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Sen. Jacqueline Y. Collins
Filed: 1/4/2023
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1 | | AMENDMENT TO HOUSE BILL 3968
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2 | | AMENDMENT NO. ______. Amend House Bill 3968 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Pawnbroker Regulation Act is amended by |
5 | | changing Section 2 as follows:
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6 | | (205 ILCS 510/2) (from Ch. 17, par. 4652)
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7 | | Sec. 2.
Pursuant to Section 15-10-30 of the Predatory Loan |
8 | | Prevention Act, it It shall be unlawful for any pawnbroker to |
9 | | charge or collect a
greater benefit or percentage upon money |
10 | | advanced, and for the use and
forbearance thereof, than |
11 | | permitted under Section 15-5-5 of the Predatory Loan |
12 | | Prevention Act than the rate of 3%
per month. Nothing in this |
13 | | Section
shall be construed so as to conflict with the law |
14 | | pertaining to usury and
the person receiving money so advanced |
15 | | may hold such moneys to pay any fees
in addition to interest as |
16 | | herein provided .
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1 | | Each pawnbroker, when making a loan under this Section, |
2 | | must disclose
in printed form on the pawn contract
the
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3 | | following information to the persons receiving the loan:
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4 | | (1) the amount of money advanced, which must be |
5 | | designated as the amount
financed;
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6 | | (2) the maturity date of the pawn, which must be at |
7 | | least 30 days after
the date of the pawn;
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8 | | (3) the total pawn
interest and
service charge payable |
9 | | on the maturity date, which must
be designated as the |
10 | | finance charge;
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11 | | (4) the
total of payments
that must be paid to
redeem |
12 | | the pledged goods on the maturity date, which must be |
13 | | designated as the
total of payments; and
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14 | | (5) the annual percentage rate, computed according to |
15 | | the regulations
adopted by the Board of Governors of the |
16 | | Federal Reserve System under the
Federal Truth in Lending |
17 | | Act.
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18 | | Each pawnbroker may contract for and receive
a monthly |
19 | | finance charge including
interest and fees
not to exceed |
20 | | one-fifth of the loan amount,
as set forth herein, for |
21 | | appraising,
investigating
title, storing and insuring the |
22 | | collateral, closing the loan,
making daily
reports to local |
23 | | law enforcement officers including enhanced computerized
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24 | | reporting, complying with regulatory requirements, and for |
25 | | other expenses
and
losses of every nature whatsoever and for |
26 | | all other services. Such fees,
when made and collected, shall |
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1 | | not be deemed interest for any purpose of law .
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2 | | (Source: P.A. 90-477, eff. 7-1-98.)
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3 | | Section 10. The Predatory Loan Prevention Act is amended |
4 | | by changing Sections 15-1-5, 15-1-10, 15-5-10, and 15-10-5 as |
5 | | follows: |
6 | | (815 ILCS 123/15-1-5)
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7 | | Sec. 15-1-5. Purpose and construction. Illinois families |
8 | | pay over $500,000,000 per year in consumer installment, |
9 | | payday, and title loan fees. As reported by the Department in |
10 | | 2020, nearly half of Illinois payday loan borrowers earn less |
11 | | than $30,000 per year, and the average annual percentage rate |
12 | | of a payday loan is 297%. The purpose of this Act is to protect |
13 | | consumers from all types of predatory loans , including, but |
14 | | not limited to, the types of loans covered under consistent |
15 | | with federal law and the federal Military Lending Act , which |
16 | | protects active duty members of the military and their |
17 | | dependents . This Act shall be construed as a consumer |
18 | | protection law for all purposes. This Act shall be liberally |
19 | | construed to effectuate its purpose.
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20 | | (Source: P.A. 101-658, eff. 3-23-21.) |
21 | | (815 ILCS 123/15-1-10)
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22 | | Sec. 15-1-10. Definitions. As used in this Act: |
23 | | "Consumer" means any natural person, including consumers |
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1 | | acting jointly. |
2 | | "Department" means the Department of Financial and |
3 | | Professional Regulation. |
4 | | "Lender" means any person or entity, including any |
5 | | affiliate or subsidiary of a lender, that offers or makes a |
6 | | loan, buys a whole or partial interest in a loan, arranges a |
7 | | loan for a third party, or acts as an agent for a third party |
8 | | in making a loan, regardless of whether approval, acceptance, |
9 | | or ratification by the third party is necessary to create a |
10 | | legal obligation for the third party, and includes any other |
11 | | person or entity if the Department determines that the person |
12 | | or entity is engaged in a transaction that is in substance a |
13 | | disguised loan or a subterfuge for the purpose of avoiding |
14 | | this Act. |
15 | | "Person" means any natural person. |
16 | | "Secretary" means the Secretary of Financial and |
17 | | Professional Regulation or a person authorized by the |
18 | | Secretary. |
19 | | "Loan" means money or credit provided to a consumer in |
20 | | exchange for the consumer's agreement to a certain set of |
21 | | terms, including, but not limited to, any finance charges, |
22 | | interest, or other conditions. "Loan" includes closed-end and |
23 | | open-end credit, retail installment sales contracts, motor |
24 | | vehicle retail installment sales contracts, transactions |
25 | | subject to the Pawnbroker Regulation Act, and any transaction |
26 | | conducted via any medium whatsoever, including, but not |
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1 | | limited to, paper, facsimile, Internet, or telephone. "Loan" |
2 | | does not include a commercial loan.
