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90_HB2211
SEE INDEX
Amends the Sales Finance Agency Act and the Consumer
Installment Loan Act. Amends provisions regarding application
and renewal of licenses, suspension and revocation of
licenses, and ceasing operations under these Acts. Provides
that a claim for a violation of these Acts may be asserted in
an individual action. Makes provision for the Director of
the Department of Financial Institutions to issue cease and
desist orders or to petition the circuit court for an
injunction, penalties, and costs. Amends the Consumer
Installment Loan Act regarding loss insurance on secured
property and provides that the parties may agree to submit
disputes to arbitration; permits loans up to $25,000 (now
$10,000). Makes other changes to these Acts. Amends the
Motor Vehicle Retail Installment Sales Act and the Vehicle
Retail Installment Sales Act. Provides that the parties may
agree to submit disputes to arbitration and amends provisions
regarding loss insurance on secured property. Provides that
a claim for a violation of these Acts may be asserted in an
individual action. Changes some fees licensees may charge
under this Act. Makes other Changes.
LRB9004659SMdv
LRB9004659SMdv
1 AN ACT concerning financial transactions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Sales Finance Agency Act is amended by
5 changing Sections, 2, 3, 4, 5, 6, 7, 8, 8.1, 8.2, 8.3, 8.4,
6 8.6, 8.8, 8.9, 8.10, 8.11, 8.13, 10, 10.1, 10.2, 11, 12, 13,
7 14, and 15 and by adding Sections 8.14, 15.5, 16.1, 18, 19,
8 and 20 as follows:
9 (205 ILCS 660/2) (from Ch. 17, par. 5202)
10 Sec. 2. Definitions. In this Act, unless the context
11 otherwise requires:
12 "Sales finance agency" means a person, irrespective of
13 his or her state of domicile or place of business, engaged in
14 this State, in whole or in part, in the business of
15 purchasing, or making loans secured by, retail installment
16 contracts, retail charge agreements or the outstanding
17 balances under such contracts or agreements entered into in
18 this State irrespective of the state of domicile or place of
19 business of such person. The term does not include a person
20 who makes, other than in the regular course of business, only
21 isolated purchases of or loans secured by retail installment
22 contracts, retail charge agreements or the outstanding
23 balances under such contracts or agreements to secure a bona
24 fide loan thereon.
25 "Holder" of a retail installment contract or a retail
26 charge agreement means the retail seller of the goods or
27 services under the contract or charge agreement, or if the
28 outstanding balances thereunder are purchased by or
29 transferred as security to a sales finance agency or other
30 assignee, the sales finance agency or other assignee.
31 "Person" means an individual, corporation, partnership,
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1 limited liability company, joint venture, or any other form
2 of business association.
3 "Department" means the Department of Financial
4 Institutions.
5 "Director" means the Director of Financial Institutions.
6 "Motor Vehicle Retail Installment Sales Act" and "Retail
7 Installment Sales Act" refer to the Acts having those titles
8 enacted by the 75th General Assembly.
9 "Retail installment contract" and "retail charge
10 agreement" have the meanings ascribed to them in the Motor
11 Vehicle Retail Installment Sales Act and the Retail
12 Installment Sales Act.
13 "Special purpose vehicle" means an entity that, in
14 connection with a securitization, private placement, or
15 similar type of investment transaction, is administered by a
16 State or national bank under a management agreement for the
17 purpose of purchasing, making loans against, or in pools of,
18 receivables, general intangibles, and other financial assets
19 including retail installment contracts, retail charge
20 agreements, or the outstanding balances or any portion of the
21 outstanding balances under those contracts or agreements.
22 "Net Worth" means total assets minus total liabilities.
23 (Source: P.A. 89-400, eff. 8-20-95.)
24 (205 ILCS 660/3) (from Ch. 17, par. 5203)
25 Sec. 3. No person may engage in the business of a sales
26 finance agency in this State without first obtaining a
27 license as provided in this Act. A licensee under the
28 Consumer Installment Loan Act or licensee under the Consumer
29 Finance Act that is authorized to do business in this State
30 may engage in the business of a sales finance agency without
31 securing a license under this Act. A Consumer Installment
32 Loan Act licensee engaged in the business of a sales finance
33 agency is required to comply with this Act and violations of
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1 this Act may result in penalties, revocation of the
2 licensee's authority to engage in sales finance agency
3 activity, or revocation or suspension of the Consumer
4 Installment Loan Act license., however, and to the extent so
5 engaged is considered as a licensee under this Act which is
6 required to comply with this Act and which is subject to
7 revocation, for any of the grounds and in the manner provided
8 in this Act, of its privilege to engage in the business of a
9 sales finance agency in this State.
10 (Source: P.A. 76-1496.)
11 (205 ILCS 660/4) (from Ch. 17, par. 5204)
12 Sec. 4. After December 31, 1967, a person who is required
13 to be licensed under this Act must display at each of his
14 places of business a non-transferable and non-assignable
15 license. A licensee who operates more than one place of
16 business may obtain additional licenses upon compliance with
17 this Act as to each place of business. Application for a
18 license must be on a form prescribed and furnished by the
19 Department. A licensee may move his place or places of
20 business from one location to another within a county without
21 obtaining a new license if he gives the Department at least
22 10 days' prior written notice of the relocation removal.
23 (Source: Laws 1967, p. 2062.)
24 (205 ILCS 660/5) (from Ch. 17, par. 5205)
25 Sec. 5. If a licensee fails to renew his or her license
26 by the 31st day of December, it shall automatically expire
27 and the licensee is not entitled to a hearing; however, the
28 Director in his or her discretion, may reinstate an expired
29 license upon payment of the annual renewal fee and proof of
30 good cause for failure to renew. Licenses issued under this
31 Act expire annually on December 31. A license fee of $300 for
32 the applicant's principal place of business and $100 for each
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1 additional place of business for which a license is sought
2 must be submitted with an application for license made before
3 July 1 of any year. If application is made on July 1 or
4 thereafter, a license fee of $150 for the principal place of
5 business and of $50 for each additional place of business
6 must accompany the application. Each license remains in force
7 until surrendered, suspended or revoked. If the application
8 for license is denied, the original license fee shall be
9 retained by the State in reimbursement of its costs of
10 investigating that application.
11 (Source: P.A. 85-716.)
12 (205 ILCS 660/6) (from Ch. 17, par. 5206)
13 Sec. 6. A license fee of $300 for the applicant's
14 principal place of business and $100 for each additional
15 place of business for which a license is sought must be
16 submitted with an application for license made before July 1
17 of any year. If application for a license is made on July 1
18 or thereafter, a license fee of $150 for the principal place
19 of business and of $50 for each additional place of business
20 must accompany the application. Each license remains in
21 force until surrendered, suspended, or revoked. If the
22 application for license is denied, the original license fee
23 shall be retained by the State in reimbursement of its costs
24 of investigating that application.
25 Before the license is granted, the applicant shall prove
26 in form satisfactory to the Director, that the applicant has
27 a positive net worth of a minim of $30,000.
28 A licensee must pay to the Department, by December 1 of
29 each year, $300 for the license for his principal place of
30 business and $100 for each additional license held as a
31 renewal license fee for the succeeding calendar year. Failure
32 to pay the license fee within the time prescribed
33 automatically revokes renewal of the license as of the last
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1 day of the calendar year for which it issued.
2 (Source: P.A. 85-716.)
3 (205 ILCS 660/7) (from Ch. 17, par. 5207)
4 Sec. 7. The Department shall examine each licensee
5 annually to determine if it is in compliance with this Act.
6 In the course of that examination, insofar as feasible, the
7 Department shall give particular attention to whether the
8 licensee has complied with Sections 8.2 through 8.5 and 8.9
9 through 8.13 of this Act. The expense of this annual
10 examination shall be paid to the Department by the licensee
11 in accordance with a schedule of fees established by the
12 Department as reasonably reflecting the actual cost of the
13 examination.
14 In addition, the Department may charge all licensees in
15 accordance with its schedule of fees for the examinations or
16 re-examinations made pursuant to Section 11 of this Act. This
17 expense and cost of examination is in addition to the license
18 fees hereunder.
19 Instead of requiring a licensee to have an annual
20 examination conducted by the Department, the Director may
21 accept the report of a registered public accountant licensed
22 in Illinois if:
23 (1) the costs of the examination and report are borne by
24 the licensee;
25 (2) the scope of the examination is at least equal in
26 scope to the examination made by the Department;
27 (3) the report is made on forms approved by the
28 Director; and
29 (4) the Director gives prior permission for the
30 examination and prior approval of the registered public
31 accountant making the examination. The cost of any other
32 examination or investigation of the licensee conducted under
33 this Act may not be charged to the licensee.
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1 (Source: P.A. 76-996.)
2 (205 ILCS 660/8) (from Ch. 17, par. 5208)
3 Sec. 8. The Department may deny an application for a
4 license, deny an application for renewal of a license, or
5 suspend or revoke a license on any of the grounds listed in
6 Sections 8.1 through 8.14. Renewal of a license originally
7 granted under this Act may be denied, or a license may be
8 denied, suspended or revoked by the Department on any of the
9 grounds listed in Sections 8.1 to 8.13.
10 (Source: Laws 1967, p. 2062.)
11 (205 ILCS 660/8.1) (from Ch. 17, par. 5209)
12 Sec. 8.1. Material misstatement in the application or
13 renewal, for original license or in any form which may be
14 prescribed by the Director for the renewal of a license, or
15 in any amendment made to the application for original license
16 or form for renewal.
17 (Source: Laws 1967, p. 2062.)
18 (205 ILCS 660/8.2) (from Ch. 17, par. 5210)
19 Sec. 8.2. Violating Willful violation or aiding any
20 person in the willful violation of this Act or of any rule or
21 regulation promulgated by the Director.
22 (Source: Laws 1967, p. 2062.)
23 (205 ILCS 660/8.3) (from Ch. 17, par. 5211)
24 Sec. 8.3. Aiding or conspiring to aid any person in the
25 willful violation of the Retail Installment Sales Act or of
26 the Motor Vehicle Retail Installment Sales Act.
27 (Source: Laws 1967, p. 2062.)
28 (205 ILCS 660/8.4) (from Ch. 17, par. 5212)
29 Sec. 8.4. Except for an honest mistake, purchase of any
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1 retail contract, retail charge agreement, or evidence of
2 indebtedness thereunder, that which on its face violates this
3 Act, the Retail Installment Sales Act or the Motor Vehicle
4 Retail Installment Sales Act.
5 (Source: Laws 1967, p. 2062.)
6 (205 ILCS 660/8.6) (from Ch. 17, par. 5214)
7 Sec. 8.6. Use of collection process that which violates
8 any of the laws of this State with respect to garnishment,
9 wage deduction orders or wage assignments.
10 (Source: Laws 1967, p. 2062.)
11 (205 ILCS 660/8.8) (from Ch. 17, par. 5216)
12 Sec. 8.8. Conviction in a criminal matter or final
13 judgment in a civil action of the offense of defrauding
14 another person any retail buyer to his damage.
15 (Source: Laws 1967, p. 2062.)
16 (205 ILCS 660/8.9) (from Ch. 17, par. 5217)
17 Sec. 8.9. Fraud, Fraudulent misrepresentation,
18 circumvention or concealment by the licensee of material
19 facts that are required to be disclosed through whatever
20 subterfuge or device of any of the material particulars or
21 the nature thereof required to be stated or furnished to a
22 retail buyer under the Retail Installment Sales Act or the
23 Motor Vehicle Retail Installment Sales Act.
24 (Source: Laws 1967, p. 2062.)
25 (205 ILCS 660/8.10) (from Ch. 17, par. 5218)
26 Sec. 8.10. Conducting Holding any license to do business
27 as a sales finance agency, bank, savings and loan
28 association, consumer finance company, or credit union, under
29 the laws of this or any other State or of the United States
30 of America, when the that license to conduct that business
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1 has been cancelled, revoked, suspended or denied for reasons
2 other than failure to pay the required fees for that license.
3 (Source: Laws 1967, p. 2062.)
4 (205 ILCS 660/8.11) (from Ch. 17, par. 5219)
5 Sec. 8.11. Purchase of a retail installment contract
6 creating or providing for a security interest in a motor
7 vehicle that qualifies as consumer goods under the Uniform
8 Commercial Code, or purchase of the evidence of indebtedness
9 under such a contract, from a person who is not licensed
10 under The Illinois Vehicle Code, not licensed under this Act,
11 and not exempt from licensure under this Act.
12 (Source: P.A. 77-1165.)
13 (205 ILCS 660/8.13) (from Ch. 17, par. 5221)
14 Sec. 8.13. Failure to maintain a positive net worth of
15 $30,000 without having access to sources of funding approved
16 by the Director possess the financial responsibility,
17 experience, character and general fitness necessary to
18 command the confidence of the community and to warrant belief
19 that the business will be operated honestly, fairly and
20 efficiently within the purposes of this Act.
21 (Source: Laws 1967, p. 2062.)
22 (205 ILCS 660/8.14 new)
23 Sec. 8.14. Conviction of a felony. Conviction of a
24 felony of any applicant or licensee, or of any partner,
25 manager, officer, or director of a sales finance agency.
26 (205 ILCS 660/10) (from Ch. 17, par. 5223)
27 Sec. 10. Denial, revocation, or suspension of license.
28 (a) The Director may revoke or suspend a license if the
29 licensee violates any provisions of this Act.
30 (b) In every case in which a license is revoked or
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1 suspended, or an application for a license or renewal of a
2 license is denied, the Director shall serve notice of his or
3 her action, including a statement of the reasons for the
4 action either personally or by certified mail, return receipt
5 requested. Service by certified mail shall be deemed
6 completed when the notice is deposited in the U.S. mail.
7 (c) An order revoking or suspending a license or an
8 order denying renewal of a license shall take effect upon
9 service of the order, unless the licensee requests, in
10 writing, within 10 days after the date of service, a hearing.
11 In the event a hearing is requested, the order shall be
12 stayed until a final administrative order is entered.
13 (d) If the licensee requests a hearing, the Director
14 shall schedule a hearing within 30 days after the request for
15 a hearing unless otherwise agreed to by the parties.
16 (e) The hearing shall be held at the time and place
17 designated by the Director. The Director and any
18 administrative law judge designated by him or her shall have
19 the power to administer oaths and affirmations, subpoena
20 witnesses and compel their attendance, take evidence, and
21 require the production of books, papers, correspondence, and
22 other records or information that he or she considers
23 relevant or material to the inquiry.
24 (f) The costs for the administrative hearing shall be
25 set by rule.
26 (g) The Director shall have the authority to prescribe
27 rules for the administration of this Section. The Department
28 shall, after 5 days notice by certified mail, return receipt
29 requested, sent to the licensee at the address set forth in
30 the license, stating the contemplated action and in general
31 the grounds therefor and the date, time and place of a
32 hearing thereon, and after providing the licensee with a
33 reasonable opportunity to be heard prior to the action,
34 suspend or revoke any license issued hereunder if it finds
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1 that the licensee has violated any of Sections 8.1 through
2 8.12 or Section 9.
3 (Source: Laws 1967, p. 2062.)
4 (205 ILCS 660/10.1) (from Ch. 17, par. 5224)
5 Sec. 10.1. The Department may suspend or revoke only the
6 particular license with respect to which grounds therefor
7 occur or exist, but if it finds that those grounds are of
8 general application to all offices or to more than one office
9 of the licensee, the Department shall suspend or revoke every
10 license to which those grounds apply.
11 (Source: Laws 1967, p. 2062.)
12 (205 ILCS 660/10.2) (from Ch. 17, par. 5225)
13 Sec. 10.2. Closing of business; surrender of license. At
14 least 10 days prior to a licensee ceasing operations, closing
15 business, or filing for bankruptcy, the licensee shall:
16 (a) Notify the Department of its action in writing.
17 (b) Surrender its license to the Director for
18 cancellation. The surrender of the license shall not affect
19 the licensee's civil or criminal liability for acts committed
20 prior to surrender or entitle the licensee to a return of any
21 part of the annual license fee.
22 (c) The licensee shall notify the department of the
23 location where the books, accounts, contracts, and records
24 will be maintained and the procedure to ensure prompt return
25 of contracts, titles, and releases to the customers.
26 (d) The accounts, books, records, and contracts shall be
27 maintained and serviced by the licensee or another licensee
28 under this Act, or an entity exempt from licensure under this
29 Act.
30 (e) The Department shall have the authority to conduct
31 examinations of the books, records, and loan documents at any
32 time after surrender of the license, filing of bankruptcy, or
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1 the cessation of operations. Any licensee may surrender a
2 license by delivering to the Department written notice that
3 he thereby surrenders the license, but surrender does not
4 affect the licensee's civil or criminal liability for acts
5 committed prior to surrender or entitle the licensee to a
6 return of any part of the annual license fee.
7 (Source: Laws 1967, p. 2062.)
8 (205 ILCS 660/11) (from Ch. 17, par. 5229)
9 Sec. 11. For the purpose of discovering violations of
10 this Act or securing information lawfully required by it
11 hereunder, the Department may at any time investigate the
12 business and examine the books, accounts, records, and files
13 of any person acting as a sales finance agency without a
14 license used therein, of every licensee and of every person,
15 co-partnership, association and corporation which is a sales
16 finance agency as defined in Section 2 of this Act, whether
17 that person, co-partnership, association or corporation acts
18 or claims to act as principal or agent or within or without
19 the authority of this Act. For that purpose the Department
20 shall have free access to the offices and places of business,
21 books, accounts, papers, records, files, safes and vaults of
22 those persons, co-partnerships, associations, and
23 corporations.
