTS BEING
MADE IN CASE OF YOUR DEATH OR DISABILITY, ON YOUR VEHICLE
PURCHASED UNDER AN INSTALLMENT SALES CONTRACT, YOU MAY BE
ENTITLED TO A PARTIAL REFUND OF YOUR PREMIUM IF YOU PAY OFF
YOUR INSTALLMENT LOAN EARLY.
(2) IN CASE OF EARLY COMPLETE PAYMENT OF YOUR LOAN, YOU
SHOULD CONTACT THE SELLER OF YOUR CREDIT LIFE OR CREDIT
DISABILITY INSURANCE TO SEE IF A REFUND IS DUE. IF YOUR
VEHICLE DEALER FINANCED YOUR LOAN, THE SELLER OF YOUR CREDIT
LIFE OR CREDIT DISABILITY INSURANCE IS YOUR VEHICLE DEALER.
The above provisions shall be in large block print at
least 1/8" in height.
The notice form shall also be captioned: "NOTICE OF
POSSIBLE REFUND OF CREDIT LIFE OR DISABILITY INSURANCE
PREMIUM."
The willful failure to provide such a notice shall
subject the insurance seller to liability to the purchaser
for 3 times the amount of refund due or $100, whichever is
greater.
(Source: P.A. 85-588.)
(815 ILCS 375/9.03 new)
Sec. 9.03. Disclosure of consideration paid to seller.
Consideration or another thing of value may be paid to or
retained by the seller or holder or an affiliate of the
seller or holder in connection with any insurance, debt
cancellation contract, or other such product purchased
pursuant to the retail installment sales contract made or
held by the seller or holder and all or a portion of the
consideration may be included in the amount charged to the
obligor, so long as the seller discloses to the obligor that
the seller, holder, or any of their affiliates may receive
something of value in connection with the purchase.
(815 ILCS 375/10) (from Ch. 121 1/2, par. 570)
Sec. 10. If any required insurance for which an amount is
included in the contract is cancelled, any unearned insurance
refund exceeding one dollar received or receivable by the
holder or, if the amount included for insurance in the
contract exceeds the premiums paid or payable by the holder
therefor, any unearned portion of the amount so included
exceeding one dollar shall be credited on the final maturing
installments of the contract except to the extent those
amounts are applied toward payment for similar insurance
protecting the interests of the buyer and the holder or
either of them.
If any credit life or credit accident and health
insurance for which an amount is included in the contract or
charge agreement is terminated, a refund or credit with
respect to the amount paid or charged for such coverage shall
be determined and made as provided in Section 155.58 of the
"Illinois Insurance Code", approved June 29, 1937, as now or
hereafter amended.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/11) (from Ch. 121 1/2, par. 571)
Sec. 11. Delinquency charges. A retail installment
contract may provide for, and the seller or holder may (if
the contract provides) collect, a delinquency and collection
charge, on each installment in default for a period of not
less than 10 days, in an amount not exceeding 5% of the
installment on installments in excess of $200 or $10 on
installments of $200 or less., but Only one delinquency and
collection charge may be collected on any installment
regardless of the period during which it that installment
remains in default. In addition, a retail installment
contract may provide for the payment by the buyer of
reasonable attorney's fees incurred in the collection or
enforcement of the contract. Any clause or provision of any
retail installment contract entered into after December 31,
1973, to the contrary notwithstanding with respect to
attorney's fees incurred in the collection or enforcement of
such contract, the court in its discretion may award
attorney's fees to either party as the interests of justice
may require.
(Source: P.A. 87-483; 87-625; 87-841; 87-895; 88-348.)
(815 ILCS 375/11.2 new)
Sec. 11.2. Final installment. Fifteen days after the
final installment is due as originally scheduled or deferred,
the holder may compute and charge interest on any balance
remaining unpaid, including unpaid default or deferment
charges, at the annual percentage rate stated in the retail
installment contract until fully paid or reduced to judgment.
At the time the final installment is due, the holder shall
give notice to the buyer stating any amounts unpaid.
(815 ILCS 375/13) (from Ch. 121 1/2, par. 573)
Sec. 13. The seller shall deliver to the buyer a copy of
the retail installment contract signed by the seller. Any
acknowledgment by the buyer of delivery of a copy of the
contract must be printed or written in a size equal to at
least 10 point bold type and, if contained in the contract,
must appear directly above the legend required above the
buyer's signature by paragraph (1) of Section 3. The buyer's
written acknowledgment of delivery of a copy of the contract
conforming to the requirements of this Act is conclusive
proof of the such delivery and of compliance with this
Section in any action by or against an assignee of the
contract without knowledge to the contrary when he purchases
the contract. Until the seller delivers a copy of the
contract to him or her does so, a buyer who has not received
delivery of the motor vehicle has the right to cancel his
agreement and to receive a refund of all payments made and a
return of all goods traded in to the seller on account of or
in contemplation of the contract, or, if those goods cannot
be returned, the value thereof. However, this Section does
not apply when the merchandise has been specially ordered or
custom made to the specifications of the purchaser and
evidence of such order is provided by the seller.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/15) (from Ch. 121 1/2, par. 575)
Sec. 15. The seller or other holder of a retail
installment contract must give the buyer a written receipt
for any payment made in cash. Upon the buyer's written
request the holder of a retail installment contract shall
must give or forward to the buyer a written statement of the
amounts of payments and the total amount unpaid under the
contract. Upon written request, a buyer is entitled to such a
statement once every 6 months without charge. The holder may
require payment of a reasonable charge not exceeding $10 for
each additional statement furnished.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/17.1 new)
Sec. 17.1. Seller may not keep keys. For contracts
entered into after January 1, 1998, unless otherwise provided
for in the retail installment sales contract, a seller or
holder cannot take or retain possession of the keys (or copy
thereof) to a motor vehicle purchased under a retail
installment sales contract.
