92nd General Assembly
Summary of HB4106
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House Sponsors:
COLVIN-HOWARD-YARBROUGH-FLOWERS-BROSNAHAN, HOFFMAN, 
   MILLER, FRITCHEY, FEIGENHOLTZ, JEFFERSON, TURNER,ART, 
   DART AND LYONS,JOSEPH.

Senate Sponsors:
SULLIVAN

Short description: 
TAX REFUND ANTICIPATION LOANS                                              

Synopsis of Bill as introduced:
        Create the Tax Refund Anticipation  Loan  Act.  Requires  persons      
   engaged   in  the  business  of  making  or  facilitating  tax  refund      
   anticipation loans  to  register  with  the  Department  of  Financial      
   Institutions. Provides that certain disclosures regarding interest and      
   fees  must  be made in conjunction with tax refund anticipation loans.      
   Authorizes the Department of Financial Institutions  to  impose  civil      
   penalties   for   violation.  Provides  borrowers  a  private  remedy.      
   Authorizes  the  award  of  attorney's  fees.  Provides  that  certain      
   violations constitute a Class A misdemeanor. Effective July 1, 2002.        
          HOME RULE NOTE                                                       
          (Illinois Department of Commerce and Community Affairs)              
          HB 4106 concerns the Department of Financial Institutions and        
          private industry. The legislation does not affect a unit of          
          local government, nor does it pre-empt home rule powers.             
          Therefore, in the opinion of DCCA, HB 4106 does not pre-empt         
          home rule authority.                                                 
        HOUSE AMENDMENT NO. 1.                                                 
        Replaces everything after the enacting clause.  Creates  the  Tax      
   Refund  Anticipation  Loan  Disclosure Act.  Requires persons who make      
   tax  refund  anticipation  loans  to  make  specific  disclosures   to      
   borrowers  concerning  fees, the date loan proceeds will be disbursed,      
   and the average time within which refunds may be expected with  regard      
   to  electronically  filed  tax  returns.  Eliminates  the  role of the      
   Department of Financial Institutions. Effective July 1, 2002.               
        HOUSE AMENDMENT NO. 2.                                                 
        Changes  the  term  "creditor"  to  "facilitator"  and  the  term      
   "debtor"  to  "borrower".   Excludes  licensees  under  the   Consumer      
   Installment  Loan  Act from the scope of the Act.  Requires disclosure      
   of a fee schedule rather than of the fee for a tax refund anticipation      
   loan.  Effective January 1, 2003.                                           
        HOUSE AMENDMENT NO. 3.                                                 
        Changes  the  term  "creditor"  to  "facilitator"  and  the  term      
   "debtor"  to  "borrower".   Excludes  licensees  under  the   Consumer      
   Installment  Loan  Act from the scope of the Act.  Requires disclosure      
   of a fee schedule rather than of the fee for a tax refund anticipation      
   loan. Requires disclosure of the estimated date that loan proceeds          
   will be paid if the loan is approved. Effective January 1, 2003.            
          FISCAL NOTE, H-AM 3 (Attorney General)                               
          This bill will not have a measurable fiscal impact on the            
          Attorney General Office. Because the number of referrals DFI         
          may make under this Act is unknown, it is difficult to               
          precisely predict a fiscal impact, although it is not expected       
          that fiscal impact would be significant.                             
 
Last action on Bill: PUBLIC ACT.............................. 92-0664

   Last action date: JUL-16-2002

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   3     SENATE -   0


   END OF INQUIRY 



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