24 In connection with this investigation the Department may
25 examine witnesses under oath and subpoena compel the
26 production of books and papers pertinent to the
27 investigation. The Director, the Supervisor of Sales Finance
28 Agencies and any employee of the Department designated for
29 that purpose by the Director may administer oaths in these
30 investigations or at any hearing held under this Act.
31 Upon the application of the licensee or of the
32 Department, any circuit court may enter an order requiring
33 the attendance of witnesses and the production of relevant
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1 books and papers before the Department at any hearing held
2 under this Act. The court may compel obedience to its order
3 by proceedings for contempt.
4 (Source: Laws 1967, p. 2062.)
5 (205 ILCS 660/12) (from Ch. 17, par. 5230)
6 Sec. 12. Every licensee shall retain and use in his
7 business such records as are required by the Department to
8 enable the Department to determine the licensee is complying
9 with this Act and the rules and regulations lawfully made by
10 the Department hereunder. Every licensee shall preserve the
11 records of each of its transactions for at least 2 years
12 after making the final entry for that transaction.
13 With the Director's approval, a licensee may maintain
14 these records at a location other than the licensed facility.
15 With the Director's approval, a licensee may contract for
16 servicing of these accounts.
17 (Source: Laws 1967, p. 2062.)
18 (205 ILCS 660/13) (from Ch. 17, par. 5231)
19 Sec. 13. The Department may make and enforce such
20 reasonable rules, regulations, directions, orders, decisions
21 and findings as the execution and enforcement of this Act
22 require, and as are not inconsistent therewith. All such
23 rules, regulations, directions, orders, decisions and
24 findings shall be filed with the Secretary of State as
25 provided in "The Illinois Administrative Procedure Act",
26 approved September 22, 1975, as amended, and filed and
27 entered by the Department in an indexed permanent book or
28 record, with the effective date thereof suitably indicated.
29 All rules and, regulations and directions of a general
30 character shall be printed and copies thereof mailed to all
31 licensees within 10 days after such filing.
32 (Source: P.A. 83-333.)
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1 (205 ILCS 660/14) (from Ch. 17, par. 5232)
2 Sec. 14. All final administrative decisions of the
3 Department hereunder shall be subject to judicial review
4 pursuant to the "Administrative Review Law", and all
5 amendments and modifications thereof, and any rules adopted
6 pursuant thereto. The term "administrative decision" is
7 defined as in Section 3-101 of the "Administrative Review
8 Law".
9 (Source: P.A. 83-1539.)
10 (205 ILCS 660/15) (from Ch. 17, par. 5233)
11 Sec. 15. Any person who engages in business as a sales
12 finance agency without the license required by this Act shall
13 be guilty of a Class 4 felony A misdemeanor.
14 (Source: P.A. 77-2264.)
15 (205 ILCS 660/15.5 new)
16 Sec. 15.5. Individual action. A claim of violation of
17 this Act may be asserted in an individual action.
18 (205 ILCS 660/16.5 new)
19 Sec. 16.5. Cease and desist orders.
20 (a) The Director may issue a cease and desist order to a
21 sales finance agency or other person doing business without
22 the required license when, in the opinion of the director,
23 the licensee or other person is violating or is about to
24 violate any provision of this Act or any law, rule, or
25 requirement imposed in writing by the Department.
26 (b) The Director may issue a cease and desist order
27 prior to a hearing.
28 (c) The Director shall serve notice of his or her
29 action, designated as a cease and desist order made pursuant
30 to this Section, including a statement of the reasons for the
31 action, either personally or by certified mail, return
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1 receipt requested. Service by certified mail shall be deemed
2 completed when the notice is deposited in the U.S. mail.
3 (d) Within 15 days of service of the cease and desist
4 order, the sales finance agency or other person may request,
5 in writing, a hearing.
6 (e) The Director shall schedule a hearing within 30 days
7 after the request for a hearing unless otherwise agreed to by
8 the parties.
9 (f) The Director shall have the authority to prescribe
10 rules for the administration of this Section.
11 (g) If it is determined that the Director had the
12 authority to issue the cease and desist order, he or she may
13 issue such orders as may be reasonably necessary to correct,
14 eliminate, or remedy such conduct.
15 (h) The powers vested in the Director by this Section
16 are additional to any and all other powers and remedies
17 vested in the Director by law, and nothing in this Section
18 shall be construed as requiring that the Director shall
19 employ the powers conferred in this Section instead of or as
20 a condition precedent to the exercise of any other power or
21 remedy vested in the Director.
22 (i) The cost for the administrative hearing shall be set
23 by rule.
24 (205 ILCS 660/18 new)
25 Sec. 18. Penalties. The Director may set by rule
26 penalties for violations of this Act or rules promulgated
27 under this Act.
28 (205 ILCS 660/19 new)
29 Sec. 19. Injunction; civil penalty; costs. If it
30 appears to the Director that a person has committed or is
31 about to commit a violation of this Act, a rule promulgated
32 under this Act, or an order of the Director, the Director may
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1 apply to the circuit court for an order enjoining the person
2 from violating or continuing to violate this Act, the rule,
3 or order and for injunctive or other relief that the nature
4 of the case may require and may, in addition, request the
5 court to assess a civil penalty up to $1,000 along with costs
6 and attorney's fees.
7 (205 ILCS 660/20 new)
8 Sec. 20. Conformance with Department rule does not
9 violate Act. No provision of this Act imposing any civil
10 liability shall apply to any act done or omitted in
11 conformity with any rule promulgated under this Act by the
12 Department of Financial Institutions, notwithstanding that,
13 after the act or omission has occurred, the rule or
14 regulation is amended, rescinded, or determined by judicial
15 or other authority to be invalid for any reason.
16 (205 ILCS 660/8.7 rep.)
17 (205 ILCS 660/9 rep.)
18 (205 ILCS 660/10.5 rep.)
19 (205 ILCS 660/16 rep.)
20 Section 10. The Sales Finance Agency Act is amended by
21 repealing Sections 8.7, 9, 10.5, and 16.
22 Section 15. The Consumer Installment Loan Act is amended
23 by changing the title of the Act and Sections 1, 2, 4, 5, 7,
24 8, 9, 10, 11, 12, 13, 14, 15, 15a, 15b, 15d, 15e, 16, 17, 18,
25 19.1, 20, 21, 22, and 23, and by adding Sections 9.1, 12.5,
26 19.5, 20.5, 20.7, and 24.5 as follows:
27 (205 ILCS 670/Act title)
28 An Act in relation to the business of making installment
29 loans exceeding $800 and not exceeding $25,000 $10,000 at
30 rates of interest charge greater than otherwise allowed by
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1 law, requiring lenders making loans under this Act to be
2 licensed and providing penalties.
3 (Source: L. 1963, p. 3526. Title amended by P.A. 78-1257.)
4 (205 ILCS 670/1) (from Ch. 17, par. 5401)
5 Sec. 1. License required to engage in business. No
6 person, partnership co-partnership, association, limited
7 liability company, or corporation shall engage in the
8 business of making loans of money in a principal amount not
9 exceeding $25,000 $10,000, and charge, contract for, or
10 receive on any such loan a greater rate of interest,
11 discount, or consideration therefor than the lender would be
12 permitted by law to charge if he were not a licensee
13 hereunder, except as authorized by this Act after first
14 obtaining a license from the Director of Financial
15 Institutions (hereinafter called the Director).
16 No license may be issued under this Act for a location
17 outside of Illinois.
18 (Source: P.A. 89-400, eff. 8-20-95.)
19 (205 ILCS 670/2) (from Ch. 17, par. 5402)
20 Sec. 2. Application; fees; positive net worth Assets.
21 Application for such license shall be in writing, and in the
22 form prescribed by the Director, and shall contain the full
23 name and address (both of the residence and place of
24 business) of the applicant and, if the applicant is a
25 co-partnership or association, of every member thereof, and,
26 if a corporation, of each officer, director and owner of 5%
27 or more of the capital stock thereof; also the county and
28 municipality with street and number, if any, where the
29 business is to be conducted and such further information as
30 the Director may reasonably require. Such applicant at the
31 time of making such application shall pay to the Director the
32 sum of $300 as a fee for investigating the applicant and the
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1 additional sum of $300 as an annual license fee, for a period
2 terminating on the last day of the current calendar year;
3 provided that if the application is filed after June 30th in
4 any year, such license fee shall be 1/2 of the annual license
5 fee for such year.
6 Before the license is granted, every applicant shall
7 prove in form satisfactory to the Director that the applicant
8 he has a positive net worth of a minimum of $30,000 available
9 for the operation of such business at the location specified
10 in the application, assets of at least $25,000. Every
11 applicant shall maintain a surety bond in the principal sum
12 of $1,000 issued by a bonding company authorized to do
13 business in this State and which shall be approved by the
14 Director. Such bond shall run to the Director and shall be
15 for the benefit of any person who incurs damages as a result
16 of the actions of a licensee and who is lawfully awarded such
17 damages pursuant to an appropriate court order. If the
18 Director finds at any time that a bond is of insufficient
19 size, is insecure, exhausted, or otherwise doubtful, an
20 additional bond in such amount as determined by the Director
21 shall be filed by the licensee within 30 days after written
22 demand therefor by the Director. "Net worth" means total
23 assets minus total liabilities.
24 (Source: P.A. 84-1004.)
25 (205 ILCS 670/4) (from Ch. 17, par. 5404)
26 Sec. 4. Investigation to determine whether license shall
27 be issued.
28 (a) Upon the filing of an application and the payment of
29 the fee, if the Director shall investigate to determine upon
30 investigation finds (1) that the financial responsibility and
31 reputation of the applicant, including managers of a limited
32 liability company, partners, and of the members thereof (if
33 the applicant be a co-partnership or association) and of the
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1 owners, officers or and directors thereof is (if the
2 applicant be a corporation) are such as to warrant belief
3 that the business will be operated honestly and fairly within
4 the purposes of this Act and (2) that the applicant meets the
5 positive net worth requirement set forth in Section 2 of this
6 Act has available for the operation of such business at the
7 specified location assets of at least $25,000, it shall
8 thereupon issue and deliver a license to the applicant to
9 make loans in accordance with the provisions of this Act at
10 the location specified in the application. The license shall
11 remain in effect until it is surrendered by the licensee or
12 suspended or revoked by the Director as hereinafter provided.
13 Unless the Director makes both findings hereinabove
14 enumerated, he or she it shall not issue a license and shall
15 notify the applicant of the denial and return to the
16 applicant the sum paid by the applicant as a license fee, but
17 shall retain the $300 investigation fee. The Director shall
18 approve or deny every application for license hereunder
19 within 60 days from the filing thereof with the fee.
20 (b) No application shall be denied until the applicant
21 shall have had a notice of a hearing on the application and
22 an opportunity to be heard thereon. Whenever an application
23 is denied, the Director shall, within 20 days thereafter,
24 prepare and keep on file in its office a written order of
25 denial thereof. The order shall contain its findings with
26 respect thereto and the reasons supporting the denial, and
27 the Director shall send a copy thereof by registered mail to
28 the applicant at the address set forth in the application
29 within 5 days after the filing of such order.
30 (c) Any request for a hearing shall be accompanied by a
31 surety in which the applicant shall be obligor in the amount
32 of $500 guaranteeing payment of costs of such hearing. This
33 surety may be in the form of a bond, money order, or
34 certified check, payable to the Director, and shall be
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1 returned upon proof of payment of costs. If costs are not
2 paid within 20 days after the end of the hearing, the
3 Director may authorize their payment from the surety,
4 returning any balance to the applicant.
5 (Source: P.A. 84-1004.)
6 (205 ILCS 670/5) (from Ch. 17, par. 5405)
7 Sec. 5. License. The license shall state the address,
8 including city and state, at which the business is to be
9 conducted and shall state fully the name of the licensee. The
10 license shall be conspicuously posted in the place of
11 business of the licensee and shall not be transferable or
12 assignable.
13 (Source: Laws 1963, p. 3526.)
14 (205 ILCS 670/7) (from Ch. 17, par. 5407)
15 Sec. 7. More than one license to same licensee - Changing
16 place of business.
17 (a) Not more than one place of business shall be
18 maintained under the same license, but the Director may issue
19 more than one license to the same licensee upon compliance
20 with all the provisions of this Act governing an original
21 issuance of a license.
22 (b) Whenever a licensee changes his place of business to
23 a location other than that set forth in his license, he shall
24 request written approval of the change and give written
25 notice thereof to the Director, within 10 days prior to the
26 relocation. However, if the new location is in excess of 15
27 miles from the previous location, the licensee shall obtain
28 written approval from the Director prior to the relocation.
29 who, upon approving the change, shall note the change and
30 amend the license accordingly.
31 (Source: P.A. 84-1004.)
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1 (205 ILCS 670/8) (from Ch. 17, par. 5408)
2 Sec. 8. Annual license fee - Expenses. Every licensee
3 shall, on or before the 15th day of each December, pay to the
4 Director the annual license fee required by Section 2 for the
5 next succeeding calendar year. The license shall expire on
6 the first of January unless the license fee has been paid
7 prior thereto.
8 In addition to such license fee, the reasonable expense
9 of any examination, investigation or custody by the Director
10 under any provisions of this Act shall be borne by the
11 licensee.
12 If a licensee fails to renew his or her license by the
13 31st day of December, it shall automatically expire and the
14 licensee is not entitled to a hearing; however, the Director,
15 in his or her discretion, may reinstate an expired license
16 upon payment of the annual renewal fee and proof of good
17 cause for failure to renew.
18 (Source: P.A. 84-1004.)
19 (205 ILCS 670/9) (from Ch. 17, par. 5409)
20 Sec. 9. Fines, Suspension or Revocation of license
21 Surrender of license.
22 (a) The Director may, after 10 days notice by registered
23 mail to the licensee at the address set forth in the license,
24 stating the contemplated action and in general the grounds
25 therefor and the date, time and place of a hearing thereon,
26 and after providing the licensee with a reasonable
27 opportunity to be heard prior to such action, fine such
28 licensee an amount not exceeding $10,000 per violation, or
29 revoke or suspend any license issued hereunder if he or she
30 it finds that:
31 (1) The licensee has failed to comply with any provision
32 of this Act or any order, decision, finding, rule, regulation
33 or direction of the Director lawfully made pursuant to the
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1 authority of this Act; or
2 (2) Any fact or condition exists which, if it had
3 existed at the time of the original application for the
4 license, clearly would have warranted the Director in
5 refusing to issue the license.
6 (b) The Director may fine, suspend, or revoke only the
7 particular license with respect to which grounds for the
8 fine, revocation or suspension occur or exist, but if the
9 Director shall find that grounds for revocation are of
10 general application to all offices or to more than one office
11 of the licensee, the Director shall fine, suspend, or revoke
12 every license to which such grounds apply.
13 (c) (Blank). Any licensee may surrender a license by
14 delivering to the Director written notice that he thereby
15 surrenders such license, but surrender shall not affect the
16 licensee's civil or criminal liability for acts committed
17 prior to surrender or entitle the licensee to a return of any
18 part of the annual license fee.
19 (d) No revocation, suspension, or surrender of any
20 license shall impair or affect the obligation of any
21 pre-existing lawful contract between the licensee and any
22 obligor.
23 (e) The Director may issue a new license to a licensee
24 whose license has been revoked when facts or conditions which
25 clearly would have warranted the Director in refusing
26 originally to issue the license no longer exist.
27 (f) (Blank). No licensee shall be fined and no license
28 shall be revoked or suspended until the licensee receives the
29 notice of hearing and an opportunity to be heard thereat.
30 Whenever a licensee is fined or a license is revoked or
31 suspended, the Director shall, within 20 days thereafter,
32 prepare and keep on file in its office a written order of the
33 fine, revocation or suspension. The order shall contain the
34 Director's findings with respect thereto and the reasons
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1 supporting the fine, suspension, or revocation, and the
2 Director shall send a copy thereof by registered mail to the
3 licensee at the address set forth in the license within 5
4 days after the filing of such order. The cost of such hearing
5 shall be borne by the licensee.
6 (g) In every case in which a license is suspended or
7 revoked or an application for a license or renewal of a
8 license is denied, the Director shall serve the licensee with
9 notice of his or her action, including a statement of the
10 reasons for his or her actions, either personally, or by
11 certified mail, return receipt requested. Service by
12 certified mail shall be deemed completed when the notice is
13 deposited in the U.S. Mail.
14 (h) An order assessing a fine, an order revoking or
15 suspending a license or, an order denying renewal of a
16 license shall take effect upon service of the order unless
17 the licensee requests, in writing, within 10 days after the
18 date of service, a hearing. In the event a hearing is
19 requested, the order shall be stayed until a final
20 administrative order is entered.
21 (i) If the licensee requests a hearing, the Director
22 shall schedule a hearing within 30 days after the request for
23 a hearing unless otherwise agreed to by the parties.
24 (j) The hearing shall be held at the time and place
25 designated by the Director. The Director and any
26 administrative law judge designated by him or her shall have
27 the power to administer oaths and affirmations, subpoena
28 witnesses and compel their attendance, take evidence, and
29 require the production of books, papers, correspondence, and
30 other records or information that he or she considers
31 relevant or material to the inquiry.
32 (k) The costs for the administrative hearing shall be
33 set by rule.
34 (l) The Director shall have the authority to prescribe
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1 rules for the administration of this Section.
