Full Text of SB1792 101st General Assembly
SB1792enr 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Article 1. | 5 | | Section 1-5. The Farmer Equity Act is amended by adding | 6 | | Section 25 as follows: | 7 | | (505 ILCS 72/25 new) | 8 | | Sec. 25. Disparity study; report. | 9 | | (a) The Department shall conduct a study and use the data | 10 | | collected to determine economic and other disparities | 11 | | associated with farm ownership and farm operations in this | 12 | | State. The study shall focus primarily on identifying and | 13 | | comparing economic, land ownership, education, and other | 14 | | related differences between African American farmers and white | 15 | | farmers, but may include data collected in regards to farmers | 16 | | from other socially disadvantaged groups. The study shall | 17 | | collect, compare, and analyze data relating to disparities or | 18 | | differences in farm operations for the following areas: | 19 | | (1) Farm ownership and the size or acreage of the | 20 | | farmland owned compared to the number of farmers who are | 21 | | farm tenants. | 22 | | (2) The distribution of farm-related generated income |
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| 1 | | and wealth. | 2 | | (3) The accessibility and availability to grants, | 3 | | loans, commodity subsidies, and other financial | 4 | | assistance. | 5 | | (4) Access to technical assistance programs and | 6 | | mechanization. | 7 | | (5) Participation in continuing education, outreach, | 8 | | or other agriculturally related services or programs. | 9 | | (6) Interest in farming by young or beginning farmers. | 10 | | (b) The Department shall submit a report of study to the | 11 | | Governor and General Assembly on or before January 1, 2022. The | 12 | | report shall be made available on the Department's Internet | 13 | | website. | 14 | | Article 5. | 15 | | Section 5-5. The Cannabis Regulation and Tax Act is amended | 16 | | by adding Section 10-45 as follows: | 17 | | (410 ILCS 705/10-45 new) | 18 | | Sec. 10-45. Cannabis Equity Commission. | 19 | | (a) The Cannabis Equity Commission is created and shall | 20 | | reflect the diversity of the State of Illinois, including | 21 | | geographic, racial, and ethnic diversity. The Cannabis Equity | 22 | | Commission shall be responsible for the following: | 23 | | (1) Ensuring that equity goals in the Illinois cannabis |
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| 1 | | industry, as stated in Section 10-40, are met. | 2 | | (2) Tracking and analyzing minorities in the | 3 | | marketplace. | 4 | | (3) Ensuring that revenue is being invested properly | 5 | | into R3 areas under Section 10-40. | 6 | | (4) Recommending changes to make the law more equitable | 7 | | to communities harmed the most by the war on drugs. | 8 | | (5) Create standards to protect true social equity | 9 | | applicants from predatory businesses. | 10 | | (b) The Cannabis Equity Commission's ex officio members | 11 | | shall, within 4 months after the effective date of this | 12 | | amendatory Act of the 101st General Assembly, convene the | 13 | | Commission to appoint a full Cannabis Equity Commission and | 14 | | oversee, provide guidance to, and develop an administrative | 15 | | structure for the Cannabis Equity Commission. The ex officio | 16 | | members are: | 17 | | (1) The Governor, or his or her designee, who shall | 18 | | serve as chair. | 19 | | (2) The Attorney General, or his or her designee. | 20 | | (3) The Director of Commerce and Economic Opportunity, | 21 | | or his or her designee. | 22 | | (4) The Director of Public Health, or his or her | 23 | | designee. | 24 | | (5) The Director of Corrections, or his or her | 25 | | designee. | 26 | | (6) The Director of Financial and Professional |
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| 1 | | Regulation, or his or her designee. | 2 | | (7) The Director of Agriculture, or his or her | 3 | | designee. | 4 | | (8) The Executive Director of the Illinois Criminal | 5 | | Justice Information Authority, or his or her designee. | 6 | | (9) The Secretary of Human Services, or his or her | 7 | | designee. | 8 | | (10) A member of the Senate, designated by the | 9 | | President of the Senate. | 10 | | (11) A member of the House of Representatives, | 11 | | designated by the Speaker of the House of Representatives. | 12 | | (12) A member of the Senate, designated by the Minority | 13 | | Leader of the Senate. | 14 | | (13) A member of the House of Representatives, | 15 | | designated by the Minority Leader of the House of | 16 | | Representatives. | 17 | | (c) Within 90 days after the ex officio members convene, | 18 | | the following members shall be appointed to the Commission by | 19 | | the chair: | 20 | | (1) Four community-based providers or community | 21 | | development organization representatives who provide | 22 | | services to treat violence and address the social | 23 | | determinants of health, or promote community investment, | 24 | | including, but not limited to, services such as job | 25 | | placement and training, educational services, workforce | 26 | | development programming, and wealth building. No more than |
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| 1 | | 2 community-based organization representatives shall work | 2 | | primarily in Cook County. At least one of the | 3 | | community-based providers shall have expertise in | 4 | | providing services to an immigrant population. | 5 | | (2) Two experts in the field of violence reduction. | 6 | | (3) One male who has previously been incarcerated and | 7 | | is over the age of 24 at the time of appointment. | 8 | | (4) One female who has previously been incarcerated and | 9 | | is over the age of 24 at the time of appointment. | 10 | | (5) Two individuals who have previously been | 11 | | incarcerated and are between the ages of 17 and 24 at the | 12 | | time of appointment. | 13 | | As used in this subsection (c), "an individual who has been | 14 | | previously incarcerated" has the same meaning as defined in | 15 | | paragraph (2) of subsection (e) of Section 10-40.
| 16 | | Article 15.
| 17 | | Division 1. General Provisions | 18 | | Section 15-1-1. Short title. This Act may be cited as the | 19 | | Predatory Loan Prevention Act. References in this Article to | 20 | | "this Act" mean this Article. | 21 | | Section 15-1-5. Purpose and construction. Illinois | 22 | | families pay over $500,000,000 per year in consumer |
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| 1 | | installment, payday, and title loan fees. As reported by the | 2 | | Department in 2020, nearly half of Illinois payday loan | 3 | | borrowers earn less than $30,000 per year, and the average | 4 | | annual percentage rate of a payday loan is 297%. The purpose of | 5 | | this Act is to protect consumers from predatory loans | 6 | | consistent with federal law and the Military Lending Act which | 7 | | protects active duty members of the military. This Act shall be | 8 | | construed as a consumer protection law for all purposes. This | 9 | | Act shall be liberally construed to effectuate its purpose. | 10 | | Section 15-1-10. Definitions. As used in this Act: | 11 | | "Consumer" means any natural person, including consumers | 12 | | acting jointly. | 13 | | "Department" means the Department of Financial and | 14 | | Professional Regulation. | 15 | | "Lender" means any person or entity, including any | 16 | | affiliate or subsidiary of a lender, that offers or makes a | 17 | | loan, buys a whole or partial interest in a loan, arranges a | 18 | | loan for a third party, or acts as an agent for a third party in | 19 | | making a loan, regardless of whether approval, acceptance, or | 20 | | ratification by the third party is necessary to create a legal | 21 | | obligation for the third party, and includes any other person | 22 | | or entity if the Department determines that the person or | 23 | | entity is engaged in a transaction that is in substance a | 24 | | disguised loan or a subterfuge for the purpose of avoiding this | 25 | | Act. |
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| 1 | | "Person" means any natural person. | 2 | | "Secretary" means the Secretary of Financial and | 3 | | Professional Regulation or a person authorized by the | 4 | | Secretary. | 5 | | "Loan" means money or credit provided to a consumer in | 6 | | exchange for the consumer's agreement to a certain set of | 7 | | terms, including, but not limited to, any finance charges, | 8 | | interest, or other conditions. "Loan" includes closed-end and | 9 | | open-end credit, retail installment sales contracts, motor | 10 | | vehicle retail installment sales contracts, and any | 11 | | transaction conducted via any medium whatsoever, including, | 12 | | but not limited to, paper, facsimile, Internet, or telephone. | 13 | | "Loan" does not include a commercial loan. | 14 | | Section 15-1-15. Applicability. | 15 | | (a) Except as otherwise provided in this Section, this Act | 16 | | applies to any person or entity that offers or makes a loan to | 17 | | a consumer in Illinois. | 18 | | (b) The provisions of this Act apply to any person or | 19 | | entity that seeks to evade its applicability by any device, | 20 | | subterfuge, or pretense whatsoever. | 21 | | (c) Banks, savings banks, savings and loan associations, | 22 | | credit unions, and insurance companies organized, chartered, | 23 | | or holding a certificate of authority to do business under the | 24 | | laws of this State or any other state or under the laws of the | 25 | | United States are exempt from the provisions of this Act. |
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| 1 | | Division 5. Predatory Loan Prevention | 2 | | Section 15-5-5. Rate cap. Notwithstanding any other | 3 | | provision of law, for loans made or renewed on and after the | 4 | | effective date of this Act, a lender shall not contract for or | 5 | | receive charges exceeding a 36% annual percentage rate on the | 6 | | unpaid balance of the amount financed for a loan. For purposes | 7 | | of this Section, the annual percentage rate shall be calculated | 8 | | as such rate is calculated using the system for calculating a | 9 | | military annual percentage rate under Section 232.4 of Title 32 | 10 | | of the Code of Federal Regulations as in effect on the | 11 | | effective date of this Act. Nothing in this Act shall be | 12 | | construed to permit a person or entity to contract for or | 13 | | receive a charge exceeding that permitted by the Interest Act | 14 | | or other law. | 15 | | Section 15-5-10. Violation. Any loan made in violation of | 16 | | this Act is null and void and no person or entity shall have | 17 | | any right to collect, attempt to collect, receive, or retain | 18 | | any principal, fee, interest, or charges related to the loan. | 19 | | Section 15-5-15. No evasion. | 20 | | (a) No person or entity may engage in any device, | 21 | | subterfuge, or pretense to evade the requirements of this Act, | 22 | | including, but not limited to, making loans disguised as a |
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| 1 | | personal property sale and leaseback transaction; disguising | 2 | | loan proceeds as a cash rebate for the pretextual installment | 3 | | sale of goods or services; or making, offering, assisting, or | 4 | | arranging a debtor to obtain a loan with a greater rate or | 5 | | interest, consideration, or charge than is permitted by this | 6 | | Act through any method including mail, telephone, internet, or | 7 | | any electronic means regardless of whether the person or entity | 8 | | has a physical location in the State. | 9 | | (b) If a loan exceeds the rate permitted by Section 15-5-5, | 10 | | a person or entity is a lender subject to the requirements of | 11 | | this Act notwithstanding the fact that the person or entity | 12 | | purports to act as an agent, service provider, or in another | 13 | | capacity for another entity that is exempt from this Act, if, | 14 | | among other things: | 15 | | (1) the person or entity holds, acquires, or maintains, | 16 | | directly or indirectly, the predominant economic interest | 17 | | in the loan; or | 18 | | (2) the person or entity markets, brokers, arranges, or | 19 | | facilitates the loan and holds the right, requirement, or | 20 | | first right of refusal to purchase loans, receivables, or | 21 | | interests in the loans; or | 22 | | (3) the totality of the circumstances indicate that the | 23 | | person or entity is the lender and the transaction is | 24 | | structured to evade the requirements of this Act. | 25 | | Circumstances that weigh in favor of a person or entity | 26 | | being a lender include, without limitation, where the |
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| 1 | | person or entity: | 2 | | (i) indemnifies, insures, or protects an exempt | 3 | | person or entity for any costs or risks related to the | 4 | | loan; | 5 | | (ii) predominantly designs, controls, or operates | 6 | | the loan program; or | 7 | | (iii) purports to act as an agent, service | 8 | | provider, or in another capacity for an exempt entity | 9 | | while acting directly as a lender in other states. | 10 | | Section 15-5-20. Rules. The Secretary may adopt rules | 11 | | consistent with this Act and rescind or amend rules that are | 12 | | inconsistent. The adoption, amendment, or rescission of rules | 13 | | shall be in conformity with the Illinois Administrative | 14 | | Procedure Act. | 15 | | Division 10. Administrative Provisions | 16 | | Section 15-10-5. Enforcement and remedies. | 17 | | (a) The remedies provided in this Act are cumulative and | 18 | | apply to persons or entities subject to this Act. | 19 | | (b) Any violation of this Act, including the commission of | 20 | | an act prohibited under Article 5, constitutes a violation of | 21 | | the Consumer Fraud and Deceptive Business Practices Act. | 22 | | (c) Subject to the Illinois Administrative Procedure Act, | 23 | | the Secretary may hold hearings, make findings of fact, |
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| 1 | | conclusions of law, issue cease and desist orders, have the | 2 | | power to issue fines of up to $10,000 per violation, and refer | 3 | | the matter to the appropriate law enforcement agency for | 4 | | prosecution under this Act. All proceedings shall be open to | 5 | | the public. | 6 | | (d) The Secretary may issue a cease and desist order to any | 7 | | person or entity, when in the opinion of the Secretary the | 8 | | person or entity is violating or is about to violate any | 9 | | provision of this Act. The cease and desist order permitted by | 10 | | this subsection (d) may be issued prior to a hearing. | 11 | | The Secretary shall serve notice of the action, including, | 12 | | but not limited to, a statement of the reasons for the action, | 13 | | either personally or by certified mail. Service by certified | 14 | | mail shall be deemed completed when the notice is deposited in | 15 | | the U.S. Mail. | 16 | | Within 10 days of service of the cease and desist order, | 17 | | the person or entity may request a hearing in writing. | 18 | | If it is determined that the Secretary had the authority to | 19 | | issue the cease and desist order, the Secretary may issue such | 20 | | orders as may be reasonably necessary to correct, eliminate, or | 21 | | remedy the conduct. | 22 | | The powers vested in the Secretary by this subsection (d) | 23 | | are additional to any and all other powers and remedies vested | 24 | | in the Secretary by law, and nothing in this subsection (d) | 25 | | shall be construed as requiring that the Secretary shall employ | 26 | | the power conferred in this subsection instead of or as a |
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| 1 | | condition precedent to the exercise of any other power or | 2 | | remedy vested in the Secretary. | 3 | | (e) After 10 days' notice by certified mail to the person | 4 | | or entity stating the contemplated action and in general the | 5 | | grounds therefor, the Secretary may fine the person or entity | 6 | | an amount not exceeding $10,000 per violation if the person or | 7 | | entity has failed to comply with any provision of this Act or | 8 | | any order, decision, finding, rule, regulation, or direction of | 9 | | the Secretary lawfully made in accordance with the authority of | 10 | | this Act. Service by certified mail shall be deemed completed | 11 | | when the notice is deposited in the U.S. Mail. | 12 | | (f) A violation of this Act by a person or entity licensed | 13 | | under another Act including, but not limited to, the Consumer | 14 | | Installment Loan Act, the Payday Loan Reform Act, and the Sales | 15 | | Finance Agency Act shall subject the person or entity to | 16 | | discipline in accordance with the Act or Acts under which the | 17 | | person or entity is licensed. | 18 | | Section 15-10-10. Preemption of administrative rules. Any | 19 | | administrative rule regarding loans that is adopted by the | 20 | | Department prior to the effective date of this Act and that is | 21 | | inconsistent with the provisions of this Act is hereby | 22 | | preempted to the extent of the inconsistency. | 23 | | Section 15-10-15. Reporting of violations. The Department | 24 | | shall report to the Attorney General all material violations of |
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| 1 | | this Act of which it becomes aware. | 2 | | Section 15-10-20. Judicial review. All final | 3 | | administrative decisions of the Department under this Act are | 4 | | subject to judicial review under the Administrative Review Law | 5 | | and any rules adopted under the Administrative Review Law. | 6 | | Section 15-10-25. No waivers. There shall be no waiver of | 7 | | any provision of this Act. | 8 | | Section 15-10-30. Superiority of Act. To the extent this | 9 | | Act conflicts with any other State laws, this Act is superior | 10 | | and supersedes those laws, except that nothing in this Act | 11 | | applies to any lender that is a bank, savings bank, savings and | 12 | | loan association, or credit union chartered under laws of the | 13 | | United States. | 14 | | Section 15-10-35. Severability. The provisions of this Act | 15 | | are severable under Section 1.31 of the Statute on Statutes. | 16 | | Division 90. Amendatory Provisions
| 17 | | Section 15-90-5. The Financial Institutions Code is | 18 | | amended by changing Section 6 as follows:
| 19 | | (20 ILCS 1205/6) (from Ch. 17, par. 106)
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| 1 | | Sec. 6. In addition to the duties imposed elsewhere in this | 2 | | Act, the
Department has the following powers:
| 3 | | (1) To exercise the rights, powers and duties vested by law | 4 | | in the
Auditor of Public Accounts under "An Act to provide for | 5 | | the incorporation,
management and regulation of pawners' | 6 | | societies and limiting the rate of
compensation to be paid for | 7 | | advances, storage and insurance on pawns and
pledges and to | 8 | | allow the loaning of money upon personal property", approved
| 9 | | March 29, 1899, as amended.
