Rep. Lou Lang

Filed: 4/4/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4873

2    AMENDMENT NO. ______. Amend House Bill 4873 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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

 

 

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1methods of verification. Upon certifying that a consumer
2reporting service database is a commercially reasonable method
3of verification, the Department shall:
4        (1) provide reasonable notice to all licensees
5    identifying the commercially reasonable methods of
6    verification that are available; and
7        (2) immediately upon certification, require each
8    licensee to use a commercially reasonable method of
9    verification as a means of complying with subsection (a) of
10    this Section.
11    (c) Except as otherwise provided in this Section, all
12personally identifiable information regarding any consumer
13obtained by way of the certified database and maintained by the
14Department is strictly confidential and shall be exempt from
15disclosure under Section 7(1)(b)(i) of the Freedom of
16Information Act.
17    (d) Notwithstanding any other provision of law to the
18contrary, a consumer seeking a payday loan may make a direct
19inquiry to the consumer reporting service to request a more
20detailed explanation of the basis for a consumer reporting
21service's determination that the consumer is ineligible for a
22new payday loan.
23    (e) In certifying a commercially reasonable method of
24verification, the Department shall ensure that the certified
25database:
26        (1) provides real-time access through an Internet

 

 

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1    connection or, if real-time access through an Internet
2    connection becomes unavailable to lenders due to a consumer
3    reporting service's technical problems incurred by the
4    consumer reporting service, through alternative
5    verification mechanisms, including, but not limited to,
6    verification by telephone;
7        (2) is accessible to the Department and to licensees in
8    order to ensure compliance with this Act and in order to
9    provide any other information that the Department deems
10    necessary;
11        (3) requires licensees to input whatever information
12    is required by the Department;
13        (4) maintains a real-time copy of the required
14    reporting information that is available to the Department
15    at all times and is the property of the Department;
16        (5) provides licensees only with a statement that a
17    consumer is eligible or ineligible for a new payday loan
18    and a description of the reason for the determination; and
19        (6) contains safeguards to ensure that all information
20    contained in the database regarding consumers is kept
21    strictly confidential.
22    (f) The licensee shall update the certified database by
23inputting all information required under item (3) of subsection
24(e):
25        (1) on the same day that a payday loan is made;
26        (2) on the same day that a consumer elects a repayment

 

 

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1    plan, as provided in Section 2-40; and
2        (3) on the same day that a consumer's payday loan is
3    paid in full, including the refinancing of an installment
4    payday loan as permitted under subsection (c) of Section
5    2-5.
6    (g) A licensee may rely on the information contained in the
7certified database as accurate and is not subject to any
8administrative penalty or liability as a result of relying on
9inaccurate information contained in the database.
10    (h) The certified consumer reporting service shall
11indemnify the licensee against all claims and actions arising
12from illegal or willful or wanton acts on the part of the
13certified consumer reporting service.
14    (i) The certified consumer reporting service may charge the
15following a verification fees fee not to exceed $1 upon a loan
16being made or entered into in the database: (1) a fee not to
17exceed $1 for a payday loan or (2) a fee not to exceed $3 for an
18installment payday loan. The certified consumer reporting
19service shall not charge any additional fees or charges.
20(Source: P.A. 96-936, eff. 3-21-11.)".