Rep. Emanuel Chris Welch

Filed: 4/9/2019





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2    AMENDMENT NO. ______. Amend House Bill 2468 on page 1, line
35, by changing "Section 15f" to "Sections 1.1 and 15f"; and
4on page 1, by replacing lines 19 through 23 with the following:
5"Reform Act may obtain a license under this Act. except that a
6licensee under the Payday Loan Reform Act may obtain a license
7under this Act for the exclusive purpose and use of making
8title-secured loans, as defined in subsection (a) of Section 15
9of this Act and governed by Title 38, Section 110.300 of the
10Illinois Administrative Code. For the purpose of this"; and
11on page 2, by deleting line 1; and
12on page 2, by inserting immediately below line 7 the following:
13    "(205 ILCS 670/1.1 new)
14    Sec. 1.1. Dual licensure. A license under this Act that is



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1held by a licensee that holds a license under the Payday Loan
2Reform Act is valid only for the purpose of servicing loans
3made under this Act that are outstanding as of the effective
4date of this amendatory Act of the 101st General Assembly. A
5license under this Act held by a licensee that holds a license
6under the Payday Loan Reform Act is null and void with respect
7to making loans under this Act. The Director may adopt rules
8providing for the surrender of licenses subject to this
9Section."; and
10on page 4, by replacing lines 4 through 6 with the following:
11"not include a title-secured loan as defined by subsection (a)
12of this Section or a payday loan as defined by the Payday Loan
13Reform Act. "Small consumer loan" does not include a loan
14secured by a motor vehicle, including, but not limited to,
15loans in which, at commencement, an obligor provides or agrees
16to provide to the licensee physical possession of the obligor's
17title to a motor vehicle and loans in which the licensee
18perfects or seeks to perfect a lien on the obligor's title to a
19motor vehicle."; and
20on page 9, by replacing lines 21 through 25 with the following:
21    "Sec. 15f. Title-secured loan rules repealed. 38 Ill. Adm.
22Code Chapter I, Part 110, Subpart B is repealed on the
23effective date of this amendatory Act of the 101st General



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1    Section 10. The Payday Loan Reform Act is amended by
2changing Section 4-10 as follows:
3    (815 ILCS 122/4-10)
4    Sec. 4-10. Enforcement and remedies.
5    (a) The remedies provided in this Act are cumulative and
6apply to persons or entities subject to this Act.
7    (b) Any material violation of this Act, including the
8commission of an act prohibited under Section 4-5, constitutes
9a violation of the Consumer Fraud and Deceptive Business
10Practices Act.
11    (c) If any provision of the written agreement described in
12subsection (b) of Section 2-20 violates this Act, then that
13provision is unenforceable against the consumer.
14    (d) Subject to the Illinois Administrative Procedure Act,
15the Secretary may hold hearings, make findings of fact,
16conclusions of law, issue cease and desist orders, have the
17power to issue fines of up to $10,000 per violation, refer the
18matter to the appropriate law enforcement agency for
19prosecution under this Act, and suspend or revoke a license
20granted under this Act. All proceedings shall be open to the
22    (e) The Secretary may issue a cease and desist order to any
23licensee or other person doing business without the required
24license, when in the opinion of the Secretary the licensee or



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1other person is violating or is about to violate any provision
2of this Act or any rule or requirement imposed in writing by
3the Department as a condition of granting any authorization
4permitted by this Act. The cease and desist order permitted by
5this subsection (e) may be issued prior to a hearing.
6    The Secretary shall serve notice of his or her action,
7including, but not limited to, a statement of the reasons for
8the action, either personally or by certified mail, return
9receipt requested. Service by certified mail shall be deemed
10completed when the notice is deposited in the U.S. Mail.
11    Within 10 days of service of the cease and desist order,
12the licensee or other person may request a hearing in writing.
13The Secretary shall schedule a hearing within 30 days after the
14request for a hearing unless otherwise agreed to by the
16    If it is determined that the Secretary had the authority to
17issue the cease and desist order, he or she may issue such
18orders as may be reasonably necessary to correct, eliminate, or
19remedy the conduct.
20    The powers vested in the Secretary by this subsection (e)
21are additional to any and all other powers and remedies vested
22in the Secretary by law, and nothing in this subsection (e)
23shall be construed as requiring that the Secretary shall employ
24the power conferred in this subsection instead of or as a
25condition precedent to the exercise of any other power or
26remedy vested in the Secretary.