| 10 | | (2) To exercise the rights, powers and duties vested by law | 11 | | in the
Auditor of Public Accounts under "An Act in relation to | 12 | | the definition,
licensing and regulation of community currency | 13 | | exchanges and ambulatory
currency exchanges, and the operators | 14 | | and employees thereof, and to make an
appropriation therefor, | 15 | | and to provide penalties and remedies for the
violation | 16 | | thereof", approved June 30, 1943, as amended.
| 17 | | (3) To exercise the rights, powers, and duties vested by | 18 | | law in the
Auditor of Public Accounts under "An Act in relation | 19 | | to the buying and
selling of foreign exchange and the | 20 | | transmission or transfer of money to
foreign countries", | 21 | | approved June 28, 1923, as amended.
| 22 | | (4) To exercise the rights, powers, and duties vested by | 23 | | law in the
Auditor of Public Accounts under "An Act to provide | 24 | | for and regulate the
business of guaranteeing titles to real | 25 | | estate by corporations", approved
May 13, 1901, as amended.
| 26 | | (5) To exercise the rights, powers and duties vested by law |
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| 1 | | in the
Department of Insurance under "An Act to define, | 2 | | license, and regulate the
business of making loans of eight | 3 | | hundred dollars or less, permitting an
interest charge thereon | 4 | | greater than otherwise allowed by law, authorizing
and | 5 | | regulating the assignment of wages or salary when taken as | 6 | | security for
any such loan or as consideration for a payment of | 7 | | eight hundred dollars or
less, providing penalties, and to | 8 | | repeal Acts therein named", approved July
11, 1935, as amended.
| 9 | | (6) To administer and enforce "An Act to license and | 10 | | regulate the
keeping and letting of safety deposit boxes, | 11 | | safes, and vaults, and the
opening thereof, and to repeal a | 12 | | certain Act therein named", approved June
13, 1945, as amended.
| 13 | | (7) Whenever the Department is authorized or required by | 14 | | law to consider
some aspect of criminal history record | 15 | | information for the purpose of
carrying out its statutory | 16 | | powers and responsibilities, then, upon request
and payment of | 17 | | fees in conformance with the requirements of Section 2605-400 | 18 | | of the Department of State Police Law
(20 ILCS 2605/2605-400), | 19 | | the
Department of State Police is authorized to furnish, | 20 | | pursuant to positive
identification, such information | 21 | | contained in State files as is necessary
to fulfill the | 22 | | request.
| 23 | | (8) To administer the Payday Loan Reform Act , the Consumer | 24 | | Installment Loan Act, the Predatory Loan Prevention Act, the | 25 | | Motor Vehicle Retail Installment Sales Act, and the Retail | 26 | | Installment Sales Act .
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| 1 | | (Source: P.A. 94-13, eff. 12-6-05.)
| 2 | | Section 15-90-10. The Consumer Installment Loan Act is | 3 | | amended by changing Sections 1, 15, 15d, and 17.5 as follows:
| 4 | | (205 ILCS 670/1) (from Ch. 17, par. 5401)
| 5 | | Sec. 1. License required to engage in business. No person, | 6 | | partnership, association, limited liability
company, or | 7 | | corporation shall engage in
the business of making loans of | 8 | | money in a principal amount not
exceeding $40,000, and charge, | 9 | | contract for, or receive on any
such loan a
greater annual | 10 | | percentage rate than 9% rate of interest, discount, or | 11 | | consideration therefor than the
lender would be permitted by | 12 | | law to charge if he were not a licensee
hereunder, except as | 13 | | authorized by this Act after first obtaining a license
from the | 14 | | Director of Financial Institutions (hereinafter called the | 15 | | Director). No licensee, or employee or affiliate thereof, that | 16 | | is licensed under the Payday Loan Reform Act shall obtain a | 17 | | license under this Act except that a licensee under the Payday | 18 | | Loan Reform Act may obtain a license under this Act for the | 19 | | exclusive purpose and use of making title-secured loans, as | 20 | | defined in subsection (a) of Section 15 of this Act and | 21 | | governed by Title 38, Section 110.300 of the Illinois | 22 | | Administrative Code. For the purpose of this Section, | 23 | | "affiliate" means any person or entity that directly or | 24 | | indirectly controls, is controlled by, or shares control with |
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| 1 | | another person or entity. A person or entity has control over | 2 | | another if the person or entity has an ownership interest of | 3 | | 25% or more in the other.
| 4 | | In this Act, "Director" means the Director of Financial | 5 | | Institutions of the Department of Financial and Professional | 6 | | Regulation. | 7 | | (Source: P.A. 96-936, eff. 3-21-11; 97-420, eff. 1-1-12.)
| 8 | | (205 ILCS 670/15) (from Ch. 17, par. 5415)
| 9 | | Sec. 15. Charges permitted.
| 10 | | (a) Every licensee may
lend a principal amount not | 11 | | exceeding $40,000 and , except as to small consumer loans as | 12 | | defined in this Section, may charge,
contract for
and receive | 13 | | thereon interest at an annual percentage rate of no more than | 14 | | 36%, subject to the provisions of this Act ; provided, however, | 15 | | that the limitation on the annual percentage rate contained in | 16 | | this subsection (a) does not apply to title-secured loans, | 17 | | which are loans upon which interest is charged at an annual | 18 | | percentage rate exceeding 36%, in which, at commencement, an | 19 | | obligor provides to the licensee, as security for the loan, | 20 | | physical possession of the obligor's title to a motor vehicle, | 21 | | and upon which a licensee may charge, contract for, and receive | 22 | | thereon interest at the rate agreed upon by the licensee and | 23 | | borrower . For purposes of this Section, the annual percentage | 24 | | rate shall be calculated as such rate is calculated using the | 25 | | system for calculating a military annual percentage rate under |
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| 1 | | Section 232.4 of Title 32 of the Code of Federal Regulations as | 2 | | in effect on the effective date of this amendatory Act of the | 3 | | 101st General Assembly in accordance with the federal Truth in | 4 | | Lending Act .
| 5 | | (b) For purpose of this Section, the following terms shall | 6 | | have the
meanings ascribed herein.
| 7 | | "Applicable interest" for a precomputed loan contract | 8 | | means the amount of
interest attributable to each monthly | 9 | | installment period. It is computed
as if each installment | 10 | | period were one month and any interest charged for
extending | 11 | | the first installment period beyond one month is ignored. The
| 12 | | applicable interest for any monthly installment period is , for | 13 | | loans other than small consumer loans as defined in this | 14 | | Section, that portion of
the precomputed interest that bears | 15 | | the same ratio to the total precomputed
interest as the | 16 | | balances scheduled to be outstanding during that month bear
to | 17 | | the sum of all scheduled monthly outstanding balances in the | 18 | | original
contract. With respect to a small consumer loan, the | 19 | | applicable interest for any installment period is that portion | 20 | | of the precomputed monthly installment account handling charge | 21 | | attributable to the installment period calculated based on a | 22 | | method at least as favorable to the consumer as the actuarial | 23 | | method, as defined by the federal Truth in Lending Act.
| 24 | | "Interest-bearing loan" means a loan in which the debt is
| 25 | | expressed as a principal amount plus interest charged on actual | 26 | | unpaid
principal balances for the time actually outstanding.
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| 1 | | "Precomputed loan" means a loan in which the debt is | 2 | | expressed as the sum
of the original principal amount plus | 3 | | interest computed actuarially in
advance, assuming all | 4 | | payments will be made when scheduled.
| 5 | | "Small consumer loan" means a loan upon which interest is | 6 | | charged at an annual percentage rate exceeding 36% and with an | 7 | | amount financed of $4,000 or less. "Small consumer loan" does | 8 | | not include a title-secured loan as defined by subsection (a) | 9 | | of this Section or a payday loan as defined by the Payday Loan | 10 | | Reform Act. | 11 | | "Substantially equal installment" includes a last | 12 | | regularly scheduled payment that may be less than, but not more | 13 | | than 5% larger than, the previous scheduled payment according | 14 | | to a disclosed payment schedule agreed to by the parties. | 15 | | (c) Loans may be interest-bearing or precomputed.
| 16 | | (d) To compute time for either interest-bearing or | 17 | | precomputed loans for
the calculation of interest and other | 18 | | purposes, a month shall be a calendar
month and a day shall be | 19 | | considered 1/30th of a month when calculation is
made for a | 20 | | fraction of a month. A month shall be 1/12th of a year. A
| 21 | | calendar month is that period from a given date in one month to | 22 | | the same
numbered date in the following month, and if there is | 23 | | no same numbered
date, to the last day of the following month. | 24 | | When a period of time
includes a month and a fraction of a | 25 | | month, the fraction of the month is
considered to follow the | 26 | | whole month. In the alternative, for
interest-bearing loans, |
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| 1 | | the licensee may charge interest at the rate of
1/365th of the | 2 | | agreed annual rate for each day actually
elapsed.
| 3 | | (d-5) No licensee or other person may condition an | 4 | | extension of credit to a consumer on the consumer's repayment | 5 | | by preauthorized electronic fund transfers. Payment options, | 6 | | including, but not limited to, electronic fund transfers and | 7 | | Automatic Clearing House (ACH) transactions may be offered to | 8 | | consumers as a choice and method of payment chosen by the | 9 | | consumer. | 10 | | (e) With respect to interest-bearing loans:
| 11 | | (1) Interest shall be computed on unpaid principal | 12 | | balances outstanding
from time to time, for the time | 13 | | outstanding, until fully paid. Each
payment shall be | 14 | | applied first to the accumulated interest and the
remainder | 15 | | of the payment applied to the unpaid principal balance; | 16 | | provided
however, that if the amount of the payment is | 17 | | insufficient to pay the
accumulated interest, the unpaid | 18 | | interest continues to accumulate to be
paid from the | 19 | | proceeds of subsequent payments and is not added to the | 20 | | principal
balance.
| 21 | | (2) Interest shall not be payable in advance or | 22 | | compounded. However, if
part or all of the consideration | 23 | | for a new loan contract is the unpaid
principal balance of | 24 | | a prior loan, then the principal amount payable under
the | 25 | | new loan contract may include any unpaid interest which has | 26 | | accrued.
