Sen. Jacqueline Y. Collins

Filed: 2/22/2022

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1099

2    AMENDMENT NO. ______. Amend Senate Bill 1099 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Consumer Legal Funding Act.
 
6    Section 5. Definitions.
7    "Advertise" means publishing or disseminating any written,
8electronic, or printed communication, or any communication by
9means of recorded telephone messages or transmitted on radio,
10television, the Internet, or similar communications media,
11including film strips, motion pictures, and videos, published,
12disseminated, circulated, or placed before the public,
13directly or indirectly, for the purpose of inducing a consumer
14to enter into a consumer legal funding.
15    "Charges" means the fees, as set forth in Section 25, to be
16paid to the consumer legal funding company by or on behalf of

 

 

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1the consumer above the funded amount provided by or on behalf
2of the company to an Illinois consumer pursuant to this Act.
3    "Consumer legal funding" or "funding" means a nonrecourse
4transaction in an amount that does not exceed $500,000 in
5which a company purchases and a consumer transfers to the
6company an unvested, contingent future interest in the
7potential net proceeds of a settlement or judgment obtained
8from the consumer's legal claim; if no proceeds are obtained
9from the consumer's legal claim, the consumer is not required
10to repay the company the consumer legal funding amount or
11charges.
12    "Consumer legal funding company" or "company" means a
13person or entity that enters into a consumer legal funding
14transaction with an Illinois consumer. "Consumer legal funding
15company" does not include:
16        (1) an immediate family member of the consumer;
17        (2) a bank, lender, financing entity, or other special
18    purpose entity:
19            (A) that provides financing to a consumer legal
20        funding company; or
21            (B) to which a consumer legal funding company
22        grants a security interest or transfers any rights or
23        interest in a consumer legal funding; or
24        (3) an attorney or accountant who provides services to
25    a consumer.
26    "Consumer" means a natural person who has a pending legal

 

 

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1claim and who resides or is domiciled in Illinois.
2    "Director" means the Director of Financial Institutions.
3    "Division" means the Division of Financial Institutions of
4the Department of Financial and Professional Regulation.
5    "Funded amount" means the amount of moneys provided to, or
6on behalf of, the consumer in the consumer legal funding.
7"Funded amount" does not include charges.
8    "Funding date" means the date on which the funded amount
9is transferred to the consumer by the consumer legal funding
10company either by personal delivery; via wire, ACH, or other
11electronic means; or mailed by insured, certified, or
12registered United States mail.
13    "Immediate family member" means a parent; sibling; child
14by blood, adoption, or marriage; spouse; grandparent; or
15grandchild.
16    "Legal claim" means a bona fide civil claim or cause of
17action.
18    "Resolution amount" means the funded amount plus the
19agreed-upon charges that are delivered to the consumer legal
20funding company on the resolution date.
21    "Resolution date" means the date the resolution amount is
22delivered to the consumer legal funding company.
 
23    Section 10. Contract requirements; right of rescission.
24    (a) All consumer legal fundings shall meet the following
25requirements:

 

 

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1        (1) the contract shall be completely filled in when
2    presented to the consumer for signature;
3        (2) the contract shall contain, in bold and boxed
4    type, a right of rescission, allowing the consumer to
5    cancel the contract without penalty or further obligation
6    if, within 14 business days after the funding date, the
7    consumer either:
8            (A) returns to the consumer legal funding company
9        the full amount of the disbursed funds by delivering
10        the company's uncashed check to the company's office
11        in person; or
12            (B) mails, by insured, certified, or registered
13        United States mail, to the address specified in the
14        contract, a notice of cancellation and includes in the
15        mailing a return of the full amount of disbursed funds
16        in the form of the company's uncashed check or a
17        registered or certified check or money order; and
18        (3) the contract shall contain the initials of the
19    consumer on each page.
20    (b) The contract shall contain a written acknowledgment by
21the attorney retained by the consumer in the legal claim that
22attests to the following:
23        (1) to the best of the attorney's knowledge, all the
24    costs and charges relating to the consumer legal funding
25    have been disclosed to the consumer;
26        (2) the attorney is being paid on a contingency basis

 

 

