Section 360.210  Forms

a)         Pawnshop Disclosure Of Business Activities Report (Disclosure Report).  This form is an annual report that shall be completed, by each pawnshop to disclose such information, for the preceding calendar year, as required by the Secretary pursuant to Section 10-25(c) of the Act. The Secretary, as often as the Secretary shall deem necessary or proper, may require a pawnshop to submit a full and detailed report of its operations, including, but not limited to, the number of pawns made, the amount financed on pawn transactions, and the number and amount of pawns surrendered to law enforcement.  The licensee must file the Disclosure Report with the Secretary no later than 30 calendar days following the end of each calendar year.

b)         Application For A Change In Control Or A Change In The Form Of Ownership Of An Illinois Pawnshop.  This form shall be completed, according to the Secretary's instructions, in order to apply for the approval of a change in control or a change in the form of ownership of a pawnshop as required in Section 360.150.  All requests for an application may be directed to the Department of Financial and Professional Regulation-Division of Banking, Pawnbroker Regulation Section, 320 W. Washington Street, Springfield IL  62786, Telephone (217) 785-2900, or can be found on the NMLS website at www.nmls.org and/or the Department website at www.idfpr.illinois.gov.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.300  Scope

All administrative hearings shall be conducted in accordance with 38 Ill. Adm. Code 100.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.310  Procedure for Hearings before the Secretary (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.400  Scope

The rules and procedures in this Subpart shall apply to proceedings in connection with an order issued by the Secretary pursuant to Section 10-5, 10-30, or 10-40 of the Act [205 ILCS 511/10-5, 10-30, 10-40].  The Secretary may issue an order to a licensee, applicant, principal party, employee, agent, person subject to the Act, or other entity doing business without the required license.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.410  Grounds for an Order (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.420  Effective Date of Order; Service

An order issued by the Secretary is effective when served upon the licensee, applicant, principal party, employee, agent, person subject to the Act, or other entity doing business without the required license.  All orders shall remain effective and enforceable when served, except to the extent they are stayed, modified, terminated, or set aside by the Secretary.  Service of an order shall be made upon every party of record by certified mail, return receipt requested.  Delivery to the United States Postal Service shall be presumed to constitute delivery to the respondent, agent, or other entity doing business without the required license.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.500  Scope

The rules and procedures of this Subpart shall apply to proceedings to assess and collect fines and penalties.  The Secretary has the power to assess fines and penalties pursuant to Section 10-5(12) & (17) and 10-30(h)(5) of the Act.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.510  Assessment of Penalties (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.520  Payment under and Service of an Order to Pay

a)         Payment. All fines and penalties collected under this Subpart shall be paid by certified check, money order, or other method of payment determined by the Division and be made payable to the Division through NMLS, where feasible.

b)         Service. Service of an order assessing a fine or penalty shall be made upon each respondent by certified mail, return receipt requested.  Delivery to the United States Postal Service shall be presumed to constitute delivery to the respondent.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.600  Scope

The rules and procedures in this Subpart shall apply to proceedings in connection with the suspension or revocation of license of a pawnshop pursuant to Section 10-30 of the Act.  The revocation or suspension of license shall not impair or affect the obligation of either the pawnbroker or the pledger to fulfill the terms of any preexisting memorandum, contract, or note.

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.610  Grounds for Suspension of License (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.620  Grounds for Revocation of License (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.630  Notice to Customers

If the Secretary enters an order revoking the license of a pawnshop, the Secretary shall, on the day the order becomes final, or such other day as the order prescribes, mail a written notification of revocation of license to all persons who have things in pledge at the most recent address listed on the pawn ticket.  The Secretary shall also publish the notification in two consecutive issues of a local newspaper of general circulation.  The Secretary shall be reimbursed by the licensee for all expenses incurred in connection with the notification.  The Notification of License Revocation shall include the information provided in substantially the following form:

NOTIFICATION OF LICENSE REVOCATION (centered, in caps and bold)

(DATE)

1.         Pursuant to Section 10-30(a) of the Pawnbroker Regulation Act of 2023 [205 ILCS 511/10-30(a)], the license of (name of pawnshop) has been revoked as of (the date the order becomes final).