(815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
Sec. 20. Unless otherwise limited by this Section, the
parties shall have the rights and remedies provided in
Article 9 of the Uniform Commercial Code with respect to
default and disposition of collateral.
If the buyer has paid an amount equal to 60% or more of
the deferred payment price at the time of his default under
the contract and if the buyer, at the request of the holder
and without legal proceedings, surrenders the goods to the
holder in ordinary condition and free from malicious damage,
the holder must, within a period of 5 days from the date of
receipt of the goods at his place of business, elect either
(a) to retain the goods and release the buyer from further
obligation under the contract, or (b) to return the goods to
the buyer at the holder's expense and be limited to an action
to recover the balance of the indebtedness.
If the buyer has paid an amount equal to 30% or more of
the deferred payment price at the time of repossession, the
buyer may, within 15 days, reinstate the contract and recover
redeem the collateral from the holder by tendering (a) the
total of all unpaid amounts, including any unpaid delinquency
or deferral charges due at the time of tender, without
acceleration, and (b) performance necessary to cure any
default other than nonpayment of the amounts due; and (c) any
reasonable cost or fees incurred by the holder in the
retaking of the goods. Tender of payment and performance
pursuant to this Section restores to the buyer his rights
under the contract as though no default had occurred. The
buyer has a right to reinstate the contract and recover
redeem the collateral from the holder only once under this
Section.
The holder must give written notice to the buyer, within
3 days of the repossession, of the buyer's right to reinstate
the contract and recover redeem the collateral pursuant to
this Section. The written notice shall be in substantially
the following form:
NOTICE OF RIGHT TO RECOVER VEHICLE
Your car was repossessed on (specify date) for failure to
make payments on the contract (or other reason).
Under Illinois law, because you have paid at least 30% of
the deferred payment price before repossession, you may be
able to get the car back. To recover the car you must do the
following within 15 days of the date of repossession:
1. Make payment of all back payments due
as of the date of this notice so that
you are current on the contract. $
2. Pay any late charges due. $
3. Pay the costs of repossession. $
Total due as of the date of this notice
plus any additional amounts which may
become due between the date of the
notice and the date of reinstatement. $
TOTAL $
Bring cash, a certified check or money order for the
total amount plus any additional amounts which may become due
between the date of this notice and the date of the
reinstatement listed above to our office located at (specify
address) by (specify date) to get your car back.
(Source: P.A. 83-302.)
(815 ILCS 375/21) (from Ch. 121 1/2, par. 581)
Sec. 21. (a) A retail installment contract may provide
for, and the seller or holder may charge, collect and receive
a finance charge computed on the entire amount financed as
determined in accordance with this Act from the date of the
contract to the due date of the final installment at not
exceeding the following rates:
Class 1 - Any new motor vehicle designated by the
manufacturer by a year model not earlier than the year in
which the sale is made - $12 per $100 per year until December
31, 1981 and $8.00 per $100 per year thereafter.
Class 2 - Any new motor vehicle not in Class 1 and any
used motor vehicle designated by the manufacturer by a year
model of not more than 2 years prior to the year in which the
sale is made - $13 per $100 per year until December 31, 1981
and $11 per $100 per year thereafter.
Class 3 - Any used motor vehicle not in Class 2 and
designated by the manufacturer by a year model not more than
4 years prior to the year in which the sale is made - $14 per
$100 per year until December 31, 1981 and $14 per $100 per
year thereafter.
Class 4 - Any used motor vehicle not in Class 2 or Class
3 and designated by the manufacturer by a year model more
than 4 years prior to the year in which the sale is made -
$16 per $100 per year.
(b) A minimum finance charge of $25 may be charged on
any retail installment contract.
(c) Notwithstanding the provisions of any other Statute,
and notwithstanding the rate limitations expressed in
subdivisions (a) and (b) of this Section, for motor vehicle
retail installment contracts executed after the effective
date of this amendatory Act of 1981, there shall be no limit
on the finance charges which may be charged, collected and
received.
(Source: P.A. 82-660.)