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1    pursuant to a written fee agreement;
2        (3) all proceeds of the legal claim will be disbursed
3    via either the trust account of the attorney or a
4    settlement fund established to receive the proceeds of the
5    legal claim on behalf of the consumer;
6        (4) the attorney is following the written instructions
7    of the consumer with regard to the consumer legal funding;
8    and
9        (5) the attorney has not received a referral fee or
10    other consideration from the consumer legal funding
11    company in connection with the consumer legal funding, nor
12    will the attorney receive such fee or other consideration
13    in the future.
14    (c) If the acknowledgment required in subsection (b) is
15not completed by the attorney retained by the consumer in the
16legal claim, the contract shall be null and void. The contract
17remains valid and enforceable if the consumer terminates the
18initial attorney or retains a new attorney with respect to the
19legal claim.
 
20    Section 15. Consumer legal funding company prohibitions. A
21consumer legal funding company shall not:
22        (1) pay or offer to pay commissions, referral fees, or
23    other forms of consideration to any attorney, law firm,
24    medical provider, chiropractic physician, or physical
25    therapist or any of their employees for referring a

 

 

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1    consumer to the company;
2        (2) accept any commissions, referral fees, rebates, or
3    other forms of consideration from an attorney, law firm,
4    medical provider, chiropractor, or physical therapist or
5    any of their employees;
6        (3) intentionally advertise materially false or
7    misleading information regarding its products or services;
8        (4) refer, in furtherance of an initial consumer legal
9    funding, a customer or potential customer to a specific
10    attorney, law firm, medical provider, chiropractor, or
11    physical therapist or any of their employees; however, if
12    a customer needs legal representation, the company may
13    refer the customer to a local or State bar association
14    referral service;
15        (5) fail to supply a copy of the executed contract to
16    the attorney for the consumer;
17        (6) knowingly provide funding to a consumer who has
18    previously assigned or sold a portion of the consumer's
19    right to proceeds from his or her legal claim without
20    first making payment to or purchasing a prior unsatisfied
21    consumer legal funding company's entire funded amount and
22    contracted charges, unless a lesser amount is otherwise
23    agreed to in writing by the consumer legal funding
24    companies, except that multiple companies may agree to
25    contemporaneously provide funding to a consumer if the
26    consumer and the consumer's attorney consent to the

 

 

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1    arrangement in writing;
2        (7) receive any right to nor make any decisions with
3    respect to the conduct of the underlying legal claim or
4    any settlement or resolution of the legal claim; the right
5    to make such decisions shall remain solely with the
6    consumer and the attorney in the legal claim; or
7        (8) knowingly pay or offer to pay for court costs,
8    filing fees, or attorney's fees either during or after the
9    resolution of the legal claim using funds from the
10    consumer legal funding transaction.
 
11    Section 20. Satisfaction of the contract. A consumer legal
12funding company shall require the resolution amount to be set
13as a predetermined amount, based upon intervals of time from
14the date of origination of the funding through the date of
15resolution of the legal claim, and not be determined as a
16percentage of the recovery from the legal claim.
 
17    Section 25. Fees.
18    (a) The fee charged by a consumer legal funding company to
19the consumer shall be calculated as not more than 18% of the
20funded amount, assessed on the outset of every 6 months.
21    (b) In addition, a consumer legal funding company may
22charge a document preparation fee not to exceed $75, which may
23be deducted from the funded amount. This fee is to be used to
24defray the ordinary cost of opening, administering, and

 

 

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1terminating a consumer legal funding.
2    (c) A consumer legal funding company shall not collect any
3additional fees unless otherwise specified in this Act.
4    (d) No fees shall extend past 42 months after the funding
5date.
 
6    Section 30. Disclosures. All consumer legal funding
7contracts shall contain the disclosures specified in this
8Section, which shall constitute material terms of the
9contract. Unless otherwise specified, the disclosures shall be
10typed in at least 12-point bold-type font and be placed
11clearly and conspicuously within the contract as follows:
12        (1) On the front page under appropriate headings,
13    language specifying:
14            (A) the funded amount to be paid to the consumer by
15        the consumer legal funding company;
16            (B) an itemization of one-time charges;
17            (C) the total amount to be paid by the consumer to
18        the company, including the funded amount and all
19        charges; and
20            (D) a payment schedule to include the resolution
21        amount, listing dates, and the amount due at the end of
22        each 6-month period from the funding date, until the
23        date the maximum amount due to the company by the
24        consumer to satisfy the amount due pursuant to the
25        contract.

