Full Text of HB2468 101st General Assembly
HB2468ham003 101ST GENERAL ASSEMBLY | Rep. Emanuel Chris Welch Filed: 4/9/2019
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| 1 | | AMENDMENT TO HOUSE BILL 2468
| 2 | | AMENDMENT NO. ______. Amend House Bill 2468 on page 1, line | 3 | | 5, by changing "Section 15f" to "Sections 1.1 and 15f"; and
| 4 | | on page 1, by replacing lines 19 through 23 with the following: | 5 | | "Reform Act may obtain a license
under this Act . except that a
| 6 | | licensee under the Payday Loan Reform Act may obtain a license
| 7 | | under this Act for the exclusive purpose and use of making
| 8 | | title-secured loans, as defined in subsection (a) of Section
15 | 9 | | of this Act and governed by Title 38, Section 110.300 of the | 10 | | Illinois Administrative Code. For the purpose of this"; and
| 11 | | on page 2, by deleting line 1; and
| 12 | | on page 2, by inserting immediately below line 7 the following:
| 13 | | "(205 ILCS 670/1.1 new) | 14 | | Sec. 1.1. Dual licensure. A license under this Act that is |
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| 1 | | held by a licensee that holds a license under the Payday Loan | 2 | | Reform Act is valid only for the purpose of servicing loans | 3 | | made under this Act that are outstanding as of the effective | 4 | | date of this amendatory Act of the 101st General Assembly. A | 5 | | license under this Act held by a licensee that holds a license | 6 | | under the Payday Loan Reform Act is null and void with respect | 7 | | to making loans under this Act. The Director may adopt rules | 8 | | providing for the surrender of licenses subject to this | 9 | | Section. "; and
| 10 | | on page 4, by replacing lines 4 through 6 with the following: | 11 | | "not include a title-secured loan as defined by subsection (a)
| 12 | | of this Section or a payday loan as defined by the Payday
Loan | 13 | | Reform Act. " Small consumer loan" does not include a loan | 14 | | secured by a motor vehicle, including, but not limited to, | 15 | | loans in which, at commencement, an obligor provides or agrees | 16 | | to provide to the licensee physical possession of the obligor's | 17 | | title to a motor vehicle and loans in which the licensee | 18 | | perfects or seeks to perfect a lien on the obligor's title to a | 19 | | motor vehicle. "; and
| 20 | | on page 9, by replacing lines 21 through 25 with the following: | 21 | | " Sec. 15f. Title-secured loan rules repealed. 38 Ill. Adm. | 22 | | Code Chapter I, Part 110, Subpart B is repealed on the | 23 | | effective date of this amendatory Act of the 101st General | 24 | | Assembly. |
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| 1 | | Section 10. The Payday Loan Reform Act is amended by | 2 | | changing Section 4-10 as follows: | 3 | | (815 ILCS 122/4-10)
| 4 | | Sec. 4-10. Enforcement and remedies. | 5 | | (a) The remedies provided in this Act are cumulative and | 6 | | apply to persons
or entities subject to this Act.
| 7 | | (b) Any material violation of this Act, including the | 8 | | commission of an act prohibited under Section 4-5, constitutes | 9 | | a violation of the Consumer Fraud
and Deceptive Business | 10 | | Practices Act.
| 11 | | (c) If any provision of the written agreement described in | 12 | | subsection (b) of
Section 2-20 violates this Act, then that | 13 | | provision is unenforceable against the consumer. | 14 | | (d) Subject to the Illinois Administrative Procedure Act, | 15 | | the Secretary may hold hearings, make findings of fact, | 16 | | conclusions of law, issue cease
and desist orders, have the | 17 | | power to issue fines of up to $10,000 per violation, refer the | 18 | | matter to the appropriate law enforcement agency
for | 19 | | prosecution under this Act, and suspend or revoke a license | 20 | | granted
under this Act. All proceedings shall be open to the | 21 | | public. | 22 | | (e) The Secretary may issue a cease and desist order to any | 23 | | licensee or other person doing business without the required | 24 | | license, when in the opinion of the Secretary the licensee or |
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| 1 | | other person is violating or is about to violate any provision | 2 | | of this Act or any rule or requirement imposed in writing by | 3 | | the Department as a condition of granting any authorization | 4 | | permitted by this Act. The cease and desist order permitted by | 5 | | this subsection (e) may be issued prior to a hearing. | 6 | | The Secretary shall serve notice of his or her action, | 7 | | including, but not limited to, a statement of the reasons for | 8 | | the action, either personally or by certified mail, return | 9 | | receipt requested. Service by certified mail shall be deemed | 10 | | completed when the notice is deposited in the U.S. Mail. | 11 | | Within 10 days of service of the cease and desist order, | 12 | | the licensee or other person may request a hearing in writing.