The unpaid principal balance of a precomputed loan |
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| 1 | | is the balance due
after refund or credit of unearned | 2 | | interest as provided in paragraph (f),
clause (3). The | 3 | | resulting loan contract shall be deemed a new and separate
| 4 | | loan transaction for all purposes.
| 5 | | (3) Loans must be fully amortizing and be repayable in | 6 | | substantially equal and consecutive weekly, biweekly, | 7 | | semimonthly, or monthly installments. Notwithstanding this | 8 | | requirement, rates may vary according to an
index that is | 9 | | independently verifiable and beyond the control of the | 10 | | licensee.
| 11 | | (4) The lender or creditor may, if the contract | 12 | | provides, collect a
delinquency or collection charge on | 13 | | each installment in default for a period of
not less than | 14 | | 10 days in an amount not exceeding 5% of the installment on
| 15 | | installments in excess of $200, or $10 on installments of | 16 | | $200 or less, but
only
one delinquency and collection | 17 | | charge may be collected on any installment
regardless of | 18 | | the period during which it remains in default.
| 19 | | (f) With respect to precomputed loans:
| 20 | | (1) Loans shall be repayable in substantially equal and | 21 | | consecutive weekly, biweekly, semimonthly, or
monthly | 22 | | installments of principal and interest combined, except | 23 | | that the
first installment period may be longer than one | 24 | | month by not more than 15
days, and the first installment | 25 | | payment amount may be larger than the
remaining payments by | 26 | | the amount of interest charged for the extra days;
and |
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| 1 | | provided further that monthly installment payment dates | 2 | | may be omitted
to accommodate borrowers with seasonal | 3 | | income.
| 4 | | (2) Payments may be applied to the combined total of | 5 | | principal and
precomputed interest until the loan is fully | 6 | | paid. Payments shall be
applied in the order in which they | 7 | | become due, except that any insurance
proceeds received as | 8 | | a result of any claim made on any insurance, unless
| 9 | | sufficient to prepay the contract in full, may be applied | 10 | | to the unpaid
installments of the total of payments in | 11 | | inverse order.
| 12 | | (3) When any loan contract is paid in full by cash, | 13 | | renewal or
refinancing, or a new loan, one month or more | 14 | | before the final installment
due date, a licensee shall | 15 | | refund or credit the obligor with
the total of
the | 16 | | applicable interest for all fully unexpired installment | 17 | | periods, as
originally scheduled or as deferred, which | 18 | | follow the day of prepayment;
provided, if the prepayment | 19 | | occurs prior to the first installment due date,
the | 20 | | licensee may retain 1/30 of the applicable interest for a | 21 | | first
installment period of one month for each day from the | 22 | | date of the loan to
the date of prepayment, and shall | 23 | | refund or credit the obligor
with the
balance of the total | 24 | | interest contracted for. If the maturity of the loan
is | 25 | | accelerated for any reason and judgment is entered, the | 26 | | licensee shall
credit the borrower with the same refund as |
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| 1 | | if prepayment in full had been
made on the date the | 2 | | judgement is entered.
| 3 | | (4) The lender or creditor may, if the contract | 4 | | provides, collect a
delinquency or collection charge on | 5 | | each installment in default for a period of
not less than | 6 | | 10 days in an amount not exceeding 5% of the installment on
| 7 | | installments in excess of $200, or $10 on installments of | 8 | | $200 or less, but
only
one delinquency or collection charge | 9 | | may be collected on any installment
regardless of the | 10 | | period during which it remains in default.
| 11 | | (5) If the parties agree in writing, either in the loan | 12 | | contract or in a
subsequent agreement, to a deferment of | 13 | | wholly unpaid installments, a
licensee may grant a | 14 | | deferment and may collect a deferment charge as
provided in | 15 | | this Section. A deferment postpones the scheduled due date | 16 | | of
the earliest unpaid installment and all subsequent | 17 | | installments as
originally scheduled, or as previously | 18 | | deferred, for a period equal to the
deferment period. The | 19 | | deferment period is that period during which no
installment | 20 | | is scheduled to be paid by reason of the deferment. The
| 21 | | deferment charge for a one month period may not exceed the | 22 | | applicable
interest for the installment period immediately | 23 | | following the due date of
the last undeferred payment. A | 24 | | proportionate charge may be made for
deferment for periods | 25 | | of more or less than one month. A deferment charge
is | 26 | | earned pro rata during the deferment period and is fully |
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| 1 | | earned on the
last day of the deferment period. Should a | 2 | | loan be prepaid in full during
a deferment period, the | 3 | | licensee shall credit to the obligor a
refund of the | 4 | | unearned deferment charge in addition to any other refund | 5 | | or
credit made for prepayment of the loan in full.
| 6 | | (6) If two or more installments are delinquent one full | 7 | | month or more on
any due date, and if the contract so | 8 | | provides, the licensee may reduce the
unpaid balance by the | 9 | | refund credit which would be required for prepayment
in | 10 | | full on the due date of the most recent maturing | 11 | | installment in default.
Thereafter, and in lieu of any | 12 | | other default or deferment charges, the
agreed rate of | 13 | | interest or, in the case of small consumer loans, interest | 14 | | at the rate of 18% per annum, may be charged on the unpaid | 15 | | balance until fully paid.
| 16 | | (7) Fifteen days after the final installment as | 17 | | originally scheduled or
deferred, the licensee, for any | 18 | | loan contract which has not previously been
converted to | 19 | | interest-bearing under paragraph (f), clause (6), may | 20 | | compute
and charge interest on any balance remaining | 21 | | unpaid, including unpaid
default or deferment charges, at | 22 | | the agreed rate of interest or, in the case of small | 23 | | consumer loans, interest at the rate of 18% per annum, | 24 | | until fully
paid. At the time of payment of said final | 25 | | installment, the licensee shall
give notice to the obligor | 26 | | stating any amounts unpaid.
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| 1 | | (Source: P.A. 101-563, eff. 8-23-19.)
| 2 | | (205 ILCS 670/15d) (from Ch. 17, par. 5419)
| 3 | | Sec. 15d. Extra charges prohibited; exceptions. No amount | 4 | | in addition to the charges authorized by this Act shall be
| 5 | | directly or indirectly charged, contracted for, or received, | 6 | | except (1) lawful
fees paid to any public officer or agency to | 7 | | record, file or release
security; (2) (i) costs and | 8 | | disbursements actually incurred in connection
with a real | 9 | | estate loan, for any title insurance, title examination, | 10 | | abstract
of title, survey, or appraisal, or paid to a trustee | 11 | | in connection with
a trust deed, and (ii) in connection with a | 12 | | real estate loan those
charges authorized by Section 4.1a of | 13 | | the Interest Act, whether called
"points" or otherwise, which | 14 | | charges are imposed as a condition for making
the loan and are | 15 | | not refundable in the event of prepayment of the loan;
(3) | 16 | | costs and disbursements, including reasonable
attorney's fees, | 17 | | incurred in legal proceedings to collect a loan or to
realize | 18 | | on a security after default; and (4) an amount not exceeding
| 19 | | $25,
plus any actual expenses incurred in connection with a | 20 | | check or draft that is
not honored because of
insufficient or | 21 | | uncollected funds or because no such account exists ; and (5)
a | 22 | | document preparation fee not to exceed $25 for obtaining and | 23 | | reviewing credit
reports and preparation of other documents . | 24 | | This
Section does not prohibit the
receipt of a commission, | 25 | | dividend, charge, or other benefit by
the licensee or by
an |
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| 1 | | employee, affiliate, or associate of the licensee from the | 2 | | insurance
permitted by Sections 15a and 15b of this Act or from | 3 | | insurance in lieu of
perfecting a security interest provided | 4 | | that the premiums for such insurance do
not exceed the fees | 5 | | that otherwise could be contracted for by the licensee
under | 6 | | this Section. Obtaining any of the items
referred to in clause | 7 | | (i) of item (2) of this Section through the licensee
or from | 8 | | any person specified by the licensee shall not be a condition
| 9 | | precedent to the granting of the loan.
| 10 | | (Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)
| 11 | | (205 ILCS 670/17.5) | 12 | | Sec. 17.5. Consumer reporting service. | 13 | | (a) For the purpose of this Section, "certified database" | 14 | | means the consumer reporting
service database established | 15 | | pursuant to the Payday Loan Reform
Act. "Title-secured loan" | 16 | | means a loan in which, at commencement, a consumer provides to | 17 | | the licensee, as security for the loan, physical possession of | 18 | | the consumer's title to a motor vehicle. | 19 | | (b) Licensees shall enter information regarding each loan | 20 | | into the certified database and shall follow the Department's | 21 | | related rules. Within 90 days after making a small consumer | 22 | | loan, a licensee shall enter information about the loan into | 23 | | the certified database. | 24 | | (c) For every title-secured loan small consumer loan made, | 25 | | the licensee shall input information as provided in 38 Ill. |
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| 1 | | Adm. Code 110.420. the following information into the certified | 2 | | database within 90 days after the loan is made: | 3 | | (i) the consumer's name and official identification | 4 | | number (for purposes of this Act, "official identification | 5 | | number" includes a Social Security Number, an Individual | 6 | | Taxpayer Identification Number, a Federal Employer | 7 | | Identification Number, an Alien Registration Number, or an | 8 | | identification number imprinted on a passport or consular | 9 | | identification document issued by a foreign government); | 10 | | (ii) the consumer's gross monthly income; | 11 | | (iii) the date of the loan; | 12 | | (iv) the amount financed; | 13 | | (v) the term of the loan; | 14 | | (vi) the acquisition charge; | 15 | | (vii) the monthly installment account handling charge; | 16 | | (viii) the verification fee; | 17 | | (ix) the number and amount of payments; and | 18 | | (x) whether the loan is a first or subsequent | 19 | | refinancing of a prior small consumer loan. | 20 | | (d) Once a loan is entered with the certified database, the | 21 | | certified database shall provide to the licensee a dated, | 22 | | time-stamped statement acknowledging the certified database's | 23 | | receipt of the information and assigning each loan a unique | 24 | | loan number. | 25 | | (e) The licensee shall update the certified database within | 26 | | 90 days if any of the following events occur: |
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| 1 | | (i) the loan is paid in full by cash; | 2 | | (ii) the loan is refinanced; | 3 | | (iii) the loan is renewed; | 4 | | (iv) the loan is satisfied in full or in part by | 5 | | collateral being sold after default; | 6 | | (v) the loan is cancelled or rescinded; or | 7 | | (vi) the consumer's obligation on the loan is otherwise | 8 | | discharged by the licensee. | 9 | | (f) To the extent a licensee sells a product or service to | 10 | | a consumer, other than a small consumer loan, and finances any | 11 | | portion of the cost of the product or service, the licensee | 12 | | shall, in addition to and at the same time as the information | 13 | | inputted under subsection (d) of this Section, enter into the | 14 | | certified database: | 15 | | (i) a description of the product or service sold; | 16 | | (ii) the charge for the product or service; and | 17 | | (iii) the portion of the charge for the product or | 18 | | service, if any, that is included in the amount financed by
| 19 | | a small consumer loan. | 20 | | (d) (g) The certified database provider shall indemnify the | 21 | | licensee against all claims and actions arising from illegal or | 22 | | willful or wanton acts on the part of the certified database | 23 | | provider. The certified database provider may charge a fee not | 24 | | to exceed $1 for each loan entered into the certified database | 25 | | under subsection (d) of this Section . The database provider | 26 | | shall not charge any additional fees or charges to the |
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| 1 | | licensee. | 2 | | (h) All personally identifiable information regarding any | 3 | | consumer obtained by way of the certified database and | 4 | | maintained by the Department is strictly confidential and shall | 5 | | be exempt from disclosure under subsection (c) of Section 7 of | 6 | | the Freedom of Information Act. | 7 | | (i) A licensee who submits information to a certified | 8 | | database provider in accordance with this Section shall not be | 9 | | liable to any person for any subsequent release or disclosure | 10 | | of that information by the certified database provider, the | 11 | | Department, or any other person acquiring possession of the | 12 | | information, regardless of whether such subsequent release or | 13 | | disclosure was lawful, authorized, or intentional. | 14 | | (j) To the extent the certified database becomes | 15 | | unavailable to a licensee as a result of some event or events | 16 | | outside the control of the licensee or the certified database | 17 | | is decertified, the requirements of this Section and Section | 18 | | 17.4 of this Act are suspended until such time as the certified | 19 | | database becomes available.