 

 

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1        (2) Pursuant to the provisions set forth in paragraph
2    (2) of subsection (a) of Section 10, within the body of the
3    contract: "Consumer's Right to Cancellation: You may
4    cancel this contract without penalty or further obligation
5    within 14 business days after the funding date if you
6    either:
7            (A) return to the consumer legal funding company
8        the full amount of the disbursed funds by delivering
9        the company's uncashed check to the company's office
10        in person; or
11            (B) mail by insured, certified, or registered
12        United States mail, to the company at the address
13        specified in the contract, a notice of cancellation
14        and include in such mailing a return of the full amount
15        of disbursed funds in the form of the company's
16        uncashed check or a registered or certified check or
17        money order."
18        (3) Within the body of the contract: "The consumer
19    legal funding company shall have no role in deciding
20    whether, when, and how much the legal claim is settled
21    for, however, the consumer and consumer's attorney must
22    notify the company of the outcome of the legal claim by
23    settlement or adjudication before the resolution date. The
24    company may seek updated information about the status of
25    the legal claim but in no event shall the company
26    interfere with the independent professional judgment of

 

 

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1    the attorney in the handling of the legal claim or any
2    settlement thereof."
3        (4) Within the body of the contract, in all capital
4    letters in at least 12-point bold-type font contained
5    within a box: "THE FUNDED AMOUNT AND AGREED-UPON CHARGES
6    SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM,
7    AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE
8    AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE
9    [INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY]
10    ANYTHING IF THERE ARE NO PROCEEDS FROM YOUR LEGAL CLAIM,
11    UNLESS YOU OR YOUR ATTORNEY HAVE VIOLATED ANY MATERIAL
12    TERM OF THIS CONTRACT OR YOU HAVE COMMITTED FRAUD AGAINST
13    THE CONSUMER LEGAL FUNDING COMPANY."
14        (5) Located immediately above the place on the
15    contract where the consumer's signature is required, in
16    12-point font: "Do not sign this contract before you read
17    it completely or if it contains any blank spaces. You are
18    entitled to a completely filled-in copy of the contract.
19    Before you sign this contract, you should obtain the
20    advice of an attorney. Depending on the circumstances, you
21    may want to consult a tax, public or private benefits
22    planning, or financial professional. You acknowledge that
23    your attorney in the legal claim has provided no tax,
24    public or private benefit planning, or financial advice
25    regarding this transaction."
26        (6) The consumer legal funding company shall provide

 

 

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1    the consumer with information on accessing a financial
2    coaching program no later than the funding date.
 
3    Section 35. Violations.
4    (a) Nothing in this Act shall be construed to restrict the
5exercise of powers or the performance of the duties of the
6Illinois Attorney General that he or she is authorized to
7exercise or perform by law.
8    (b) If a court of competent jurisdiction determines that a
9consumer legal funding company has intentionally violated the
10provisions of this Act with regard to a specific consumer
11legal funding, the consumer legal funding company shall only
12be entitled to recover the funded amount provided to the
13consumer in that specific consumer legal funding and shall not
14be entitled to any additional charges.
 
15    Section 40. Assignability; liens.
16    (a) The contingent right to receive an amount of the
17potential proceeds of a legal claim is assignable by a
18consumer.
19    (b) Only liens related to the legal claim, including
20attorney's liens, Medicare, or other statutory liens, shall
21take priority over any lien of the consumer legal funding
22company. All other liens shall take priority by normal
23operation of law.
24    (c) A consumer legal funding transaction does not

 

 

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1constitute an assignment of a personal injury claim or chose
2in action.
3    (d) A consumer legal funding transaction does not
4constitute the assignment of any present right; the
5transaction constitutes the transfer of an unvested,
6contingent future interest in an amount of the potential
7proceeds of a legal claim or cause of action.
 
