TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 110 CONSUMER INSTALLMENT LOAN ACT
SECTION 110.420 APPROVED DATABASE


 

Section 110.420  Approved Database

 

a)         By October 1, 2009, the Division shall approve a database as a method of verification of the requirements of Section 110.370 of this Part. Upon approving a database, the Department shall:

 

1)         provide reasonable notice to all lenders identifying the approved database provider; and

 

2)         immediately upon approval, require each lender to use the database as a means of complying with Section 110.370 of this Part.

 

b)         Except as otherwise provided in this Section, all personally identifiable information regarding any obligor obtained by way of the approved database and maintained by the Department is strictly confidential and shall be exempt from disclosure under Section 7(1)(b)(i) of the Freedom of Information Act [5 ILCS 140/7(1)(b)(i)].

 

c)         Notwithstanding any other provision of law to the contrary, an obligor seeking a title-secured loan may make a direct inquiry to the database to request a more detailed explanation of the basis for the database provider's determination that the obligor is ineligible for a title-secured loan.

 

d)         In approving a database provider, the Department shall ensure that the approved database complies with the following provisions:

 

1)         Single, centralized consumer reporting service to track title-secured loan transactions made by lenders on a real time basis through an internet connection or, if real-time access through an internet connection becomes unavailable to lenders due to the database provider's technical problems, through alternative verification mechanisms, including, but not limited to, verification by telephone;

 

2)         Real-time access by the Department and lenders to verify that individual obligors are eligible for a loan pursuant to the requirements of Section 110.370 and in order to provide any other information that the Department deems necessary;

 

3)         Customer support to lenders and obligors during regular business hours;

 

4)         Develop and provide training to Department staff and lenders prior to implementation and on an ongoing basis;

 

5)         Provide a charge-back methodology to lenders not to exceed $1 for each search to determine eligibility of the obligor for a loan under Section 110.370;

 

6)         Require lenders to input whatever information is required by the Department;

 

7)         Maintain a real-time copy of the required reporting information that is available to the Department at all times and is the property of the Department;

 

8)         Provide lenders only with a statement that an obligor is eligible or ineligible for a title-secured loan and a description of the reason for the determination; and

 

9)         Implement safeguards to ensure that all information contained in the database regarding obligors is kept strictly confidential. 

 

e)         A lender may rely on the information contained in the approved database as accurate and is not subject to any administrative penalty or liability as a result of relying on inaccurate information contained in the database.

 

f)         The approved database provider shall indemnify the lender against all claims and actions arising from illegal or willful or wanton acts on the part of the approved database provider.

 

g)         Database Provider Qualifications

 

1)         The database provider shall have at all times a net worth of not less than $1,000,000 calculated in accordance with generally accepted accounting principles (Wiley GAAP, published by John Wiley and Sons, 605 Third Avenue, New York NY 10158-0012, 2008, no later editions or amendments included).

 

2)         Each application for approval under this Section shall be accompanied by a nonrefundable investigation fee of $2,500, together with an initial database approval fee of $1,000.

 

3)         On or before March 1 of each year, the approved database provider shall pay to the Department an approval fee in the amount of $1,000.

 

4)         The database provider shall have a surety bond of at least $5,000,000.  The surety bond shall be in a form satisfactory to the Department and shall run to the State of Illinois for the benefits of any claimants against the database provider to secure the faithful performance of its obligations under the Act and this Part.  The aggregate liability of the surety may exceed the principal sum of the bond.  Claimants against the database provider may themselves bring suit directly on the surety bond or the Department may bring suit on behalf of claimants, either in one action or successive actions.

 

h)         Lender Input into Database

 

1)         The lender shall input the following information into the approved database to determine whether the obligor is eligible for a title-secured loan pursuant to Section 110.370:

 

A)        Obligor's Social Security Number or Alien Identification Number;

 

B)        Obligor's gross monthly income;

 

C)        The principal amount of the loan;

 

D)        The term of the loan; and

 

E)        Any additional information required by the database provider.

 

2)         The lender shall input the following information into the approved database to determine whether the obligor is eligible to refinance a title-secured loan pursuant to Section 110.370:

 

A)        Obligor's Social Security Number or Alien Identification Number;

 

B)        Obligor's gross monthly income;

 

C)        The principal amount of the loan;

 

D)        The term of the loan; and

 

E)        Any additional information required by the database provider.

 

3)         On the same day a title-secured loan is made, the lender shall update the approved database with the following information:

 

A)        Obligor's Social Security Number or Alien Identification Number;

 

B)        The principal amount of the loan;

 

C)        The total amount of the loan;

 

D)        The term of the loan and the maturity date of the loan; and

 

E)        Any additional information required by the database provider.

 

4)         The lender shall update the approved database with the information required by the database provider on the same day that any of the following events occur:

 

A)        Paying the loan in full;

 

B)        Return of security;

 

C)        Closing the loan due to the collateral being sold after default;

 

D)        Writing off the loan; or

 

E)        Any other transaction as required by the database provider.

 

(Source:  Added at 33 Ill. Reg. 4142, effective April 1, 2009)