HB2360 94TH GENERAL ASSEMBLY

LRB094 10158 MKM 40420 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2360

Introduced 2/16/2005, by Rep. Susana A Mendoza

SYNOPSIS AS INTRODUCED:

New Act

Creates the Payday and Title Loan Credit Reporting Act. Requires any lender of a payday loan or title loan to report the borrower's repayment history and other relevant credit information to at least one consumer reporting agency in accordance with the federal Fair Credit Reporting Act. Authorizes the Division of Financial Institutions of the Department of Financial and Professional Regulation to adopt rules necessary and reasonable for the administration and enforcement of the Payday and Title Loan Credit Reporting Act.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Payday and Title Loan Credit Reporting Act.

Section 5. Definitions. As used in this Act:

"Consumer reporting agency" means that term as it is defined under the federal Fair Credit Reporting Act.

"Lender" means any entity offering payday loans or title loans to Illinois residents.

"Payday loan" means a loan in which the lender takes possession of a personal check tendered by the customer and agrees in writing to defer presentment of that check until the customer's next payday, or another date agreed to by the lender and the customer.

"Title loan" means a loan secured by the borrower's vehicle title that is structured to be a short-term, fixed-rate, closed-end transaction.

Section 10. Credit reporting required. Any lender who provides a payday loan or title loan to an Illinois resident is required to furnish the borrower's repayment history and other relevant credit information to at least one consumer reporting agency in accordance with the federal Fair Credit Reporting Act.

Section 15. Enforcement. The Division of Financial Regulation in the Department of Financial and Professional Regulation shall adopt rules necessary and reasonable for the administration and enforcement of this Act.