8    Section 45. Attorney prohibitions. An attorney or law firm
9retained by the consumer in the legal claim shall not have a
10financial interest in the consumer legal funding company
11offering consumer legal funding to that consumer.
12Additionally, any attorney who has referred the consumer to
13his or her retained attorney shall not have a financial
14interest in the consumer legal funding company offering
15consumer legal funding to that consumer.
 
16    Section 50. Effect of communication on privileges. No
17communication between the consumer's attorney in the legal
18claim and the consumer legal funding company as it pertains to
19the consumer legal funding shall limit, waive, or abrogate the
20scope or nature of any statutory or common law privilege,
21including the work product doctrine and the attorney-client
22privilege.
 
23    Section 55. Application; fees; positive net worth; new

 

 

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1funding application.
2    (a) An application for a consumer legal funding license
3shall be in writing and in the form prescribed by the Director.
4An applicant at the time of making such application shall pay
5to the Director the sum of $300 as an application fee and the
6additional sum of $450 as an annual license fee, for a period
7terminating on the last day of the current calendar year; if
8the application is filed after June 30 in any year, the license
9fee shall be one-half of the annual license fee for such year.
10    (b) Before the consumer legal funding license is granted,
11an applicant shall prove in a form satisfactory to the
12Director that the applicant has and will maintain a positive
13net worth of a minimum of $30,000. Every applicant and
14licensee shall maintain a surety bond in the principal sum of
15$25,000 issued by a bonding company authorized to do business
16in this State and that shall be approved by the Director. The
17surety bond shall run to the Director and shall be for the
18benefit of any consumer who incurs damages as a result of any
19violation of this Act or rules adopted pursuant to this Act by
20a licensee. If the Director finds at any time that a bond is of
21insufficient size, is insecure, is exhausted, or is otherwise
22doubtful, an additional bond in such amount as determined by
23the Director shall be filed by the licensee within 30 days
24after written demand therefor by the Director. As used in this
25subsection, "net worth" means total assets minus total
26liabilities.

 

 

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1    (c) A company may not engage in the business of consumer
2legal funding in this State until it has received a consumer
3legal funding license from the Division pursuant to this Act,
4except any company that has a license in good standing under
5the Consumer Installment Loan Act as of the effective date of
6this Act shall be entitled to engage in consumer legal
7fundings under the terms of this Act so long as that company
8files an application for a consumer legal funding license
9within 60 days after the Division issuing forms for the filing
10of such an application until the Division fully rules on the
11application and either approves or denies the application for
12a funding license.
 
13    Section 60. Appointment of attorney-in-fact for service of
14process. Every consumer legal funding licensee shall appoint,
15in writing, the Director and his or her successors in office or
16any official who shall be charged with the administration of
17this Act as attorney-in-fact upon whom all lawful process
18against the licensee may be served with the same legal force
19and validity as if served on such licensee. A copy of such
20written appointment, duly certified, shall be filed in the
21office of the Director, and a copy of the written appointment
22certified by him or her shall be sufficient evidence. This
23appointment shall remain in effect while any liability remains
24outstanding in this State against the licensee. When summons
25is served upon the Director as attorney-in-fact for such

 

 

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1licensee, the Director shall immediately notify the licensee
2by registered mail, enclosing the summons and specifying the
3hour and day of service.
 
4    Section 65. Investigation to determine whether to issue a
5consumer legal funding license. Upon the filing of an
6application and the payment of the fee, the Director shall
7investigate to determine:
8        (1) that the reputation of the applicant, including
9    the reputation of the managers of a limited liability
10    company, partners, owners, officers, or directors of the
11    applicant, is such as to warrant belief that the business
12    will be operated honestly and fairly within the purposes
13    of this Act; and
14        (2) that the applicant meets the positive net worth
15    requirement set forth in Section 55.
16    Unless the Director finds that the applicant meets these
17requirements, he or she shall not issue a consumer legal
18funding license and shall notify the applicant of the denial
19and return to the applicant the sum paid by the applicant as a
20license fee, but shall retain the $300 application fee. The
21Director shall approve or deny every application for a license
22within 60 days from the filing of the application with the fee.
 
23    Section 70. License. The license shall state the address,
24including city and State, at which the business is to be

 

 

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1conducted and shall state fully the name of the licensee. The
2license shall be conspicuously posted in the place of business
3of the licensee and shall not be transferable or assignable.
 