2 (Source: P.A. 84-1004.)
3 (205 ILCS 670/9.1 new)
4 Sec. 9.1. Closing of business; surrender of license. At
5 least 10 days prior to a licensee ceasing operations, closing
6 business, or filing for bankruptcy, the licensee shall:
7 (a) Notify the Department of its action in writing.
8 (b) Surrender its license to the Director for
9 cancellation. The surrender of the license shall not affect
10 the licensee's civil or criminal liability for acts committed
11 prior to surrender or entitle the licensee to a return of any
12 part of the annual license fee.
13 (c) The licensee shall notify the Department of the
14 location where the books, accounts, contracts, and records
15 will be maintained and the procedure to ensure prompt return
16 of contracts, titles, and releases to the customers.
17 (d) The accounts, books, records, and contracts shall be
18 maintained and serviced by the licensee or another licensee
19 under this Act, or an entity exempt from licensure under this
20 Act.
21 (e) The Department shall have the authority to conduct
22 examinations of the books, records, and loan documents at any
23 time after surrender of the license, filing of bankruptcy, or
24 the cessation of operations.
25 (205 ILCS 670/10) (from Ch. 17, par. 5410)
26 Sec. 10. Investigation of conduct of business. For the
27 purpose of discovering violations of this Act or securing
28 information lawfully required by it hereunder, the Director
29 may at any time investigate the loans and business and
30 examine the books, accounts, records, and files used therein,
31 of every licensee and of every person, partnership
32 co-partnership, association, limited liability company, and
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1 corporation engaged in the business described in Section 1 of
2 this Act, whether such person, partnership co-partnership,
3 association, limited liability company, or corporation shall
4 act or claim to act as principal or agent or within or
5 without the authority of this Act. For such purpose the
6 Director shall have free access to the offices and places of
7 business, books, accounts, papers, records, files, safes, and
8 vaults of such persons, partnerships co-partnerships,
9 associations, limited liability companies, and corporations.
10 The Director may require the attendance of and examine under
11 oath all persons whose testimony he or she it may require
12 relative to such loans or such business, and in such cases
13 the Director and the Supervisor of Consumer Credit shall each
14 have power to administer oaths to all persons called as
15 witnesses; and the Director or his designee may conduct such
16 examinations.
17 The Director or his designee shall make an examination of
18 the affairs, business, office and records of each licensee as
19 considered necessary, and at least once each year. The
20 Director shall by rule and regulation set the fee to be
21 charged for each examination day, including travel expenses
22 for out-of-state licensed locations. The fee shall
23 reasonably reflect actual costs. The Director shall also
24 have authority to examine the books and records of any
25 business made by a former licensee which is being liquidated,
26 as the Director deems necessary, and may charge the
27 examination fees otherwise required for licensees.
28 (Source: P.A. 84-1004.)
29 (205 ILCS 670/11) (from Ch. 17, par. 5411)
30 Sec. 11. Books and records - Reports.
31 (a) Every licensee shall retain and use in his business
32 or at another location approved by the Director such records
33 as are required by the Director to enable the Director to
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1 determine whether the licensee is complying with the
2 provisions of this Act and the rules and regulations
3 promulgated pursuant to this Act hereunder. Every licensee
4 shall preserve the records of any loan for at least 2 years
5 after making the final entry for such loan. Accounting
6 systems maintained in whole or in part by mechanical or
7 electronic data processing methods which provide information
8 equivalent to that otherwise required and follow generally
9 accepted accounting principles are acceptable for that
10 purpose, if approved by the Director in writing.
11 (b) Each licensee shall annually, on or before the first
12 day of March, file a report with the Director (which shall be
13 used only for the official purposes of the Director) giving
14 such relevant information as the Director may reasonably
15 require concerning the business and operations during the
16 preceding calendar year of each licensed place of business
17 conducted by the licensee within the State. The report shall
18 be made under oath and in a form prescribed by the Director.
19 Whenever a licensee operates 2 or more licensed offices or
20 whenever 2 or more affiliated licensees operate licensed
21 offices, a composite report of such group of licensed offices
22 may be filed in lieu of individual reports. The Director may
23 shall make and publish annually an analysis and
24 recapitulation of such reports. The Director may shall fine
25 each licensee $25 for each day beyond March 1 such report is
26 filed.
27 (Source: P.A. 84-1004.)
28 (205 ILCS 670/12) (from Ch. 17, par. 5412)
29 Sec. 12. Other business.
30 (a) Upon application by the licensee, and approval by
31 the Director, the Director may approve the conduct of other
32 businesses not specifically permitted by this Act in the
33 licensee's place of business including, but not limited to,
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1 brokering, making, buying, selling or otherwise dealing in
2 any loans and soliciting, effecting or selling any type of
3 insurance provided that all such insurance transactions are
4 conducted in accordance with and are regulated under the
5 "Illinois Insurance Code", approved June 29, 1937, as
6 amended, unless the Director finds that such conduct will
7 conceal or facilitate evasion or violation of this Act. Such
8 approval shall be in writing and shall describe the other
9 businesses which may be conducted in the licensed office. A
10 licensee under this Act may, without the written approval of
11 the Director, conduct the business of a sales finance agency
12 in compliance with the "Sales Finance Agency Act", approved
13 July 26, 1967, as amended, and the business of extending
14 revolving credit in compliance with the provisions of "An Act
15 in relation to the rate of interest and other charges in
16 connection with sales on credit and the lending of money",
17 approved May 24, 1879, as amended.
18 (b) A licensee may without notice to and approval of the
19 Director, in addition to the business permitted by this Act,
20 conduct the following business:
21 (1) The business of a sales finance agency as
22 defined in the Sales Finance Agency Act.
23 (2) The business of soliciting or selling any type
24 of insurance provided that all such insurance
25 transactions are conducted in accordance with and are
26 regulated under the Illinois Insurance Code.
27 (3) The business of financing premiums for
28 insurance.
29 (4) Making loans pursuant to the Financial Services
30 Development Act.
31 The Director shall make and enforce such reasonable rules and
32 regulations for the conduct of business under this Act in the
33 same office with other businesses as may be necessary to
34 prevent evasions or violations of this Act. The Director may
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1 investigate any business conducted in the licensed office to
2 determine whether any evasion or violation of this Act has
3 occurred.
4 (Source: P.A. 85-1264.)
5 (205 ILCS 670/12.5 new)
6 Sec. 12.5. Limited purpose branch.
7 (a) Upon the written approval of the Director, a
8 licensee may maintain a limited purpose branch for the sole
9 purpose of making loans as permitted by this Act. A limited
10 purpose branch may include an automatic loan machine. No
11 other activity shall be conducted at the site, including but
12 not limited to, accepting payments, servicing the accounts,
13 or collections.
14 (b) The licensee must submit an application for a
15 limited purpose branch to the Director on forms prescribed by
16 the Director with an application fee of $300. The approval
17 for the limited purpose branch must be renewed concurrently
18 with the renewal of the licensee's license along with a
19 renewal fee of $300 for the limited purpose branch.
20 (c) The books, accounts, records, and files of the
21 limited purpose branch's transactions shall be maintained at
22 the licensee's licensed location. The licensee shall notify
23 the Director of the licensed location at which the books,
24 accounts, records, and files shall be maintained.
25 (d) The licensee shall prominently display at the
26 limited purpose branch the address and telephone number of
27 the licensee's licensed location.
28 (e) No other business shall be conducted at the site of
29 the limited purpose branch unless authorized by the Director.
30 (f) The Director shall make and enforce reasonable rules
31 for the conduct of a limited purpose branch.
32 (205 ILCS 670/13) (from Ch. 17, par. 5413)
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1 Sec. 13. Prohibition against taking power of attorney. No
2 licensee shall take any power of attorney except to cancel
3 any policies of insurance financed by the licensee as
4 permitted by this Act and to receive unearned premiums or
5 loss payments acknowledge the execution of an instrument or
6 to confess judgment.
7 (Source: Laws 1963, p. 3526.)
8 (205 ILCS 670/14) (from Ch. 17, par. 5414)
9 Sec. 14. Pledge or sale of note. No licensee or other
10 person shall pledge, hypothecate or sell a note entered into
11 under the provisions of this Act executed or security
12 deposited by an obligor except by an agreement authorizing
13 the Director in his discretion to examine the documents so
14 hypothecated, pledged or sold. No licensee shall sell such
15 note or security except to another licensee under this Act, a
16 licensee under the Sales Finance Agency Act, a bank, savings
17 bank, savings and loan association, or credit union created
18 under the laws of this State or the United States, the
19 Collection Agency Act, or to other persons or entities
20 authorized by the Director in writing. Sales of such notes
21 by licensees under this Act or other persons shall be made by
22 agreement in writing and shall authorize the Director to
23 examine the loan documents so hypothecated, pledged, or sold.
24 (Source: P.A. 84-1004.)
25 (205 ILCS 670/15) (from Ch. 17, par. 5415)
26 Sec. 15. Charges Rates of charge permitted.
27 (a) Every licensee hereunder may lend a principal amount
28 not exceeding $25,000 $10,000 and may charge, contract for
29 and receive thereon interest at the actuarial rate or rates
30 agreed upon by the licensee and the borrower, subject to the
31 provisions of this Act.
32 (b) For purpose of this Section, the following terms
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1 shall have the meanings ascribed herein.
2 "Actuarial method" means the method of allocating
3 payments made on a loan between the principal amount and
4 interest whereby a payment is applied first to the
5 accumulated interest and then to the unpaid principal amount.
6 "Applicable interest" for a precomputed loan contract
7 means the amount of interest attributable to each monthly
8 installment period. It is computed as if each installment
9 period were one month and any interest charged for extending
10 the first installment period beyond one month is ignored.
11 The applicable interest for any monthly installment period is
12 that portion of the precomputed interest that bears the same
13 ratio to the total precomputed interest as the balances
14 scheduled to be outstanding during that month bear to the sum
15 of all scheduled monthly outstanding balances in the original
16 contract.
17 "Interest-bearing loan" means a loan in which the debt is
18 expressed as a principal amount plus interest charged on
19 actual unpaid principal balances for the time actually
20 outstanding.
21 "Precomputed loan" means a loan in which the debt is
22 expressed as the sum of the original principal amount plus
23 interest computed actuarially in advance, assuming all
24 payments will be made when scheduled.
25 (c) Loans may be interest-bearing or precomputed.
26 (d) To compute time for either interest-bearing or
27 precomputed loans for the calculation of interest and other
28 purposes, a month shall be a calendar month and a day shall
29 be considered 1/30th of a month when calculation is made for
30 a fraction of a month. A month shall be 1/12th of a year. A
31 calendar month is that period from a given date in one month
32 to the same numbered date in the following month, and if
33 there is no same numbered date, to the last day of the
34 following month. When a period of time includes a month and
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1 a fraction of a month, the fraction of the month is
2 considered to follow the whole month. In the alternative,
3 for interest-bearing loans, the licensee may charge interest
4 at the rate of 1/360th 1/365th of the agreed annual rate for
5 each day actually elapsed.
6 (e) With respect to interest-bearing loans:
7 (1) Interest shall be computed on unpaid principal
8 balances outstanding from time to time, for the time
9 outstanding, until fully paid. Each payment shall be applied
10 first to the accumulated interest and the remainder of the
11 payment applied to the unpaid principal balance; provided
12 however, that if the amount of the payment is insufficient to
13 pay the accumulated interest, the unpaid interest continues
14 to accumulate to be paid from the proceeds of subsequent
15 payments and is not added to the principal balance.
16 (2) Interest shall not be payable in advance or
17 compounded. However, if part or all of the consideration for
18 a new loan contract is the unpaid principal balance of a
19 prior loan, then the principal amount payable under the new
20 loan contract may include any unpaid interest which has
21 accrued. The unpaid principal balance of a precomputed loan
22 is the balance due after refund or credit of unearned
23 interest as provided in paragraph (f), clause (3). The
24 resulting loan contract shall be deemed a new and separate
25 loan transaction for all purposes.
26 (3) Loans may be payable as agreed between the parties,
27 including payment at irregular times or in unequal amounts
28 and rates that may vary with an index that is independently
29 verifiable and beyond the control of the licensee.
30 (4) The lender or creditor may, if the contract
31 provides, collect a delinquency or collection charge on each
32 installment in default for a period of not less than 10 days
33 in an amount not exceeding 5% of the installment on
34 installments in excess of $200, or $10 on installments of
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1 $200 or less, but only one delinquency and collection charge
2 may be collected on any installment regardless of the period
3 during which it remains in default.
4 (f) With respect to precomputed loans:
5 (1) Loans shall be repayable in substantially equal and
6 consecutive monthly installments of principal and interest
7 combined, except that the first installment period may be
8 longer than one month by not more than 15 days, and the first
9 installment payment amount may be larger than the remaining
10 payments by the amount of interest charged for the extra
11 days; and provided further that monthly installment payment
12 dates may be omitted to accommodate borrowers with seasonal
13 income.
14 (2) Payments may be applied to the combined total of
15 principal and precomputed interest until the loan is fully
16 paid. Payments shall be applied in the order in which they
17 become due, except that any insurance proceeds received as a
18 result of any claim made on any insurance, unless sufficient
19 to prepay the contract in full, may be applied to the unpaid
20 installments of the total of payments in inverse order.
21 (3) When any loan contract is paid in full by cash,
22 renewal or refinancing, or a new loan, one month or more
23 before the final installment due date, a licensee shall
24 refund or credit the obligor borrower with the total of the
25 applicable interest for all fully unexpired installment
26 periods, as originally scheduled or as deferred, which follow
27 the day of prepayment; provided, if the prepayment occurs
28 prior to the first installment due date, the licensee may
29 retain 1/30 of the applicable interest for a first
30 installment period of one month for each day from the date of
31 the loan to the date of prepayment, and shall refund or
32 credit the obligor borrower with the balance of the total
33 interest contracted for. If the maturity of the loan is
34 accelerated for any reason and judgment is entered, the
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1 licensee shall credit the borrower with the same refund as if
2 prepayment in full had been made on the date the judgement is
3 entered.
4 (4) The lender or creditor may, if the contract
5 provides, collect a delinquency or collection charge on each
6 installment in default for a period of not less than 10 days
7 in an amount not exceeding 5% of the installment on
8 installments in excess of $200, or $10 on installments of
9 $200 or less, but only one delinquency or collection charge
10 may be collected on any installment regardless of the period
11 during which it remains in default. If an installment is not
12 paid in full within 10 days of its scheduled due date, a
13 licensee may contract for and receive a default charge not
14 exceeding 5% of the amount of the installment.
15 (5) If the parties agree in writing, either in the loan
16 contract or in a subsequent agreement, to a deferment of
17 wholly unpaid installments, a licensee may grant a deferment
18 and may collect a deferment charge as provided in this
19 Section. A deferment postpones the scheduled due date of the
20 earliest unpaid installment and all subsequent installments
21 as originally scheduled, or as previously deferred, for a
22 period equal to the deferment period. The deferment period
23 is that period during which no installment is scheduled to be
24 paid by reason of the deferment. The deferment charge for a
25 one month period may not exceed the applicable interest for
26 the installment period immediately following the due date of
27 the last undeferred payment. A proportionate charge may be
28 made for deferment for periods of more or less than one
29 month. A deferment charge is earned pro rata during the
30 deferment period and is fully earned on the last day of the
31 deferment period. Should a loan be prepaid in full during a
32 deferment period, the licensee shall credit to the obligor
33 borrower a refund of the unearned deferment charge in
34 addition to any other refund or credit made for prepayment of
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1 the loan in full.
2 (6) If two or more installments are delinquent one full
3 month or more on any due date, and if the contract so
4 provides, the licensee may reduce the unpaid balance by the
5 refund credit which would be required for prepayment in full
6 on the due date of the most recent maturing installment in
7 default. Thereafter, and in lieu of any other default or
8 deferment charges, the agreed rate of interest may be charged
9 on the unpaid balance until fully paid.
10 (7) Fifteen days after the final installment as
11 originally scheduled or deferred, the licensee, for any loan
12 contract which has not previously been converted to
13 interest-bearing under paragraph (f), clause (6), may compute
14 and charge interest on any balance remaining unpaid,
15 including unpaid default or deferment charges, at the agreed
16 rate of interest until fully paid. At the time of payment of
17 said final installment, the licensee shall give notice to the
18 obligor borrower stating any amounts unpaid and that the
19 borrower has fifteen days to pay such amount without having
20 interest computed and charged on such amount.
21 (Source: P.A. 84-1004.)
22 (205 ILCS 670/15a) (from Ch. 17, par. 5416)
23 Sec. 15a. Credit insurance. Voluntary credit life
24 insurance, and credit accident and health insurance,
25 involuntary unemployment insurance, credit property
26 insurance, or other credit insurance policies approved or
27 permitted by the Director of Insurance and any charge
28 therefor which is deducted from the loan or paid by the
29 obligor shall comply with the Illinois Insurance Code Article
30 IX1/2 of the "Illinois Insurance Code", approved June 29,
31 1937, as heretofore and hereafter amended, and all lawful
32 requirements of the Director of Insurance related thereto.
33 When there are 2 or more obligors on the loan contract, only
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1 one charge for credit life insurance and credit accident and
2 health insurance may be made and only one of the obligors
3 need be required to be insured, except that joint credit
4 insurance may cover two obligors. Insurance obtained from, by
5 or through a licensee shall be in effect when the loan is
6 transacted. The purchase of such insurance through the
7 licensee or from an agent, broker or insurer specified by the
8 licensee shall not be a condition precedent to the granting
9 of the loan.