| 20 | | (Source: P.A. 96-936, eff. 3-21-11; 97-813, eff. 7-13-12.) | 21 | | (205 ILCS 670/17.1 rep.) | 22 | | (205 ILCS 670/17.2 rep.) | 23 | | (205 ILCS 670/17.3 rep.) | 24 | | (205 ILCS 670/17.4 rep.) | 25 | | Section 15-90-15. The Consumer Installment Loan Act is |
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| 1 | | amended by repealing Sections 17.1, 17.2, 17.3, and 17.4. | 2 | | Section 15-90-20. The Payday Loan Reform Act is amended by | 3 | | changing Sections 1-10, 2-5, 2-10, 2-15, 2-20, 2-30, 2-40, | 4 | | 2-45, and 4-5 as follows: | 5 | | (815 ILCS 122/1-10)
| 6 | | Sec. 1-10. Definitions. As used in this Act: | 7 | | "Check" means a "negotiable instrument", as defined in | 8 | | Article 3 of the Uniform Commercial Code, that is drawn on a | 9 | | financial institution. | 10 | | "Commercially reasonable method of verification" or | 11 | | "certified database" means a consumer reporting service | 12 | | database certified by the Department as effective in verifying | 13 | | that a proposed loan agreement is permissible under this Act, | 14 | | or, in the absence of the Department's certification, any | 15 | | reasonably reliable written verification by the consumer | 16 | | concerning (i) whether the consumer has any outstanding payday | 17 | | loans, (ii) the principal amount of those outstanding payday | 18 | | loans, and (iii) whether any payday loans have been paid in | 19 | | full by the consumer in the preceding 7 days. | 20 | | "Consumer" means any natural person who, singly or jointly | 21 | | with another consumer, enters into a loan. | 22 | | "Consumer reporting service" means an entity that provides | 23 | | a database certified by the Department. | 24 | | "Department" means the Department of Financial and |
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| 1 | | Professional Regulation. | 2 | | "Secretary" means the Secretary of Financial and | 3 | | Professional Regulation. | 4 | | "Gross monthly income" means monthly income as | 5 | | demonstrated by official documentation of the income, | 6 | | including, but not limited to, a pay stub or a receipt | 7 | | reflecting payment of government benefits, for the period 30 | 8 | | days prior to the date on which the loan is made. | 9 | | "Lender" and "licensee" mean any person or entity, | 10 | | including any affiliate or subsidiary of a lender or licensee, | 11 | | that offers or makes a payday loan, buys a whole or partial | 12 | | interest in a payday loan, arranges a payday loan for a third | 13 | | party, or acts as an agent for a third party in making a payday | 14 | | loan, regardless of whether approval, acceptance, or | 15 | | ratification by the third party is necessary to create a legal | 16 | | obligation for the third party, and includes any other person | 17 | | or entity if the Department determines that the person or | 18 | | entity is engaged in a transaction that is in substance a | 19 | | disguised payday loan or a subterfuge for the purpose of | 20 | | avoiding this Act. | 21 | | "Loan agreement" means a written agreement between a lender | 22 | | and consumer to make a loan to the consumer, regardless of | 23 | | whether any loan proceeds are actually paid to the consumer on | 24 | | the date on which the loan agreement is made. | 25 | | "Member of the military" means a person serving in the | 26 | | armed forces of the United States, the Illinois National Guard, |
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| 1 | | or any reserve component of the armed forces of the United | 2 | | States. "Member of the military" includes those persons engaged | 3 | | in (i) active duty, (ii) training or education under the | 4 | | supervision of the United States preliminary to induction into | 5 | | military service, or (iii) a period of active duty with the | 6 | | State of Illinois under Title 10 or Title 32 of the United | 7 | | States Code pursuant to order of the President or the Governor | 8 | | of the State of Illinois. | 9 | | "Outstanding balance" means the total amount owed by the | 10 | | consumer on a loan to a lender, including all principal, | 11 | | finance charges, fees, and charges of every kind. | 12 | | "Payday loan" or "loan" means a loan with a finance charge | 13 | | exceeding an annual percentage rate of 36% and with a term that | 14 | | does not exceed 120 days, including any transaction conducted | 15 | | via any medium whatsoever, including, but not limited to, | 16 | | paper, facsimile, Internet, or telephone, in which: | 17 | | (1) A lender accepts one or more checks dated on the | 18 | | date written and agrees to hold them for a period of days | 19 | | before deposit or presentment, or accepts one or more | 20 | | checks dated subsequent to the date written and agrees to | 21 | | hold them for deposit; or | 22 | | (2) A lender accepts one or more authorizations to | 23 | | debit a consumer's bank account; or | 24 | | (3) A lender accepts an interest in a consumer's wages, | 25 | | including, but not limited to, a wage assignment. | 26 | | The term "payday loan" includes "installment payday loan", |
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| 1 | | unless otherwise specified in
this Act. | 2 | | "Principal amount" means the amount received by the | 3 | | consumer from the lender due and owing on a loan, excluding any | 4 | | finance charges, interest, fees, or other loan-related | 5 | | charges. | 6 | | "Rollover" means to refinance, renew, amend, or extend a | 7 | | loan beyond its original term.
| 8 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 9 | | (815 ILCS 122/2-5)
| 10 | | Sec. 2-5. Loan terms. | 11 | | (a) Without affecting the right of a consumer to prepay at | 12 | | any time without cost or penalty, no payday loan may have a | 13 | | minimum term of less than 13 days. | 14 | | (b) No Except for an installment payday loan as defined in | 15 | | this Section,
no payday loan may be made to a consumer if the | 16 | | loan would result in the consumer being indebted to one or more | 17 | | payday lenders for a period in excess of 45 consecutive days. | 18 | | Except as provided under subsection (c) of this Section and | 19 | | Section 2-40, if a consumer has or has had loans outstanding | 20 | | for a period in excess of 45 consecutive days, no payday lender | 21 | | may offer or make a loan to the consumer for at least 7 | 22 | | calendar days after the date on which the outstanding balance | 23 | | of all payday loans made during the 45 consecutive day period | 24 | | is paid in full. For purposes of this subsection, the term | 25 | | "consecutive days" means a series of continuous calendar days |
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| 1 | | in which the consumer has an outstanding balance on one or more | 2 | | payday loans; however, if a payday loan is made to a consumer | 3 | | within 6 days or less after the outstanding balance of all | 4 | | loans is paid in full, those days are counted as "consecutive | 5 | | days" for purposes of this subsection. | 6 | | (c) (Blank). Notwithstanding anything in this Act to the | 7 | | contrary, a payday loan
shall also include any installment loan | 8 | | otherwise meeting the definition of
payday loan contained in | 9 | | Section 1-10, but that has a term agreed by the
parties of not | 10 | | less than 112 days and not exceeding 180 days; hereinafter an
| 11 | | "installment payday loan". The following provisions shall | 12 | | apply:
| 13 | | (i) Any installment payday loan must be fully | 14 | | amortizing, with a finance
charge calculated on the | 15 | | principal balances scheduled to be outstanding and
be | 16 | | repayable in substantially equal and consecutive | 17 | | installments, according
to a payment schedule agreed by the | 18 | | parties with not less than 13 days and
not more than one | 19 | | month between payments; except that the first installment
| 20 | | period may be longer than the remaining installment periods | 21 | | by not more than
15 days, and the first installment payment | 22 | | may be larger than the remaining
installment payments by | 23 | | the amount of finance charges applicable to the
extra days. | 24 | | In calculating finance charges under this subsection, when | 25 | | the first installment period is longer than the remaining | 26 | | installment periods, the amount of the finance charges |
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| 1 | | applicable to the extra days shall not be greater than | 2 | | $15.50 per $100 of the original principal balance divided | 3 | | by the number of days in a regularly scheduled installment | 4 | | period and multiplied by the number of extra days | 5 | | determined by subtracting the number of days in a regularly | 6 | | scheduled installment period from the number of days in the | 7 | | first installment period. | 8 | | (ii) An installment payday loan may be refinanced by a | 9 | | new installment
payday loan one time during the term of the | 10 | | initial loan; provided that the
total duration of | 11 | | indebtedness on the initial installment payday loan | 12 | | combined
with the total term of indebtedness of the new | 13 | | loan refinancing that initial
loan, shall not exceed 180 | 14 | | days. For purposes of this Act, a refinancing
occurs when | 15 | | an existing installment payday loan is paid from the | 16 | | proceeds of
a new installment payday loan. | 17 | | (iii) In the event an installment payday loan is paid | 18 | | in full prior to
the date on which the last scheduled | 19 | | installment payment before maturity is
due, other than | 20 | | through a refinancing, no licensee may offer or make a | 21 | | payday
loan to the consumer for at least 2 calendar days | 22 | | thereafter. | 23 | | (iv) No installment payday loan may be made to a | 24 | | consumer if the loan would
result in the consumer being | 25 | | indebted to one or more payday lenders for a
period in | 26 | | excess of 180 consecutive days. The term "consecutive days" |
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| 1 | | does not include the date on which a consumer makes the | 2 | | final installment payment. | 3 | | (d) (Blank). | 4 | | (e) No lender may make a payday loan to a consumer if the | 5 | | total of all payday loan payments coming due within the first | 6 | | calendar month of the loan, when combined with the payment | 7 | | amount of all of the consumer's other outstanding payday loans | 8 | | coming due within the same month, exceeds the lesser of: | 9 | | (1) $1,000; or | 10 | | (2) in the case of one or more payday loans, 25% of the | 11 | | consumer's gross monthly income . ; or | 12 | | (3) in the case of one or more installment payday | 13 | | loans, 22.5% of the consumer's gross monthly income; or | 14 | | (4) in the case of a payday loan and an installment | 15 | | payday loan, 22.5% of the consumer's gross monthly income. | 16 | | No loan shall be made to a consumer who has an outstanding | 17 | | balance on 2 payday loans, except that, for a period of 12 | 18 | | months after March 21, 2011 (the effective date of Public Act | 19 | | 96-936), consumers with an existing CILA loan may be issued an | 20 | | installment loan issued under this Act from the company from | 21 | | which their CILA loan was issued. | 22 | | (e-5) A lender shall not contract for or receive a charge | 23 | | exceeding a 36% annual percentage rate on the unpaid balance of | 24 | | the amount financed for a payday loan. For purposes of this | 25 | | Section, the annual percentage rate shall be calculated as such | 26 | | rate is calculated using the system for calculating a military |
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| 1 | | annual percentage rate under 32 CFR 232.4 as in effect on the | 2 | | effective date of this amendatory Act of the 101st General | 3 | | Assembly. Except as provided in subsection (c)(i), no lender | 4 | | may charge more than $15.50 per $100 loaned on any payday loan, | 5 | | or more than $15.50 per $100 on the initial principal balance | 6 | | and on the principal balances scheduled to be outstanding | 7 | | during any installment period on any installment payday loan. | 8 | | Except for installment payday loans and except as provided in | 9 | | Section 2-25, this charge is considered fully earned as of the | 10 | | date on which the loan is made. For purposes of determining the | 11 | | finance charge earned on an installment payday loan, the | 12 | | disclosed annual percentage rate shall be applied to the | 13 | | principal balances outstanding from time to time until the loan | 14 | | is paid in full, or until the maturity date, whichever occurs | 15 | | first. No finance charge may be imposed after the final | 16 | | scheduled maturity date. | 17 | | When any loan contract is paid in full, the licensee shall | 18 | | refund any unearned finance charge. The unearned finance charge | 19 | | that is refunded shall be calculated based on a method that is | 20 | | at least as favorable to the consumer as the actuarial method, | 21 | | as defined by the federal Truth in Lending Act. The sum of the | 22 | | digits or rule of 78ths method of calculating prepaid interest | 23 | | refunds is prohibited. | 24 | | (f) A lender may not take or attempt to take an interest in | 25 | | any of the consumer's personal property to secure a payday | 26 | | loan. |
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| 1 | | (g) A consumer has the right to redeem a check or any other | 2 | | item described in the definition of payday loan under Section | 3 | | 1-10 issued in connection with a payday loan from the lender | 4 | | holding the check or other item at any time before the payday | 5 | | loan becomes payable by paying the full amount of the check or | 6 | | other item.
| 7 | | (h) (Blank). For the purpose of this Section, | 8 | | "substantially equal installment" includes a last regularly | 9 | | scheduled payment that may be less than, but no more than 5% | 10 | | larger than, the previous scheduled payment according to a | 11 | | disclosed payment schedule agreed to by the parties. | 12 | | (Source: P.A. 100-201, eff. 8-18-17; 101-563, eff. 8-23-19.) | 13 | | (815 ILCS 122/2-10) | 14 | | Sec. 2-10. Permitted fees. | 15 | | (a) If there are insufficient funds to pay a check, | 16 | | Automatic Clearing House (ACH) debit, or any other item | 17 | | described in the definition of payday loan under Section 1-10 | 18 | | on the day of presentment and only after the lender has | 19 | | incurred an expense, a lender may charge a fee not to exceed | 20 | | $25. Only one such fee may be collected by the lender with | 21 | | respect to a particular check, ACH debit, or item even if it | 22 | | has been deposited and returned more than once. A lender shall | 23 | | present the check, ACH debit, or other item described in the | 24 | | definition of payday loan under Section 1-10 for payment not | 25 | | more than twice. A fee charged under this subsection (a) is a |
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| 1 | | lender's exclusive charge for late payment. | 2 | | (a-5) A lender may charge a borrower a fee not to exceed $1 | 3 | | for the
verification required under Section 2-15 of this Act in | 4 | | connection with a payday loan . and, until July 1, 2020, in | 5 | | connection with an installment payday loan. Beginning July 1, | 6 | | 2020, a lender may charge a borrower a fee not to exceed $3 for | 7 | | the verification required under Section 2-15 of this Act in | 8 | | connection with an installment payday loan. In no event may a | 9 | | fee be greater than the amount charged by the certified | 10 | | consumer reporting service. Only one such fee may
be collected | 11 | | by the lender with respect to a particular loan. | 12 | | (b) Except for the finance charges described in Section 2-5 | 13 | | and as specifically allowed by this Section, a lender may not | 14 | | impose on a consumer any additional finance charges, interest, | 15 | | fees, or charges of any sort for any purpose.