Section 30. The Retail Installment Sales Act is amended
by changing Sections 2, 2.9, 2.11, 2.13, 5, 6, 7, 8, 9, 11,
12, 13, 14, 21, 24, 27, and 28, and by adding Sections 2.16,
2.17, 11.1, 12.1, and 23.1 as follows:
(815 ILCS 405/2) (from Ch. 121 1/2, par. 502)
Sec. 2. For the purposes of this Act, unless the context
otherwise requires, the terms specified in the following
Sections preceding Section 3 2.1 through 2.14 have the
meanings ascribed to them in those Sections.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/2.9) (from Ch. 121 1/2, par. 502.9)
Sec. 2.9. "Official fees" means the taxes and fees
prescribed by law that actually are, or will be, paid to
public officials for determining the existence of, or for
perfecting, releasing or satisfying a security interest fees
required by law to be paid to a public officer to perfect by
filing a security interest in goods retained by a seller
under a retail installment transaction and to file a release
or termination statement of a security interest so perfected.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/2.11) (from Ch. 121 1/2, par. 502.11)
Sec. 2.11. "Finance charge" means the sum of all charges
payable, directly or indirectly by the buyer and imposed
directly or indirectly by the seller as an incident to or as
a condition of the extension of credit, whether payable by
the buyer, the seller, or any other person on behalf of the
buyer to the seller or a third party including any of the
following types of charges:
(1) Interest, time price differential, and any amount
payable under a discount or other system of additional
charges.
(2) Service, transaction, activity, or carrying charge.
(3) Loan fee, points, finder's fee, or similar charge.
(4) Fee for an appraisal, investigation, or credit
report.
(5) Charges or premiums for credit life, accident,
health, or loss of income insurance, written in connection
with any credit transaction unless
(i) the insurance coverage is not required by the
creditor and this fact is clearly and conspicuously disclosed
in writing to the customer; and
(ii) any customer desiring such insurance coverage gives
specific dated and separately signed affirmative written
indication of such desire after receiving written disclosure
to him of the cost of such insurance.
(6) Charges or premiums for insurance, written in
connection with any credit transaction, against loss of or
damage to property or against liability arising out of the
ownership or use of property, unless a clear, conspicuous,
and specific statement in writing is furnished by the
creditor to the customer setting forth the cost of the
insurance if obtained from or through the creditor and
stating that the customer may choose the person through which
the insurance is to be obtained.
(7) Premium or other charge for any other guarantee or
insurance protecting the creditor against the customer's
default or other credit loss.
(8) Any charge imposed by a creditor upon another
creditor for purchasing or accepting an obligation of a
customer if the customer is required to pay any part of that
charge in cash, as an addition to the obligation, or as a
deduction from the proceeds of the obligation.
If itemized and disclosed to the customer, any charges of
the following types need not be included in the finance
charge:
(a) Fees and charges prescribed by law which actually
are or will be paid to public officials for determining the
existence of or for perfecting or releasing or satisfying any
security related to the credit transaction.
(b) The premium payable for any insurance in lieu of
perfecting any security interest otherwise required by the
creditor in connection with the transaction, if the premium
does not exceed the fees and charges described in
subparagraph (1) of this paragraph which would otherwise be
payable.
(c) Taxes not included in the cash price.
(d) License, certificate of title, and registration fees
imposed by law.
(e) Other charges as authorized by this Act.
A late payment, delinquency, default, reinstatement, or
other such charge is not a finance charge if imposed for
actual unanticipated late payment, delinquency, default or
other such occurrence.
(Source: P.A. 76-1780.)
(815 ILCS 405/2.13) (from Ch. 121 1/2, par. 502.13)
Sec. 2.13. "Sales finance agency" means a person engaged,
in this State, in whole or in part, in the business of
purchasing or making loans upon the security of retail
installment contracts or retail charge agreements. The term
includes, but is not limited to, banks, trust companies,
private bankers and industrial banks authorized to do
business and to accept deposits in this State, if so engaged.
The term does not include a person who makes, other than in
the regular course of his business, only isolated purchases
of or isolated loans upon the security of retail installment
contracts or retail charge agreements.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/2.16 new)
Sec. 2.16. Truth-in Lending Act. "Truth-in-Lending
Act" means the federal Truth-in-Lending Act, 15 U.S.C. 1601
et seq., and Regulation Z, 12 C.F.R. Part 226.
(815 ILCS 405/2.17 new)
Sec. 2.17. Precomputed. A contract is "precomputed" if
the debt is expressed as a sum of the amount financed plus
the amount of the finance charge computed in advance.
(815 ILCS 405/5) (from Ch. 121 1/2, par. 505)
Sec. 5. Every retail installment contract shall disclose
the following items, as applicable:
(1) The cash price of the property or service purchased,
using the term "cash price".
(2) The amount of the down payment itemized, as
applicable, as down payment in money, using the term "cash
down payment", down payment in property, using the term
"trade-in" and the sum, using the term "total down payment".
(3) The difference between the amounts described in
subparagraphs (1) and (2) of this paragraph, using the term
"unpaid balance of cash price".
(4) All other charges, individually itemized, which are
included in the amount financed but which are not part of the
finance charge.
(5) The sum of the amounts determined under
subparagraphs (3) and (4) of this paragraph, using the term
"unpaid balance".
(6) Any amounts required to be deducted under this Act
using, as applicable, the terms "prepaid finance charge" and
"required deposit balance", and, if both are applicable, the
total of such items using the term "total prepaid finance
charge and required deposit balance".
(7) The difference between the amounts determined under
subparagraphs (5) and (6) of this paragraph, using the term
"amount financed".
(8) The total amount of the finance charge, with
description of each amount included, using the term "finance
charge".