10 (Source: P.A. 84-1004.)
11 (205 ILCS 670/15b) (from Ch. 17, par. 5417)
12 Sec. 15b. Property insurance.
13 (a) A licensee may require the obligor to provide
14 property damage insurance on real and personal property, all
15 or part of which serves as security against reasonable risks
16 of loss, damage, and destruction in connection with loans
17 exceeding an original principal amount of $500. The amount
18 and term of the insurance shall be reasonable in relation to
19 the amount and term of the loan contract and the type and
20 value of the property, and the insurance shall be procured in
21 accordance with the insurance laws of this State. The
22 purchase of such insurance through the licensee or from an
23 agent, broker or insurer specified by the licensee shall not
24 be a condition precedent to the granting of the loan. The
25 premium charged shall not exceed that charged by the
26 insurance company.
27 (b) If the obligor fails to furnish evidence that he has
28 procured insurance on the property, the licensee may purchase
29 substitute insurance that may be substantially equivalent to
30 or more limited than coverage the obligor is required to
31 maintain. Such insurance must comply with the Collateral
32 Protection Act.
33 (Source: P.A. 84-1004.)
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1 (205 ILCS 670/15d) (from Ch. 17, par. 5419)
2 Sec. 15d. Extra charges prohibited; exceptions. No amount
3 in addition to the charges authorized by this Act shall be
4 directly or indirectly charged, contracted for, or received,
5 except (1) lawful fees paid to any public officer or agency
6 to record, file or release security; (2) (i) costs and
7 disbursements actually incurred in connection with a real
8 estate loan, for any title insurance, title examination,
9 abstract of title, survey, or appraisal, or paid to a trustee
10 in connection with a trust deed, and (ii) in connection with
11 a real estate loan those charges authorized by Section 4.1a
12 of the Interest Act, whether called "points" or otherwise,
13 which charges are imposed as a condition for making the loan
14 and are not refundable in the event of prepayment of the
15 loan; (3) costs and disbursements, including reasonable
16 attorney's fees, incurred in legal proceedings to collect a
17 loan or to realize on a security after default; and (4) an
18 amount not exceeding $25 $10, plus any actual expenses
19 incurred in connection therewith, if any check given to a
20 licensee in connection with a check or draft that loan is not
21 honored because of insufficient or uncollected funds or
22 because no such account exists; and (5) a document
23 preparation fee not to exceed $25 for obtaining and reviewing
24 credit reports and preparation of other documents. This
25 Section does not prohibit the receipt of a commission,
26 dividend, charge, or other benefit by the licensee or by an
27 employee, affiliate, or associate of the licensee from the
28 insurance permitted by Sections 15a and 15b of this Act or
29 from insurance in lieu of perfecting a security interest
30 provided that the premiums for such insurance do not exceed
31 the fees that otherwise could be contracted for by the
32 licensee under this Section item (1). Obtaining any of the
33 items referred to in clause (i) of item (2) of this Section
34 through the licensee or from any person specified by the
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1 licensee shall not be a condition precedent to the granting
2 of the loan.
3 (Source: P.A. 89-400, eff. 8-20-95.)
4 (205 ILCS 670/15e) (from Ch. 17, par. 5419.1)
5 Sec. 15e. Other Insurance.
6 (a) A licensee shall not be considered to be the
7 obligor's borrower's agent or broker in connection with the
8 sale of insurance under this Act for any purpose.
9 (b) Consideration or another thing of value may be paid
10 to or retained by the licensee, or an affiliate of the
11 licensee, in connection with any insurance, debt cancellation
12 contract, or other such product purchased pursuant to the
13 loan made or held by the licensee, and all or a portion of
14 the consideration may be included in the amount charged to
15 the obligor, so long as the licensee discloses to the obligor
16 that either the licensee or an affiliate may receive
17 something of value in connection with the purchase by the
18 obligor.
19 (Source: P.A. 83-657.)
20 (205 ILCS 670/16) (from Ch. 17, par. 5420)
21 Sec. 16. Disclosure of Terms of Contract. In any loan
22 transaction under this Act, the licensee must disclose the
23 following items to the obligor of the loan before the
24 transaction is consummated:
25 (a) The amount and date of the loan contract;
26 (b) The amount of the loan credit using the term "amount
27 financed";
28 (c) Any Every deduction from the amount financed or
29 payment made by the obligor for insurance and the type of
30 insurance for which each deduction or payment was made;
31 (d) Any additional Every other deduction from the loan
32 or payment made by the obligor in connection with obtaining
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1 the loan;
2 (e) The date on which the finance charge begins to
3 accrue if different from the date of the transaction;
4 (f) The total amount of the loan charge with a
5 description of each amount included using the term "finance
6 charge";
7 (g) The finance charge expressed as an annual percentage
8 rate using the term "annual percentage rate".
9 "Annual percentage rate" means the nominal annual
10 percentage rate of finance charge determined in accordance
11 with the actuarial method of computation with an accuracy at
12 least to the nearest 1/4 of 1%; or at the option of the
13 licensee by application of the United States rule so that it
14 may be disclosed with an accuracy at least to the nearest 1/4
15 of 1%;
16 (h) The number, amount and due dates or periods of
17 payments scheduled to repay the loan and the sum of such
18 payments using the term "total of payments";
19 (i) The amount, or method of computing the amount of any
20 default, delinquency or similar charges payable in the event
21 of late payments;
22 (j) The right of the obligor to prepay the loan in full
23 on any installment date and the fact that such prepayment in
24 full will reduce the insurance charge for the loan;
25 (k) A description or identification of the type of any
26 security interest held or to be retained or acquired by the
27 licensee in connection with the loan and a clear
28 identification of the property to which the security interest
29 relates. If after-acquired property will be subject to the
30 security interest, or if other or future indebtedness is or
31 may be secured by any such property, this fact shall be
32 clearly set forth in conjunction with the description or
33 identification of the type of security interest held,
34 retained or acquired;
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1 (l) A description of any penalty charge that may be
2 imposed by the licensee for prepayment of the principal of
3 the obligation with an explanation of the method of
4 computation of such penalty and the conditions under which it
5 may be imposed;
6 (m) Identification and description of the method of
7 computing any unearned portion of the finance charge in the
8 event of prepayment of the loan, and if the licensee uses the
9 "Rule of 78THS" method, including a statement explaining such
10 method substantially as follows:
11 Unearned finance charges under the Rule of 78ths are
12 computed by calculating for all fully unexpired monthly
13 installment periods, as originally scheduled or deferred,
14 which follow the day of prepayment, the portion of the
15 precomputed interest that bears the same ratio to the
16 total precomputed interest as the balances scheduled to
17 be outstanding during that monthly installment period
18 bear to the sum of all scheduled monthly outstanding
19 balances originally contracted for.
20 The description shall also include an example of its
21 application solely for purposes of illustration in
22 substantially the following form:
23 PREPAYMENT - "RULE OF 78THS"
24 Unearned Original Sum of balances due every month after
25 prepayment
26 = X ___________________________________
27 Charge Charge* Sum of balances due every month of
28 contract
29 *for Finance Charge (excluding any charges added for a first
30 payment period of more than one month) or credit insurance
31 charges.
32 Example: 12 monthly payments of $10 (balance is $120 1st
33 month, $110 2nd month, and so on), $20 Finance Charge. If 5
34 payments are prepaid in full, unearned Finance Charge is:
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1 50+40+30+20+10
2 $20 x _________________________________ =$3.85
3 120+110+100+90+80+70+60+50+40+30+20+10
4 The terms "finance charge" and "annual percentage rate"
5 shall be printed more conspicuously than other terminology
6 required by this Section.
7 At the time disclosures are made, the licensee shall
8 deliver to the obligor a duplicate of the instrument or
9 statement by which the required disclosures are made and on
10 which the licensee and obligor are identified and their
11 addresses stated. All of the disclosures shall be made
12 clearly, conspicuously and in meaningful sequence and made
13 together on either:
14 (i) the note or other instrument evidencing the
15 obligation. Where a creditor elects to combine disclosures
16 with the contract, security agreement, and evidence of a
17 transaction in a single document, the disclosures required
18 under Section 16 shall be made on the face of the document,
19 on the reverse side, or on both sides, provided that the
20 amount of the finance charge and the annual percentage rate
21 shall appear on the face of the document, and, if the reverse
22 side is used, the printing on both sides of the document
23 shall be equally clear and conspicuous, both sides shall
24 contain the statement, "NOTICE: See other side for important
25 information", and the place for the obligor's customer's
26 signature shall be provided following the full content of the
27 document; or
28 (ii) One side of a separate statement which identifies
29 the transaction.
30 The amount of the finance charge shall be determined as
31 the sum of all charges, payable directly or indirectly by the
32 obligor and imposed directly or indirectly by the licensee as
33 an incident to or as a condition to the extension of credit,
34 whether paid or payable by the obligor, any other person on
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1 behalf of the obligor, to the licensee or to a third party,
2 including any of the following types of charges:
3 (1) Interest, time price differential, and any amount
4 payable under a discount or other system of additional
5 charges.
6 (2) Service, transaction, activity, or carrying charge.
7 (3) Loan fee, points, finder's fee, or similar charge.
8 (4) Fee for an appraisal, investigation, or credit
9 report.
10 (5) Charges or premiums for credit life, accident,
11 health, or loss of income insurance, written in connection
12 with any credit transaction unless:
13 (i) the insurance coverage is not required by the
14 licensee and this fact is clearly and conspicuously disclosed
15 in writing to the obligor; and
16 (ii) any obligor desiring such insurance coverage gives
17 specific dated and separately signed affirmative written
18 indication of such desire after receiving written disclosure
19 to him of the cost of such insurance.
20 (6) Charges or premiums for insurance, written in
21 connection with any credit transaction, against loss of or
22 damage to property or against liability arising out of the
23 ownership or use of property unless a clear, conspicuous, and
24 specific statement in writing is furnished by the licensee to
25 the obligor setting forth the cost of the insurance if
26 obtained from or through the licensee and stating that the
27 obligor may choose the person through which the insurance is
28 to be obtained.
29 (7) Premium or other charge for any other guarantee or
30 insurance protecting the licensee against the obligor's
31 default or other credit loss.
32 (8) Any charge imposed by a licensee upon another
33 licensee for purchasing or accepting an obligation of an
34 obligor if the obligor is required to pay any part of that
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1 charge in cash, as an addition to the obligation, or as a
2 deduction from the proceeds of the obligation.
3 A late payment, delinquency, default, reinstatement or
4 other charge is not a finance charge if imposed for actual
5 unanticipated late payment, delinquency, default or other
6 occurrence.
7 A licensee who complies with the federal Truth in Lending
8 Act, amendments thereto, and any regulations issued or which
9 may be issued thereunder, shall be deemed to be in compliance
10 with the provisions of this Section, except with respect to
11 the disclosure in paragraph (m), which may be set forth in
12 any manner.
13 (Source: P.A. 86-385.)
14 (205 ILCS 670/17) (from Ch. 17, par. 5423)
15 Sec. 17. Maximum term and amount. The loan contract shall
16 provide for repayment of the principal and charges within 181
17 121 months from the date of the loan contract or the last
18 advance, if any, required by the loan contract. No licensee
19 shall permit an obligor to owe such licensee or an affiliate
20 (including a corporation owned or managed by the licensee) or
21 agent of such licensee an aggregate principal amount of more
22 than $25,000 $10,000 at any time for loans transacted
23 pursuant to this Act.
24 (Source: P.A. 84-1004.)
25 (205 ILCS 670/18) (from Ch. 17, par. 5424)
26 Sec. 18. Advertising. Advertising for loans transacted
27 under this Act may not be false, misleading or deceptive.
28 That advertising, if it states a rate or rates or amount of
29 charge for a loan, must state the rate or rates as an annual
30 percentage rate or rates. No licensee person whose loans are
31 regulated under this Act may advertise in any manner so as to
32 indicate or imply that his interest rates or charges for
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1 loans are in any way "recommended", "approved", "set" or
2 "established" by the State government or by this Act. The
3 Director may issue a cease and desist order for any violation
4 of this Section.
5 If any advertisement to which this Section applies states
6 the amount of any installment payment, the dollar amount of
7 any finance charge, or the number of installments or the
8 period of repayment, then the advertisement shall state all
9 of the following items:
10 (1) The amount of the loan.
11 (2) The number, amount, and due dates or period of
12 payments scheduled to repay the indebtedness if the credit is
13 extended.
14 (3) The rate of the finance charge expressed as an
15 annual percentage rate.
16 (Source: P.A. 84-1004.)
17 (205 ILCS 670/19.1) (from Ch. 17, par. 5425.1)
18 Sec. 19.1. Where the licensee repossesses a motor vehicle
19 that was used as collateral and which is used primarily for
20 the obligor's borrower's personal, family or household
21 purposes, and the obligor borrower at the time of
22 repossession has paid an amount equal to 30% or more of the
23 total of payments due, the obligor borrower may, within 15
24 days, redeem the motor vehicle from the licensee by
25 tendering:
26 (a) the total of all unpaid amounts, including any
27 unpaid delinquency or deferral charges due, without
28 acceleration; and
29 (b) performance necessary to cure any default other than
30 nonpayment of the amounts due; and
31 (c) any reasonable cost or fees incurred by the licensee
32 in the retaking of the goods. Tender of payment and
33 performance pursuant to this Section restores to the obligor
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1 borrower his rights under the loan as though no default had
2 occurred. The obligor borrower has a right to redeem the
3 collateral from the licensee only once under this Section.
4 The licensee must give written notice to the obligor
5 borrower, within 3 days of the repossession, of the obligor's
6 borrower's right to redeem the collateral pursuant to this
7 Section. The Written notice shall be in substantially the
8 following form:
9 NOTICE OF RIGHT TO RECOVER VEHICLE
10 Your car was repossessed on (specify date) for failure to
11 make payments on the loan (or other reason).
12 Under Illinois law, because you have paid at least 30% of
13 the loan before repossession, you may be able to get the car
14 back. To recover the car you must do the following within 15
15 days of the date of repossession:
16 1. Make payment of all back payments as
17 of the date of this notice so that
18 you are current on the loan. $...........
19 2. Pay any late charge due. $...........
20 3. Pay the costs of repossession. $...........
21 4. Pay any additional amounts which may
22 become due between the date of notice
23 and the date of redemption. $...........
24 Total $...........
25 Bring cash, a certified check or money order for the
26 total amount listed above to our office located at (specify
27 address) by (specify date) to get you car back.
28 (Source: P.A. 86-421.)
29 (205 ILCS 670/19.5 new)
30 Sec. 19.5. Arbitration. A contract may provide that any
31 dispute with respect to the rights and obligations of the
32 parties to the contract shall be submitted for arbitration.
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1 (205 ILCS 670/20) (from Ch. 17, par. 5426)
2 Sec. 20. Penalties for violation.
3 (a) Any person who engages in business as a Consumer
4 Installment Loan lender without the license required by this
5 Act shall be guilty of a Class 4 felony., co-partnership,
6 association, or corporation and the several members,
7 officers, directors, agents, and employees thereof, who
8 violates or participates in the violation of a provision of
9 Section 1, 15, 15a, 15b, 15d, 16b, 17, 18 or 19.1 of this
10 Act, shall be guilty of a business offense and punishable by
11 a fine of not less than $100 nor more than $1000 for each
12 offense; a natural person convicted of such violations shall
13 be guilty of a Class A misdemeanor.
14 (b) (Blank). Any person, co-partnership, association, or
15 corporation who violates a provision of Section 1, 15, 15a,
16 15b, 15d, 16b, or 17 of this Act, in connection with
17 transacting or collecting a loan regulated by this Act, shall
18 not be entitled to collect any interest on such loan. The
19 obligor, prior to the expiration of 2 years after the date of
20 his last scheduled payment, may recover any such interest
21 paid plus such reasonable attorney's fees and court costs as
22 a court may assess against such licensee or lender. The
23 balance due under the terms of the loan contract shall be
24 reduced by the amount which the obligor is thus entitled to
25 recover. A bona fide error by a licensee in calculating
26 charges or rebates is not a violation if the licensee
27 corrects the error within a reasonable time, after discovery.
28 (b-5) A license issued under this act may be revoked if
29 the licensee, or any directors, managers of a limited
30 liability company, partners, or officer thereof is convicted
31 of a felony.
32 (c) No provision of this Section imposing any liability
33 shall apply to any act done or omitted in good faith in
34 conformity with any rule or regulation written or
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1 interpretation thereof by the Department of Financial
2 Institutions and issued prior to January 1, 1998 or any other
3 department or agency of the State, notwithstanding that after
4 such act or omission has occurred, such rule or, regulation
5 or interpretation is amended, rescinded or determined by
6 judicial or other authority to be invalid for any reason.
7 (Source: P.A. 86-421; 86-1222.)
8 (205 ILCS 670/20.5 new)
9 Sec. 20.5. Cease and desist.
10 (a) The Director may issue a cease and desist order to
11 any licensee, or other person doing business without the
12 required license, when in the opinion of the Director, the
13 licensee, or other person, is violating or is about to
14 violate any provision of this Act or any rule or requirement
15 imposed in writing by the Department as a condition of
16 granting any authorization permitted by this Act.
17 (b) The Director may issue a cease and desist order
18 prior to a hearing.