| 16 | | (Source: P.A. 100-1168, eff. 6-1-19 .) | 17 | | (815 ILCS 122/2-15) | 18 | | Sec. 2-15. Verification. | 19 | | (a) Before entering into a loan agreement with a consumer, | 20 | | a lender must use a commercially reasonable method of | 21 | | verification to verify that the proposed loan agreement is | 22 | | permissible under this Act. | 23 | | (b) Within 6 months after the effective date of this Act, | 24 | | the Department shall certify that one or more consumer | 25 | | reporting service databases are commercially reasonable |
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| 1 | | methods of verification. Upon certifying that a consumer | 2 | | reporting service database is a commercially reasonable method | 3 | | of verification, the Department shall:
| 4 | | (1) provide reasonable notice to all licensees | 5 | | identifying the commercially reasonable methods of | 6 | | verification that are available; and
| 7 | | (2) immediately upon certification, require each | 8 | | licensee to use a commercially reasonable method of | 9 | | verification as a means of complying with subsection (a) of | 10 | | this Section. | 11 | | (c) Except as otherwise provided in this Section, all | 12 | | personally identifiable information regarding any consumer | 13 | | obtained by way of the certified database and maintained by the | 14 | | Department is strictly confidential and shall be exempt from | 15 | | disclosure under Section 7(1)(b)(i) of the Freedom of | 16 | | Information Act. | 17 | | (d) Notwithstanding any other provision of law to the | 18 | | contrary, a consumer seeking a payday loan may make a direct | 19 | | inquiry to the consumer reporting service to request a more | 20 | | detailed explanation of the basis for a consumer reporting | 21 | | service's determination that the consumer is ineligible for a | 22 | | new payday loan. | 23 | | (e) In certifying a commercially reasonable method of | 24 | | verification, the Department shall ensure that the certified | 25 | | database: | 26 | | (1) provides real-time access through an Internet |
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| 1 | | connection or, if real-time access through an Internet | 2 | | connection becomes unavailable to lenders due to a consumer | 3 | | reporting service's technical problems incurred by the | 4 | | consumer reporting service, through alternative | 5 | | verification mechanisms, including, but not limited to, | 6 | | verification by telephone; | 7 | | (2) is accessible to the Department and to licensees in | 8 | | order to ensure
compliance with this Act and in order to | 9 | | provide any other information that the Department deems | 10 | | necessary; | 11 | | (3) requires licensees to input whatever information | 12 | | is required by the Department; | 13 | | (4) maintains a real-time copy of the required | 14 | | reporting information that is available to the Department | 15 | | at all times and is the property of the Department; | 16 | | (5) provides licensees only with a statement that a | 17 | | consumer is eligible or ineligible for a new payday loan | 18 | | and a description of the reason for the determination; and | 19 | | (6) contains safeguards to ensure that all information | 20 | | contained in the database regarding consumers is kept | 21 | | strictly confidential.
| 22 | | (f) The licensee shall update the certified database by | 23 | | inputting all information required under item (3) of subsection | 24 | | (e): | 25 | | (1) on the same day that a payday loan is made; | 26 | | (2) on the same day that a consumer elects a repayment |
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| 1 | | plan, as provided in Section 2-40; and | 2 | | (3) on the same day that a consumer's payday loan is | 3 | | paid in full . ,
including the refinancing of an installment | 4 | | payday loan as permitted under subsection (c) of
Section | 5 | | 2-5. | 6 | | (g) A licensee may rely on the information contained in the | 7 | | certified database as accurate and is not subject to any | 8 | | administrative penalty or liability as a result of relying on | 9 | | inaccurate information contained in the database. | 10 | | (h) The certified consumer reporting service shall | 11 | | indemnify the licensee against all claims and actions arising | 12 | | from illegal or willful or wanton acts on the part of the | 13 | | certified consumer reporting service.
| 14 | | (i) The certified consumer reporting service may charge a | 15 | | verification
fee not to exceed $1 upon a loan being made or | 16 | | entered into in the
database. Beginning July 1, 2020, the | 17 | | certified consumer reporting service may charge a verification | 18 | | fee not to exceed $3 for an installment payday loan being made | 19 | | or entered into the data base. The certified consumer reporting | 20 | | service shall not charge any
additional fees or charges. | 21 | | (Source: P.A. 100-1168, eff. 6-1-19 .) | 22 | | (815 ILCS 122/2-20)
| 23 | | Sec. 2-20. Required disclosures. | 24 | | (a) Before a payday loan is made, a lender shall
deliver to | 25 | | the consumer a pamphlet prepared by the Secretary that:
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| 1 | | (1) explains, in simple English and Spanish, all of the | 2 | | consumer's
rights and responsibilities in a payday loan | 3 | | transaction;
| 4 | | (2) includes a toll-free number to the Secretary's | 5 | | office to handle
concerns or provide information about | 6 | | whether a lender is licensed, whether
complaints have been | 7 | | filed with the Secretary, and the resolution of those
| 8 | | complaints; and
| 9 | | (3) provides information regarding the availability of | 10 | | debt
management services.
| 11 | | (b) Lenders shall provide consumers with a written | 12 | | agreement that may be kept by the
consumer. The written | 13 | | agreement must include the following information in
English and | 14 | | in the language in which the loan was negotiated:
| 15 | | (1) the name and address of the lender making the | 16 | | payday loan, and the name and title of the individual | 17 | | employee who signs the
agreement on behalf of the lender;
| 18 | | (2) disclosures required by the federal Truth in | 19 | | Lending Act;
| 20 | | (3) a clear description of the consumer's payment | 21 | | obligations under
the loan;
| 22 | | (4) the following statement, in at least 14-point bold | 23 | | type face: "You
cannot be prosecuted in criminal court to | 24 | | collect this loan." The
information required to be | 25 | | disclosed under this subdivision (4) must be
conspicuously | 26 | | disclosed
in the loan document and shall be located |
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| 1 | | immediately preceding
the signature of the consumer; and
| 2 | | (5) the following statement, in at least 14-point bold | 3 | | type face:
| 4 | | "WARNING: This loan is not intended to meet long-term | 5 | | financial needs. This
loan should be used only to meet | 6 | | short-term cash needs. The cost of your loan may be higher | 7 | | than loans offered by other lending
institutions. This loan | 8 | | is regulated by the Department of Financial
and | 9 | | Professional Regulation." | 10 | | (c) The following notices in English and Spanish must be | 11 | | conspicuously posted by a lender in each location of
a business | 12 | | providing payday loans:
| 13 | | (1) A notice that informs consumers that the lender | 14 | | cannot use the
criminal process against a consumer to | 15 | | collect any payday loan.
| 16 | | (2) The schedule of all finance charges to be charged | 17 | | on loans with an
example of the amounts that would be | 18 | | charged on a $100 loan payable in 13
days and , a $400 loan | 19 | | payable in 30 days , and an installment payday loan of
$400 | 20 | | payable on a monthly basis over 180 days , giving the | 21 | | corresponding annual
percentage rate.
| 22 | | (3) In one-inch bold type, a notice to the public in | 23 | | the lending
area of each business location containing the | 24 | | following
statement:
| 25 | | "WARNING: This loan is not intended to meet long-term | 26 | | financial needs. This
loan should be used only to meet |
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| 1 | | short-term cash needs. The cost of your loan may be higher | 2 | | than loans offered by other lending
institutions. This loan | 3 | | is regulated by the Department of Financial
and | 4 | | Professional Regulation." | 5 | | (4) In one-inch bold type, a notice to the public in | 6 | | the lending area of each business location containing the | 7 | | following statement: | 8 | | "INTEREST-FREE REPAYMENT PLAN: If you still owe on one | 9 | | or more payday loans , other than an installment payday | 10 | | loan, after 35 days, you are entitled to enter into a | 11 | | repayment plan. The repayment plan will give you at least | 12 | | 55 days to repay your loan in installments with no | 13 | | additional finance charges, interest, fees, or other | 14 | | charges of any kind."
| 15 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 16 | | (815 ILCS 122/2-30)
| 17 | | Sec. 2-30. Rollovers prohibited. Rollover of a payday loan | 18 | | by any lender is prohibited . , except as provided in subsection | 19 | | (c) of Section 2-5. This Section does not prohibit entering | 20 | | into a repayment plan, as provided under Section 2-40.
| 21 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 22 | | (815 ILCS 122/2-40)
| 23 | | Sec. 2-40. Repayment plan. | 24 | | (a) At the time a payday loan is made, the lender must |
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| 1 | | provide the consumer with a separate written notice signed by | 2 | | the consumer of the consumer's right to request a repayment | 3 | | plan. The written notice must comply with the requirements of | 4 | | subsection (c). | 5 | | (b) The loan agreement must include the following language | 6 | | in at least 14-point bold type: IF YOU STILL OWE ON ONE OR MORE | 7 | | PAYDAY LOANS AFTER 35 DAYS, YOU ARE ENTITLED TO ENTER INTO A | 8 | | REPAYMENT PLAN. THE REPAYMENT PLAN WILL GIVE YOU AT LEAST 55 | 9 | | DAYS TO REPAY YOUR LOAN IN INSTALLMENTS WITH NO ADDITIONAL | 10 | | FINANCE CHARGES, INTEREST, FEES, OR OTHER CHARGES OF ANY KIND. | 11 | | (c) At the time a payday loan is made, on the first page of | 12 | | the loan agreement and in a separate document signed by the | 13 | | consumer, the following shall be inserted in at least 14-point | 14 | | bold type: I UNDERSTAND THAT IF I STILL OWE ON ONE OR MORE | 15 | | PAYDAY LOANS AFTER 35 DAYS, I AM ENTITLED TO ENTER INTO A | 16 | | REPAYMENT PLAN THAT WILL GIVE ME AT LEAST 55 DAYS TO REPAY THE | 17 | | LOAN IN INSTALLMENTS WITH NO ADDITIONAL FINANCE CHARGES, | 18 | | INTEREST, FEES, OR OTHER CHARGES OF ANY KIND. | 19 | | (d) If the consumer has or has had one or more payday loans | 20 | | outstanding for 35 consecutive days, any payday loan | 21 | | outstanding on the 35th consecutive day shall be payable under | 22 | | the terms of a repayment plan as provided for in this Section, | 23 | | if the consumer requests the repayment plan. As to any loan | 24 | | that becomes eligible for a repayment plan under this | 25 | | subsection, the consumer has until 28 days after the default | 26 | | date of the loan to request a repayment plan. Within 48 hours |
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| 1 | | after the request for a repayment plan is made, the lender must | 2 | | prepare the repayment plan agreement and both parties must | 3 | | execute the agreement. Execution of the repayment plan | 4 | | agreement shall be made in the same manner in which the loan | 5 | | was made and shall be evidenced in writing. | 6 | | (e) The terms of the repayment plan for a payday loan must | 7 | | include the following: | 8 | | (1) The lender may not impose any charge on the | 9 | | consumer for requesting or using a repayment plan. | 10 | | Performance of the terms of the repayment plan extinguishes | 11 | | the consumer's obligation on the loan. | 12 | | (2) No lender shall charge the consumer any finance | 13 | | charges, interest, fees, or other charges of any kind, | 14 | | except a fee for insufficient funds, as provided under | 15 | | Section 2-10.
| 16 | | (3) The consumer shall be allowed to repay the loan in | 17 | | at least 4 equal installments with at least 13 days between | 18 | | installments, provided that the term of the repayment plan | 19 | | does not exceed 90 days. The first payment under the | 20 | | repayment plan shall not be due before at least 13 days | 21 | | after the repayment plan is signed by both parties. The | 22 | | consumer may prepay the amount due under the repayment plan | 23 | | at any time, without charge or penalty. | 24 | | (4) The length of time between installments may be | 25 | | extended by the parties so long as the total period of | 26 | | repayment does not exceed 90 days. Any such modification |
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| 1 | | must be in writing and signed by both parties. | 2 | | (f) Notwithstanding any provision of law to the contrary, a | 3 | | lender is prohibited from making a payday loan to a consumer | 4 | | who has a payday loan outstanding under a repayment plan and | 5 | | for at least 14 days after the outstanding balance of the loan | 6 | | under the repayment plan and the outstanding balance of all | 7 | | other payday loans outstanding during the term of the repayment | 8 | | plan are paid in full. | 9 | | (g) A lender may not accept postdated checks for payments | 10 | | under a repayment plan. | 11 | | (h) Notwithstanding any provision of law to the contrary, a | 12 | | lender may voluntarily agree to enter into a repayment plan | 13 | | with a consumer at any time.
