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| Public Act 097-1039 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Consumer Installment Loan Act is amended by | ||||
changing Section 20 as follows:
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(205 ILCS 670/20) (from Ch. 17, par. 5426)
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Sec. 20. Penalties for violation.
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(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.
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(b) The obligor, prior to
the expiration of 2 years after | ||||
the date of his last scheduled payment, may
recover 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.
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(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.
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(c) No provision of this Section imposing any liability | ||
shall apply to
any act done or omitted in conformity with any | ||
rule or regulation or written
interpretation thereof by the | ||
Department of Financial and Professional Regulation, Division | ||
of Financial Institutions,
notwithstanding that after such act
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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rescinded or determined by judicial | ||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.
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(d) Notwithstanding any other provision of this Section, if | ||
any person who does not have a license issued under this Act | ||
makes a loan pursuant to this Act to an Illinois consumer, then | ||
the loan shall be null and void and the person who made the | ||
loan shall have no right to collect, receive, or retain any | ||
principal, interest, or charges related to the loan. | ||
(Source: P.A. 90-437, eff. 1-1-98.)
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Section 10. The Payday Loan Reform Act is amended by | ||
changing Section 4-10 as follows: | ||
(815 ILCS 122/4-10)
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Sec. 4-10. Enforcement and remedies. | ||
(a) The remedies provided in this Act are cumulative and | ||
apply to persons
or entities subject to this Act.
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(b) Any material violation of this Act, including the | ||
commission of an act prohibited under Section 4-5, constitutes | ||
a violation of the Consumer Fraud
and Deceptive Business | ||
Practices Act.
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(c) If any provision of the written agreement described in | ||
subsection (b) of
Section 2-20 violates this Act, then that | ||
provision is unenforceable against the consumer. | ||
(d) Subject to the Illinois Administrative Procedure Act, | ||
the Secretary may hold hearings, make findings of fact, | ||
conclusions of law, issue cease
and desist orders, have the | ||
power to issue fines of up to $10,000 per violation, refer the | ||
matter to the appropriate law enforcement agency
for | ||
prosecution under this Act, and suspend or revoke a license | ||
granted
under this Act. All proceedings shall be open to the | ||
public. | ||
(e) The Secretary 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 Secretary 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. The cease and desist order permitted by | ||
this subsection (e) may be issued prior to a hearing. | ||
The Secretary shall serve notice of his or her action, | ||
including, but not limited to, 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. | ||
Within 10 days of service of the cease and desist order, | ||
the licensee or other person may request a hearing in writing.
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The Secretary shall schedule a hearing within 30 days after the | ||
request for a hearing unless otherwise agreed to by the | ||
parties. | ||
If it is determined that the Secretary 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 the conduct. | ||
The powers vested in the Secretary by this subsection (e) | ||
are additional to any and all other powers and remedies vested | ||
in the Secretary by law, and nothing in this subsection (e) | ||
shall be construed as requiring that the Secretary shall employ | ||
the power conferred in this subsection instead of or as a | ||
condition precedent to the exercise of any other power or | ||
remedy vested in the Secretary. | ||
(f) The Secretary 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 | ||
therefore, fine the licensee an amount not exceeding $10,000 | ||
per violation, or revoke or suspend any license issued | ||
hereunder if he or she 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 Secretary 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 Secretary in | ||
refusing to issue the license. | ||
The Secretary 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 Secretary | ||
finds that grounds for revocation are of general application to | ||
all offices or to more than one office of the licensee, the | ||
Secretary shall fine, suspend, or revoke every license to which | ||
the grounds apply. | ||
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. | ||
The Secretary may issue a new license to a licensee whose | ||
license has been revoked when facts or conditions which clearly | ||
would have warranted the Secretary in refusing originally to | ||
issue the license no longer exist. | ||
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 Secretary 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. | ||
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 a | ||
hearing, in writing, within 10 days after the date of service. | ||
In the event a hearing is requested, the order shall be stayed | ||
until a final administrative order is entered. | ||
If the licensee requests a hearing, the Secretary shall | ||
schedule a hearing within 30 days after the request for a | ||
hearing unless otherwise agreed to by the parties. | ||
The hearing shall be held at the time and place designated | ||
by the Secretary. The Secretary 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. | ||
(g) The costs of administrative hearings conducted | ||
pursuant to this Section shall be paid by the licensee.
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(h) Notwithstanding any other provision of this Section, if | ||
a lender who does not have a license issued under this Act | ||
makes a loan pursuant to this Act to an Illinois consumer, then | ||
the loan shall be null and void and the lender who made the | ||
loan shall have no right to collect, receive, or retain any | ||
principal, interest, or charges related to the loan. | ||
(Source: P.A. 94-13, eff. 12-6-05.)
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Section 99. Effective date. This Act takes effect January | ||
1, 2013.
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