State of Illinois
Public Acts
92^nd General Assembly

Public Act 92-0664

HB4106 Enrolled                                LRB9214871JSpc

    AN ACT concerning tax anticipation loans.

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

    Section 1.  Short title. This Act may be cited as the Tax
Refund Anticipation Loan Disclosure Act.

    Section  5.  Definitions. The following definitions apply
in this Act:
    "Facilitator" means  a  person  who  individually  or  in
conjunction or cooperation with another person makes a refund
anticipation   loan,  processes,  receives,  or  accepts  for
delivery an  application  for  a  refund  anticipation  loan,
issues  a  check  in  payment  of  refund  anticipation  loan
proceeds,  or in any other manner acts to allow the making of
a refund anticipation loan. "Facilitator" does not include  a
bank, savings and loan association, credit union, or licensee
under  the  Consumer Installment Loan Act operating under the
laws of the United States or this State and does not  include
any  person  who  acts solely as an intermediary and does not
deal with the public in the making of the refund anticipation
loan.
    "Borrower" means a person who receives the proceeds of  a
refund anticipation loan.
    "Refund  anticipation  loan"  means a loan arranged to be
repaid directly from the proceeds of a borrower's income  tax
refunds.
    "Refund  anticipation  loan fee" means the charges, fees,
or other consideration charged or imposed by the  facilitator
for  the  making  of  a  refund  anticipation loan. A "refund
anticipation loan fee" does not  include  charges,  fees,  or
other consideration charged or imposed in the ordinary course
of  business by a facilitator for services that do not result
in the making of  a  loan,  including  fees  for  tax  return
preparation and fees for electronic filing of tax returns.

    Section  10.  Disclosure  requirements.   At  the  time a
borrower  applies  for  a   refund   anticipation   loan,   a
facilitator shall disclose to the borrower on a document that
is separate from the loan application:
         (1)  the refund anticipation loan fee schedule;
         (2)  the    estimated    fee   for   preparing   and
    electronically filing a tax return;
         (3)  the estimated date that the loan proceeds  will
    be paid to the borrower if the loan is approved;
         (4)  that  the borrower is responsible for repayment
    of the loan and related fees in the event the tax  refund
    is not paid or not paid in full; and
         (5)  the  availability  of electronic filing for the
    income tax return of the borrower and  the  average  time
    announced  by the federal Internal Revenue Service within
    which the borrower can expect to receive a refund if  the
    borrower's   return   is  filed  electronically  and  the
    borrower does not obtain a refund anticipation loan.

    Section 15.  Penalty. Any person who violates this Act is
guilty of a petty offense and shall be fined  $500  for  each
offense.  In  addition,  a  facilitator who violates this Act
shall be liable to any aggrieved borrower in an amount  equal
to   3  times  the  refund  anticipation  loan  fee,  plus  a
reasonable attorney's fee, in a civil action brought  in  the
circuit  court  by  the aggrieved borrower or by the Attorney
General on behalf of the aggrieved borrower.

    Section 99.  Effective date. This  Act  takes  effect  on
January 1, 2003.
    Passed in the General Assembly May 07, 2002.
    Approved July 16, 2002.
    Effective January 01, 2003.