If a consumer is eligible for a | 14 | | repayment plan under subsection (d), any repayment agreement | 15 | | constitutes a repayment plan under this Section and all | 16 | | provisions of this Section apply to that agreement.
| 17 | | (i) (Blank). The provisions of this Section 2-40 do not | 18 | | apply to an installment
payday loan, except for subsection (f) | 19 | | of this Section. | 20 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 21 | | (815 ILCS 122/2-45)
| 22 | | Sec. 2-45. Default. | 23 | | (a) No legal proceeding of any kind, including, but not | 24 | | limited to, a lawsuit or arbitration, may be filed or initiated | 25 | | against a consumer to collect on a payday loan until 28 days |
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| 1 | | after the default date of the loan, or, in the case of a payday | 2 | | loan under a repayment plan, for 28 days after the default date | 3 | | under the terms of the repayment plan . , or in the case of an
| 4 | | installment payday loan, for 28 days after default in making a | 5 | | scheduled
payment. | 6 | | (b) Upon and after default, a lender shall not charge the | 7 | | consumer any finance charges, interest, fees, or charges of any | 8 | | kind, other than the insufficient fund fee described in Section | 9 | | 2-10.
| 10 | | (c) Notwithstanding whether a loan is or has been in | 11 | | default, once the loan becomes subject to a repayment plan, the | 12 | | loan shall not be construed to be in default until the default | 13 | | date provided under the terms of the repayment plan.
| 14 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 15 | | (815 ILCS 122/4-5)
| 16 | | Sec. 4-5. Prohibited acts. A licensee or unlicensed person | 17 | | or entity making payday
loans may not commit, or have committed | 18 | | on behalf of the
licensee
or unlicensed person or entity, any | 19 | | of the following acts: | 20 | | (1) Threatening to use or using the criminal process in | 21 | | this or any
other state to collect on the loan.
| 22 | | (2) Using any device or agreement that would have the | 23 | | effect of
charging or collecting more fees or charges than | 24 | | allowed by this
Act, including, but not limited to, | 25 | | entering into a different type of
transaction
with the |
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| 1 | | consumer.
| 2 | | (3) Engaging in unfair, deceptive, or fraudulent | 3 | | practices in the
making or collecting of a payday loan.
| 4 | | (4) Using or attempting to use the check provided by | 5 | | the consumer in
a payday loan as collateral for a | 6 | | transaction not related to a payday loan.
| 7 | | (5) Knowingly accepting payment in whole or in part of | 8 | | a payday
loan through the proceeds of another payday loan | 9 | | provided by any licensee, except
as provided in subsection | 10 | | (c) of Section 2.5.
| 11 | | (6) Knowingly accepting any security, other than that | 12 | | specified in the
definition of payday loan in Section 1-10, | 13 | | for a payday loan.
| 14 | | (7) Charging any fees or charges other than those | 15 | | specifically
authorized by this Act.
| 16 | | (8) Threatening to take any action against a consumer | 17 | | that is
prohibited by this Act or making any misleading or | 18 | | deceptive statements
regarding the payday loan or any | 19 | | consequences thereof.
| 20 | | (9) Making a misrepresentation of a material fact by an | 21 | | applicant for licensure in
obtaining or attempting to | 22 | | obtain a license.
| 23 | | (10) Including any of the following provisions in loan | 24 | | documents
required by subsection (b) of Section 2-20:
| 25 | | (A) a confession of judgment clause;
| 26 | | (B) a waiver of the right to a jury trial, if |
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| 1 | | applicable, in any action
brought by or against a | 2 | | consumer, unless the waiver is included in an | 3 | | arbitration clause allowed under
subparagraph (C) of | 4 | | this paragraph (11);
| 5 | | (C) a mandatory arbitration clause that is | 6 | | oppressive, unfair,
unconscionable, or substantially | 7 | | in derogation of the rights of consumers; or
| 8 | | (D) a provision in which the consumer agrees not to | 9 | | assert any claim
or defense arising out of the | 10 | | contract.
| 11 | | (11) Selling any insurance of any kind whether or not | 12 | | sold in
connection with the making or collecting of a | 13 | | payday loan.
| 14 | | (12) Taking any power of attorney.
| 15 | | (13) Taking any security interest in real estate.
| 16 | | (14) Collecting a delinquency or collection charge on | 17 | | any installment
regardless of the period in which it | 18 | | remains in default.
| 19 | | (15) Collecting treble damages on an amount owing from | 20 | | a payday loan.
| 21 | | (16) Refusing, or intentionally delaying or
| 22 | | inhibiting, the consumer's right to enter into a repayment | 23 | | plan pursuant to this
Act. | 24 | | (17) Charging for, or attempting to
collect, | 25 | | attorney's fees, court costs, or arbitration costs | 26 | | incurred in connection with the
collection of a payday |
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| 1 | | loan. | 2 | | (18) Making a loan in violation of this Act. | 3 | | (19) Garnishing the wages or salaries of a consumer who | 4 | | is a member of the military. | 5 | | (20) Failing to suspend or defer collection activity | 6 | | against a consumer who is a member of the military and who | 7 | | has been deployed to a combat or combat-support posting. | 8 | | (21) Contacting the military chain of command of a | 9 | | consumer who is a member of the military in an effort to | 10 | | collect on a payday loan.
| 11 | | (22) Making or offering to make any loan other than a | 12 | | payday loan or
a title-secured loan, provided however, that | 13 | | to make or offer to make a
title-secured loan, a licensee | 14 | | must obtain a license under the Consumer
Installment Loan | 15 | | Act. | 16 | | (23) Making or offering a loan in violation of the | 17 | | Predatory Loan Prevention Act. | 18 | | (Source: P.A. 96-936, eff. 3-21-11 .) | 19 | | Section 15-90-25. The Interest Act is amended by changing | 20 | | Sections 4 and 4a as follows: | 21 | | (815 ILCS 205/4) (from Ch. 17, par. 6404) | 22 | | Sec. 4. General interest rate. | 23 | | (1) Except as otherwise provided in Section 4.05, in all | 24 | | written contracts it shall be lawful for the parties to
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| 1 | | stipulate or agree that an annual percentage rate of 9% per | 2 | | annum , or any less sum of interest , shall be
taken and paid | 3 | | upon every $100 of money loaned or in any manner due and
owing | 4 | | from any person to any other person or corporation in this | 5 | | state, and
after that rate for a greater or less sum, or for a | 6 | | longer or shorter time,
except as herein provided. | 7 | | The maximum rate of interest that may lawfully be | 8 | | contracted for is
determined by the law applicable thereto at | 9 | | the time the contract is
made. Any provision in any contract, | 10 | | whether made before or after July
1, 1969, which provides for | 11 | | or purports to authorize, contingent upon a
change in the | 12 | | Illinois law after the contract is made, any rate of
interest | 13 | | greater than the maximum lawful rate at the time the contract
| 14 | | is made, is void. | 15 | | It is lawful for a state bank or a branch of an | 16 | | out-of-state bank, as those
terms are defined in Section 2 of | 17 | | the Illinois Banking Act, to receive or to
contract to receive
| 18 | | and collect interest and charges at any rate or rates agreed | 19 | | upon by
the bank or branch and the borrower.
It is lawful for a | 20 | | savings bank chartered under the Savings Bank Act or a
savings | 21 | | association chartered under the Illinois Savings and Loan Act | 22 | | of 1985
to receive or contract to receive and collect interest | 23 | | and charges at any rate
agreed upon by the savings bank or | 24 | | savings association and the borrower. | 25 | | It is lawful to receive or to contract to receive and | 26 | | collect
interest and charges as authorized by this Act and as |
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| 1 | | authorized by the
Consumer Installment Loan Act , and by the | 2 | | "Consumer Finance Act", approved July
10,
1935, as now or | 3 | | hereafter amended, or by the Payday Loan Reform Act , the Retail | 4 | | Installment Sales Act, the Illinois Financial Services | 5 | | Development Act, or the Motor Vehicle Retail Installment Sales | 6 | | Act . It is lawful to charge, contract
for, and receive any rate | 7 | | or amount of interest or compensation , except as otherwise | 8 | | provided in the Predatory Loan Prevention Act, with
respect to | 9 | | the following transactions: | 10 | | (a) Any loan made to a corporation; | 11 | | (b) Advances of money, repayable on demand, to an | 12 | | amount not less
than $5,000, which are made upon warehouse | 13 | | receipts, bills of lading,
certificates of stock, | 14 | | certificates of deposit, bills of exchange, bonds
or other | 15 | | negotiable instruments pledged as collateral security for | 16 | | such
repayment, if evidenced by a writing; | 17 | | (c) Any credit transaction between a merchandise | 18 | | wholesaler and
retailer; any business loan to a business | 19 | | association or copartnership
or to a person owning and | 20 | | operating a business as sole proprietor or to
any persons | 21 | | owning and operating a business as joint venturers, joint
| 22 | | tenants or tenants in common, or to any limited | 23 | | partnership, or to any
trustee owning and operating a | 24 | | business or whose beneficiaries own and
operate a business, | 25 | | except that any loan which is secured (1) by an
assignment | 26 | | of an individual obligor's salary, wages, commissions or
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| 1 | | other compensation for services, or (2) by his household | 2 | | furniture or
other goods used for his personal, family or | 3 | | household purposes shall be
deemed not to be a loan within | 4 | | the meaning of this subsection; and
provided further that a | 5 | | loan which otherwise qualifies as a business
loan within | 6 | | the meaning of this subsection shall not be deemed as not | 7 | | so
qualifying because of the inclusion, with other security | 8 | | consisting of
business assets of any such obligor, of real | 9 | | estate occupied by an
individual obligor solely as his | 10 | | residence. The term "business" shall
be deemed to mean a | 11 | | commercial, agricultural or industrial enterprise
which is | 12 | | carried on for the purpose of investment or profit, but | 13 | | shall
not be deemed to mean the ownership or maintenance of | 14 | | real estate
occupied by an individual obligor solely as his | 15 | | residence; | 16 | | (d) Any loan made in accordance with the provisions of | 17 | | Subchapter I
of Chapter 13 of Title 12 of the United States | 18 | | Code, which is designated
as "Housing Renovation and | 19 | | Modernization"; | 20 | | (e) Any mortgage loan insured or upon which a | 21 | | commitment to insure
has been issued under the provisions | 22 | | of the National Housing Act,
Chapter 13 of Title 12 of the | 23 | | United States Code; | 24 | | (f) Any mortgage loan guaranteed or upon which a | 25 | | commitment to
guaranty has been issued under the provisions | 26 | | of the Veterans' Benefits
Act, Subchapter II of Chapter 37 |
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| 1 | | of Title 38 of the United States Code; | 2 | | (g) Interest charged by a broker or dealer registered | 3 | | under the
Securities Exchange Act of 1934, as amended, or | 4 | | registered under the
Illinois Securities Law of 1953, | 5 | | approved July 13, 1953, as now or
hereafter amended, on a | 6 | | debit balance in an account for a customer if
such debit | 7 | | balance is payable at will without penalty and is secured | 8 | | by
securities as defined in Uniform Commercial | 9 | | Code-Investment Securities; | 10 | | (h) Any loan made by a participating bank as part of | 11 | | any loan
guarantee program which provides for loans and for | 12 | | the refinancing of
such loans to medical students, interns | 13 | | and residents and which are
guaranteed by the American | 14 | | Medical Association Education and Research
Foundation; | 15 | | (i) Any loan made, guaranteed, or insured in accordance | 16 | | with the
provisions of the Housing Act of 1949, Subchapter | 17 | | III of Chapter 8A of
Title 42 of the United States Code and | 18 | | the Consolidated Farm and Rural
Development Act, | 19 | | Subchapters I, II, and III of Chapter 50 of Title 7 of
the | 20 | | United States Code; | 21 | | (j) Any loan by an employee pension benefit plan, as | 22 | | defined in Section
3 (2) of the Employee Retirement Income | 23 | | Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an | 24 | | individual participating in such plan, provided that such
| 25 | | loan satisfies the prohibited transaction exemption | 26 | | requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 |
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| 1 | | (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) | 2 | | (1)) of the Employee Retirement Income Security Act of | 3 | | 1974; | 4 | | (k) Written contracts, agreements or bonds for deed | 5 | | providing for
installment purchase of real estate, | 6 | | including a manufactured home as defined in subdivision | 7 | | (53) of Section 9-102 of the Uniform Commercial Code that | 8 | | is real property as defined in the Conveyance and | 9 | | Encumbrance of Manufactured Homes as Real Property and | 10 | | Severance Act; | 11 | | (l) Loans secured by a mortgage on real estate, | 12 | | including a manufactured home as defined in subdivision | 13 | | (53) of Section 9-102 of the Uniform Commercial Code that | 14 | | is real property as defined in the Conveyance and | 15 | | Encumbrance of Manufactured Homes as Real Property and | 16 | | Severance Act; | 17 | | (m) Loans made by a sole proprietorship, partnership, | 18 | | or corporation to
an employee or to a person who has been | 19 | | offered employment by such sole
proprietorship, | 20 | | partnership, or corporation made for the sole purpose of
| 21 | | transferring an employee or person who has been offered | 22 | | employment to another
office maintained and operated by the | 23 | | same sole proprietorship, partnership,
or corporation; | 24 | | (n) Loans to or for the benefit of students made by an | 25 | | institution of
higher education. | 26 | | (2) Except for loans described in subparagraph (a), (c), |
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| 1 | | (d),
(e), (f) or (i) of subsection (1) of this Section, and | 2 | | except to the
extent permitted by the applicable statute for | 3 | | loans made pursuant to
Section 4a or pursuant to the Consumer | 4 | | Installment Loan Act: | 5 | | (a) Whenever the rate of interest exceeds an annual | 6 | | percentage rate of 8% per annum on any
written contract, | 7 | | agreement or bond for deed providing for the installment
| 8 | | purchase of residential real estate, or on any loan secured | 9 | | by a mortgage
on residential real estate, it shall be | 10 | | unlawful to provide for a
prepayment penalty or other | 11 | | charge for prepayment. | 12 | | (b) No agreement, note or other instrument evidencing a | 13 | | loan
secured by a mortgage on residential real estate, or | 14 | | written contract,
agreement or bond for deed providing for | 15 | | the installment purchase of
residential real estate, may | 16 | | provide for any change in the contract rate of
interest | 17 | | during the term thereof. However, if the Congress of the | 18 | | United
States or any federal agency authorizes any class of | 19 | | lender to enter, within
limitations, into mortgage | 20 | | contracts or written contracts, agreements or
bonds for | 21 | | deed in which the rate of interest may be changed during | 22 | | the
term of the contract, any person, firm, corporation or | 23 | | other entity
not otherwise prohibited from entering into | 24 | | mortgage contracts or
written contracts, agreements or | 25 | | bonds for deed in Illinois may enter
into mortgage | 26 | | contracts or written contracts, agreements or bonds
for |
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| 1 | | deed in which the rate of interest may be changed during | 2 | | the term
of the contract, within the same limitations. | 3 | | (3) In any contract or loan which is secured by a mortgage, | 4 | | deed of
trust, or conveyance in the nature of a mortgage, on | 5 | | residential real
estate, the interest which is computed, | 6 | | calculated, charged, or collected
pursuant to such contract or | 7 | | loan, or pursuant to any regulation or rule
promulgated | 8 | | pursuant to this Act, may not be computed, calculated, charged
| 9 | | or collected for any period of time occurring after the date on | 10 | | which the
total indebtedness, with the exception of late | 11 | | payment penalties, is paid
in full. | 12 | | (4) For purposes of this Section, a prepayment shall mean | 13 | | the payment of the
total indebtedness, with the exception of | 14 | | late payment penalties if
incurred or charged, on any date | 15 | | before the date specified in the contract
or loan agreement on | 16 | | which the total indebtedness shall be paid in full, or
before | 17 | | the date on which all payments, if timely made, shall have been
| 18 | | made. In the event of a prepayment of the indebtedness which is | 19 | | made on a
date after the date on which interest on the | 20 | | indebtedness was last
computed, calculated, charged, or | 21 | | collected but before the next date on
which interest on the | 22 | | indebtedness was to be calculated, computed, charged,
or | 23 | | collected, the lender may calculate, charge and collect | 24 | | interest on the
indebtedness for the period which elapsed | 25 | | between the date on which the
prepayment is made and the date | 26 | | on which interest on the indebtedness was
last computed, |
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| 1 | | calculated, charged or collected at a rate equal to 1/360 of
| 2 | | the annual rate for each day which so elapsed, which rate shall | 3 | | be applied
to the indebtedness outstanding as of the date of | 4 | | prepayment. The lender
shall refund to the borrower any | 5 | | interest charged or collected which
exceeds that which the | 6 | | lender may charge or collect pursuant to the
preceding | 7 | | sentence. The provisions of this amendatory Act of 1985 shall
| 8 | | apply only to contracts or loans entered into on or after the | 9 | | effective
date of this amendatory Act, but shall not apply to | 10 | | contracts or loans
entered into on or after that date that are | 11 | | subject to Section 4a of this
Act, the Consumer Installment | 12 | | Loan Act, the Payday Loan Reform Act, the Predatory Loan | 13 | | Prevention Act, or the Retail Installment Sales
Act, or that | 14 | | provide for the refund of precomputed interest on prepayment
in | 15 | | the manner provided by such Act. | 16 | | (5) For purposes of items (a) and (c) of subsection (1) of | 17 | | this Section, a rate or amount of interest may be lawfully | 18 | | computed when applying the ratio of the annual interest rate | 19 | | over a year based on 360 days. The provisions of this | 20 | | amendatory Act of the 96th General Assembly are declarative of | 21 | | existing law. | 22 | | (6) For purposes of this Section, "real estate" and "real | 23 | | property" include a manufactured home, as defined in | 24 | | subdivision (53) of Section 9-102 of the Uniform Commercial | 25 | | Code that is real property as defined in the Conveyance and | 26 | | Encumbrance of Manufactured Homes as Real Property and |
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| 1 | | Severance Act. | 2 | | (Source: P.A. 98-749, eff. 7-16-14 .)
