TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 210 PAYDAY LOAN REFORM ACT
SECTION 210.70 PAYMENTS AND REFUNDS
Section 210.70 Payments and Refunds
a) All payments shall be credited on the account record as of the date received.
b) When a payment is made in cash, the licensee shall give a receipt to the consumer. A receipt is not required for payment by check or money order unless requested by the consumer.
c) When any loan contract is paid in full, the licensee shall refund any unearned finance charge. Refunds of unearned finance charges for installment payday loans shall be paid to the consumer in cash, check or an Automated Clearing House (ACH) debit. The unearned finance charge that is refunded shall be calculated based on a method that is at least as favorable to the consumer as the actuarial method, as defined by the federal Truth in Lending Act (15 USC 1601 et seq.) and Regulation Z, Appendix J (12 CFR 226 (2011); this incorporation by reference includes no subsequent dates or editions). The Department will post to its website a method of rebate calculation that conforms with Appendix J. Licensees may submit to the Department requests for approval of additional methods of rebate calculation that conform to Appendix J. All methods approved by the Department will be posted on the Department's website. The Department shall make its best efforts to respond to all licensee requests for use of a method. The use of any posted method will constitute compliance with the requirements of this subsection (c). The sum of the digits or rule of 78 method of calculating prepaid interest refunds is prohibited.
(Source: Amended at 35 Ill. Reg. 7343, effective April 21, 2011)