Full Text of SB3314 103rd General Assembly
SB3314eng 103RD GENERAL ASSEMBLY | | | SB3314 Engrossed | | LRB103 39360 SPS 69523 b |
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| 1 | | AN ACT concerning business. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Consumer Legal Funding Act is amended by | 5 | | changing Sections 25, 30, and 165 as follows: | 6 | | (815 ILCS 121/25) | 7 | | Sec. 25. Fees. | 8 | | (a) The fee charged by a consumer legal funding company to | 9 | | the consumer shall be calculated as not more than 18% of the | 10 | | funded amount, assessed on the outset of every 6 months. | 11 | | (b) In addition, a consumer legal funding company may | 12 | | charge a document preparation fee not to exceed $75, which may | 13 | | be deducted from the funded amount. This fee is to be used to | 14 | | defray the ordinary cost of opening, administering, and | 15 | | terminating a consumer legal funding. | 16 | | (c) A consumer legal funding company shall not collect any | 17 | | additional fees unless otherwise specified in this Act. | 18 | | (d) No charges may accrue on a consumer legal funding for | 19 | | more than 42 months after the funding date of the consumer | 20 | | legal funding. No consumer legal funding may be refinanced | 21 | | except as authorized by rule. Notwithstanding the foregoing, a | 22 | | consumer legal funding company may assess charges on any | 23 | | additional amounts provided after the funding date for 42 |
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| 1 | | months after the additional funding date. | 2 | | (e) Notwithstanding any other law, a consumer legal | 3 | | funding may be refinanced as authorized by rule. The | 4 | | Department shall publish first notice of a rule concerning the | 5 | | refinancing of consumer legal fundings in the Illinois | 6 | | Register in accordance with the Illinois Administrative | 7 | | Procedure Act within 120 days after the effective date of this | 8 | | amendatory Act of the 103rd General Assembly. | 9 | | (Source: P.A. 102-987, eff. 5-27-22.) | 10 | | (815 ILCS 121/30) | 11 | | Sec. 30. Disclosures. All consumer legal funding contracts | 12 | | shall contain the disclosures specified in this Section, which | 13 | | shall constitute material terms of the contract. Unless | 14 | | otherwise specified, the disclosures shall be typed in at | 15 | | least 12-point bold-type font and be placed clearly and | 16 | | conspicuously within the contract as follows: | 17 | | (1) On the front page under appropriate headings, | 18 | | language specifying: | 19 | | (A) the funded amount to be paid to the consumer or | 20 | | on the consumer's behalf by the consumer legal funding | 21 | | company; | 22 | | (B) an itemization of charges; | 23 | | (C) the maximum total amount to be paid by the | 24 | | consumer to the company, including the funded amount | 25 | | and all fees; and |
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| 1 | | (D) a payment schedule to include the resolution | 2 | | amount, listing dates, and the amount due at the end of | 3 | | each 6-month period from the funding date, until the | 4 | | date the maximum amount is due to the company by the | 5 | | consumer to satisfy the amount due pursuant to the | 6 | | contract. | 7 | | (2) Pursuant to the provisions set forth in paragraph | 8 | | (2) of subsection (a) of Section 10, within the body of the | 9 | | contract: "CONSUMER'S RIGHT TO CANCELLATION: You may | 10 | | cancel this contract without penalty or further obligation | 11 | | within 14 business days after the funding date if you | 12 | | either: | 13 | | (A) return to the consumer legal funding company | 14 | | the full amount of the funds disbursed to you or on | 15 | | your behalf by delivering the company's uncashed check | 16 | | to the company's office in person; or | 17 | | (B) place in the mail, by mail service materially | 18 | | equivalent to United States Postal Service certified | 19 | | mail, addressed to the company at the address | 20 | | specified in the contract, a notice of cancellation | 21 | | and include in such mailing a return of the full amount | 22 | | of funds disbursed to you or on your behalf in the form | 23 | | of the company's uncashed check or a registered or | 24 | | certified check or money order." | 25 | | (3) Within the body of the contract: "The consumer | 26 | | legal funding company shall have no role in deciding |
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| 1 | | whether, when, and how much the legal claim is settled | 2 | | for, however, the consumer and consumer's attorney must | 3 | | notify the company of the outcome of the legal claim by | 4 | | settlement or adjudication before the resolution date. The | 5 | | company may seek updated information about the status of | 6 | | the legal claim but in no event shall the company | 7 | | interfere with the independent professional judgment of | 8 | | the attorney in the handling of the legal claim or any | 9 | | settlement thereof." | 10 | | (4) Within the body of the contract, in all capital | 11 | | letters in at least 12-point bold-type font contained | 12 | | within a box: "THE FUNDED AMOUNT AND AGREED-UPON CHARGES | 13 | | SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, | 14 | | AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE | 15 | | AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE | 16 | | [INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY] | 17 | | ANYTHING IF THERE ARE NO REMAINING PROCEEDS AVAILABLE FROM | 18 | | YOUR LEGAL CLAIM, UNLESS YOU OR YOUR ATTORNEY HAVE | 19 | | COMMITTED FRAUD AGAINST THE CONSUMER LEGAL FUNDING | 20 | | COMPANY. NOTWITHSTANDING ANYTHING TO THE CONTRARY, YOU MAY | 21 | | REFINANCE THE FUNDED AMOUNT AND AGREED UPON CHARGES AS | 22 | | AUTHORIZED BY RULE. " | 23 | | (5) Located immediately above the place on the | 24 | | contract where the consumer's signature is required, in | 25 | | 12-point font: "Do not sign this contract before you read | 26 | | it completely or if it contains any blank spaces. You are |
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| 1 | | entitled to a completely filled-in copy of the contract. | 2 | | Before you sign this contract, you should obtain the | 3 | | advice of an attorney. Depending on the circumstances, you | 4 | | may want to consult a tax, public or private benefits | 5 | | planning, or financial professional. You acknowledge that | 6 | | your attorney in the legal claim has provided no tax, | 7 | | public or private benefit planning, or financial advice | 8 | | regarding this transaction." | 9 | | (6) The consumer legal funding company shall provide | 10 | | the consumer with information on accessing a financial | 11 | | coaching program no later than the funding date. | 12 | | (Source: P.A. 102-987, eff. 5-27-22.) | 13 | | (815 ILCS 121/165) | 14 | | Sec. 165. Rules of the Department. | 15 | | (a) In addition to such powers as may be prescribed by this | 16 | | Act, the Department is hereby authorized and empowered to | 17 | | adopt rules consistent with the purposes of this Act, | 18 | | including, but not limited to: | 19 | | (1) rules in connection with the activities of | 20 | | licensees or unlicensed consumer legal funding companies | 21 | | as may be necessary and appropriate for the protection of | 22 | | consumers in this State; | 23 | | (2) rules as may be necessary and appropriate to | 24 | | define improper or fraudulent business practices in | 25 | | connection with the activities of licensees in servicing |
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| 1 | | consumer legal fundings; | 2 | | (3) rules that define the terms used in this Act and as | 3 | | may be necessary and appropriate to interpret and | 4 | | implement the provisions of this Act; and | 5 | | (4) rules as may be necessary for the enforcement and | 6 | | administration of this Act ; and . | 7 | | (5) rules to permit the refinancing of consumer legal | 8 | | fundings. | 9 | | (b) The Secretary is hereby authorized and empowered to | 10 | | make specific rulings, demands, and findings that he or she | 11 | | deems necessary for the proper conduct of the consumer legal | 12 | | funding company industry. | 13 | | (Source: P.A. 102-987, eff. 5-27-22.) |
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