4    Section 75. More than one license to same licensee;
5changing place of business.
6    (a) Not more than one place of business shall be
7maintained under the same license, but the Director may issue
8more than one license to the same licensee upon compliance
9with all the provisions of this Act governing an original
10issuance of a license.
11    (b) Whenever a licensee changes his or her place of
12business to a location other than that set forth in his or her
13license, he or she shall give written notice of the change of
14place of business to the Director at least 10 days before the
15relocation. However, if the new location is in excess of 15
16miles from the previous location, the licensee shall obtain
17written approval from the Director before the relocation.
 
18    Section 80. Annual license fee; expenses; license
19expiration and reinstatement.
20    (a) Before December 1 of each year, a licensee shall pay to
21the Director and the Division must receive the annual license
22fee required under Section 55 for the next succeeding calendar
23year. The license shall expire on January 1 of the following
24year unless the license fee has been paid before that date.

 

 

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1    (b) In addition to the annual license fee, the reasonable
2expense of any examination, investigation, or custody by the
3Director under any provision of this Act shall be borne by the
4licensee.
5    (c) If a licensee fails to renew his or her license by
6December 31, it shall automatically expire and the licensee is
7not entitled to a hearing; however, the Director, in his or her
8discretion, may reinstate an expired license upon payment of
9the annual renewal fee and proof of good cause for failure to
10renew.
 
11    Section 85. Fines; suspension or revocation of license.
12    (a) The Director may, after 10 days' notice by registered
13mail to the licensee at the address set forth in the license
14stating the contemplated action and in general the grounds
15therefor, fine such licensee an amount not exceeding $10,000
16per violation or revoke or suspend any license issued under
17this Act if he or she finds that:
18        (1) the licensee has failed to comply with any
19    provision of this Act or any order, decision, finding,
20    rule, regulation, or direction of the Director lawfully
21    made pursuant to the authority of this Act; or
22        (2) any fact or condition exists that, if it had
23    existed at the time of the original application for the
24    license, clearly would have warranted the Director in
25    refusing to issue the license.

 

 

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1    (b) The Director may fine, suspend, or revoke only the
2particular license with respect to which grounds for the fine,
3revocation, or suspension occur or exist, but if the Director
4finds that grounds for revocation are of general application
5to all offices or to more than one office of the licensee, the
6Director shall fine, suspend, or revoke every license to which
7such grounds apply.
8    (c) No revocation, suspension, or surrender of any license
9shall impair or affect the obligation of any preexisting
10lawful contract between the licensee and any obligor.
11    (d) The Director may issue a new license to a licensee
12whose license has been revoked when facts or conditions that
13clearly would have warranted the Director in refusing
14originally to issue the license no longer exist.
15    (e) In every case in which a license is suspended or
16revoked or an application for a license or renewal of a license
17is denied, the Director shall serve the licensee with notice
18of his or her action, including a statement of the reasons for
19his or her actions, either personally or by certified mail,
20return receipt requested. Service by certified mail shall be
21deemed completed when the notice is deposited in the United
22States mail.
23    (f) An order assessing a fine, an order revoking or
24suspending a license, or an order denying renewal of a license
25shall take effect upon service of the order unless the
26licensee requests a hearing in writing within 10 days after

 

 

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1the date of service. If a hearing is requested, the order shall
2be stayed until a final administrative order is entered.
3    (g) If the licensee requests a hearing, the Director shall
4schedule a hearing within 30 days after the request for a
5hearing unless otherwise agreed to by the parties.
6    (h) The hearing shall be held at the time and place
7designated by the Director. The Director and any
8administrative law judge designated by him or her shall have
9the power to administer oaths and affirmations, subpoena
10witnesses and compel their attendance, take evidence, and
11require the production of books, papers, correspondence, and
12other records or information that he or she considers relevant
13or material to the inquiry.
14    (i) The costs for the administrative hearing shall be set
15by rule.
16    (j) The Division shall have the authority to adopt rules
17for the administration of this Section.
18    (k) The Division shall establish by rule and publish a
19schedule of fines that are reasonably tailored to ensure
20compliance with the provisions of this Act and which include
21remedial measures intended to improve licensee compliance. The
22Division shall also set forth the standards and procedures to
23be used in imposing any such fines and remedies by rule.
 