| 13 | | The Secretary shall schedule a hearing within 30 days after the | 14 | | request for a hearing unless otherwise agreed to by the | 15 | | parties. | 16 | | If it is determined that the Secretary had the authority to | 17 | | issue the cease and desist order, he or she may issue such | 18 | | orders as may be reasonably necessary to correct, eliminate, or | 19 | | remedy the conduct. | 20 | | The powers vested in the Secretary by this subsection (e) | 21 | | are additional to any and all other powers and remedies vested | 22 | | in the Secretary by law, and nothing in this subsection (e) | 23 | | shall be construed as requiring that the Secretary shall employ | 24 | | the power conferred in this subsection instead of or as a | 25 | | condition precedent to the exercise of any other power or | 26 | | remedy vested in the Secretary. |
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| 1 | | (f) The Secretary may, after 10 days notice by registered | 2 | | mail to the licensee at the address set forth in the license | 3 | | stating the contemplated action and in general the grounds | 4 | | therefore, fine the licensee an amount not exceeding $10,000 | 5 | | per violation, or revoke or suspend any license issued | 6 | | hereunder if he or she finds that: | 7 | | (1) the licensee has failed to comply with any | 8 | | provision of this Act or any order, decision, finding, | 9 | | rule, regulation, or direction of the Secretary lawfully | 10 | | made pursuant to the authority of this Act; or | 11 | | (2) any fact or condition exists which, if it had | 12 | | existed at the time of the original application for the | 13 | | license, clearly would have warranted the Secretary in | 14 | | refusing to issue the license. | 15 | | The Secretary may fine, suspend, or revoke only the | 16 | | particular license with respect to which grounds for the fine, | 17 | | revocation, or suspension occur or exist, but if the Secretary | 18 | | finds that grounds for revocation are of general application to | 19 | | all offices or to more than one office of the licensee, the | 20 | | Secretary shall fine, suspend, or revoke every license to which | 21 | | the grounds apply. | 22 | | The Department shall establish by rule and publish a | 23 | | schedule of fines that are reasonably tailored to ensure | 24 | | compliance with the provisions of this Act and which include | 25 | | remedial measures intended to improve licensee compliance. | 26 | | Such rules shall set forth the standards and procedures to be |
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| 1 | | used in imposing any such fines and remedies. A licensee may, | 2 | | within 5 business days after the notice, take corrective action | 3 | | to mitigate any fine or contemplated action related to | 4 | | violations related to documents that were executed at the time | 5 | | of closing of the loan that are missing from files. | 6 | | No revocation, suspension, or surrender of any license | 7 | | shall impair or affect the obligation of any pre-existing | 8 | | lawful contract between the licensee and any obligor. | 9 | | The Secretary may issue a new license to a licensee whose | 10 | | license has been revoked when facts or conditions which clearly | 11 | | would have warranted the Secretary in refusing originally to | 12 | | issue the license no longer exist. | 13 | | In every case in which a license is suspended or revoked or | 14 | | an application for a license or renewal of a license is denied, | 15 | | the Secretary shall serve the licensee with notice of his or | 16 | | her action, including a statement of the reasons for his or her | 17 | | actions, either personally, or by certified mail, return | 18 | | receipt requested. Service by certified mail shall be deemed | 19 | | completed when the notice is deposited in the U.S. Mail. | 20 | | An order assessing a fine, an order revoking or suspending | 21 | | a license, or an order denying renewal of a license shall take | 22 | | effect upon service of the order unless the licensee requests a | 23 | | hearing, in writing, within 10 days after the date of service. | 24 | | In the event a hearing is requested, the order shall be stayed | 25 | | until a final administrative order is entered. | 26 | | If the licensee requests a hearing, the Secretary shall |
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| 1 | | schedule a hearing within 30 days after the request for a | 2 | | hearing unless otherwise agreed to by the parties. | 3 | | The hearing shall be held at the time and place designated | 4 | | by the Secretary. The Secretary and any administrative law | 5 | | judge designated by him or her shall have the power to | 6 | | administer oaths and affirmations, subpoena witnesses and | 7 | | compel their attendance, take evidence, and require the | 8 | | production of books, papers, correspondence, and other records | 9 | | or information that he or she considers relevant or material to | 10 | | the inquiry. | 11 | | (g) The costs of administrative hearings conducted | 12 | | pursuant to this Section shall be paid by the licensee.
| 13 | | (h) Notwithstanding any other provision of this Section, if | 14 | | a lender who does not have a license issued under this Act | 15 | | makes a loan pursuant to this Act to an Illinois consumer, then | 16 | | the loan shall be null and void and the lender who made the | 17 | | loan shall have no right to collect, receive, or retain any | 18 | | principal, interest, or charges related to the loan. | 19 | | (Source: P.A. 97-1039, eff. 1-1-13; 98-209, eff. 1-1-14.)"; and
| 20 | | by deleting all of pages 10 and 11.
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