19 (c) The Director shall serve notice of his or her
20 action, designated as a cease and desist order made pursuant
21 to this Section, including a statement of the reasons for the
22 action, either personally or by certified mail, return
23 receipt requested. Service by certified mail shall be deemed
24 completed when the notice is deposited in the U.S. mail.
25 (d) Within 15 days of service of the cease and desist
26 order, the licensee or other person may request, in writing,
27 a hearing.
28 (e) The Director shall schedule a hearing within 30 days
29 after the request for a hearing unless otherwise agreed to by
30 the parties.
31 (f) The Director shall have the authority to prescribe
32 rules for the administration of this Section.
33 (g) If it is determined that the director had the
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1 authority to issue the cease and desist order, he or she may
2 issue such orders as may be reasonably necessary to correct,
3 eliminate, or remedy such conduct.
4 (h) The powers vested in the Director by this Section
5 are additional to any and all other powers and remedies
6 vested in the Director by law, and nothing in this Section
7 shall be construed as requiring that the Director shall
8 employ the power conferred in this Section instead of or as a
9 condition precedent to the exercise of any other power or
10 remedy vested in the Director.
11 (i) The cost for the administrative hearing shall be set
12 by rule.
13 (205 ILCS 670/20.7 new)
14 Sec. 20.7. Individual action. A claim of violation of
15 this Act may be asserted in an individual action.
16 (205 ILCS 670/21) (from Ch. 17, par. 5427)
17 Sec. 21. Application of act. This Act does not apply to
18 any person, partnership co-partnership, association, limited
19 liability company, or corporation doing business under and as
20 permitted by any law of this State or of the United States
21 relating to banks trust companies, savings and loan
22 associations, pawnbrokers, or credit unions. This Act does
23 not apply to business loans, meaning either loans to
24 corporations or loans to a business association or
25 co-partnership or to a person owning and operating a business
26 as sole proprietor if transacted solely for the purpose of
27 carrying on or acquiring the business of such business
28 association, co-partnership or person. A bank authorized to
29 transact business by the laws of this State or of the United
30 States may contract for and receive the charges authorized by
31 this Act without being licensed pursuant to this Act, but
32 shall comply with all other provisions of this Act when
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1 contracting for or receiving charges on loans regulated by
2 this Act.
3 (Source: Laws 1963, p. 3526.)
4 (205 ILCS 670/22) (from Ch. 17, par. 5428)
5 Sec. 22. Rules and regulations. The Department may make
6 and enforce such reasonable rules, regulations, directions,
7 orders, decisions, and findings as the execution and
8 enforcement of the provisions of this Act require, and as are
9 not inconsistent therewith. All such rules, regulations,
10 directions, orders, decisions, and findings shall be filed
11 and entered by the Department in an indexed permanent book or
12 record, with the effective date thereof suitably indicated.
13 All rules, regulations and directions of a general character
14 shall be printed and copies thereof mailed to all licensees
15 within 10 days after such filing.
16 (Source: Laws 1963, p. 3526.)
17 (205 ILCS 670/23) (from Ch. 17, par. 5429)
18 Sec. 23. Judicial review. All final administrative
19 decisions of the Department hereunder shall be subject to
20 judicial review pursuant to the provisions of the
21 Administrative Review Law, and all amendments and
22 modifications thereof, and any rules adopted pursuant
23 thereto. The term "administrative decision" is defined as in
24 Section 3-101 of the Code of Civil Procedure.
25 (Source: P.A. 82-783.)
26 (205 ILCS 670/24.5 new)
27 Sec. 24.5. Injunction; civil penalty; costs. If it
28 appears to the Director that a person or any entity has
29 committed or is about to commit a violation of this Act, a
30 rule promulgated under this Act, or an order of the Director,
31 the Director may apply to the circuit court for an order
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1 enjoining the person or entity from violating or continuing
2 to violate this Act, the rule, or order and for injunctive or
3 other relief that the nature of the case may require and may,
4 in addition, request the court to assess a civil penalty up
5 to $1,000 along with costs and attorney's fees.
6 (205 ILCS 670/3 rep.)
7 (205 ILCS 670/4.1 rep.)
8 (205 ILCS 670/6 rep.)
9 (205 ILCS 670/19 rep.)
10 (205 ILCS 670/24 rep.)
11 Section 20. The Consumer Installment Loan Act is amended
12 by repealing Sections 3, 4.1, 6, 19, and 24.
13 Section 25. The Motor Vehicle Retail Installment Sales
14 Act is amended by changing Sections 2, 2.5, 2.7, 2.9, 2.11,
15 2.12, 3, 4, 5, 6, 7, 8, 9, 9.02, 10, 11, 13, 15, 17.1, 20,
16 21, and 24, and by adding Sections 2.14, 2.15, 9.03, and 11.2
17 as follows:
18 (815 ILCS 375/2) (from Ch. 121 1/2, par. 562)
19 Sec. 2. For the purposes of this Act, unless the context
20 otherwise requires, the terms specified in the following
21 Sections preceding Section 3 2.1 through 2.12 have the
22 meanings ascribed to them in those Sections.
23 (Source: Laws 1967, p. 2163.)
24 (815 ILCS 375/2.5) (from Ch. 121 1/2, par. 562.5)
25 Sec. 2.5. "Retail Installment contract", "installment
26 contract" or "contract" means an instrument or instruments
27 prescribing the terms of a retail installment transaction and
28 entered into or to be performed in this State.
29 (Source: Laws 1967, p. 2163.)
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1 (815 ILCS 375/2.7) (from Ch. 121 1/2, par. 562.7)
2 Sec. 2.7. "Official fees" means the taxes and fees
3 prescribed by law that actually are, or will be, paid to
4 public officials for determining the existence of, or for
5 perfecting, releasing, or satisfying a security interest the
6 fees required by law to be paid to the Secretary of State to
7 perfect a security interest in a motor vehicle retained or
8 taken by a seller under a retail installment contract and to
9 file a release or termination statement of a perfected
10 security interest.
11 (Source: Laws 1967, p. 2163.)
12 (815 ILCS 375/2.9) (from Ch. 121 1/2, par. 562.9)
13 Sec. 2.9. "Finance charge" means the sum of all charges
14 payable, directly or indirectly by the buyer and imposed
15 directly or indirectly by the seller as an incident to or as
16 a condition of the extension of credit, whether payable by
17 the buyer, the seller, or any other person on behalf of the
18 buyer to the seller or a third party including any of the
19 following types of charges:
20 (1) Interest, time price differential, and any amount
21 payable under a discount or other system of additional
22 charges.
23 (2) Service, transaction, activity, or carrying charge.
24 (3) Loan fee, points, finder's fee, or similar charge.
25 (4) Fee for an appraisal, investigation, or credit
26 report.
27 (5) Charges or premiums for credit life, accident,
28 health, or loss of income insurance, written in connection
29 with any credit transaction unless
30 (i) the insurance coverage is not required by the
31 creditor and this fact is clearly and conspicuously disclosed
32 in writing to the customer; and
33 (ii) any customer desiring such insurance coverage gives
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1 specific dated and separately signed affirmative written
2 indication of such desire after receiving written disclosure
3 to him of the cost of such insurance.
4 (6) Charges or premiums for insurance, written in
5 connection with any credit transaction, against loss of or
6 damage to property or against liability arising out of the
7 ownership or use of property, unless a clear, conspicuous,
8 and specific statement in writing is furnished by the
9 creditor to the customer setting forth the cost of the
10 insurance if obtained from or through the creditor and
11 stating that the customer may choose the person through which
12 the insurance is to be obtained.
13 (7) Premium or other charge for any other guarantee or
14 insurance protecting the creditor against the customer's
15 default or other credit loss.
16 (8) Any charge imposed by a creditor upon another
17 creditor for purchasing or accepting an obligation of a
18 customer if the customer is required to pay any part of that
19 charge in cash, as an addition to the obligation, or as a
20 deduction from the proceeds of the obligation.
21 If itemized and disclosed to the customer, any charges of
22 the following types need not be included in the finance
23 charge:
24 (1) Fees and charges prescribed by law which
25 actually are or will be paid to public officials for
26 determining the existence of or for perfecting or re-
27 leasing or satisfying any security related to the
28 credit transaction.
29 (2) The premium payable for any insurance in lieu
30 of perfecting any security interest otherwise required
31 by the creditor in connection with the transaction,
32 if the premium does not exceed the fees and charges
33 described in subparagraph (1) of this paragraph which
34 would otherwise be payable.
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1 (3) Taxes not included in the cash price.
2 (4) License, certificate of title, and registration
3 fees imposed by law.
4 (5) Other charges as authorized by this Act.
5 A late payment, delinquency, default, reinstatement, or
6 other such charge is not a finance charge if imposed for
7 actual unanticipated late payment, delinquency, default or
8 other such occurrence.
9 (Source: P.A. 76-1781.)
10 (815 ILCS 375/2.11) (from Ch. 121 1/2, par. 562.11)
11 Sec. 2.11. "Sales finance agency" means a person engaged,
12 in this State, in whole or in part, in the business of
13 purchasing or making loans upon the security of retail
14 installment contracts. The term includes, but is not limited
15 to, banks, trust companies, private bankers and industrial
16 bankers authorized to do business and to accept deposits in
17 this State, if so engaged. The term does not include a person
18 who makes, other than in the regular course of his business,
19 only isolated purchases of or isolated loans upon the
20 security of retail installment contracts or retail charge
21 agreements.
22 (Source: Laws 1967, p. 2163.)
23 (815 ILCS 375/2.12) (from Ch. 121 1/2, par. 562.12)
24 Sec. 2.12. "Holder" of a retail installment contract
25 means the retail seller of the motor vehicle under the
26 installment contract or sales finance agency or other
27 assignee which purchases or makes a loan upon the security of
28 the retail installment contract.
29 (Source: Laws 1967, p. 2163.)
30 (815 ILCS 375/2.14 new)
31 Sec. 2.14. Truth-in-Lending Act. "Truth-in-Lending Act"
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1 means the federal Truth-in-Lending Act, 15 U.S.C. 1601 et
2 seq., and Regulation Z, 12 C.F.R. Part 226.
3 (815 ILCS 375/2.15 new)
4 Sec. 2.15. Precomputed. A contract is "precomputed" if
5 the debt is expressed as the sum of the amount financed plus
6 the amount of the finance charge computed in advance.
7 (815 ILCS 375/3) (from Ch. 121 1/2, par. 563)
8 Sec. 3. (a) Every retail installment contract must be in
9 writing, dated, signed by both the buyer and the seller, and,
10 except as otherwise provided in this Act, completed as to all
11 essential provisions before it is signed by the buyer.
12 (b) The printed or typed portion of the contract, other
13 than instructions for completion, must be in size equal to at
14 least 8 point type.
15 (c) The contract must contain printed or written in a
16 size equal to at least 10 point bold type:
17 (1) Both at the top of the contract and directly above
18 the space reserved for the signature of the buyer, the words
19 "RETAIL INSTALLMENT CONTRACT";
20 (2) A specific statement that liability insurance
21 coverage for bodily injury and property damage caused to
22 others is not included, if that is the case; and
23 (3) A notice as follows:
24 "Notice to the buyer.
25 1. Do not sign this agreement before you read it or if
26 it contains any blank spaces.
27 2. You are entitled to an exact copy of the agreement
28 you sign.
29 3. Under the law you have the right, among others, to
30 pay in advance the full amount due and to obtain under
31 certain conditions a partial refund of the finance charge."
32 (d) A retail installment contract may provide that any
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1 dispute with respect to the rights and obligations of the
2 parties to the contract shall be submitted for arbitration.
3 (Source: P.A. 76-1781.)
4 (815 ILCS 375/4) (from Ch. 121 1/2, par. 564)
5 Sec. 4. Every retail installment contract must contain
6 the names of the seller and of the buyer, the place of
7 business of the seller, the residence of the buyer as
8 specified by the buyer, and a description of the motor
9 vehicle. The contract must clearly state and describe any
10 security taken or retained by the seller. No charge may be
11 made to a buyer under an installment contract for insurance
12 against loss or damage caused to the motor vehicle, for
13 insurance against liability for personal injury or property
14 damage caused to others by reason of ownership or operation
15 of the motor vehicle, for credit life insurance, for credit
16 health and accident insurance or for any other kind of
17 insurance, unless the installment contract or charge
18 agreement separately specifies for each kind of insurance the
19 type of coverage, the term of coverage and the separate,
20 identified charge made therefor.
21 (Source: Laws 1967, p. 2163.)
22 (815 ILCS 375/5) (from Ch. 121 1/2, par. 565)
23 Sec. 5. Every retail installment contract shall disclose
24 the following items, as applicable:
25 (1) The cash price of the motor vehicle, using the term
26 "cash price".
27 (2) The amount of the down payment itemized, as
28 applicable, as down payment in money, using the term "cash
29 down payment", down payment in property, using the term
30 "trade-in" and the sum, using the term "total down payment".
31 (3) The difference between the amounts described in
32 subparagraphs (1) and (2) of this paragraph, using the term
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1 "unpaid balance of cash price".
2 (4) All other charges, individually itemized, which are
3 included in the amount financed but which are not part of the
4 finance charge.
5 (5) The sum of the amounts determined under
6 subparagraphs (3) and (4) of this paragraph, using the term
7 "unpaid balance".
8 (6) Any finance charge paid separately, in cash or
9 otherwise, directly or indirectly to the seller or with the
10 seller's knowledge to another person, or withheld by the
11 seller from the proceeds of the credit extended and any
12 deposit balance or any investment which the seller requires
13 the buyer to make, maintain, or increase in a specified
14 amount or proportion as a condition to the extension of
15 credit, using as applicable, the terms "prepaid finance
16 charge" and "required deposit balance", and if both are
17 applicable, the total of such items using the term "total
18 prepaid finance charge and required deposit balance".
19 (7) The difference between the amounts determined under
20 subparagraphs (5) and (6) of this paragraph, using the term
21 "amount financed".
22 (8) The total amount of the finance charge, with
23 description of each amount included, using the term "finance
24 charge".
25 (9) The sum of the amounts determined under
26 subparagraphs (1), (4), and (8) of this paragraph, using the
27 term "deferred payment price".
28 (10) The finance charge expressed as an annual
29 percentage rate, using the term "annual percentage rate".
30 (11) The number, amount, and due dates or periods of
31 payments scheduled to repay the indebtedness and the sum of
32 such payments using the term, "total of payments". If
33 installment payments are stated in terms of a series of
34 scheduled amounts and if the amount of the final installment
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1 payment does not exceed the scheduled amount of any preceding
2 installment payment, the maximum number of payments and the
3 amount and date of each payment need not be separately stated
4 and the amount of the scheduled final installment payment may
5 be stated as the remaining unpaid balance. The due date of
6 the first installment payment may be fixed by a calendar
7 date, by reference to the date of the contract or by
8 reference to the date of delivery or installation of the
9 goods.
10 (12) The amount, or method of computing the amount, of
11 any default, delinquency, or similar charges payable in the
12 event of late payments.
13 (13) A description or identification of the type of any
14 security interest held or to be retained or acquired by the
15 seller in connection with the extension of credit, and a
16 clear identification of the property to which the security
17 interest relates.
18 (14) A description of any penalty charge that may be
19 imposed by the seller or his assignee for prepayment of the
20 principal of the obligation (such as a real estate mortgage)
21 with an explanation of the method of computation of such
22 penalty and the conditions under which it may be imposed.
23 (15) Identification of the method of computing any
24 unearned portion of the finance charge in the event of
25 prepayment of the obligation and a statement of the amount or
26 method of computation of any charge that may be deducted from
27 the amount of any rebate of such unearned finance charge that
28 will be credited to the obligation or refunded to the buyer.
29 (16) The date on which the finance charge begins to
30 accrue if different from the date of the transaction.
31 The disclosures required to be given by this Section
32 shall be made clearly, conspicuously and in meaningful
33 sequence. Where the terms "finance charge" and "annual
34 percentage rate" are required to be used, they shall be
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1 printed more conspicuously than other terminology required.
2 A retail installment contract which complies with the
3 federal Truth in Lending Act, amendments thereto, and any
4 regulations issued or which may be issued thereunder, shall
5 be deemed to be in compliance with the provisions of this
6 Section.
7 (Source: P.A. 82-169.)
8 (815 ILCS 375/6) (from Ch. 121 1/2, par. 566)
9 Sec. 6. (a) Except as provided under subsections
10 subsection (b) and (c), every retail installment contract
11 must provide for a schedule of periodic installment payments
12 in periodic, equal amounts, from the due date of the first
13 installment payment to the date of the final maturity of the
14 contract. The amount of the final installment payment may be
15 less than the amount of any of the periodic installment
16 payments in the contract.
17 (b) Retail installment contracts may provide for
18 balloon-note financing. For the purpose of this Section,
19 balloon-note financing shall mean the manner of purchase
20 whereby a consumer agrees to select and perform, at the
21 conclusion of a pre-determined schedule of installment
22 payments made in equal periodic or monthly amounts, one of
23 the following options:
24 (1) satisfy the balance of the contractual amount owing;
25 (2) refinance any balance owing, on the terms previously
26 agreed upon at the time of executing the retail installment
27 contract; or
28 (3) surrender the vehicle at such time and manner agreed
29 upon at the time of executing the retail installment
30 contract.
31 (c) Retail installment contracts may provide for
32 deferred payment of a down payment provided any deferred
33 portion of a down payment is payable not later than 10 days
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1 prior to the due date of the first regularly scheduled
2 payment and is not subject to a finance charge.