24    Section 90. Closing of business; surrender of license. At
25least 10 days before a licensee ceases operations, closes

 

 

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1business, or files for bankruptcy:
2        (1) The licensee shall notify the Division of its
3    action in writing.
4        (2) With the exception of filing for bankruptcy, the
5    licensee shall surrender its license to the Director for
6    cancellation; the surrender of the license shall not
7    affect the licensee's civil or criminal liability for acts
8    committed before surrender or entitle the licensee to a
9    return of any part of the annual license fee.
10        (3) The licensee shall notify the Division of the
11    location where the books, accounts, contracts, and records
12    will be maintained and the procedure to ensure prompt
13    return of contracts, titles, and releases to the
14    customers.
15        (4) The accounts, books, records, and contracts shall
16    be maintained and serviced by the licensee or another
17    licensee under this Act or an entity exempt from licensure
18    under this Act.
19        (5) The Division shall have the authority to conduct
20    examinations of the books, records, and funding documents
21    at any time after surrender of the license, filing of
22    bankruptcy, or the cessation of operations.
 
23    Section 95. Investigation of conduct of business. For the
24purpose of discovering violations of this Act or securing
25information lawfully required by it, the Director may at any

 

 

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1time investigate the fundings and business and examine the
2books, accounts, records, and files used therein, of every
3licensee and of every person, partnership, association,
4limited liability company, and corporation engaged in the
5business described in Section 5, whether such person,
6partnership, association, limited liability company, or
7corporation shall act or claim to act as principal or agent or
8within or without the authority of this Act. For such purpose
9the Director shall have free access to the offices and places
10of business, books, accounts, papers, records, files, safes,
11and vaults of such persons, partnerships, associations,
12limited liability companies, and corporations. The Director
13may require the attendance of and examine under oath all
14persons whose testimony he or she may require relative to such
15fundings or such business, and in such cases the Director
16shall have power to administer oaths to all persons called as
17witnesses, and the Director may conduct such examinations.
18    The Director shall make an examination of the affairs,
19business, office, and records of each licensee at least once
20each year. The Division shall by rule and regulation set the
21fee to be charged for each examination day, including travel
22expenses for out-of-state licensed locations. The fee shall
23reasonably reflect actual costs. The Director shall also have
24authority to examine the books and records of any business
25made by a former licensee which is being liquidated, as the
26Director deems necessary, and may charge the examination fees

 

 

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1otherwise required for licensees.
 
2    Section 100. Books and records; reports.
3    (a) Every licensee shall retain and use in his or her
4business or at another location approved by the Director such
5records as are required by the Director to enable the Director
6to determine whether the licensee is complying with the
7provisions of this Act and the rules adopted pursuant to this
8Act. Every licensee shall preserve the records of any funding
9for at least 2 years after making the final entry for such
10funding. Accounting systems maintained in whole or in part by
11mechanical or electronic data processing methods that provide
12information equivalent to that otherwise required and that
13follow generally accepted accounting principles are acceptable
14for that purpose if approved by the Director in writing.
15    (b) Each licensee shall annually, on or before March 1,
16file a report with the Director giving such relevant
17information as the Director may reasonably require concerning
18the business and operations during the preceding calendar year
19of each licensed place of business conducted by the licensee.
20The report must be received by the Division on or before March
211. The report shall be made under oath and in a form prescribed
22by the Director. Whenever a licensee operates 2 or more
23licensed offices or whenever 2 or more affiliated licensees
24operate licensed offices, a composite report of such group of
25licensed offices may be filed instead of individual reports.

 

 

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1The Director may make and publish annually an analysis and
2recapitulation of such reports. The Director may fine each
3licensee $25 for each day beyond March 1 the report is filed.
 