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3 | | (Source: P.A. 101-658, eff. 3-23-21.) |
4 | | (815 ILCS 123/15-5-10)
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5 | | Sec. 15-5-10. Violation. |
6 | | (a) Any loan made in violation of this Act is null and void |
7 | | and no person or entity shall have any right to collect, |
8 | | attempt to collect, receive, or retain any principal, fee, |
9 | | interest, or charges related to the loan.
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10 | | (b) It is a violation of this Act for any person or entity |
11 | | to solicit, broker, or otherwise engage in any other activity |
12 | | intended to facilitate or result in, or that in fact |
13 | | facilitates or results in, the origination of a loan that |
14 | | violates Section 15-5-5 of this Act. |
15 | | (c) It is a violation of this Act for any person or entity |
16 | | to advertise or cause to be advertised a loan that violates |
17 | | Section 15-5-5 of this Act. |
18 | | (Source: P.A. 101-658, eff. 3-23-21.) |
19 | | (815 ILCS 123/15-10-5)
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20 | | Sec. 15-10-5. Enforcement and remedies. |
21 | | (a) The remedies provided in this Act are cumulative and |
22 | | apply to persons or entities subject to this Act. |
23 | | (b) Any violation of this Act, including the commission of |
24 | | an act prohibited under Article 5, constitutes a violation of |
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1 | | the Consumer Fraud and Deceptive Business Practices Act. |
2 | | (c) Subject to the Illinois Administrative Procedure Act, |
3 | | the Secretary may hold hearings, make findings of fact, |
4 | | conclusions of law, issue cease and desist orders, have the |
5 | | power to issue fines of up to $10,000 per violation, and refer |
6 | | the matter to the appropriate law enforcement agency for |
7 | | prosecution under this Act. All proceedings shall be open to |
8 | | the public. |
9 | | (d) The Secretary may issue a cease and desist order to any |
10 | | person or entity, when in the opinion of the Secretary the |
11 | | person or entity is violating or is about to violate any |
12 | | provision of this Act. The cease and desist order permitted by |
13 | | this subsection (d) may be issued prior to a hearing. |
14 | | The Secretary shall serve notice of the action, including, |
15 | | but not limited to, a statement of the reasons for the action, |
16 | | either personally or by certified mail. Service by certified |
17 | | mail shall be deemed completed when the notice is deposited in |
18 | | the U.S. Mail. |
19 | | Within 10 days of service of the cease and desist order, |
20 | | the person or entity may request a hearing in writing. |
21 | | If it is determined that the Secretary had the authority |
22 | | to issue the cease and desist order, the Secretary may issue |
23 | | such orders as may be reasonably necessary to correct, |
24 | | eliminate, or remedy the conduct. |
25 | | The powers vested in the Secretary by this subsection (d) |
26 | | are additional to any and all other powers and remedies vested |
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1 | | in the Secretary by law, and nothing in this subsection (d) |
2 | | shall be construed as requiring that the Secretary shall |
3 | | employ the power conferred in this subsection instead of or as |
4 | | a condition precedent to the exercise of any other power or |
5 | | remedy vested in the Secretary. |
6 | | (e) After 10 days' notice by certified mail to the person |
7 | | or entity stating the contemplated action and in general the |
8 | | grounds therefor, the Secretary may fine the person or entity |
9 | | an amount not exceeding $10,000 per violation if the person or |
10 | | entity has failed to comply with any provision of this Act or |
11 | | any order, decision, finding, rule, regulation, or direction |
12 | | of the Secretary lawfully made in accordance with the |
13 | | authority of this Act. Service by certified mail shall be |
14 | | deemed completed when the notice is deposited in the U.S. |
15 | | Mail. |
16 | | (f) A violation of this Act by a person or entity licensed |
17 | | under another Act including, but not limited to, the |
18 | | Pawnbroker Regulation Act, the Consumer Installment Loan Act, |
19 | | the Payday Loan Reform Act, and the Sales Finance Agency Act |
20 | | shall subject the person or entity to discipline in accordance |
21 | | with the Act or Acts under which the person or entity is |
22 | | licensed.
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23 | | (Source: P.A. 101-658, eff. 3-23-21.)
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24 | | Section 99. Effective date. This Act takes effect upon |
25 | | becoming law.".
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