(9) The sum of the amounts determined under
subparagraphs (1), (4), and (8) of this paragraph, using the
term "deferred payment price".
(10) The finance charge expressed as an annual
percentage rate, using the term "annual percentage rate",
except in the case of a finance charge
(i) which does not exceed $5 and is applicable to an
amount financed not exceeding $75, or
(ii) which does not exceed $7.50 and is applicable to an
amount financed exceeding $75.
(11) The number, amount, and due dates or periods of
payments scheduled to repay the indebtedness and the sum of
such payments using the term "total of payments". If
installment payments are stated in terms of a series of
scheduled amounts and if the amount of the final installment
payment does not exceed the scheduled amount of any preceding
installment payment, the maximum number of payments and the
amount and date of each payment need not be separately stated
and the amount of the scheduled final installment payment may
be stated as the remaining unpaid balance. The due date of
the first installment payment may be fixed by a calendar
date, by reference to the date of the contract or by
reference to the date of delivery or installation of the
goods.
(12) The amount, or method of computing the amount, of
any default, delinquency, or similar charges payable in the
event of late payments.
(13) A description or identification of the type of any
security interest held or to be retained or acquired by the
seller in connection with the extension of credit, and a
clear identification of the property to which the security
interest relates.
(14) A description of any penalty charge that may be
imposed by the seller or his assignee for prepayment of the
principal of the obligation (such as a real estate mortgage)
with an explanation of the method of computation of such
penalty and the conditions under which it may be imposed.
(15) Identification of the method of computing any
unearned portion of the finance charge in the event of
prepayment of the obligation and a statement of the amount or
method of computation of any charge that may be deducted from
the amount of any rebate of such unearned finance charge that
will be credited to the obligation or refunded to the buyer.
(16) The date on which the finance charge begins to
accrue if different from the date of the transaction.
The disclosures required to be given by this Section
shall be made clearly, conspicuously and in meaningful
sequence. Where the terms "finance charge" and "annual
percentage rate" are required to be used, they shall be
printed more conspicuously than other terminology required.
A retail installment contract which complies with the
federal Truth in Lending Act, amendments thereto, and any
regulations issued or which may be issued thereunder, shall
be deemed to be in compliance with the provisions of this
Section.
Notwithstanding any other provision of this Act or any
other law of this State, there is no obligation or duty to
disclose to an obligor under a retail installment contract:
(i) any agreement to sell, assign, or otherwise transfer the
contract to a third party for an amount which is equal to, in
excess of, or less than the amount financed under the
contract; or (ii) that the assignee of the contract or the
person who funded it may pay the seller or the person who
originated the contract all or a portion of the prepaid
finance charges and other fees or a portion of the finance
charge to be paid by the buyer over the term of the
transaction or any other compensation irrespective of how the
compensation is determined.
(Source: P.A. 82-169.)
(815 ILCS 405/6) (from Ch. 121 1/2, par. 506)
Sec. 6. (a) Every retail installment contract must
provide for a schedule of periodic installment payments in
periodic, equal amounts from the due date of the first
installment payment to the date of the final maturity of the
contract, except that where the business or vocation of the
buyer results in intermittent or irregular income, the
contract may reduce or omit payment over any period or
periods in which the buyer's income is reduced or suspended.
The amount of the final installment payment may be less than
the amount of any of the periodic installment payments in the
contract.
(b) Retail installment contracts may provide for
balloon-note financing. For the purpose of this Section,
"balloon-note financing" means the manner of purchase whereby
a consumer agrees to select and perform, at the conclusion of
a predetermined schedule of installment payments made in
periodic or monthly amounts, one of the following options:
(1) satisfy the balance of the contractual amount
owing; or
(2) refinance any balance owing, on the terms
previously agreed upon at the time of executing the
retail installment contract.
(c) Retail installment contracts may provide for
deferred payment of a down payment provided any deferred
portion of a down payment is payable not later than 10 days
prior to the due date of the first regularly scheduled
payment and is not subject to a finance charge.
(d) Retail installment sales contracts may be
precomputed or interest bearing.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/7) (from Ch. 121 1/2, par. 507)
Sec. 7. Notwithstanding the provisions of any retail
installment contract to the contrary, the buyer may prepay
the contract in full, whether by payment in cash, extension,
renewal or otherwise, at any time before maturity, and if he
does so, shall receive a refund credit thereon for that
prepayment. The amount of refund credit shall represent at
least as great a proportion of the finance charge, less an
acquisition cost of $25 $12, as the sum of the periodical
time balances beginning with the next payment period bears to
the sum of all the periodical time balances under the
schedule of installment payments in the contract. In those
instances where a buyer's overpayment requires the refund
credit to be given through the issuance of a negotiable
instrument by the holder, no refund credit need be made if
the amount of refund credit is less than $5, provided that a
buyer may obtain a cash refund at the seller's or holder's
location. In all other cases where the buyer's prepayment
permits the refund credit to be given to the buyer as a
credit on the buyer's account, no refund credit need be made
if the amount of refund credit is less than $1. Where the
amount of refund credit is less than $1, no refund credit
need be made.
(Source: P.A. 76-1780.)
