TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL INSTITUTIONS
PART 160 SALES FINANCE AGENCY ACT
SECTION 160.230 GENERAL
Section 160.230 General
a) The licensee shall keep in the licensed office a record of all transactions purchased from or sold to another affiliated or non-affiliated licensee until examined and released by the examiner.
b) Notary fees shall not be charged to or collected from the obligor.
c) No licensee shall take any power of attorney except to cancel any policies of insurance financed by the licensee as permitted by the Act and to receive either rebate of unearned premiums or loss payments.
d) All books, records, files and account cards required by applicable State and Federal statutes and regulations shall at all times be kept current.
e) No licensee shall transact business licensed under the Act under any other name or at any other place of business than that named in the license.
1) The Department may examine all records and investigate any transactions in any office of the licensee operating under the Act, or at any other location where records or instruments of the licensee are situated to determine that the business complies with all applicable laws and regulations and shall charge the licensee $400 for each examiner day or portion thereof required to make and complete an examination or investigation of such licensee.
2) The examination of the books and records of the licensee may be conducted concurrently with the examination of any other business conducted by the licensee which is regulated or licensed by the Department. A separate charge shall be made for each examiner day or portion thereof required to complete each examination as to each regulated or licensed business.
3) Should any part of the records or documents be located outside of the geographic boundaries of the State of Illinois, the licensee shall pay all the expenses of examination by the Department.
4) The Department may conduct an examination for the purpose of verifying that the licensee has taken necessary actions to correct violations to the Act and/or related rules and shall charge the licensee $550 for each examiner day or portion thereof, when the Director determines the verification examination must be performed on site at any facility of the licensee.
g) Licensees shall file with the Department such written reports as the Department may from time to time consider necessary.
h) No licensee shall knowingly purchase contracts from one who does either of the following:
1) In the course of the seller's business, employs a chain referral sales technique prohibited by the Consumer Fraud and Deceptive Business Practices Act.
2) Uses a contract, a security instrument or other document not in conformance with the provisions of the Retail Installment Sales Act [815 ILCS 405], Motor Vehicle Retail Installment Sales Act [815 ILCS 375], the Federal Consumer Protection Act (15 USC 1601-1665b).
i) Whenever a licensee changes his place of business to a location other than that set forth in his license, he shall submit his license to the Department for change of address 10 days before he intends to occupy new quarters. The relocation fee of $300 shall accompany the license.
j) Except as provided in this Part and as contained in the Act, the licensee may not charge the obligor a loan fee, points, finders fee, service fee, transaction fee, activity fee, appraisal fee, investigation fee, credit report form or any such similar charge or fee.
k) Contract Provisions
1) When a licensee owns a substantial interest in the business of a retail seller from whom the licensee purchases a contract, agreement or other evidence of indebtedness, the document shall clearly reflect the relationship in the following language:
"The retail buyer hereunder has been informed by the retail seller that his contract will be sold and assigned by the retail seller to _____________ (a licensed Sales Finance Agency) and that the said Sales Finance Agency has a substantial interest in the business of the retail seller and that pursuant to law the retail buyer may assert all defenses equally against the retail seller and said _______________________, Sales Finance Agency."
2) The foregoing legend shall be printed, typed or otherwise placed on the sales contract, agreement or other evidence of indebtedness, in a size and style equal to 8 point bold type.
l) All notices by the Department required under the Act or this Part shall be deemed to be served when a copy is deposited in the United States mail.
m) All applications, forms, and any other documents required to be filed or submitted under the Act or this Part shall be verified as to their truth and accuracy.
n) Whenever the licensee desires to amend the name of the licensed business, the licensee shall submit to the Department, within 15 days after amending the name, the following:
1) $300 amended name change fee.
2) Amended Articles of Incorporation, if the licensee is a corporation.
3) Amended organization papers, if the licensee is an entity other than a corporation.
(Source: Amended at 26 Ill. Reg. 14248, effective October 1, 2002)