HB4873 EngrossedLRB100 18031 JLS 33219 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Payday Loan Reform Act is amended by
5changing Sections 2-10 and 2-15 as follows:
 
6    (815 ILCS 122/2-10)
7    Sec. 2-10. Permitted fees.
8    (a) If there are insufficient funds to pay a check,
9Automatic Clearing House (ACH) debit, or any other item
10described in the definition of payday loan under Section 1-10
11on the day of presentment and only after the lender has
12incurred an expense, a lender may charge a fee not to exceed
13$25. Only one such fee may be collected by the lender with
14respect to a particular check, ACH debit, or item even if it
15has been deposited and returned more than once. A lender shall
16present the check, ACH debit, or other item described in the
17definition of payday loan under Section 1-10 for payment not
18more than twice. A fee charged under this subsection (a) is a
19lender's exclusive charge for late payment.
20    (a-5) A lender may charge a borrower a fee not to exceed $1
21for the verification required under Section 2-15 of this Act in
22connection with a payday loan and, until July 1, 2020, in
23connection with an installment payday loan. Beginning July 1,

 

 

HB4873 Engrossed- 2 -LRB100 18031 JLS 33219 b

12020, a lender may charge a borrower a fee not to exceed $3 for
2the verification required under Section 2-15 of this Act in
3connection with an installment payday loan. In no event may a
4fee be greater than the amount charged by the certified
5consumer reporting service. Only one such fee may be collected
6by the lender with respect to a particular loan.
7    (b) Except for the finance charges described in Section 2-5
8and as specifically allowed by this Section, a lender may not
9impose on a consumer any additional finance charges, interest,
10fees, or charges of any sort for any purpose.
11(Source: P.A. 96-936, eff. 3-21-11.)
 
12    (815 ILCS 122/2-15)
13    Sec. 2-15. Verification.
14    (a) Before entering into a loan agreement with a consumer,
15a lender must use a commercially reasonable method of
16verification to verify that the proposed loan agreement is
17permissible under this Act.
18    (b) Within 6 months after the effective date of this Act,
19the Department shall certify that one or more consumer
20reporting service databases are commercially reasonable
21methods of verification. Upon certifying that a consumer
22reporting service database is a commercially reasonable method
23of verification, the Department shall:
24        (1) provide reasonable notice to all licensees
25    identifying the commercially reasonable methods of

 

 

HB4873 Engrossed- 3 -LRB100 18031 JLS 33219 b

1    verification that are available; and
2        (2) immediately upon certification, require each
3    licensee to use a commercially reasonable method of
4    verification as a means of complying with subsection (a) of
5    this Section.
6    (c) Except as otherwise provided in this Section, all
7personally identifiable information regarding any consumer
8obtained by way of the certified database and maintained by the
9Department is strictly confidential and shall be exempt from
10disclosure under Section 7(1)(b)(i) of the Freedom of
11Information Act.
12    (d) Notwithstanding any other provision of law to the
13contrary, a consumer seeking a payday loan may make a direct
14inquiry to the consumer reporting service to request a more
15detailed explanation of the basis for a consumer reporting
16service's determination that the consumer is ineligible for a
17new payday loan.
18    (e) In certifying a commercially reasonable method of
19verification, the Department shall ensure that the certified
20database:
21        (1) provides real-time access through an Internet
22    connection or, if real-time access through an Internet
23    connection becomes unavailable to lenders due to a consumer
24    reporting service's technical problems incurred by the
25    consumer reporting service, through alternative
26    verification mechanisms, including, but not limited to,

 

 

HB4873 Engrossed- 4 -LRB100 18031 JLS 33219 b

1    verification by telephone;
2        (2) is accessible to the Department and to licensees in
3    order to ensure compliance with this Act and in order to
4    provide any other information that the Department deems
5    necessary;
6        (3) requires licensees to input whatever information
7    is required by the Department;
8        (4) maintains a real-time copy of the required
9    reporting information that is available to the Department
10    at all times and is the property of the Department;
11        (5) provides licensees only with a statement that a
12    consumer is eligible or ineligible for a new payday loan
13    and a description of the reason for the determination; and
14        (6) contains safeguards to ensure that all information
15    contained in the database regarding consumers is kept
16    strictly confidential.
17    (f) The licensee shall update the certified database by
18inputting all information required under item (3) of subsection
19(e):
20        (1) on the same day that a payday loan is made;
21        (2) on the same day that a consumer elects a repayment
22    plan, as provided in Section 2-40; and
23        (3) on the same day that a consumer's payday loan is
24    paid in full, including the refinancing of an installment
25    payday loan as permitted under subsection (c) of Section
26    2-5.

 

 

HB4873 Engrossed- 5 -LRB100 18031 JLS 33219 b

1    (g) A licensee may rely on the information contained in the
2certified database as accurate and is not subject to any
3administrative penalty or liability as a result of relying on
4inaccurate information contained in the database.
5    (h) The certified consumer reporting service shall
6indemnify the licensee against all claims and actions arising
7from illegal or willful or wanton acts on the part of the
8certified consumer reporting service.
9    (i) The certified consumer reporting service may charge a
10verification fee not to exceed $1 upon a loan being made or
11entered into in the database. Beginning July 1, 2020, the
12certified consumer reporting service may charge a verification
13fee not to exceed $3 for an installment payday loan being made
14or entered into the data base. The certified consumer reporting
15service shall not charge any additional fees or charges.
16(Source: P.A. 96-936, eff. 3-21-11.)