| 3 | | (815 ILCS 205/4a) (from Ch. 17, par. 6410)
| 4 | | Sec. 4a. Installment loan rate.
| 5 | | (a) On money loaned to or in any manner owing from any | 6 | | person, whether
secured or unsecured, except where the money | 7 | | loaned or in any manner owing
is directly or indirectly for the | 8 | | purchase price of real estate or an
interest therein and is | 9 | | secured by a lien on or retention of title to that
real estate | 10 | | or interest therein, to an amount not more than $25,000
| 11 | | (excluding interest) which is evidenced by a written instrument | 12 | | providing
for the payment thereof in 2 or more periodic | 13 | | installments over a period of
not more than 181 months from the | 14 | | date of the execution of the written
instrument, it is lawful | 15 | | to receive or to contract to receive and collect
either of the | 16 | | following :
| 17 | | (i) Interest interest in an amount equivalent to | 18 | | interest computed at a rate not
exceeding an annual | 19 | | percentage rate of 9% per year on the entire principal | 20 | | amount of the money loaned or
in any manner owing for the | 21 | | period from the date of the making of the loan
or the | 22 | | incurring of the obligation for the amount owing evidenced | 23 | | by the
written instrument until the date of the maturity of | 24 | | the last installment
thereof, and to add that amount to the | 25 | | principal, except that there shall
be no limit on the rate |
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| 1 | | of interest which may be received or contracted to
be | 2 | | received and collected by (1) any bank that has its main | 3 | | office
or, after May 31, 1997, a branch in this State; or | 4 | | (2) a savings and loan
association chartered under the
| 5 | | Illinois Savings and Loan Act of 1985, or a savings bank | 6 | | chartered under the
Savings Bank Act, or a federal savings | 7 | | and loan
association established under the laws of the | 8 | | United States and having its
main office in this State . | 9 | | It is lawful to receive or to contract to receive and | 10 | | collect interest and charges as authorized by the Interest | 11 | | Act, the Consumer Installment Loan Act, the Retail | 12 | | Installment Sales Act, the Motor Vehicle Retail | 13 | | Installment Sales Act, the Payday Loan Reform Act, and the | 14 | | Illinois Financial Services Development Act. | 15 | | In any case in which interest is received, contracted | 16 | | for, or collected on the basis of paragraph (i) of | 17 | | subsection (a) of Section 4a, the debtor may satisfy in | 18 | | full at any time before maturity the debt evidenced by the | 19 | | written instrument, and in so satisfying must receive a | 20 | | refund credit against the total amount of interest added to | 21 | | the principal computed in the manner provided under | 22 | | paragraph (3) of subsection (f) of Section 15 of the | 23 | | Consumer Installment Loan Act for refunds or credits of | 24 | | applicable interest on payment in full of precomputed loans | 25 | | before the final installment due date. ; or (3) any lender | 26 | | licensed under either the
Consumer Finance Act or the |
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| 1 | | Consumer Installment Loan Act, but in any case in which | 2 | | interest is received,
contracted for or collected on the | 3 | | basis of this clause (i), the debtor may
satisfy in full at | 4 | | any time before maturity the debt evidenced by the
written | 5 | | instrument, and in so satisfying must receive a refund | 6 | | credit
against the total amount of interest added to the | 7 | | principal computed in
the manner provided under Section | 8 | | 15(f)(3) of the Consumer Installment
Loan Act for refunds | 9 | | or credits of applicable interest on payment in full
of | 10 | | precomputed loans before the final installment due date; or
| 11 | | (ii) Interest interest accrued on the principal | 12 | | balance from time to time
remaining unpaid, from the date | 13 | | of making of the loan or the incurring of
the obligation to | 14 | | the date of the payment of the debt in full, at a rate
not | 15 | | exceeding the annual percentage rate equivalent of the rate | 16 | | permitted
to be charged under clause (i) above, but in any | 17 | | such case the debtor may,
provided that the debtor shall | 18 | | have paid in full all interest and other
charges accrued to | 19 | | the date of such prepayment, prepay the principal
balance | 20 | | in full or in part at any time, and interest shall, upon | 21 | | any such
prepayment, cease to accrue on the principal | 22 | | amount which has been prepaid.
| 23 | | (b) Whenever the principal amount of an installment loan is | 24 | | $300 or
more and the repayment period is 6 months or more, a | 25 | | minimum charge of
$15 may be collected instead of interest, but | 26 | | only one minimum charge
may be collected from the same person |
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| 1 | | during one year. When the
principal amount of the loan | 2 | | (excluding interest) is $800 or less, the
lender or creditor | 3 | | may contract for and receive a service charge not to
exceed $5 | 4 | | in addition to interest; and that service charge may be
| 5 | | collected when the loan is made, but only one service charge | 6 | | may be
contracted for, received, or collected from the same | 7 | | person during one year.
| 8 | | (c) Credit life insurance and credit accident and health | 9 | | insurance,
and any charge therefor which is deducted from the | 10 | | loan or paid by the
obligor, must comply with Article IX 1/2 of | 11 | | the Illinois Insurance
Code and all lawful requirements of the | 12 | | Director of Insurance related
thereto. When there are 2 or more | 13 | | obligors on the loan contract, only
one charge for credit life | 14 | | insurance and credit accident and health
insurance may be made | 15 | | and only one of the obligors may be required to be
insured. | 16 | | Insurance obtained from, by or through the lender or creditor
| 17 | | must be in effect when the loan is transacted. The purchase of | 18 | | that
insurance from an agent, broker or insurer specified by | 19 | | the lender or
creditor may not be a condition precedent to the | 20 | | granting of the loan.
| 21 | | (d) The lender or creditor may require the obligor to | 22 | | provide
property insurance on security other than household | 23 | | goods, furniture and
personal effects. The amount and term of | 24 | | the insurance must be
reasonable in relation to the amount and | 25 | | term of the loan contract and
the type and value of the | 26 | | security, and the insurance must be procured
in accordance with |
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| 1 | | the insurance laws of this State. The purchase of
that | 2 | | insurance from an agent, broker or insurer specified by the | 3 | | lender
or creditor may not be a condition precedent to the | 4 | | granting of the loan.
| 5 | | (e) The lender or creditor may, if the contract provides, | 6 | | collect a
delinquency and collection charge on each installment | 7 | | in default for a
period of not less than 10 days in an amount | 8 | | not exceeding 5% of the
installment on installments in excess | 9 | | of $200 or $10 on
installments of
$200 or less, but only one | 10 | | delinquency and collection charge may
be
collected on any | 11 | | installment regardless of the period during which it
remains in | 12 | | default. In addition, the contract may provide for the payment
| 13 | | by the borrower or debtor of attorney's fees incurred by the | 14 | | lender or
creditor. The lender or creditor may enforce such a | 15 | | provision to the extent
of the reasonable attorney's fees | 16 | | incurred by him in the collection or
enforcement of the | 17 | | contract or obligation. Whenever interest is contracted
for or | 18 | | received under this Section, no amount in addition to the | 19 | | charges
authorized by this Section may be directly or | 20 | | indirectly charged,
contracted for or received, except lawful | 21 | | fees paid to a public officer or
agency to record, file or | 22 | | release security, and except costs and
disbursements including | 23 | | reasonable attorney's fees, incurred in legal
proceedings to | 24 | | collect a loan or to realize on a security after default.
This | 25 | | Section does not prohibit the receipt of any commission, | 26 | | dividend or
other benefit by the creditor or an employee, |
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| 1 | | affiliate or associate of the
creditor from the insurance | 2 | | authorized by this Section.
| 3 | | (f) When interest is contracted for or received under this | 4 | | Section,
the lender must disclose the following items to the | 5 | | obligor in a written
statement before the loan is consummated:
| 6 | | (1) the amount and date of the loan contract;
| 7 | | (2) the amount of loan credit using the term "amount | 8 | | financed";
| 9 | | (3) every deduction from the amount financed or payment | 10 | | made by the
obligor for insurance and the type of insurance | 11 | | for which each deduction
or payment was made;
| 12 | | (4) every other deduction from the loan or payment made | 13 | | by the
obligor in connection with obtaining the loan;
| 14 | | (5) the date on which the finance charge begins to | 15 | | accrue if
different from the date of the transaction;
| 16 | | (6) the total amount of the loan charge for the | 17 | | scheduled term of
the loan contract with a description of | 18 | | each amount included using the
term "finance charge";
| 19 | | (7) the finance charge expressed as an annual | 20 | | percentage rate using
the term "annual percentage rate". | 21 | | "Annual percentage rate" means the
nominal annual | 22 | | percentage rate of finance charge determined in accordance
| 23 | | with the actuarial method of computation with an accuracy | 24 | | at least to the
nearest 1/4 of 1%; or at the option of the | 25 | | lender by application of the
United States rule so that it | 26 | | may be disclosed with an accuracy at least to
the nearest |
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| 1 | | 1/4 of 1%;
| 2 | | (8) the number, amount and due dates or periods of | 3 | | payments
scheduled to repay the loan and the sum of such | 4 | | payments using the term
"total of payments";
| 5 | | (9) the amount, or method of computing the amount of | 6 | | any default,
delinquency or similar charges payable in the | 7 | | event of late payments;
| 8 | | (10) the right of the obligor to prepay the loan and | 9 | | the fact that
such prepayment will reduce the charge for | 10 | | the loan;
| 11 | | (11) a description or identification of the type of any | 12 | | security
interest held or to be retained or acquired by the | 13 | | lender in connection
with the loan and a clear | 14 | | identification of the property to which the
security | 15 | | interest relates. If after-acquired property will be | 16 | | subject to
the security interest, or if other or future | 17 | | indebtedness is or may be
secured by any such property, | 18 | | this fact shall be clearly set forth in
conjunction with | 19 | | the description or identification of the type of
security | 20 | | interest held, retained or acquired;
| 21 | | (12) a description of any penalty charge that may be | 22 | | imposed by the
lender for prepayment of the principal of | 23 | | the obligation with an
explanation of the method of | 24 | | computation of such penalty and the
conditions under which | 25 | | it may be imposed;
| 26 | | (13) unless the contract provides for the accrual and |
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| 1 | | payment of the
finance charge on the balance of the amount | 2 | | financed from time to time
remaining unpaid, an | 3 | | identification of the method of computing any
unearned | 4 | | portion of the finance charge in the event of prepayment of | 5 | | the
loan.
