SB3577 103RD GENERAL ASSEMBLY

LRB103 38144 RTM 68276 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3577

Introduced 2/9/2024, by Sen. Mattie Hunter

SYNOPSIS AS INTRODUCED:

205 ILCS 670/17.5

Amends the Consumer Installment Loan Act. Provides that an entity licensed under the Act shall enter information regarding each loan that exceeds $500 (rather than all loans) into the consumer reporting service database and shall follow the Department of Financial and Professional Regulation's related rules. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Consumer Installment Loan Act is amended by changing Section 17.5 as follows:

(205 ILCS 670/17.5)

Sec. 17.5. Consumer reporting service.

(a) For the purpose of this Section, "certified database" means the consumer reporting service database established pursuant to the Payday Loan Reform Act. "Title-secured loan" means a loan in which, at commencement, a consumer provides to the licensee, as security for the loan, physical possession of the consumer's title to a motor vehicle.

(b) Licensees shall enter information regarding each loan that exceeds $500 into the certified database and shall follow the Department's related rules.

(c) For every title-secured loan made, the licensee shall input information as provided in 38 Ill. Adm. Code 110.420.

(d) The certified database provider shall indemnify the licensee against all claims and actions arising from illegal or willful or wanton acts on the part of the certified database provider. The certified database provider may charge a fee not to exceed $1 for each loan entered into the certified database. The database provider shall not charge any additional fees or charges to the licensee.

(Source: P.A. 101-658, eff. 3-23-21.)

Section 99. Effective date. This Act takes effect upon becoming law.