3 (d) Retail installment contracts may be precomputed or
4 interest bearing.
5 (Source: P.A. 85-440.)
6 (815 ILCS 375/7) (from Ch. 121 1/2, par. 567)
7 Sec. 7. Notwithstanding the provisions of any retail
8 installment contract to the contrary, the buyer may prepay
9 the contract in full, whether by payment in cash, extension,
10 renewal or otherwise, at any time before maturity, and if he
11 does so shall receive a refund credit thereon for that
12 prepayment. The amount of refund credit shall represent at
13 least as great a proportion of the finance charge less an
14 acquisition cost of $25, as the sum of the periodical time
15 balances beginning with the next payment period bears to the
16 sum of all the periodical time balances under the schedule of
17 installment payments in the contract. In those instances
18 where a buyer's overpayment requires the refund credit to be
19 given through the issuance of a negotiable instrument by the
20 holder, no refund credit need be made if the amount of refund
21 credit is less than $5. In all other cases where the buyer's
22 prepayment permits the refund credit to be given to the buyer
23 as a credit on the buyer's account, no refund credit need be
24 made if the amount of refund credit is less than $1. Where
25 the amount of refund credit is less than $1, no refund credit
26 need be made.
27 (Source: P.A. 76-1781.)
28 (815 ILCS 375/8) (from Ch. 121 1/2, par. 568)
29 Sec. 8. (a) A seller under a retail installment contract
30 may require insurance against substantial risk of loss of or
31 damage to the motor vehicle, protecting the seller or holder
32 as well as the buyer, and may, if the buyer elects, include
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1 therefor in the contract an amount not exceeding the premiums
2 chargeable for such insurance in accordance with rate filings
3 made with the Director of Insurance. No seller or holder may
4 require as a condition precedent to, or as a part of, a
5 retail installment transaction that such insurance be
6 purchased from or through the seller or holder, or any
7 employee, affiliate, or associate of seller or holder. A
8 seller under a retail installment contract may not require
9 other insurance; but if the buyer voluntarily contracts
10 therefor, the seller may then include in the contract an
11 amount for that other insurance not exceeding the premiums
12 paid or payable by the seller or holder. In those
13 transactions where the buyer elects to select the insurance
14 company, broker or agent for the purpose of obtaining
15 insurance required by the holder under this Section, the
16 buyer must, on or before the date when buyer takes possession
17 of the motor vehicle, furnish the holder with satisfactory
18 evidence of insurance in a company acceptable to the seller
19 or holder. If the buyer fails to furnish such evidence, the
20 holder may purchase such insurance, charge the premium
21 therefor to buyer, and prorate the cost of the insurance over
22 the remaining scheduled time payments.
23 (b) If the obligor fails to furnish evidence that he has
24 procured insurance on the property, the licensee may purchase
25 substitute insurance that may be substantially equivalent to
26 or more limited than coverage the obligor is required to
27 maintain. Such insurance must comply with the Collateral
28 Protection Act.
29 (Source: Laws 1967, p. 2163.)
30 (815 ILCS 375/9) (from Ch. 121 1/2, par. 569)
31 Sec. 9. The seller may not decline existing required
32 insurance and must afford the buyer the privilege of
33 purchasing any required insurance from an insurance company
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1 authorized to do business in this State, from or through any
2 broker or agent selected by the buyer, if the insurance
3 company is approved by the holder and satisfactory evidence
4 of binding coverage is furnished the seller or holder. The
5 inclusion in a contract of an amount for required insurance
6 when the buyer selects the insurance company, broker or agent
7 is optional with the seller. Such approval may not be
8 arbitrarily or unreasonably withheld by the holder. All
9 insurance which is purchased by the seller or holder and for
10 which an amount is included in a contract must be written by
11 an insurance company authorized to do business in the State
12 and the seller or holder is responsible as though such
13 insurance were in force from the date the buyer takes
14 possession of the vehicle. The holder of a contract which
15 includes an amount for insurance purchased by the seller or
16 holder must, within 30 days after the date of the contract,
17 cause to be sent to the buyer the policies or certificates of
18 insurance clearly setting forth the amount of the premium,
19 the types of insurance, the coverages and all the terms,
20 exceptions, limitations, restrictions and conditions of the
21 insurance or, in respect to group credit life insurance and
22 credit accident and health insurance, a notice or statement
23 for that insurance clearly setting forth the name of the
24 insurer, the identity of the insured buyer by name or
25 otherwise and a description of the coverage. If, however, the
26 holder or seller is unable to obtain insurance for the buyer
27 within a reasonable time, the holder or seller shall notify
28 the buyer by certified mail of this fact, and 10 days after
29 this notification the seller or holder of the contract shall
30 cease to be liable for the insurance except for the credit or
31 refund to the buyer of the premiums included in the contract.
32 (Source: P.A. 76-1208.)
33 (815 ILCS 375/9.02) (from Ch. 121 1/2, par. 569.02)
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1 Sec. 9.02. In any situation in which a person has
2 purchased a motor vehicle under an installment sales
3 contract agreement and has purchased credit life or credit
4 disability insurance with such contract agreement, the
5 installment sales contract agreement must include a notice
6 containing the following information:
7 (1) IF YOU HAVE PURCHASED EITHER CREDIT LIFE OR CREDIT
8 DISABILITY INSURANCE, OR BOTH, TO GUARANTEE PAYMENTS BEING
9 MADE IN CASE OF YOUR DEATH OR DISABILITY, ON YOUR VEHICLE
10 PURCHASED UNDER AN INSTALLMENT SALES CONTRACT, YOU MAY BE
11 ENTITLED TO A PARTIAL REFUND OF YOUR PREMIUM IF YOU PAY OFF
12 YOUR INSTALLMENT LOAN EARLY.
13 (2) IN CASE OF EARLY COMPLETE PAYMENT OF YOUR LOAN, YOU
14 SHOULD CONTACT THE SELLER OF YOUR CREDIT LIFE OR CREDIT
15 DISABILITY INSURANCE TO SEE IF A REFUND IS DUE. IF YOUR
16 VEHICLE DEALER FINANCED YOUR LOAN, THE SELLER OF YOUR CREDIT
17 LIFE OR CREDIT DISABILITY INSURANCE IS YOUR VEHICLE DEALER.
18 The above provisions shall be in large block print at
19 least 1/8" in height.
20 The notice form shall also be captioned: "NOTICE OF
21 POSSIBLE REFUND OF CREDIT LIFE OR DISABILITY INSURANCE
22 PREMIUM."
23 The willful failure to provide such a notice shall
24 subject the insurance seller to liability to the purchaser
25 for 3 times the amount of refund due or $100, whichever is
26 greater.
27 (Source: P.A. 85-588.)
28 (815 ILCS 375/9.03 new)
29 Sec. 9.03. Disclosure of consideration paid to seller.
30 Consideration or another thing of value may be paid to or
31 retained by the seller or an affiliate of the seller in
32 connection with any insurance, debt cancellation contract, or
33 other such product purchased pursuant to the loan made or
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1 held by the seller and all or a portion of the consideration
2 may be included in the amount charged to the obligor, so long
3 as the seller discloses to the obligor that either the seller
4 or an affiliate may receive something of value in connection
5 with the purchase by the obligor.
6 (815 ILCS 375/10) (from Ch. 121 1/2, par. 570)
7 Sec. 10. If any required insurance for which an amount is
8 included in the contract is cancelled, any unearned insurance
9 refund exceeding one dollar received or receivable by the
10 holder or, if the amount included for insurance in the
11 contract exceeds the premiums paid or payable by the holder
12 therefor, any unearned portion of the amount so included
13 exceeding one dollar shall be credited on the final maturing
14 installments of the contract except to the extent those
15 amounts are applied toward payment for similar insurance
16 protecting the interests of the buyer and the holder or
17 either of them.
18 If any credit life or credit accident and health
19 insurance for which an amount is included in the contract or
20 charge agreement is terminated, a refund or credit with
21 respect to the amount paid or charged for such coverage shall
22 be determined and made as provided in Section 155.58 of the
23 "Illinois Insurance Code", approved June 29, 1937, as now or
24 hereafter amended.
25 (Source: Laws 1967, p. 2163.)
26 (815 ILCS 375/11) (from Ch. 121 1/2, par. 571)
27 Sec. 11. Delinquency charges. A retail installment
28 contract may provide for, and the seller or holder may (if
29 the contract provides) collect, a delinquency and collection
30 charge, on each installment in default for a period of not
31 less than 10 days, in an amount not exceeding 5% of the
32 installment on installments in excess of $200 or $10 on
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1 installments of $200 or less., but Only one delinquency and
2 collection charge may be collected on any installment
3 regardless of the period during which it that installment
4 remains in default. In addition, a retail installment
5 contract may provide for the payment by the buyer of
6 reasonable attorney's fees incurred in the collection or
7 enforcement of the contract. Any clause or provision of any
8 retail installment contract entered into after December 31,
9 1973, to the contrary notwithstanding with respect to
10 attorney's fees incurred in the collection or enforcement of
11 such contract, the court in its discretion may award
12 attorney's fees to either party as the interests of justice
13 may require.
14 (Source: P.A. 87-483; 87-625; 87-841; 87-895; 88-348.)
15 (815 ILCS 375/11.2 new)
16 Sec. 11.2. Final installment. Fifteen days after the
17 final installment is due as originally scheduled or deferred,
18 the holder may compute and charge interest on any balance
19 remaining unpaid, including unpaid default or deferment
20 charges, at the annual percentage rate stated in the retail
21 installment contract until fully paid or reduced to judgment.
22 At the time the final installment is due, the holder shall
23 give notice to the buyer stating any amounts unpaid.
24 (815 ILCS 375/13) (from Ch. 121 1/2, par. 573)
25 Sec. 13. The seller shall deliver to the buyer a copy of
26 the retail installment contract signed by the seller. Any
27 acknowledgment by the buyer of delivery of a copy of the
28 contract must be printed or written in a size equal to at
29 least 10 point bold type and, if contained in the contract,
30 must appear directly above the legend required above the
31 buyer's signature by paragraph (1) of Section 3. The buyer's
32 written acknowledgment of delivery of a copy of the contract
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1 conforming to the requirements of this Act is conclusive
2 proof of the such delivery and of compliance with this
3 Section in any action by or against an assignee of the
4 contract without knowledge to the contrary when he purchases
5 the contract. Until the seller delivers a copy of the
6 contract to him or her does so, a buyer who has not received
7 delivery of the motor vehicle has the right to cancel his
8 agreement and to receive a refund of all payments made and a
9 return of all goods traded in to the seller on account of or
10 in contemplation of the contract, or, if those goods cannot
11 be returned, the value thereof. However, this Section does
12 not apply when the merchandise has been specially ordered or
13 custom made to the specifications of the purchaser and
14 evidence of such order is provided by the seller.
15 (Source: Laws 1967, p. 2163.)
16 (815 ILCS 375/15) (from Ch. 121 1/2, par. 575)
17 Sec. 15. The seller or other holder of a retail
18 installment contract must give the buyer a written receipt
19 for any payment made in cash. Upon the buyer's written
20 request the holder of a retail installment contract shall
21 must give or forward to the buyer a written statement of the
22 amounts of payments and the total amount unpaid under the
23 contract. Upon written request, a buyer is entitled to such a
24 statement once every 6 months without charge. The holder may
25 require payment of a reasonable charge not exceeding $10 for
26 each additional statement furnished.
27 (Source: Laws 1967, p. 2163.)
28 (815 ILCS 375/17.1 new)
29 Sec. 17.1. Seller may not keep keys. For contracts
30 entered into after January 1, 1998, unless otherwise provided
31 for in the retail installment sales contract, a seller or
32 holder cannot take or retain possession of the keys (or copy
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1 thereof) to a motor vehicle purchased under a retail
2 installment sales contract.
3 (815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
4 Sec. 20. Unless otherwise limited by this Section, the
5 parties shall have the rights and remedies provided in
6 Article 9 of the Uniform Commercial Code with respect to
7 default and disposition of collateral.
8 If the buyer has paid an amount equal to 60% or more of
9 the deferred payment price at the time of his default under
10 the contract and if the buyer, at the request of the holder
11 and without legal proceedings, surrenders the goods to the
12 holder in ordinary condition and free from malicious damage,
13 the holder must, within a period of 5 days from the date of
14 receipt of the goods at his place of business, elect either
15 (a) to retain the goods and release the buyer from further
16 obligation under the contract, or (b) to return the goods to
17 the buyer at the holder's expense and be limited to an action
18 to recover the balance of the indebtedness.
19 If the buyer has paid an amount equal to 30% or more of
20 the deferred payment price at the time of repossession, the
21 buyer may, within 15 days, redeem the collateral from the
22 holder by tendering (a) the total of all unpaid amounts,
23 including any unpaid delinquency or deferral charges due at
24 the time of tender, without acceleration, and (b) performance
25 necessary to cure any default other than nonpayment of the
26 amounts due; and (c) any reasonable cost or fees incurred by
27 the holder in the retaking of the goods. Tender of payment
28 and performance pursuant to this Section restores to the
29 buyer his rights under the contract as though no default had
30 occurred. The buyer has a right to redeem the collateral
31 from the holder only once under this Section.
32 The holder must give written notice to the buyer, within
33 3 days of the repossession, of the buyer's right to redeem
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1 the collateral pursuant to this Section. The written notice
2 shall be in substantially the following form:
3 NOTICE OF RIGHT TO RECOVER VEHICLE
4 Your car was repossessed on (specify date) for failure to
5 make payments on the contract (or other reason).
6 Under Illinois law, because you have paid at least 30% of
7 the deferred payment price before repossession, you may be
8 able to get the car back. To recover the car you must do the
9 following within 15 days of the date of repossession:
10 1. Make payment of all back payments due
11 as of the date of this notice so
12 that you are current on the
13 contract. $
14 2. Pay any late charges due. $
15 3. Pay the costs of repossession. $
16 4. Pay any additional amounts which
17 may become due between the date
18 of notice and the date of redemption. $
19 TOTAL $
20 Bring cash, a certified check or money order for the
21 total amount due listed above to our office located at
22 (specify address) by (specify date) to get your car back.
23 (Source: P.A. 83-302.)
24 (815 ILCS 375/21) (from Ch. 121 1/2, par. 581)
25 Sec. 21. (a) A retail installment contract may provide
26 for, and the seller or holder may charge, collect and receive
27 a finance charge computed on the entire amount financed as
28 determined in accordance with this Act from the date of the
29 contract to the due date of the final installment at not
30 exceeding the following rates:
31 Class 1 - Any new motor vehicle designated by the
32 manufacturer by a year model not earlier than the year in
33 which the sale is made - $12 per $100 per year until December
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1 31, 1981 and $8.00 per $100 per year thereafter.
2 Class 2 - Any new motor vehicle not in Class 1 and any
3 used motor vehicle designated by the manufacturer by a year
4 model of not more than 2 years prior to the year in which the
5 sale is made - $13 per $100 per year until December 31, 1981
6 and $11 per $100 per year thereafter.
7 Class 3 - Any used motor vehicle not in Class 2 and
8 designated by the manufacturer by a year model not more than
9 4 years prior to the year in which the sale is made - $14 per
10 $100 per year until December 31, 1981 and $14 per $100 per
11 year thereafter.
12 Class 4 - Any used motor vehicle not in Class 2 or Class
13 3 and designated by the manufacturer by a year model more
14 than 4 years prior to the year in which the sale is made -
15 $16 per $100 per year.
16 (b) A minimum finance charge of $25 may be charged on
17 any retail installment contract.
18 (c) Notwithstanding the provisions of any other Statute,
19 and notwithstanding the rate limitations expressed in
20 subdivisions (a) and (b) of this Section, for motor vehicle
21 retail installment contracts executed after the effective
22 date of this amendatory Act of 1981, there shall be no limit
23 on the finance charges which may be charged, collected and
24 received.
25 (Source: P.A. 82-660.)
26 (815 ILCS 375/24) (from Ch. 121 1/2, par. 584)
27 Sec. 24. (a) Any person who knowingly violates this Act
28 is guilty of a Class A misdemeanor.
29 (b) No person who violates this Act, except as a result
30 of an accident or bona fide error of computation, may recover
31 any finance charge, any delinquency or collection charge or
32 any refinance charge in connection with the related retail
33 installment contract.
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1 (c) A claim of violation of this Act may be asserted in
2 an individual action.
3 (Source: P.A. 77-2266.)
4 Section 30. The Retail Installment Sales act is amended
5 by changing Section 2, 2.9, 2.11, 2.13, 3, 5, 6, 7, 8, 9, 11,
6 12, 13, 14, 21, 24, 25, 27, 28, and 31, and by adding
7 Sections 2.16, 2.17, 11.1, 12.1, and 23.1 as follows:
8 (815 ILCS 405/2) (from Ch. 121 1/2, par. 502)
9 Sec. 2. For the purposes of this Act, unless the context
10 otherwise requires, the terms specified in the following
11 Sections preceding Section 3 2.1 through 2.14 have the
12 meanings ascribed to them in those Sections.
13 (Source: Laws 1967, p. 2149.)
14 (815 ILCS 405/2.9) (from Ch. 121 1/2, par. 502.9)
15 Sec. 2.9. "Official fees" means the taxes and fees
16 prescribed by law that actually are, or will be, paid to
17 public officials for determining the existence of, or for
18 perfecting, releasing or satisfying a security interest fees
19 required by law to be paid to a public officer to perfect by
20 filing a security interest in goods retained by a seller
21 under a retail installment transaction and to file a release
22 or termination statement of a security interest so perfected.
