Sen. Terry Link

Filed: 3/17/2010

 

 


 

 


 
09600SB2480sam002 LRB096 14868 RPM 39177 a

1
AMENDMENT TO SENATE BILL 2480

2     AMENDMENT NO. ______. Amend Senate Bill 2480, AS AMENDED,
3 with reference to page and line numbers of Senate Amendment No.
4 1, as follows:
 
5 on page 6, by replacing lines 19 through 23 with the following:
6 "Secretary in which the applicant shall be the obligor and in
7 which an insurance company, which is duly authorized by the
8 State of Illinois to transact the business of fidelity and
9 surety insurance, shall be a surety. The surety bond must:
10         (i) be in effect during the period of registration and
11     for 2 years after the provider ceases providing
12     debt-management services to individuals in this State;
13         (ii) run to this State for the benefit of this State
14     and of individuals who reside in this State when they agree
15     to receive debt-settlement services from the provider, as
16     their interests may appear; and
17         (iii) be in the amount of $50,000 or other larger or

 

 

09600SB2480sam002 - 2 - LRB096 14868 RPM 39177 a

1     smaller amount that the Secretary determines is warranted
2     by the financial condition and business experience of the
3     provider, the history of the provider in performing debt
4     settlement services, the risk to individuals, and any other
5     factor that the Secretary considers appropriate."; and
 
6 on page 7, immediately below line 10, by inserting the
7 following:
8     "Instead of the surety bond required under this Section, a
9 provider may deliver to the Secretary, in the amount required
10 under this Section, payable or available to this State and to
11 individuals who reside in this State when they agree to receive
12 debt-settlement services from the provider, as their interests
13 may appear:
14         (1) a certificate of insurance:
15             (A) issued by an insurance company authorized to do
16         business in this State and rated at least A or
17         equivalent by a nationally recognized rating
18         organization approved by the Secretary; and
19             (B) with no deductible, or if the provider supplies
20         a bond in the amount of $5,000, a deductible not
21         exceeding $5,000; or
22         (2) with the approval of the Secretary:
23             (A) an irrevocable letter of credit, issued or
24         confirmed by a bank approved by the Secretary, payable
25         upon presentation of a certificate by the Secretary

 

 

09600SB2480sam002 - 3 - LRB096 14868 RPM 39177 a

1         stating that the provider or its agent has not complied
2         with this Act; or
3             (B) bonds or other obligations of the United States
4         or guaranteed by the United States or bonds or other
5         obligations of this State or a political subdivision of
6         this State, to be deposited and maintained with a bank
7         approved by the Secretary for this purpose."; and
 
8 by replacing line 23 on page 31 through line 19 on page 32 with
9 the following:
10     "(b) A debt settlement provider may only charge fees as
11 provided in either paragraph (1) or (2) as follows:
12         (1) with respect to an agreement that provides for a
13     flat pay-as-you-go fee based on the overall amount of
14     included or enrolled debt, the total aggregate amount of
15     fees charged to any individual under this Section may not
16     exceed 17% of the principal amount of debt included in the
17     agreement at the inception of the agreement; the flat
18     pay-as-you-go fee structure authorized under this
19     paragraph (1) shall be assessed in equal monthly payments
20     over at least half the length of the plan, as estimated at
21     the plan's inception, unless the payment of fees is
22     voluntarily accelerated by the individual in a separate
23     record and at least half of the overall amount of
24     outstanding debt covered by the agreement has been settled;
25     in the event that a consumer cancels a program being

 

 

09600SB2480sam002 - 4 - LRB096 14868 RPM 39177 a

1     administered under this fee structure, no further fees
2     shall be due, owing, or assessed by the provider following
3     the month in which notice of the termination of the program
4     is received by the provider; or
5         (2) with respect to agreements in which fees are
6     calculated as a percentage of the amount saved by an
7     individual, a settlement fee may not exceed 30% of the
8     excess of the outstanding amount of each debt over the
9     amount actually paid to the creditor, as calculated at the
10     time of settlement; settlement fees authorized under this
11     paragraph (2) shall become billable only as debts are
12     settled, and the total aggregate amount of fees charged to
13     any individual under this part may not exceed 20% of the
14     principal amount of debt included in the agreement at the
15     agreement's inception.
16     A provider may not impose or receive fees under both
17 paragraphs (1) and (2) of this subsection.".