TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110 CONSUMER INSTALLMENT LOAN ACT
SECTION 110.370 LENDING LIMITS AND REFINANCING
Section 110.370 Lending Limits and Refinancing
a) A title-secured loan may not exceed $4,000 in principal amount. However, no loan shall be made in such amount that the principal and interest payment for any one monthly payment on the loan exceeds 50% of the obligor's gross monthly income, except to the extent that loan prepayment is allowed by Section 16(j) of the Act.
b) Title-Secured Loan Refinancing
1) A title-secured loan may be refinanced, but only when the original principal of the loan has been reduced by at least 20%.
2) The principal amount of the new title-secured loan may not exceed the total outstanding balance of the refinanced loan.
c) No loan, other than the refinancing of an existing title-secured loan, may be made to an obligor who has had an outstanding title-secured loan within the preceding 15 days. No loan, other than the refinancing of an existing title-secured loan, may be made within 15 days after the occurrence of any event listed in Section 110.420(h)(4)(A) through (D) or within 15 days after the maturity date of a title-secured loan.
d) The loan agreement must include a separate statement signed by the obligor attesting that the obligor has not had an outstanding title-secured loan within the preceding 15 days. This subsection shall not apply if the Director has approved a database pursuant to subsection (g).
e) The loan agreement shall advise the obligor that matters involving improprieties in the making of the loan or in loan collection practices may be referred to the Division and shall prominently disclose the Division's address and telephone number.
f) Each title-secured loan refinancing agreement executed by a licensee shall include a statement, which shall be initialed by the obligor, as follows: "I have received from (name of lender) a toll free number from the Department of Financial and Professional Regulation-Division of Financial Institutions that I can call for information regarding debt management service."
g) Before entering into a loan agreement or refinancing agreement with an obligor, the lender shall use a database approved by the Director to verify that the proposed loan agreement or refinancing agreement is permissible under this Section.
(Source: Amended at 33 Ill. Reg. 4142, effective April 1, 2009)