2.         (Name and address of pawnshop) is no longer permitted to engage in the business of receiving property in pledge or as security for money or other thing advanced.

3.         The revocation of license shall not impair or affect the obligation of either the pawnbroker or the pledger to fulfill the terms of any preexisting memorandum, contract, or note.

4.         If you have a current business transaction with (name and address of pawnshop), you should contact (address and phone number of Secretary's agent) within 30 business days to make arrangements for the disposition of any business transaction.

5.         The grounds for the license revocation are (list all grounds as stated in the order).

(Source:  Amended at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.640  Effective Date of Revocation or Suspension; Service (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.700  Definitions (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.710  Temporary Buying Location Registration Fees (Repealed)

(Source:  Repealed at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.800  Application and Approval Process

a)         Before any person or entity can offer responsible pawnbroker training, it shall first apply to and receive approval as a vendor from the Department and pay the applicable fee.  The application submission window is the period between August 1^st and August 31^st of every fourth year beginning in 2024, during which the Department will receive applications to be approved as a responsible pawnbroker provider.  If the date falls on a holiday or weekend, the window is extended to the next business day.  The application submission window shall close at 5 PM Central Time on the final day on which applications are accepted.

b)         Applications for approval shall be submitted on forms provided by the Department and shall include:

1)         The first and last name of each responsible pawnbroker trainer currently employed by the program and the following document for each current trainer:

A)        A resume and/or a curriculum vitae;

B)        A written statement detailing the trainer's relevant experience; and

2)         A general outline of the Responsible Pawnbroker Training program;

3)         All training materials and curriculum consistent with Section 360.810;

4)         The application fee of $2,000 payable to the NMLS or to the Department in a form specified by the Director, which may include certified check, money order, or credit card.

c)         The application shall be signed by a representative of the entity applying to be a vendor certifying that all information contained in the application is true and accurate.

d)         All required materials shall be submitted during the application submission window.  The Department will not accept applications any other time.  Early or late applications will not be accepted.

e)         The Department will refuse to issue an approval to any applicant:

1)         Who is unqualified to perform the duties required of a vendor as specified in Section 10-65(a) of the Act;

2)         Who fails to disclose or makes misrepresentations of any information called for in the application;

3)         Who fails to provide all required application materials; or

4)         Who does not demonstrate knowledge of the rules and laws applicable to pawnbrokers in Illinois or demonstrates a misunderstanding of the rules and laws.

f)         If an application is submitted in the application window, the Department may inform the applicant of any deficiencies in the application.  An applicant may modify their training materials to meet the requirements of this Section for 30 days following such notice.  If the applicant is unable or unwilling to meet the requirements of this Section, then the Department shall deny the approval.  If the Department denies the approval, it shall provide a detailed description of the reasons for the denial.

g)         The Department will send approval notices to successful applicants who meet the requirements of this Section, as well as non-approval notices to unsuccessful applicants.  Approved vendors may begin offering training upon receipt of its approval notice.  Only vendors approved by the Department can provide Responsible Pawnbroker Training.

h)         An approval for a vendor shall be valid only for the vendor named in the application.  An approval is not transferable or assignable.

i)          A vendor may not subcontract or engage with an outside third-party to offer any of its training without prior Department approval.

j)          If the vendor hires new trainers who were not previously disclosed at the time of the vendor's original application under subsection (b)(1), the vendor shall promptly submit the required information and documents of any such new trainers to the Department.

k)         The Department may rescind its approval of a vendor that allows an individual or entity that has not been disclosed to the Department to offer its training course.

l)          All vendor approvals will expire on September 30 of each even-numbered year.  Applications for re-approval must be submitted between August 1 and August 31 of each even-numbered year and are subject to a $2,000 non-refundable fee.