4    Section 105. Other businesses.
5    (a) Upon application by the licensee, the Director may
6approve the conduct of other businesses not specifically
7permitted by this Act in the licensee's place of business,
8unless the Director finds that such conduct will conceal or
9facilitate evasion or violation of this Act. The Director's
10approval shall be in writing and shall describe the other
11businesses which may be conducted in the licensed office.
12    (b) A licensee may without notice to and approval of the
13Director, in addition to the business permitted by this Act,
14conduct the following business:
15        (1) The business of a sales finance agency as defined
16    in the Sales Finance Agency Act.
17        (2) The business of soliciting or selling any type of
18    insurance provided that all such insurance transactions
19    are conducted in accordance with and are regulated under
20    the Illinois Insurance Code.
21        (3) The business of financing premiums for insurance.
22        (4) Offering and extending credit under a revolving
23    credit plan pursuant to the Illinois Financial Services
24    Development Act.
25    The Division shall adopt and enforce such reasonable rules

 

 

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1and regulations for the conduct of business under this Act in
2the same office with other businesses as may be necessary to
3prevent evasions or violations of this Act. The Director may
4investigate any business conducted in the licensed office to
5determine whether any evasion or violation of this Act has
6occurred.
 
7    Section 110. Cease and desist.
8    (a) The Director may issue a cease and desist order to any
9licensee, or other person doing business without the required
10license, if in the opinion of the Director, the licensee or
11other person is violating or is about to violate any provision
12of this Act or any rule or requirement imposed in writing by
13the Division as a condition of granting any authorization
14permitted by this Act.
15    (b) The Director may issue a cease and desist order before
16a hearing.
17    (c) The Director shall serve notice of his or her action,
18designated as a cease and desist order made pursuant to this
19Section, including a statement of the reasons for the action,
20either personally or by certified mail, return receipt
21requested. Service by certified mail shall be deemed completed
22when the notice is deposited in the United States mail.
23    (d) Within 15 days after service of the cease and desist
24order, the licensee or other person may request, in writing, a
25hearing.

 

 

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1    (e) The Director shall schedule a hearing within 30 days
2after the request for a hearing unless otherwise agreed to by
3the parties.
4    (f) The Division shall have the authority to prescribe
5rules for the administration of this Section.
6    (g) If it is determined that the Director had the
7authority to issue the cease and desist order, he or she may
8issue such orders as may be reasonably necessary to correct,
9eliminate, or remedy such conduct.
10    (h) The powers vested in the Director by this Section are
11additional to any and all other powers and remedies vested in
12the Director by law, and nothing in this Section shall be
13construed as requiring that the Director must employ the power
14conferred in this Section instead of or as a condition
15precedent to the exercise of any other power or remedy vested
16in the Director.
17    (i) The cost for the administrative hearing shall be set
18by rule.
 
19    Section 115. Rules and regulations. The Division may adopt
20and enforce such reasonable rules, regulations, directions,
21orders, decisions, and findings as the execution and
22enforcement of the provisions of this Act require, and as are
23not inconsistent therewith. In addition, the Division may
24adopt rules in connection with the activities of licensees
25that are necessary and appropriate for the protection of

 

 

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1consumers in this State. All rules, regulations, and
2directions of a general character shall be sent electronically
3to all licensees.
 
4    Section 120. Judicial review. All final administrative
5decisions of the Division under this Act, all amendments and
6modifications of final administrative decisions, and any rules
7adopted by the Division pursuant to this Act shall be subject
8to judicial review pursuant to the provisions of the
9Administrative Review Law.
 
10    Section 125. Injunction; civil penalty; costs. If it
11appears to the Director that a person or any entity has
12committed or is about to commit a violation of this Act, a rule
13adopted under this Act, or an order of the Director, the
14Director may apply to the circuit court for an order enjoining
15the person or entity from violating or continuing to violate
16this Act, the rule, or order and for injunctive or other relief
17that the nature of the case may require and may, in addition,
18request the court to assess a civil penalty up to $1,000 along
19with costs and attorney's fees.
 
20    Section 130. Severability. If any clause, sentence,
21provision or part of this Act or its application to any person
22or circumstance is adjudged to be unconstitutional or invalid
23for any reason by any court of competent jurisdiction, that

 

 

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1judgment shall not impair, affect, or invalidate other
2provisions or applications of this Act, which shall remain in
3full force and effect thereafter.
 
4    Section 999. Effective date. This Act takes effect upon
5becoming law.".