(815 ILCS 122/4-5)
Sec. 4-5. Prohibited acts. A licensee or unlicensed person or entity making payday
loans may not commit, or have committed on behalf of the
licensee
or unlicensed person or entity, any of the following acts: (1) Threatening to use or using the criminal process in this or any other state to |
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(2) Using any device or agreement that would have the effect of charging or collecting
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| more fees or charges than allowed by this Act, including, but not limited to, entering into a different type of transaction with the consumer.
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(3) Engaging in unfair, deceptive, or fraudulent practices in the making or collecting
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(4) Using or attempting to use the check provided by the consumer in a payday loan as
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| collateral for a transaction not related to a payday loan.
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(5) Knowingly accepting payment in whole or in part of a payday loan through the
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| proceeds of another payday loan provided by any licensee, except as provided in subsection (c) of Section 2.5.
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(6) Knowingly accepting any security, other than that specified in the definition of
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| payday loan in Section 1-10, for a payday loan.
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(7) Charging any fees or charges other than those specifically
authorized by this Act.
(8) Threatening to take any action against a consumer that is prohibited by this Act or
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| making any misleading or deceptive statements regarding the payday loan or any consequences thereof.
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(9) Making a misrepresentation of a material fact by an applicant for licensure in
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| obtaining or attempting to obtain a license.
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(10) Including any of the following provisions in loan documents required by subsection
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(A) a confession of judgment clause;
(B) a waiver of the right to a jury trial, if applicable, in any action brought by
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| or against a consumer, unless the waiver is included in an arbitration clause allowed under subparagraph (C) of this paragraph (11);
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(C) a mandatory arbitration clause that is oppressive, unfair, unconscionable, or
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| substantially in derogation of the rights of consumers; or
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(D) a provision in which the consumer agrees not to assert any claim or defense
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| arising out of the contract.
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(11) Selling any insurance of any kind whether or not sold in connection with the making
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| or collecting of a payday loan.
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(12) Taking any power of attorney.
(13) Taking any security interest in real estate.
(14) Collecting a delinquency or collection charge on any installment regardless of the
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| period in which it remains in default.
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(15) Collecting treble damages on an amount owing from a payday loan.
(16) Refusing, or intentionally delaying or inhibiting, the consumer's right to enter
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| into a repayment plan pursuant to this Act.
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(17) Charging for, or attempting to collect, attorney's fees, court costs, or
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| arbitration costs incurred in connection with the collection of a payday loan.
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(18) Making a loan in violation of this Act.
(19) Garnishing the wages or salaries of a consumer who is a member of the military.
(20) Failing to suspend or defer collection activity against a consumer who is a member
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| of the military and who has been deployed to a combat or combat-support posting.
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(21) Contacting the military chain of command of a consumer who is a member of the
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| military in an effort to collect on a payday loan.
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(22) Making or offering to make any loan other than a payday loan or a title-secured
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| loan, provided however, that to make or offer to make a title-secured loan, a licensee must obtain a license under the Consumer Installment Loan Act.
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(23) Making or offering a loan in violation of the Predatory Loan Prevention Act.
(Source: P.A. 101-658, eff. 3-23-21.)
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