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1    (f) The Secretary may, after 10 days notice by registered
2mail to the licensee at the address set forth in the license
3stating the contemplated action and in general the grounds
4therefore, fine the licensee an amount not exceeding $10,000
5per violation, or revoke or suspend any license issued
6hereunder if he or she finds that:
7        (1) the licensee has failed to comply with any
8    provision of this Act or any order, decision, finding,
9    rule, regulation, or direction of the Secretary lawfully
10    made pursuant to the authority of this Act; or
11        (2) any fact or condition exists which, if it had
12    existed at the time of the original application for the
13    license, clearly would have warranted the Secretary in
14    refusing to issue the license.
15    The Secretary may fine, suspend, or revoke only the
16particular license with respect to which grounds for the fine,
17revocation, or suspension occur or exist, but if the Secretary
18finds that grounds for revocation are of general application to
19all offices or to more than one office of the licensee, the
20Secretary shall fine, suspend, or revoke every license to which
21the grounds apply.
22    The Department shall establish by rule and publish a
23schedule of fines that are reasonably tailored to ensure
24compliance with the provisions of this Act and which include
25remedial measures intended to improve licensee compliance.
26Such rules shall set forth the standards and procedures to be



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1used in imposing any such fines and remedies. A licensee may,
2within 5 business days after the notice, take corrective action
3to mitigate any fine or contemplated action related to
4violations related to documents that were executed at the time
5of closing of the loan that are missing from files.
6    No revocation, suspension, or surrender of any license
7shall impair or affect the obligation of any pre-existing
8lawful contract between the licensee and any obligor.
9    The Secretary may issue a new license to a licensee whose
10license has been revoked when facts or conditions which clearly
11would have warranted the Secretary in refusing originally to
12issue the license no longer exist.
13    In every case in which a license is suspended or revoked or
14an application for a license or renewal of a license is denied,
15the Secretary shall serve the licensee with notice of his or
16her action, including a statement of the reasons for his or her
17actions, either personally, or by certified mail, return
18receipt requested. Service by certified mail shall be deemed
19completed when the notice is deposited in the U.S. Mail.
20    An order assessing a fine, an order revoking or suspending
21a license, or an order denying renewal of a license shall take
22effect upon service of the order unless the licensee requests a
23hearing, in writing, within 10 days after the date of service.
24In the event a hearing is requested, the order shall be stayed
25until a final administrative order is entered.
26    If the licensee requests a hearing, the Secretary shall



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1schedule a hearing within 30 days after the request for a
2hearing unless otherwise agreed to by the parties.
3    The hearing shall be held at the time and place designated
4by the Secretary. The Secretary and any administrative law
5judge designated by him or her shall have the power to
6administer oaths and affirmations, subpoena witnesses and
7compel their attendance, take evidence, and require the
8production of books, papers, correspondence, and other records
9or information that he or she considers relevant or material to
10the inquiry.
11    (g) The costs of administrative hearings conducted
12pursuant to this Section shall be paid by the licensee.
13    (h) Notwithstanding any other provision of this Section, if
14a lender who does not have a license issued under this Act
15makes a loan pursuant to this Act to an Illinois consumer, then
16the loan shall be null and void and the lender who made the
17loan shall have no right to collect, receive, or retain any
18principal, interest, or charges related to the loan.
19(Source: P.A. 97-1039, eff. 1-1-13; 98-209, eff. 1-1-14.)"; and
20by deleting all of pages 10 and 11.