23 (Source: Laws 1967, p. 2149.)
24 (815 ILCS 405/2.11) (from Ch. 121 1/2, par. 502.11)
25 Sec. 2.11. "Finance charge" means the sum of all charges
26 payable, directly or indirectly by the buyer and imposed
27 directly or indirectly by the seller as an incident to or as
28 a condition of the extension of credit, whether payable by
29 the buyer, the seller, or any other person on behalf of the
30 buyer to the seller or a third party including any of the
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1 following types of charges:
2 (1) Interest, time price differential, and any amount
3 payable under a discount or other system of additional
4 charges.
5 (2) Service, transaction, activity, or carrying charge.
6 (3) Loan fee, points, finder's fee, or similar charge.
7 (4) Fee for an appraisal, investigation, or credit
8 report.
9 (5) Charges or premiums for credit life, accident,
10 health, or loss of income insurance, written in connection
11 with any credit transaction unless
12 (i) the insurance coverage is not required by the
13 creditor and this fact is clearly and conspicuously disclosed
14 in writing to the customer; and
15 (ii) any customer desiring such insurance coverage gives
16 specific dated and separately signed affirmative written
17 indication of such desire after receiving written disclosure
18 to him of the cost of such insurance.
19 (6) Charges or premiums for insurance, written in
20 connection with any credit transaction, against loss of or
21 damage to property or against liability arising out of the
22 ownership or use of property, unless a clear, conspicuous,
23 and specific statement in writing is furnished by the
24 creditor to the customer setting forth the cost of the
25 insurance if obtained from or through the creditor and
26 stating that the customer may choose the person through which
27 the insurance is to be obtained.
28 (7) Premium or other charge for any other guarantee or
29 insurance protecting the creditor against the customer's
30 default or other credit loss.
31 (8) Any charge imposed by a creditor upon another
32 creditor for purchasing or accepting an obligation of a
33 customer if the customer is required to pay any part of that
34 charge in cash, as an addition to the obligation, or as a
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1 deduction from the proceeds of the obligation.
2 If itemized and disclosed to the customer, any charges of
3 the following types need not be included in the finance
4 charge:
5 (a) Fees and charges prescribed by law which actually
6 are or will be paid to public officials for determining the
7 existence of or for perfecting or releasing or satisfying any
8 security related to the credit transaction.
9 (b) The premium payable for any insurance in lieu of
10 perfecting any security interest otherwise required by the
11 creditor in connection with the transaction, if the premium
12 does not exceed the fees and charges described in
13 subparagraph (1) of this paragraph which would otherwise be
14 payable.
15 (c) Taxes not included in the cash price.
16 (d) License, certificate of title, and registration fees
17 imposed by law.
18 (e) Other charges as authorized by this Act.
19 A late payment, delinquency, default, reinstatement, or
20 other such charge is not a finance charge if imposed for
21 actual unanticipated late payment, delinquency, default or
22 other such occurrence.
23 (Source: P.A. 76-1780.)
24 (815 ILCS 405/2.13) (from Ch. 121 1/2, par. 502.13)
25 Sec. 2.13. "Sales finance agency" means a person engaged,
26 in this State, in whole or in part, in the business of
27 purchasing or making loans upon the security of retail
28 installment contracts or retail charge agreements. The term
29 includes, but is not limited to, banks, trust companies,
30 private bankers and industrial banks authorized to do
31 business and to accept deposits in this State, if so engaged.
32 The term does not include a person who makes, other than in
33 the regular course of his business, only isolated purchases
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1 of or isolated loans upon the security of retail installment
2 contracts or retail charge agreements.
3 (Source: Laws 1967, p. 2149.)
4 (815 ILCS 405/2.16 new)
5 Sec. 2.16. Truth-in Lending Act. "Truth-in-Lending
6 Act" means the federal Truth-in-Lending Act, 15 U.S.C. 1601
7 et seq., and Regulation Z, 12 C.F.R. Part 226.
8 (815 ILCS 405/2.17 new)
9 Sec. 2.17. Precomputed. A contract is "precomputed" if
10 the debt is expressed as a sum of the amount financed plus
11 the amount of the finance charge computed in advance.
12 (815 ILCS 405/3) (from Ch. 121 1/2, par. 503)
13 Sec. 3. (a) Every retail installment contract must be in
14 writing, dated, signed by both the buyer and the seller, and,
15 except as otherwise provided in this Act, completed as to all
16 essential provisions, before it is signed by the buyer.
17 (b) The printed or typed portion of the contract, other
18 than instructions for completion, must be in size equal to at
19 least 8 point type.
20 (c) The contract must contain printed or written in a
21 size equal to at least 10 point bold type:
22 (1) Both at the top of the contract and directly above
23 the space reserved for the signature of the buyer, the words
24 "RETAIL INSTALLMENT CONTRACT";
25 (2) A notice as follows:
26 "Notice to the buyer.
27 1. Do not sign this agreement before you read it or
28 if it contains any blank spaces.
29 2. You are entitled to an exact copy of the
30 agreement you sign.
31 3. Under the law you have the right, among others,
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1 to pay in advance the full amount due and to obtain under
2 certain conditions a partial refund of the finance charge.
3 (d) A retail installment contract may provide that any
4 dispute with respect to the rights and obligations of the
5 parties to the contract shall be submitted for arbitration.
6 (Source: P.A. 76-1780.)
7 (815 ILCS 405/5) (from Ch. 121 1/2, par. 505)
8 Sec. 5. Every retail installment contract shall disclose
9 the following items, as applicable:
10 (1) The cash price of the property or service purchased,
11 using the term "cash price".
12 (2) The amount of the down payment itemized, as
13 applicable, as down payment in money, using the term "cash
14 down payment", down payment in property, using the term
15 "trade-in" and the sum, using the term "total down payment".
16 (3) The difference between the amounts described in
17 subparagraphs (1) and (2) of this paragraph, using the term
18 "unpaid balance of cash price".
19 (4) All other charges, individually itemized, which are
20 included in the amount financed but which are not part of the
21 finance charge.
22 (5) The sum of the amounts determined under
23 subparagraphs (3) and (4) of this paragraph, using the term
24 "unpaid balance".
25 (6) Any amounts required to be deducted under this Act
26 using, as applicable, the terms "prepaid finance charge" and
27 "required deposit balance", and, if both are applicable, the
28 total of such items using the term "total prepaid finance
29 charge and required deposit balance".
30 (7) The difference between the amounts determined under
31 subparagraphs (5) and (6) of this paragraph, using the term
32 "amount financed".
33 (8) The total amount of the finance charge, with
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1 description of each amount included, using the term "finance
2 charge".
3 (9) The sum of the amounts determined under
4 subparagraphs (1), (4), and (8) of this paragraph, using the
5 term "deferred payment price".
6 (10) The finance charge expressed as an annual
7 percentage rate, using the term "annual percentage rate",
8 except in the case of a finance charge
9 (i) which does not exceed $5 and is applicable to an
10 amount financed not exceeding $75, or
11 (ii) which does not exceed $7.50 and is applicable to an
12 amount financed exceeding $75.
13 (11) The number, amount, and due dates or periods of
14 payments scheduled to repay the indebtedness and the sum of
15 such payments using the term "total of payments". If
16 installment payments are stated in terms of a series of
17 scheduled amounts and if the amount of the final installment
18 payment does not exceed the scheduled amount of any preceding
19 installment payment, the maximum number of payments and the
20 amount and date of each payment need not be separately stated
21 and the amount of the scheduled final installment payment may
22 be stated as the remaining unpaid balance. The due date of
23 the first installment payment may be fixed by a calendar
24 date, by reference to the date of the contract or by
25 reference to the date of delivery or installation of the
26 goods.
27 (12) The amount, or method of computing the amount, of
28 any default, delinquency, or similar charges payable in the
29 event of late payments.
30 (13) A description or identification of the type of any
31 security interest held or to be retained or acquired by the
32 seller in connection with the extension of credit, and a
33 clear identification of the property to which the security
34 interest relates.
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1 (14) A description of any penalty charge that may be
2 imposed by the seller or his assignee for prepayment of the
3 principal of the obligation (such as a real estate mortgage)
4 with an explanation of the method of computation of such
5 penalty and the conditions under which it may be imposed.
6 (15) Identification of the method of computing any
7 unearned portion of the finance charge in the event of
8 prepayment of the obligation and a statement of the amount or
9 method of computation of any charge that may be deducted from
10 the amount of any rebate of such unearned finance charge that
11 will be credited to the obligation or refunded to the buyer.
12 (16) The date on which the finance charge begins to
13 accrue if different from the date of the transaction.
14 The disclosures required to be given by this Section
15 shall be made clearly, conspicuously and in meaningful
16 sequence. Where the terms "finance charge" and "annual
17 percentage rate" are required to be used, they shall be
18 printed more conspicuously than other terminology required.
19 A retail installment contract which complies with the
20 federal Truth in Lending Act, amendments thereto, and any
21 regulations issued or which may be issued thereunder, shall
22 be deemed to be in compliance with the provisions of this
23 Section.
24 (Source: P.A. 82-169.)
25 (815 ILCS 405/6) (from Ch. 121 1/2, par. 506)
26 Sec. 6. (a) Every retail installment contract must
27 provide for a schedule of periodic installment payments in
28 periodic, equal amounts from the due date of the first
29 installment payment to the date of the final maturity of the
30 contract, except that where the business or vocation of the
31 buyer results in intermittent or irregular income, the
32 contract may reduce or omit payment over any period or
33 periods in which the buyer's income is reduced or suspended.
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1 The amount of the final installment payment may be less than
2 the amount of any of the periodic installment payments in the
3 contract.
4 (b) Retail installment contracts may provide for
5 balloon-note financing. For the purpose of this Section,
6 "balloon-note financing" means the manner of purchase whereby
7 a consumer agrees to select and perform, at the conclusion of
8 a predetermined schedule of installment payments made in
9 periodic or monthly amounts, one of the following options:
10 (1) satisfy the balance of the contractual amount
11 owing; or
12 (2) refinance any balance owing, on the terms
13 previously agreed upon at the time of executing the
14 retail installment contract.
15 (c) Retail installment contracts may provide for
16 deferred payment of a down payment provided any deferred
17 portion of a down payment is payable not later than 10 days
18 prior to the due date of the first regularly scheduled
19 payment and is not subject to a finance charge.
20 (d) Retail installment sales contracts may be
21 precomputed or interest bearing.
22 (Source: Laws 1967, p. 2149.)
23 (815 ILCS 405/7) (from Ch. 121 1/2, par. 507)
24 Sec. 7. Notwithstanding the provisions of any retail
25 installment contract to the contrary, the buyer may prepay
26 the contract in full, whether by payment in cash, extension,
27 renewal or otherwise, at any time before maturity, and if he
28 does so, shall receive a refund credit thereon for that
29 prepayment. The amount of refund credit shall represent at
30 least as great a proportion of the finance charge, less an
31 acquisition cost of $25 $12, as the sum of the periodical
32 time balances beginning with the next payment period bears to
33 the sum of all the periodical time balances under the
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1 schedule of installment payments in the contract. In those
2 instances where a buyer's overpayment requires the refund
3 credit to be given through the issuance of a negotiable
4 instrument by the holder, no refund credit need be made if
5 the amount of refund credit is less than $5. In all other
6 cases where the buyer's prepayment permits the refund credit
7 to be given to the buyer as a credit on the buyer's account,
8 no refund credit need be made if the amount of refund credit
9 is less than $1. Where the amount of refund credit is less
10 than $1, no refund credit need be made.
11 (Source: P.A. 76-1780.)
12 (815 ILCS 405/8) (from Ch. 121 1/2, par. 508)
13 Sec. 8. (a) A seller under a retail installment contract
14 or retail charge agreement may require insurance against
15 substantial risk of loss of or damage to the goods protecting
16 the seller or holder, as well as the buyer, and may, if the
17 buyer elects, include therefor in the contract an amount not
18 exceeding the premiums chargeable for similar insurance in
19 accordance with rate filings made with the Director of
20 Insurance. No seller or holder may require, as a condition
21 precedent to or as a part of a retail installment
22 transaction, that such insurance be purchased from or through
23 the seller or holder, or any employee, affiliate, or
24 associate of seller or holder. A seller under a retail
25 installment contract or retail charge agreement may not
26 require other insurance; but if the buyer voluntarily
27 contracts therefor, the seller may then include in the
28 contract an amount for that other insurance not exceeding the
29 premiums paid or payable by the seller or holder. In those
30 transactions where the buyer elects to select the insurance
31 company, broker or agent for the purpose of obtaining
32 insurance required by the holder under this Section, the
33 buyer must furnish the holder with satisfactory evidence of
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1 insurance on or before the date when the buyer takes
2 possession of the goods.
3 (b) If the obligor fails to furnish evidence that he has
4 procured insurance on the property, the licensee may purchase
5 substitute insurance that may be substantially equivalent to
6 or more limited than coverage the obligor is required to
7 maintain. Such insurance must comply with the Collateral
8 Protection Act.
9 (Source: Laws 1967, p. 2149.)
10 (815 ILCS 405/9) (from Ch. 121 1/2, par. 509)
11 Sec. 9. The seller may not decline existing insurance
12 written by an insurance company authorized to do business in
13 this State and must afford the buyer the privilege of
14 purchasing any required insurance from or through an
15 insurance company, broker or agent of his own selection, if
16 the insurance company is approved by the holder. The
17 inclusion in the contract or charge agreement of an amount
18 for required insurance when the buyer selects the insurance
19 company, broker or agent is optional with the seller. All
20 insurance which is purchased by the holder and for which an
21 amount is included in a contract or charge agreement must be
22 written by an insurance company authorized to do business in
23 this State. The holder of a contract or charge agreement
24 which includes an amount for insurance purchased by the
25 seller or holder must, within 30 days after the date of the
26 contract or charge agreement, cause to be sent to the buyer
27 the policies or certificates of insurance clearly setting
28 forth the amount of the premium, the types of insurance, the
29 coverages and all the terms, exceptions, limitations,
30 restrictions and conditions of the insurance or, in respect
31 to group credit life insurance and credit accident and health
32 insurance, a notice or statement for that insurance clearly
33 setting forth the name of the insurer, the identity of the
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1 insured buyer by name or otherwise and a description of the
2 coverage.
3 (Source: Laws 1967, p. 2149.)
4 (815 ILCS 405/11) (from Ch. 121 1/2, par. 511)
5 Sec. 11. If any required insurance for which an amount is
6 included in the contract or charge agreement is cancelled,
7 any unearned insurance refund exceeding one dollar received
8 or receivable by the holder or, if the amount included for
9 insurance in the contract or charge agreement exceeds the
10 premiums paid or payable by the holder therefor, any unearned
11 portion of the amount so included exceeding one dollar shall
12 be credited on the final maturing installments of the
13 contract except to the extent those amounts are applied
14 toward payment for similar insurance protecting the interests
15 of the buyer and the holder or either of them.
16 If any credit life or credit accident and health
17 insurance for which an amount is included in the contract or
18 charge agreement is terminated, a refund or credit with
19 respect to the amount paid or charged for such coverage shall
20 be determined and made as provided in Section 155.58 of the
21 "Illinois Insurance Code", approved June 29, 1937, as now or
22 hereafter amended.
23 (Source: Laws 1967, p. 2149.)
24 (815 ILCS 405/11.1 new)
25 Sec. 11.1. Disclosure of consideration paid to seller.
26 Consideration or another thing of value may be paid to or
27 retained by the seller or an affiliate of the seller in
28 connection with any insurance, debt cancellation contract, or
29 other such product purchased pursuant to the loan made or
30 held by the seller and all or a portion of the consideration
31 may be included in the amount charged to the obligor, so long
32 as the seller discloses to the obligor that either the seller
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1 or an affiliate may receive something of value in connection
2 with the purchase by the obligor.
3 (815 ILCS 405/12) (from Ch. 121 1/2, par. 512)
4 Sec. 12. Delinquency charges. A retail installment
5 contract or a retail charge agreement may provide for, and
6 the seller or holder may (if the contract or retail charge
7 agreement provides) collect, a delinquency and collection
8 charge, on each installment in default for a period of not
9 less than 10 days, in an amount not exceeding 5% of the
10 installment on installments in excess of $200 or $10 on
11 installments of $200 or less, or, in lieu thereof with
12 respect to a retail installment contract only, interest after
13 maturity on each such installment not to exceed the highest
14 lawful contract rate. Only one delinquency and collection
15 charge may be collected on any installment regardless of the
16 period during which it that installment remains in default.
17 In addition, a retail installment contract or a retail charge
18 agreement may provide for the payment by the buyer of
19 reasonable attorney's fees incurred in the collection or
20 enforcement of the contract or retail charge agreement. Any
21 clause or provision of any retail installment contract or
22 retail charge agreement entered into after December 31, 1973,
23 to the contrary notwithstanding with respect to attorney's
24 fees incurred in the collection or enforcement of such
25 contract or retail charge agreement the court in its
26 discretion may award attorney's fees to either party as the
27 interest of justice may require.
28 (Source: P.A. 87-483; 87-841; 88-348.)
29 (815 ILCS 405/12.1 new)
30 Sec. 12.1. Final installment. Fifteen days after the
31 final installment is due as originally scheduled or deferred,
32 the holder may compute and charge interest on any balance
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1 remaining unpaid, including unpaid default or deferment
2 charges, at the annual percentage rate stated in the retail
3 installment contract until fully paid or until reduced to
4 judgment. At the time the final installment is due, the
5 holder shall give notice to the buyer stating any amounts
6 unpaid.