(815 ILCS 405/8) (from Ch. 121 1/2, par. 508)
Sec. 8. (a) A seller under a retail installment contract
or retail charge agreement may require insurance against
substantial risk of loss of or damage to the goods protecting
the seller or holder, as well as the buyer, and may, if the
buyer elects, include therefor in the contract an amount not
exceeding the premiums chargeable for similar insurance in
accordance with rate filings made with the Director of
Insurance. No seller or holder may require, as a condition
precedent to or as a part of a retail installment
transaction, that such insurance be purchased from or through
the seller or holder, or any employee, affiliate, or
associate of seller or holder. A seller under a retail
installment contract or retail charge agreement may not
require other insurance; but if the buyer voluntarily
contracts therefor, the seller may then include in the
contract an amount for that other insurance not exceeding the
premiums paid or payable by the seller or holder. In those
transactions where the buyer elects to select the insurance
company, broker or agent for the purpose of obtaining
insurance required by the holder under this Section, the
buyer must furnish the holder with satisfactory evidence of
insurance on or before the date when the buyer takes
possession of the goods.
(b) If the obligor fails to furnish evidence that he has
procured insurance on the property, the licensee may purchase
substitute insurance that may be substantially equivalent to
or more limited than coverage the obligor is required to
maintain. Such insurance must comply with the Collateral
Protection Act.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/9) (from Ch. 121 1/2, par. 509)
Sec. 9. The seller may not decline existing insurance
written by an insurance company authorized to do business in
this State and must afford the buyer the privilege of
purchasing any required insurance from or through an
insurance company, broker or agent of his own selection, if
the insurance company is approved by the holder. The
inclusion in the contract or charge agreement of an amount
for required insurance when the buyer selects the insurance
company, broker or agent is optional with the seller. All
insurance which is purchased by the holder and for which an
amount is included in a contract or charge agreement must be
written by an insurance company authorized to do business in
this State. The holder of a contract or charge agreement
which includes an amount for insurance purchased by the
seller or holder must, within 30 days after the date of the
contract or charge agreement, cause to be sent to the buyer
the policies or certificates of insurance clearly setting
forth the amount of the premium, the types of insurance, the
coverages and all the terms, exceptions, limitations,
restrictions and conditions of the insurance or, in respect
to group credit life insurance and credit accident and health
insurance, a notice or statement for that insurance clearly
setting forth the name of the insurer, the identity of the
insured buyer by name or otherwise and a description of the
coverage.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/11) (from Ch. 121 1/2, par. 511)
Sec. 11. If any required insurance for which an amount is
included in the contract or charge agreement is cancelled,
any unearned insurance refund exceeding one dollar received
or receivable by the holder or, if the amount included for
insurance in the contract or charge agreement exceeds the
premiums paid or payable by the holder therefor, any unearned
portion of the amount so included exceeding one dollar shall
be credited on the final maturing installments of the
contract except to the extent those amounts are applied
toward payment for similar insurance protecting the interests
of the buyer and the holder or either of them.
If any credit life or credit accident and health
insurance for which an amount is included in the contract or
charge agreement is terminated, a refund or credit with
respect to the amount paid or charged for such coverage shall
be determined and made as provided in Section 155.58 of the
"Illinois Insurance Code", approved June 29, 1937, as now or
hereafter amended.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/11.1 new)
Sec. 11.1. Disclosure of consideration paid to seller.
Consideration or another thing of value may be paid to or
retained by the seller or holder or an affiliate of the
seller or holder in connection with any insurance, debt
cancellation contract, or other such product purchased
pursuant to the retail installment sales contract made or
held by the seller and all or a portion of the consideration
may be included in the amount charged to the obligor, so long
as the seller or holder discloses to the obligor that the
seller, holder, or any of their affiliates may receive
something of value in connection with the purchase.
(815 ILCS 405/12) (from Ch. 121 1/2, par. 512)
Sec. 12. Delinquency charges. A retail installment
contract or a retail charge agreement may provide for, and
the seller or holder may (if the contract or retail charge
agreement provides) collect, a delinquency and collection
charge, on each installment in default for a period of not
less than 10 days, in an amount not exceeding 5% of the
installment on installments in excess of $200 or $10 on
installments of $200 or less, or, in lieu thereof with
respect to a retail installment contract only, interest after
maturity on each such installment not to exceed the highest
lawful contract rate. Only one delinquency and collection
charge may be collected on any installment regardless of the
period during which it that installment remains in default.
In addition, a retail installment contract or a retail charge
agreement may provide for the payment by the buyer of
reasonable attorney's fees incurred in the collection or
enforcement of the contract or retail charge agreement. Any
clause or provision of any retail installment contract or
retail charge agreement entered into after December 31, 1973,
to the contrary notwithstanding with respect to attorney's
fees incurred in the collection or enforcement of such
contract or retail charge agreement the court in its
discretion may award attorney's fees to either party as the
interest of justice may require.
(Source: P.A. 87-483; 87-841; 88-348.)
(815 ILCS 405/12.1 new)
Sec. 12.1. Final installment. Fifteen days after the
final installment is due as originally scheduled or deferred,
the holder may compute and charge interest on any balance
remaining unpaid, including unpaid default or deferment
charges, at the annual percentage rate stated in the retail
installment contract until fully paid or until reduced to
judgment. At the time the final installment is due, the
holder shall give notice to the buyer stating any amounts
unpaid.