| 6 | | The terms "finance charge" and "annual percentage rate" | 7 | | shall be
printed more conspicuously than other terminology | 8 | | required by this Section.
| 9 | | (g) At the time disclosures are made, the lender shall | 10 | | deliver to
the obligor a duplicate of the instrument or | 11 | | statement by which the
required disclosures are made and on | 12 | | which the lender and obligor are
identified and their addresses | 13 | | stated. All of the disclosures shall be
made clearly, | 14 | | conspicuously and in meaningful sequence and made together
on | 15 | | either:
| 16 | | (i) the note or other instrument evidencing the | 17 | | obligation on the
same side of the page and above or | 18 | | adjacent to the place for the
obligor's signature; however, | 19 | | where a creditor elects to combine
disclosures with the | 20 | | contract, security agreement, and evidence of a
| 21 | | transaction in a single document, the disclosures required | 22 | | under this
Section shall be made on the face of the | 23 | | document, on the reverse side,
or on both sides, provided | 24 | | that the amount of the finance charge and the
annual | 25 | | percentage rate shall appear on the face of the document, | 26 | | and, if
the reverse side is used, the printing on both |
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| 1 | | sides of the document
shall be equally clear and | 2 | | conspicuous, both sides shall contain the
statement, | 3 | | "NOTICE: See other side for important information", and the
| 4 | | place for the customer's signature shall be provided | 5 | | following the full
content of the document; or
| 6 | | (ii) one side of a separate statement which identifies | 7 | | the
transaction.
| 8 | | The amount of the finance charge shall be determined as the | 9 | | sum of
all charges, payable directly or indirectly by the | 10 | | obligor and imposed
directly or indirectly by the lender as an | 11 | | incident to or as a condition
to the extension of credit, | 12 | | whether paid or payable by the obligor, any
other person on | 13 | | behalf of the obligor, to the lender or to a third
party, | 14 | | including any of the following types of charges:
| 15 | | (1) Interest, time price differential, and any amount | 16 | | payable under
a discount or other system of additional | 17 | | charges.
| 18 | | (2) Service, transaction, activity, or carrying | 19 | | charge.
| 20 | | (3) Loan fee, points, finder's fee, or similar charge.
| 21 | | (4) Fee for an appraisal, investigation, or credit | 22 | | report.
| 23 | | (5) Charges or premiums for credit life, accident, | 24 | | health, or loss
of income insurance, written in connection | 25 | | with any credit transaction
unless (a) the insurance | 26 | | coverage is not required by the lender and this
fact is |
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| 1 | | clearly and conspicuously disclosed in writing to the | 2 | | obligor;
and (b) any obligor desiring such insurance | 3 | | coverage gives specific dated
and separately signed | 4 | | affirmative written indication of such desire after
| 5 | | receiving written disclosure to him of the cost of such | 6 | | insurance.
| 7 | | (6) Charges or premiums for insurance, written in | 8 | | connection with
any credit transaction, against loss of or | 9 | | damage to property or against
liability arising out of the | 10 | | ownership or use of property, unless a
clear, conspicuous, | 11 | | and specific statement in writing is furnished by
the | 12 | | lender to the obligor setting forth the cost of the | 13 | | insurance if
obtained from or through the lender and | 14 | | stating that the obligor may
choose the person through | 15 | | which the insurance is to be obtained.
| 16 | | (7) Premium or other charges for any other guarantee or | 17 | | insurance
protecting the lender against the obligor's | 18 | | default or other credit loss.
| 19 | | (8) Any charge imposed by a lender upon another lender | 20 | | for
purchasing or accepting an obligation of an obligor if | 21 | | the obligor is
required to pay any part of that charge in | 22 | | cash, as an addition to the
obligation, or as a deduction | 23 | | from the proceeds of the obligation.
| 24 | | A late payment, delinquency, default, reinstatement or | 25 | | other such
charge is not a finance charge if imposed for actual | 26 | | unanticipated late
payment, delinquency, default or other |
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| 1 | | occurrence.
| 2 | | (h) Advertising for loans transacted under this Section may | 3 | | not be
false, misleading, or deceptive. That advertising, if it | 4 | | states a rate
or amount of interest, must state that rate as an | 5 | | annual percentage rate
of interest charged. In addition, if | 6 | | charges other than for interest are
made in connection with | 7 | | those loans, those charges must be separately
stated. No | 8 | | advertising may indicate or imply that the rates or charges
for | 9 | | loans are in any way "recommended", "approved", "set" or
| 10 | | "established" by the State government or by this Act.
| 11 | | (i) A lender or creditor who complies with the federal | 12 | | Truth in Lending
Act, amendments thereto, and any regulations | 13 | | issued or which may be issued
thereunder, shall be deemed to be | 14 | | in compliance with the provisions of
subsections (f), (g) and | 15 | | (h) of this Section.
| 16 | | (j) For purposes of this Section, "real estate" and "real | 17 | | property" include a manufactured home as defined in subdivision | 18 | | (53) of Section 9-102 of the Uniform Commercial Code that is | 19 | | real property as defined in the Conveyance and Encumbrance of | 20 | | Manufactured Homes as Real Property and Severance Act. | 21 | | (Source: P.A. 98-749, eff. 7-16-14.)
| 22 | | Section 15-90-30. The Motor Vehicle Retail Installment | 23 | | Sales Act is amended by changing Section 21 and by adding | 24 | | Section 26.1 as follows:
|
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| 1 | | (815 ILCS 375/21) (from Ch. 121 1/2, par. 581)
| 2 | | Sec. 21.
The finance charge on any motor vehicle retail | 3 | | installment contract shall be no more than the maximum rate | 4 | | permissible under the Predatory Loan Prevention Act. | 5 | | Notwithstanding the provisions of any other statute, for
motor | 6 | | vehicle retail installment contracts executed after September | 7 | | 25, 1981,
there shall be no limit
on the finance charges which | 8 | | may be charged, collected, and received.
| 9 | | (Source: P.A. 90-437, eff. 1-1-98; 91-357, eff. 7-29-99.)
| 10 | | (815 ILCS 375/26.1 new) | 11 | | Sec. 26.1. Rulemaking authority. The Secretary of | 12 | | Financial and Professional Regulation and his or her designees | 13 | | shall have authority to adopt and enforce reasonable rules, | 14 | | directions, orders, decisions, and findings necessary to | 15 | | execute and enforce this Act and protect consumers in this | 16 | | State. The Secretary's authority to adopt rules shall include, | 17 | | but not be limited to: licensing, examination, supervision, and | 18 | | enforcement. | 19 | | Section 15-90-35. The Retail Installment Sales Act is | 20 | | amended by changing Sections 27 and 28 and by adding Section | 21 | | 33.1 as follows:
| 22 | | (815 ILCS 405/27) (from Ch. 121 1/2, par. 527)
| 23 | | Sec. 27.
The finance charge on any retail installment |
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| 1 | | contract shall be no more than the maximum rate permissible | 2 | | under the Predatory Loan Prevention Act. Notwithstanding the | 3 | | provisions of any other statute, retail
installment contracts | 4 | | executed after the effective date of this
amendatory Act of | 5 | | 1981, there shall be no limit on the finance
charges which may | 6 | | be charged, collected and received.
| 7 | | (Source: P.A. 90-437, eff. 1-1-98.)
| 8 | | (815 ILCS 405/28) (from Ch. 121 1/2, par. 528)
| 9 | | Sec. 28.
The finance charge on any retail charge agreement | 10 | | shall be no more than the maximum rate permissible under the | 11 | | Predatory Loan Prevention Act. Notwithstanding the provisions | 12 | | of any other statute, a retail
charge
agreement may provide for | 13 | | the charging, collection and receipt of finance
charges at any | 14 | | specified rate on the unpaid balances incurred after
the | 15 | | effective
date of this amendatory Act of 1981. If a seller or | 16 | | holder under a retail
charge agreement entered into on, prior | 17 | | to or after the effective date of
this amendatory Act of 1981 | 18 | | notifies the retail buyer at least 15
days in
advance of any | 19 | | lawful increase in the finance charges to be charged under the
| 20 | | agreement, and the retail buyer, after the effective date of | 21 | | such notice,
makes a new or additional purchase or incurs | 22 | | additional debt pursuant to
the agreement, the increased | 23 | | finance charges may be applied only to any
such new or | 24 | | additional purchase or additional debt incurred regardless of
| 25 | | any other terms of the agreement. For purposes of determining |
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| 1 | | the balances
to which the increased interest rate applies, all | 2 | | payments and other credits
may be deemed to be applied to the | 3 | | balance existing prior to the change
in rate until that balance | 4 | | is paid in full.
| 5 | | (Source: P.A. 90-437, eff. 1-1-98.)
| 6 | | (815 ILCS 405/33.1 new) | 7 | | Sec. 33.1. Rulemaking authority. The Secretary of | 8 | | Financial and Professional Regulation and his or her designees | 9 | | shall have authority to adopt and enforce reasonable rules, | 10 | | directions, orders, decisions, and findings necessary to | 11 | | execute and enforce this Act and protect consumers in this | 12 | | State. The Secretary's authority to adopt rules shall include, | 13 | | but not be limited to: licensing, examination, supervision, and | 14 | | enforcement. | 15 | | Section 15-90-40. The Consumer Fraud and Deceptive | 16 | | Business Practices Act is amended by changing Section 2Z as | 17 | | follows:
| 18 | | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
| 19 | | Sec. 2Z. Violations of other Acts. Any person who knowingly | 20 | | violates
the Automotive Repair Act, the Automotive Collision | 21 | | Repair Act,
the Home Repair and Remodeling Act,
the Dance | 22 | | Studio Act,
the Physical Fitness Services Act,
the Hearing | 23 | | Instrument Consumer Protection Act,
the Illinois Union Label |
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| 1 | | Act, the Installment Sales Contract Act,
the Job Referral and | 2 | | Job Listing Services Consumer Protection Act,
the Travel | 3 | | Promotion Consumer Protection Act,
the Credit Services | 4 | | Organizations Act,
the Automatic Telephone Dialers Act,
the | 5 | | Pay-Per-Call Services Consumer Protection Act,
the Telephone | 6 | | Solicitations Act,
the Illinois Funeral or Burial Funds Act,
| 7 | | the Cemetery Oversight Act, the Cemetery Care Act,
the Safe and | 8 | | Hygienic Bed Act,
the Illinois Pre-Need Cemetery Sales Act,
the | 9 | | High Risk Home Loan Act, the Payday Loan Reform Act, the | 10 | | Predatory Loan Prevention Act, the Mortgage Rescue Fraud Act, | 11 | | subsection (a) or (b) of Section 3-10 of the
Cigarette Tax Act, | 12 | | subsection
(a) or (b) of Section 3-10 of the Cigarette Use Tax | 13 | | Act, the Electronic
Mail Act, the Internet Caller | 14 | | Identification Act, paragraph (6)
of
subsection (k) of Section | 15 | | 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115, | 16 | | 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois | 17 | | Vehicle Code, Article 3 of the Residential Real Property | 18 | | Disclosure Act, the Automatic Contract Renewal Act, the Reverse | 19 | | Mortgage Act, Section 25 of the Youth Mental Health Protection | 20 | | Act, the Personal Information Protection Act, or the Student | 21 | | Online Personal Protection Act commits an unlawful practice | 22 | | within the meaning of this Act.
| 23 | | (Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642, | 24 | | eff. 7-28-16; 100-315, eff. 8-24-17; 100-416, eff. 1-1-18; | 25 | | 100-863, eff. 8-14-18.) |
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| 1 | | Article 20. | 2 | | Section 20-5. The Department of Commerce and Economic | 3 | | Opportunity Law of the
Civil Administrative Code of Illinois is | 4 | | amended by adding Section 605-1055 as follows: | 5 | | (20 ILCS 605/605-1055 new) | 6 | | Sec. 605-1055. Personal care products industry supplier | 7 | | disparity study. | 8 | | (a) The Department shall compile and publish a disparity | 9 | | study by December 31, 2022 that: (1) evaluates whether there | 10 | | exists intentional discrimination at the
supplier or | 11 | | distribution level for retailers of beauty products, | 12 | | cosmetics, hair
care supplies, and personal care products in | 13 | | the State of Illinois; and (2) if so,
evaluates the impact of | 14 | | such discrimination on the State and includes
recommendations | 15 | | for reducing or eliminating any barriers to entry to those
| 16 | | wishing to establish businesses at the retail level involving | 17 | | such products.
The Department shall forward a copy of its | 18 | | findings and recommendations to
the General Assembly and | 19 | | Governor. | 20 | | (b) The Department may compile, collect, or otherwise | 21 | | gather data necessary for the administration of this Section | 22 | | and to carry out the Department's duty relating to the | 23 | | recommendation of policy changes. The Department shall compile | 24 | | all of the data into a single report, submit the report to the |
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| 1 | | Governor and the General Assembly, and publish the report on | 2 | | its website. | 3 | | (c) This Section is repealed on January 1, 2024. | 4 | | Article 99. | 5 | | Section 99-99. Effective date. This Act takes effect upon | 6 | | becoming law. |
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