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.810  Curriculum Requirements

a)         Subject to final approval of the Department, the curriculum for a responsible pawnbroker training program must include five or more of the following topics:

1)         Federal, State, and local laws, administrative rules, and regulations that pertain to the business of being a licensed pawnbroker under the Act;

2)         Procedures for identifying possible fraudulent transactions;

3)         Anti-money laundering;

4)         Store operations, maintenance of records, inventory management, recording and reporting of serial numbers;

5)         General product knowledge, including, but not limited to, jewelry and firearms;

6)         Identification, verification, and weighing of precious metals;

7)         Inspections by State and local licensing and law enforcement authorities, including hold order procedures;

8)         The federal Military Lending Act;

9)         Pawn forfeits;

10)       Security, risk, and crisis management; or

11)       Proper maintenance of records required by the Department. [205 ILCS 511/10-65]

b)         Vendors have a continuing obligation to update the approved curriculum within 30 calendar days after the effective date of any amendment to the Act or this Part that alters the accuracy of the curriculum.  Any updates to the curriculum shall be submitted to the Department for approval before the vendor includes the amended curriculum in its course.

c)         After a vendor has been approved, it may update the approved curriculum to reflect changes in the industry, scientific knowledge, or for any other reason.  Any updates to the curriculum must be submitted to the Department for approval before the vendor includes the amended curriculum in its course.

d)         Failure to submit any updated materials as required in subsections (b) and (c) shall, absent good cause, result in the Department withdrawing its approval of the vendor.

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.820  Programmatic Requirements

a)         To maintain approval by the Department, a Responsible Pawnbroker Training vendor must meet the following requirements:

1)         Provide a minimum of four hours of classroom or Internet-based online instruction time for individuals who are required to complete Responsible Pawnbroker Training.  Classroom instruction must be held in a safe and secure environment.

A)        For purposes of this Section, "classroom instruction" shall mean instruction that takes place in a setting where those individuals receiving the training learn through lectures, study papers, class discussion, textbook study, or other means of organized formal education techniques, as distinguished from on-the-job training.  Upon approval by the Department, classroom instruction may include remote real-time online instruction.  Classroom instruction does not include pre-recorded video instruction.

B)        For purposes of this Section, "Internet-based online instruction" shall mean either live or pre-recorded video instruction that is delivered through the Internet, as distinguished from on-the-job training, and for which an individual's attendance is recorded in increments of no less than 15 minutes.

2)         Maintain a roster of individuals who have completed Responsible Pawnbroker Training.  The roster shall include the participant's name, address, telephone number, employer, and date of birth of each individual who completed the program, including those who passed and failed the program, and the date each individual completed the program.  The roster shall be made available to the Department upon request.

3)         Issue a certification of completion to each individual who successfully completes the training indicating that the individual has completed an approved Department Responsible Pawnbroker Training program.  The certification must include:

A)        Individual's first and last name;

B)        Number of completed hours of instruction;

C)        Trainer's name;

D)        Date of completion; and

E)        Name of the approved vendor.

4)         Submit an annual report to the Department within 180 days after the beginning of the calendar year.  Each report shall contain the following information:

A)        The number of participants trained during the reporting period;

B)        The number of classes scheduled and completed during the reporting period and the locations of each class;

C)        The total fees charged by the vendor during the reporting period; and

D)        The number of pawnbrokers represented by participants completing a responsible pawnbroker program and the respective counties of those pawnbrokers.

5)         Submit a fee schedule indicating the cost of the program, if any.  The vendor must notify the Department within five business days after any change to the fee schedule.

6)         Notify the Department before a new trainer begins providing instruction of the vendor's responsible pawnbroker training.  The notification shall include:

A)        The name of the vendor;

B)        The name of the trainer;

C)        The trainer's resume and/or a curriculum vitae; and

D)        A written statement detailing the trainer's relevant experience.

b)         The Department may attend any in-person or remote, real time online video instruction at any time.  Upon a request, a vendor must make any login information or class places and times available to the Department.

c)         Failure to comply with this Section or any other provisions of the Act or this Part will result in the Department withdrawing its approval.

d)         The Division shall conduct audits to verify compliance with this Section.