7 (815 ILCS 405/13) (from Ch. 121 1/2, par. 513)
8 Sec. 13. No provision in a retail installment contract
9 under which, in the absence of the buyer's default, the
10 holder may, arbitrarily and without reasonable cause,
11 accelerate the maturity of any part of or all of the amount
12 owing thereunder is enforceable.
13 No provision in a retail installment contract under which
14 the holder may accelerate the maturity of any part or all of
15 the amount owing thereunder is enforceable, unless prior to
16 such acceleration, the buyer has been in default for at least
17 30 days or the buyer has abandoned or destroyed the property
18 or the holder has reasonable cause to believe that the buyer
19 is about to leave the state.
20 No provision in a retail installment contract relieving
21 the seller from liability for any remedies provided by law
22 which the buyer may have against the seller under the
23 contract is enforceable.
24 No provision in a retail installment contract purporting
25 to waive any of the provisions of this Act is enforceable.
26 (Source: P.A. 83-345.)
27 (815 ILCS 405/14) (from Ch. 121 1/2, par. 514)
28 Sec. 14. The seller shall deliver to the buyer a copy of
29 the retail installment contract signed by the seller. Any
30 acknowledgment by the buyer of delivery of a copy of the
31 contract must be printed or written in a size equal to at
32 least 10 point bold type and, if contained in the contract,
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1 must appear directly above the legend required above the
2 buyer's signature by paragraph (c) (1) of Section 3. The
3 buyer's written acknowledgment of delivery of a copy of the
4 contract conforming to the requirements of this Act is
5 conclusive proof of that delivery and of compliance with this
6 Section in any action by or against an assignee of the
7 contract without knowledge to the contrary when he purchases
8 the contract. Until the seller delivers a copy of the
9 contract to him, a buyer who has not received delivery of the
10 goods or has not been furnished or rendered the services has
11 the right to cancel his agreement and to receive a refund of
12 all payments made and a return of all goods traded in to the
13 seller on account of or in contemplation of the contract or,
14 if those goods cannot be returned, the value thereof.
15 However, this Section shall not apply when merchandise has
16 been specially ordered or custom made to the specifications
17 of the purchaser and evidence of such order is provided the
18 seller.
19 (Source: Laws 1967, p. 2149.)
20 (815 ILCS 405/21) (from Ch. 121 1/2, par. 521)
21 Sec. 21. (a) If, in a retail installment transaction, a
22 retail buyer makes any subsequent purchase of goods or
23 services from a retail seller from whom he has previously
24 purchased goods or services under one or more retail
25 installment contracts, and the amounts under the previous
26 contract or contracts have not been fully paid, the
27 subsequent purchases may, at the seller's option, be included
28 in and consolidated with one or more of the previous
29 contracts. Each subsequent purchase must be evidenced by a
30 separate retail installment contract under this Act,
31 notwithstanding that the purchase may be included in and
32 consolidated with one or more of those in the previous
33 contracts. All of the provisions of this Act with respect to
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1 retail installment contracts apply to these subsequent
2 purchases except as otherwise provided in this Section. If
3 installment purchases are consolidated, the seller may,
4 instead of having the buyer execute a retail installment
5 contract for each subsequent purchase as provided in this
6 Act, prepare a written memorandum of each subsequent
7 purchase, in which case Sections 3 and 14 and paragraph (a)
8 of Section 5 do not apply. Unless previously furnished in
9 writing to the buyer by the seller, by sales slip, memoranda
10 or otherwise, the memorandum must set forth with respect to
11 each subsequent purchase the following:
12 (1) All items of disclosure required by Section 5 of
13 this Act for a retail installment contract; and
14 (2) the outstanding balance of the previous contract or
15 contracts;
16 (3) the consolidated balance;
17 (4) the deferred payment price of the subsequent
18 purchase; and
19 (5) the revised Total of Payments applicable to the
20 previous contract or contracts and the subsequent purchase.
21 The seller must deliver to the buyer a copy of this
22 memorandum before the due date of the first installment under
23 the consolidated contract.
24 (Source: P.A. 76-1780.)
25 (815 ILCS 405/23.1 new)
26 Sec. 23.1. Other fees. The seller may charge a premium
27 for insurance, in lieu of perfecting a security interest, to
28 the extent that the premium does not exceed the fees paid to
29 public officials for determining the existence of or for
30 perfecting or satisfying a security interest. The premium
31 must be disclosed in the itemization of the amount financed.
32 (815 ILCS 405/24) (from Ch. 121 1/2, par. 524)
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1 Sec. 24. Retail installment contracts negotiated and
2 entered into by mail or telephone without personal
3 solicitation by salesmen or other representatives of the
4 seller and based upon a catalog of the seller or other
5 printed solicitation clearly setting forth the cash sale
6 prices and other terms of sales to be made through that
7 medium, may be made as provided in this Section. The
8 provisions of this Act with respect to retail installment
9 contracts apply to those sales, except that: (1) the
10 designation and notice provisions of paragraphs (b) and (c)
11 of Section 3 are inapplicable to such contracts.;
12 (2) the retail installment contract, when completed by
13 the buyer, need not contain the items required by paragraph
14 (a) of Section 5.
15 When an order is received from the retail buyer, the
16 seller must prepare a written memorandum containing all of
17 the information required by paragraph (a) of Section 5 to be
18 included in a retail installment contract. Instead of
19 delivering a copy of the contract to the retail buyer as
20 provided in Section 14, the seller must, before the due date
21 of the first installment payable under the contract, deliver
22 to the buyer a written statement setting forth all the
23 information required by paragraph (a) of Section 5.
24 (Source: Laws 1967, p. 2149.)
25 (815 ILCS 405/27) (from Ch. 121 1/2, par. 527)
26 Sec. 27. (a) Notwithstanding the provisions of any other
27 statute, a retail installment contract may provide for, and
28 the seller or holder may, if the contract does so provide,
29 charge, collect and receive, a finance charge computed on the
30 principal balance from the date of the contract to the due
31 date of the final installment at not exceeding the following
32 rates:
33 (1) on so much of the principal balance as does not
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1 exceed $500--$16 per $100 per year;
2 (2) on so much of the principal balance exceeding $500
3 but not exceeding $800--$14 per $100 per year;
4 (3) on so much of the principal balance as exceeds
5 $800--$12 per $100 per year on the excess.
6 (b) A minimum finance charge not in excess of the
7 following amounts may be charged on any retail installment
8 contract: $12 on any retail installment contract involving an
9 initial principal balance of $50 or more; $7.50 on a retail
10 installment contract involving an initial principal balance
11 of more than $25 and less than $50; and $5 on a retail
12 installment contract involving an initial principal balance
13 of $25 or less.
14 (c) Notwithstanding the provisions of any other statute,
15 and notwithstanding the rate limitations expressed in
16 subdivisions (a) and (b) of this Section, for retail
17 installment contracts executed after the effective date of
18 this amendatory Act of 1981, there shall be no limit on the
19 finance charges which may be charged, collected and received.
20 (Source: P.A. 82-660.)
21 (815 ILCS 405/28) (from Ch. 121 1/2, par. 528)
22 Sec. 28. (a) Notwithstanding the provisions of any other
23 statute, a retail charge agreement may provide for, and the
24 seller or holder may, if the agreement does so provide,
25 charge, collect and receive, a finance charge not exceeding
26 18¢ per $10 per month, computed on all amounts unpaid
27 thereunder from month to month, which need not be a calendar
28 month. The finance charge under this Section may be computed
29 for all unpaid balances from month to month within a range of
30 not exceeding $10 on the basis of the median amount within
31 the range if, as so computed, the same rate of finance charge
32 is applied to all unpaid balances within the range. If the
33 amount of the finance charge as so computed is less than 70¢
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1 for any month, a finance charge of that amount may be
2 charged, collected and received for that month. If the
3 regular period is other than a month to month period, the
4 finance charge shall be computed proportionately.
5 (b) Notwithstanding the provisions of any other statute,
6 and notwithstanding the limitations on amounts of finance
7 charges which may be charged, collected and received
8 expressed in subsection (a) of this Section, a retail charge
9 agreement may provide for the charging, collection and
10 receipt of finance charges at any specified rate on the for
11 unpaid balances incurred after the effective date of this
12 amendatory Act of 1981. If a seller or holder under a retail
13 charge agreement entered into on, prior to or after the
14 effective date of this amendatory Act of 1981 notifies the
15 retail buyer at least 15 30 days in advance of any lawful
16 increase in the finance charges to be charged under the
17 agreement, and the retail buyer, after the effective date of
18 such notice, makes a new or additional purchase or incurs
19 additional debt pursuant to the agreement, the increased
20 finance charges may be applied only to any such new or
21 additional purchase or additional debt incurred regardless of
22 any other terms of the agreement. For purposes of
23 determining the balances to which the increased interest rate
24 applies, all payments and other credits may be deemed to be
25 applied to the balance existing prior to the change in rate
26 until that balance is paid in full.
27 (Source: P.A. 82-660.)
28 (815 ILCS 405/31) (from Ch. 121 1/2, par. 531)
29 Sec. 31. (a) Any person who knowingly violates this Act
30 is guilty of a Class A misdemeanor.
31 (b) No person who violates this Act, except as a result
32 of an accident or bona fide error of computation, may recover
33 any finance charge, any delinquency or collection charge or
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1 any refinance charge in connection with the related retail
2 installment contract or retail charge agreement.
3 (c) A claim of violation of this Act may be asserted in
4 an individual action.
5 (Source: P.A. 77-2265.)
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1 INDEX
2 Statutes amended in order of appearance
3 205 ILCS 660/2 from Ch. 17, par. 5202
4 205 ILCS 660/3 from Ch. 17, par. 5203
5 205 ILCS 660/4 from Ch. 17, par. 5204
6 205 ILCS 660/5 from Ch. 17, par. 5205
7 205 ILCS 660/6 from Ch. 17, par. 5206
8 205 ILCS 660/7 from Ch. 17, par. 5207
9 205 ILCS 660/8 from Ch. 17, par. 5208
10 205 ILCS 660/8.1 from Ch. 17, par. 5209
11 205 ILCS 660/8.2 from Ch. 17, par. 5210
12 205 ILCS 660/8.3 from Ch. 17, par. 5211
13 205 ILCS 660/8.4 from Ch. 17, par. 5212
14 205 ILCS 660/8.6 from Ch. 17, par. 5214
15 205 ILCS 660/8.8 from Ch. 17, par. 5216
16 205 ILCS 660/8.9 from Ch. 17, par. 5217
17 205 ILCS 660/8.10 from Ch. 17, par. 5218
18 205 ILCS 660/8.11 from Ch. 17, par. 5219
19 205 ILCS 660/8.13 from Ch. 17, par. 5221
20 205 ILCS 660/8.14 new
21 205 ILCS 660/10 from Ch. 17, par. 5223
22 205 ILCS 660/10.1 from Ch. 17, par. 5224
23 205 ILCS 660/10.2 from Ch. 17, par. 5225
24 205 ILCS 660/11 from Ch. 17, par. 5229
25 205 ILCS 660/12 from Ch. 17, par. 5230
26 205 ILCS 660/13 from Ch. 17, par. 5231
27 205 ILCS 660/14 from Ch. 17, par. 5232
28 205 ILCS 660/15 from Ch. 17, par. 5233
29 205 ILCS 660/15.5 new
30 205 ILCS 660/16.5 new
31 205 ILCS 660/18 new
32 205 ILCS 660/19 new
33 205 ILCS 660/20 new
34 205 ILCS 660/8.7 rep.
-87- LRB9004659SMdv
1 205 ILCS 660/9 rep.
2 205 ILCS 660/10.5 rep.
3 205 ILCS 660/16 rep.
4 205 ILCS 670/Act title
5 205 ILCS 670/1 from Ch. 17, par. 5401
6 205 ILCS 670/2 from Ch. 17, par. 5402
7 205 ILCS 670/4 from Ch. 17, par. 5404
8 205 ILCS 670/5 from Ch. 17, par. 5405
9 205 ILCS 670/7 from Ch. 17, par. 5407
10 205 ILCS 670/8 from Ch. 17, par. 5408
11 205 ILCS 670/9 from Ch. 17, par. 5409
12 205 ILCS 670/9.1 new
13 205 ILCS 670/10 from Ch. 17, par. 5410
14 205 ILCS 670/11 from Ch. 17, par. 5411
15 205 ILCS 670/12 from Ch. 17, par. 5412
16 205 ILCS 670/12.5 new
17 205 ILCS 670/13 from Ch. 17, par. 5413
18 205 ILCS 670/14 from Ch. 17, par. 5414
19 205 ILCS 670/15 from Ch. 17, par. 5415
20 205 ILCS 670/15a from Ch. 17, par. 5416
21 205 ILCS 670/15b from Ch. 17, par. 5417
22 205 ILCS 670/15d from Ch. 17, par. 5419
23 205 ILCS 670/15e from Ch. 17, par. 5419.1
24 205 ILCS 670/16 from Ch. 17, par. 5420
25 205 ILCS 670/17 from Ch. 17, par. 5423
26 205 ILCS 670/18 from Ch. 17, par. 5424
27 205 ILCS 670/19.1 from Ch. 17, par. 5425.1
28 205 ILCS 670/19.5 new
29 205 ILCS 670/20 from Ch. 17, par. 5426
30 205 ILCS 670/20.5 new
31 205 ILCS 670/20.7 new
32 205 ILCS 670/21 from Ch. 17, par. 5427
33 205 ILCS 670/22 from Ch. 17, par. 5428
34 205 ILCS 670/23 from Ch. 17, par. 5429
-88- LRB9004659SMdv
1 205 ILCS 670/24.5 new
2 205 ILCS 670/3 rep.
3 205 ILCS 670/4.1 rep.
4 205 ILCS 670/6 rep.
5 205 ILCS 670/19 rep.
6 205 ILCS 670/24 rep.
7 815 ILCS 375/2 from Ch. 121 1/2, par. 562
8 815 ILCS 375/2.5 from Ch. 121 1/2, par. 562.5
9 815 ILCS 375/2.7 from Ch. 121 1/2, par. 562.7
10 815 ILCS 375/2.9 from Ch. 121 1/2, par. 562.9
11 815 ILCS 375/2.11 from Ch. 121 1/2, par. 562.11
12 815 ILCS 375/2.12 from Ch. 121 1/2, par. 562.12
13 815 ILCS 375/2.14 new
14 815 ILCS 375/2.15 new
15 815 ILCS 375/3 from Ch. 121 1/2, par. 563
16 815 ILCS 375/4 from Ch. 121 1/2, par. 564
17 815 ILCS 375/5 from Ch. 121 1/2, par. 565
18 815 ILCS 375/6 from Ch. 121 1/2, par. 566
19 815 ILCS 375/7 from Ch. 121 1/2, par. 567
20 815 ILCS 375/8 from Ch. 121 1/2, par. 568
21 815 ILCS 375/9 from Ch. 121 1/2, par. 569
22 815 ILCS 375/9.02 from Ch. 121 1/2, par. 569.02
23 815 ILCS 375/9.03 new
24 815 ILCS 375/10 from Ch. 121 1/2, par. 570
25 815 ILCS 375/11 from Ch. 121 1/2, par. 571
26 815 ILCS 375/11.2 new
27 815 ILCS 375/13 from Ch. 121 1/2, par. 573
28 815 ILCS 375/15 from Ch. 121 1/2, par. 575
29 815 ILCS 375/17.1 new
30 815 ILCS 375/20 from Ch. 121 1/2, par. 580
31 815 ILCS 375/21 from Ch. 121 1/2, par. 581
32 815 ILCS 375/24 from Ch. 121 1/2, par. 584
33 815 ILCS 405/2 from Ch. 121 1/2, par. 502
34 815 ILCS 405/2.9 from Ch. 121 1/2, par. 502.9
-89- LRB9004659SMdv
1 815 ILCS 405/2.11 from Ch. 121 1/2, par. 502.11
2 815 ILCS 405/2.13 from Ch. 121 1/2, par. 502.13
3 815 ILCS 405/2.16 new
4 815 ILCS 405/2.17 new
5 815 ILCS 405/3 from Ch. 121 1/2, par. 503
6 815 ILCS 405/5 from Ch. 121 1/2, par. 505
7 815 ILCS 405/6 from Ch. 121 1/2, par. 506
8 815 ILCS 405/7 from Ch. 121 1/2, par. 507
9 815 ILCS 405/8 from Ch. 121 1/2, par. 508
10 815 ILCS 405/9 from Ch. 121 1/2, par. 509
11 815 ILCS 405/11 from Ch. 121 1/2, par. 511
12 815 ILCS 405/11.1 new
13 815 ILCS 405/12 from Ch. 121 1/2, par. 512
14 815 ILCS 405/12.1 new
15 815 ILCS 405/13 from Ch. 121 1/2, par. 513
16 815 ILCS 405/14 from Ch. 121 1/2, par. 514
17 815 ILCS 405/21 from Ch. 121 1/2, par. 521
18 815 ILCS 405/23.1 new
19 815 ILCS 405/24 from Ch. 121 1/2, par. 524
20 815 ILCS 405/27 from Ch. 121 1/2, par. 527
21 815 ILCS 405/28 from Ch. 121 1/2, par. 528
22 815 ILCS 405/31 from Ch. 121 1/2, par. 531