(815 ILCS 405/13) (from Ch. 121 1/2, par. 513)
Sec. 13. No provision in a retail installment contract
under which, in the absence of the buyer's default, the
holder may, arbitrarily and without reasonable cause,
accelerate the maturity of any part of or all of the amount
owing thereunder is enforceable.
No provision in a retail installment contract under which
the holder may accelerate the maturity of any part or all of
the amount owing thereunder is enforceable, unless prior to
such acceleration, the buyer has been in default for at least
30 days or the buyer has abandoned or destroyed the property
or the holder has reasonable cause to believe that the buyer
is about to leave the state.
No provision in a retail installment contract relieving
the seller from liability for any remedies provided by law
which the buyer may have against the seller under the
contract is enforceable.
No provision in a retail installment contract purporting
to waive any of the provisions of this Act is enforceable.
(Source: P.A. 83-345.)
(815 ILCS 405/14) (from Ch. 121 1/2, par. 514)
Sec. 14. The seller shall deliver to the buyer a copy of
the retail installment contract signed by the seller. Any
acknowledgment by the buyer of delivery of a copy of the
contract must be printed or written in a size equal to at
least 10 point bold type and, if contained in the contract,
must appear directly above the legend required above the
buyer's signature by paragraph (c) (1) of Section 3. The
buyer's written acknowledgment of delivery of a copy of the
contract conforming to the requirements of this Act is
conclusive proof of that delivery and of compliance with this
Section in any action by or against an assignee of the
contract without knowledge to the contrary when he purchases
the contract. Until the seller delivers a copy of the
contract to him, a buyer who has not received delivery of the
goods or has not been furnished or rendered the services has
the right to cancel his agreement and to receive a refund of
all payments made and a return of all goods traded in to the
seller on account of or in contemplation of the contract or,
if those goods cannot be returned, the value thereof.
However, this Section shall not apply when merchandise has
been specially ordered or custom made to the specifications
of the purchaser and evidence of such order is provided the
seller.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/21) (from Ch. 121 1/2, par. 521)
Sec. 21. (a) If, in a retail installment transaction, a
retail buyer makes any subsequent purchase of goods or
services from a retail seller from whom he has previously
purchased goods or services under one or more retail
installment contracts, and the amounts under the previous
contract or contracts have not been fully paid, the
subsequent purchases may, at the seller's option, be included
in and consolidated with one or more of the previous
contracts. Each subsequent purchase must be evidenced by a
separate retail installment contract under this Act,
notwithstanding that the purchase may be included in and
consolidated with one or more of those in the previous
contracts. All of the provisions of this Act with respect to
retail installment contracts apply to these subsequent
purchases except as otherwise provided in this Section. If
installment purchases are consolidated, the seller may,
instead of having the buyer execute a retail installment
contract for each subsequent purchase as provided in this
Act, prepare a written memorandum of each subsequent
purchase, in which case Sections 3 and 14 and paragraph (a)
of Section 5 do not apply. Unless previously furnished in
writing to the buyer by the seller, by sales slip, memoranda
or otherwise, the memorandum must set forth with respect to
each subsequent purchase the following:
(1) All items of disclosure required by Section 5 of
this Act for a retail installment contract; and
(2) the outstanding balance of the previous contract or
contracts;
(3) the consolidated balance;
(4) the deferred payment price of the subsequent
purchase; and
(5) the revised Total of Payments applicable to the
previous contract or contracts and the subsequent purchase.
The seller must deliver to the buyer a copy of this
memorandum before the due date of the first installment under
the consolidated contract.
(Source: P.A. 76-1780.)
(815 ILCS 405/23.1 new)
Sec. 23.1. Other fees. The seller may charge a premium
for insurance, in lieu of perfecting a security interest, to
the extent that the premium does not exceed the fees paid to
public officials for determining the existence of or for
perfecting or satisfying a security interest. The premium
must be disclosed in the itemization of the amount financed.
(815 ILCS 405/24) (from Ch. 121 1/2, par. 524)
Sec. 24. Retail installment contracts negotiated and
entered into by mail or telephone without personal
solicitation by salesmen or other representatives of the
seller and based upon a catalog of the seller or other
printed solicitation clearly setting forth the cash sale
prices and other terms of sales to be made through that
medium, may be made as provided in this Section. The
provisions of this Act with respect to retail installment
contracts apply to those sales, except that: (1) the
designation and notice provisions of paragraphs (b) and (c)
of Section 3 are inapplicable to such contracts.;
(2) the retail installment contract, when completed by
the buyer, need not contain the items required by paragraph
(a) of Section 5.
When an order is received from the retail buyer, the
seller must prepare a written memorandum containing all of
the information required by paragraph (a) of Section 5 to be
included in a retail installment contract. Instead of
delivering a copy of the contract to the retail buyer as
provided in Section 14, the seller must, before the due date
of the first installment payable under the contract, deliver
to the buyer a written statement setting forth all the
information required by paragraph (a) of Section 5.
(Source: Laws 1967, p. 2149.)