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.830  Responsible Pawnbroker Training Recordkeeping

a)         A vendor's records shall be maintained electronically and be available for inspection by the Department upon request.  The Department may audit any records held by the responsible pawnbroker at any time.

b)         A vendor shall develop recordkeeping policies and procedures consistent with this Part.

c)         A vendor shall retain all records for at least five years from the date of creation and shall include, but not be limited to, the following:

1)         Program training materials;

2)         Enrollment rosters and training records for registrants.  Records must include registrants who successfully completed the program and those who did not complete or failed the Program;

3)         Completed program certificates for each successful individual;

4)         Storage and transfer of records.  If a vendor ceases operations due to insolvency, revocation, bankruptcy or for any other reason, all records must be preserved at the expense of the responsible pawnbroker for at least five years in a form and location in Illinois acceptable to the Department.  The provider shall retain the records longer if requested by the Department.  The provider shall notify the Department of the location where the records are stored or transferred.

5)         Approval notifications from the Department; and

6)         All other records, policies, and procedures required by the Act and this Part.

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.840  Closure of an Approved Program

The following procedures shall be followed for closure of an approved Responsible Pawnbroker Training vendor and removal from the approved list.  The vendor shall:

a)         Notify the Department, in writing, postmarked or emailed at least 30 calendar days in advance of the closing date.

b)         Notify the individuals who have completed or are in the process of completing the program of the closure at least 15 calendar days in advance of the closing date and of the location where completion records will be maintained for at least three years from the closing date.

c)         Stop enrolling individuals immediately and provide refunds in the full amount of the program's fee to individuals who will be unable to complete the program.

d)         Notify the Department in writing the names of the persons responsible for the maintenance of records for at least three years from the date of closure.

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.900  Pawnbroker Annual Report

The Department shall, in conjunction with advice from a professional association that represents 50 or more licensees, issue an annual report, via an Internet-based program, of aggregate pawnbroker activity within 180 days after the beginning of the calendar year. The report shall contain at a minimum:

a)         The number of licensed pawnbrokers;

b)         The total dollar amount financed;

c)         The total number of pawns for each value threshold set forth in subsection (c) of Section 15-10 [205 ILCS 511/15-10(c)];

d)         The total dollar amount of extensions;

e)         The total number of extensions for each value threshold set forth in subsection (c) of Section 15-10 [205 ILCS 511/15-10(c)];

f)         The average pawn dollar amount for each value threshold set forth in subsection (c) of Section 15-10 [205 ILCS 511/15-10(c)];

g)         The average monthly finance charge for each value threshold set forth in subsection (c) of Section 15-10 [205 ILCS 511/15-10(c)];

h)         The percentage of pawns surrendered to law enforcement;

i)          The percentage of total pawns surrendered to law enforcement by dollar amount;

j)          The percentage of pawns redeemed;

k)         The percentage of pawns extended;

l)          The total number of pawnbroker employees;

m)        The total number of licensees reporting;

n)         The total number of complaints received and resolved by the Department;

o)         The total number of defaulted pawn transactions reported to a credit bureau;

p)         The total number of defaulted pawn transactions sent to a collection agency;

q)         The total number of defaulted pawn transactions resulting in wage garnishment or legal action to collect; and

r)          The total number of pawn transactions reported to law enforcement. [205 ILCS 511/10-60]

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)

Section 360.910  Semiannual Report

Beginning on April 1, 2026, on or before October 1 and April 1 of each calendar year, the Director shall submit a written report to the Secretary regarding expenses and activities of the Pawnbroker Section of the Division of Banking. The report shall contain at a minimum:

a)         Documentation sufficient to identify the direct administrative and operational expenses and allocable indirect costs of the Pawnbroker Section of the Division of Banking incidental to regulating the pawnbroker industry;

b)         The number of virtual examinations completed since the most recent report;

c)         The number of in-person examinations required, requested, and completed since the most recent report;

d)         The number of persons or entities identified by the Department as having violated Section 5-1(a) [205 ILCS 511/5-1(a)], Section 5-5(b) [205 ILCS 511/5-5(b)], or Section 15-5(a) [205 ILCS 511/15-5(a)] of the Act; and

e)         The number of persons or entities identified by the Department as having violated Article 15 [205 ILCS 511/15] of the Act.

(Source:  Added at 49 Ill. Reg. 14602, effective October 29, 2025)