(815 ILCS 405/27) (from Ch. 121 1/2, par. 527)
Sec. 27. (a) Notwithstanding the provisions of any other
statute, a retail installment contract may provide for, and
the seller or holder may, if the contract does so provide,
charge, collect and receive, a finance charge computed on the
principal balance from the date of the contract to the due
date of the final installment at not exceeding the following
rates:
(1) on so much of the principal balance as does not
exceed $500--$16 per $100 per year;
(2) on so much of the principal balance exceeding $500
but not exceeding $800--$14 per $100 per year;
(3) on so much of the principal balance as exceeds
$800--$12 per $100 per year on the excess.
(b) A minimum finance charge not in excess of the
following amounts may be charged on any retail installment
contract: $12 on any retail installment contract involving an
initial principal balance of $50 or more; $7.50 on a retail
installment contract involving an initial principal balance
of more than $25 and less than $50; and $5 on a retail
installment contract involving an initial principal balance
of $25 or less.
(c) Notwithstanding the provisions of any other statute,
and notwithstanding the rate limitations expressed in
subdivisions (a) and (b) of this Section, for retail
installment contracts executed after the effective date of
this amendatory Act of 1981, there shall be no limit on the
finance charges which may be charged, collected and received.
(Source: P.A. 82-660.)
(815 ILCS 405/28) (from Ch. 121 1/2, par. 528)
Sec. 28. (a) Notwithstanding the provisions of any other
statute, a retail charge agreement may provide for, and the
seller or holder may, if the agreement does so provide,
charge, collect and receive, a finance charge not exceeding
18¢ per $10 per month, computed on all amounts unpaid
thereunder from month to month, which need not be a calendar
month. The finance charge under this Section may be computed
for all unpaid balances from month to month within a range of
not exceeding $10 on the basis of the median amount within
the range if, as so computed, the same rate of finance charge
is applied to all unpaid balances within the range. If the
amount of the finance charge as so computed is less than 70¢
for any month, a finance charge of that amount may be
charged, collected and received for that month. If the
regular period is other than a month to month period, the
finance charge shall be computed proportionately.
(b) Notwithstanding the provisions of any other statute,
and notwithstanding the limitations on amounts of finance
charges which may be charged, collected and received
expressed in subsection (a) of this Section, a retail charge
agreement may provide for the charging, collection and
receipt of finance charges at any specified rate on the for
unpaid balances incurred after the effective date of this
amendatory Act of 1981. If a seller or holder under a retail
charge agreement entered into on, prior to or after the
effective date of this amendatory Act of 1981 notifies the
retail buyer at least 15 30 days in advance of any lawful
increase in the finance charges to be charged under the
agreement, and the retail buyer, after the effective date of
such notice, makes a new or additional purchase or incurs
additional debt pursuant to the agreement, the increased
finance charges may be applied only to any such new or
additional purchase or additional debt incurred regardless of
any other terms of the agreement. For purposes of
determining the balances to which the increased interest rate
applies, all payments and other credits may be deemed to be
applied to the balance existing prior to the change in rate
until that balance is paid in full.
(Source: P.A. 82-660.)
INDEX
Statutes amended in order of appearance
205 ILCS 660/2 from Ch. 17, par. 5202
205 ILCS 660/3 from Ch. 17, par. 5203
205 ILCS 660/4 from Ch. 17, par. 5204
205 ILCS 660/5 from Ch. 17, par. 5205
205 ILCS 660/6 from Ch. 17, par. 5206
205 ILCS 660/7 from Ch. 17, par. 5207
205 ILCS 660/8 from Ch. 17, par. 5208
205 ILCS 660/8.1 from Ch. 17, par. 5209
205 ILCS 660/8.2 from Ch. 17, par. 5210
205 ILCS 660/8.3 from Ch. 17, par. 5211
205 ILCS 660/8.4 from Ch. 17, par. 5212
205 ILCS 660/8.6 from Ch. 17, par. 5214
205 ILCS 660/8.8 from Ch. 17, par. 5216
205 ILCS 660/8.9 from Ch. 17, par. 5217
205 ILCS 660/8.10 from Ch. 17, par. 5218
205 ILCS 660/8.11 from Ch. 17, par. 5219
205 ILCS 660/8.13 from Ch. 17, par. 5221
205 ILCS 660/8.14 new
205 ILCS 660/10 from Ch. 17, par. 5223
205 ILCS 660/10.1 from Ch. 17, par. 5224
205 ILCS 660/10.2 from Ch. 17, par. 5225
205 ILCS 660/11 from Ch. 17, par. 5229
205 ILCS 660/12 from Ch. 17, par. 5230
205 ILCS 660/13 from Ch. 17, par. 5231
205 ILCS 660/14 from Ch. 17, par. 5232
205 ILCS 660/15 from Ch. 17, par. 5233
205 ILCS 660/15.5 new
205 ILCS 660/16.5 new
205 ILCS 660/18 new
205 ILCS 660/19 new
205 ILCS 660/20 new
205 ILCS 660/8.7 rep.
205 ILCS 660/9 rep.
205 ILCS 660/10.5 rep.
205 ILCS 660/16 rep.
205 ILCS 670/Act title
205 ILCS 670/1 from Ch. 17, par. 5401
205 ILCS 670/2 from Ch. 17, par. 5402
205 ILCS 670/4 from Ch. 17, par. 5404
205 ILCS 670/5 from Ch. 17, par. 5405
205 ILCS 670/7 from Ch. 17, par. 5407
205 ILCS 670/8 from Ch. 17, par. 5408
205 ILCS 670/9 from Ch. 17, par. 5409
205 ILCS 670/9.1 new
205 ILCS 670/10 from Ch. 17, par. 5410
205 ILCS 670/11 from Ch. 17, par. 5411
205 ILCS 670/12 from Ch. 17, par. 5412
205 ILCS 670/12.5 new
205 ILCS 670/13 from Ch. 17, par. 5413
205 ILCS 670/14 from Ch. 17, par. 5414
205 ILCS 670/15 from Ch. 17, par. 5415
205 ILCS 670/15a from Ch. 17, par. 5416
205 ILCS 670/15b from Ch. 17, par. 5417
205 ILCS 670/15d from Ch. 17, par. 5419
205 ILCS 670/15e from Ch. 17, par. 5419.1
205 ILCS 670/16 from Ch. 17, par. 5420
205 ILCS 670/17 from Ch. 17, par. 5423
205 ILCS 670/18 from Ch. 17, par. 5424
205 ILCS 670/19.1 from Ch. 17, par. 5425.1
205 ILCS 670/19.5 new
205 ILCS 670/20 from Ch. 17, par. 5426
205 ILCS 670/20.5 new
205 ILCS 670/20.7 new
205 ILCS 670/21 from Ch. 17, par. 5427
205 ILCS 670/22 from Ch. 17, par. 5428
205 ILCS 670/23 from Ch. 17, par. 5429
205 ILCS 670/24.5 new
205 ILCS 670/3 rep.
205 ILCS 670/4.1 rep.
205 ILCS 670/6 rep.
205 ILCS 670/19 rep.
205 ILCS 670/24 rep.
815 ILCS 375/2 from Ch. 121 1/2, par. 562
815 ILCS 375/2.5 from Ch. 121 1/2, par. 562.5
815 ILCS 375/2.7 from Ch. 121 1/2, par. 562.7
815 ILCS 375/2.9 from Ch. 121 1/2, par. 562.9
815 ILCS 375/2.11 from Ch. 121 1/2, par. 562.11
815 ILCS 375/2.12 from Ch. 121 1/2, par. 562.12
815 ILCS 375/2.14 new
815 ILCS 375/2.15 new
815 ILCS 375/3 from Ch. 121 1/2, par. 563
815 ILCS 375/4 from Ch. 121 1/2, par. 564
815 ILCS 375/5 from Ch. 121 1/2, par. 565
815 ILCS 375/6 from Ch. 121 1/2, par. 566
815 ILCS 375/7 from Ch. 121 1/2, par. 567
815 ILCS 375/8 from Ch. 121 1/2, par. 568
815 ILCS 375/9 from Ch. 121 1/2, par. 569
815 ILCS 375/9.02 from Ch. 121 1/2, par. 569.02
815 ILCS 375/9.03 new
815 ILCS 375/10 from Ch. 121 1/2, par. 570
815 ILCS 375/11 from Ch. 121 1/2, par. 571
815 ILCS 375/11.2 new
815 ILCS 375/13 from Ch. 121 1/2, par. 573
815 ILCS 375/15 from Ch. 121 1/2, par. 575
815 ILCS 375/17.1 new
815 ILCS 375/20 from Ch. 121 1/2, par. 580
815 ILCS 375/21 from Ch. 121 1/2, par. 581
815 ILCS 375/24 from Ch. 121 1/2, par. 584
815 ILCS 405/2 from Ch. 121 1/2, par. 502
815 ILCS 405/2.9 from Ch. 121 1/2, par. 502.9
815 ILCS 405/2.11 from Ch. 121 1/2, par. 502.11
815 ILCS 405/2.13 from Ch. 121 1/2, par. 502.13
815 ILCS 405/2.16 new
815 ILCS 405/2.17 new
815 ILCS 405/3 from Ch. 121 1/2, par. 503
815 ILCS 405/5 from Ch. 121 1/2, par. 505
815 ILCS 405/6 from Ch. 121 1/2, par. 506
815 ILCS 405/7 from Ch. 121 1/2, par. 507
815 ILCS 405/8 from Ch. 121 1/2, par. 508
815 ILCS 405/9 from Ch. 121 1/2, par. 509
815 ILCS 405/11 from Ch. 121 1/2, par. 511
815 ILCS 405/11.1 new
815 ILCS 405/12 from Ch. 121 1/2, par. 512
815 ILCS 405/12.1 new
815 ILCS 405/13 from Ch. 121 1/2, par. 513
815 ILCS 405/14 from Ch. 121 1/2, par. 514
815 ILCS 405/21 from Ch. 121 1/2, par. 521
815 ILCS 405/23.1 new
815 ILCS 405/24 from Ch. 121 1/2, par. 524
815 ILCS 405/27 from Ch. 121 1/2, par. 527
815 ILCS 405/28 from Ch. 121 1/2, par. 528
815 ILCS 405/31 from Ch. 121 1/2, par. 531