Illinois Compiled Statutes
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BUSINESS TRANSACTIONS815 ILCS 122/Art. 3
(815 ILCS 122/) Payday Loan Reform Act.
(815 ILCS 122/Art. 3 heading)
(Source: P.A. 94-13, eff. 12-6-05.)
815 ILCS 122/3-3
(815 ILCS 122/3-3)
(a) Except as provided in subsection (b), on and after the effective date of this Act, a person or entity acting as a payday lender must be licensed by the Department as provided in this Article.
(b) A person or entity acting as a payday lender who is licensed on the effective date of this Act under the Consumer Installment Loan Act need not comply with subsection (a) until the Department takes action on the person's or entity's application for a payday loan license. The application must be submitted to the Department within 9 months after the effective date of this Act. If the application is not submitted within 9 months after the effective date of this Act, the person or entity acting as a payday lender is subject to subsection (a).
(Source: P.A. 94-13, eff. 12-6-05.)
815 ILCS 122/3-5
(815 ILCS 122/3-5)
(a) A license to make a payday loan shall state the address,
including city and state, at which
the business is to be conducted and shall state fully the name of the licensee.
The license shall be conspicuously posted in the place of business of the
licensee and shall not be transferable or assignable.
(b) An application for a license shall be in writing and in a form
prescribed by the Secretary. The Secretary may not issue a payday loan
license unless and until the following findings are made:
(1) that the financial responsibility, experience,
character, and general fitness of the applicant are such as to command the confidence of the public and to warrant the belief that the business will be operated lawfully and fairly and within the provisions and purposes of this Act; and
(2) that the applicant has submitted such other
information as the Secretary may deem necessary.
(c) A license shall be issued for no longer than one year, and no renewal
of a license may be provided if a licensee has substantially violated this
Act and has not cured the violation to the satisfaction of the Department.
(d) A licensee shall appoint, in writing, the Secretary as attorney-in-fact
upon whom all lawful process against the licensee may be served with the
same legal force and validity as if served on the licensee. A copy of the
written appointment, duly certified, shall be filed in the office of the
Secretary, and a copy thereof certified by the Secretary shall be sufficient
evidence to subject a licensee to jurisdiction in a court of law. This appointment shall remain in effect while any liability remains
outstanding in this State against the licensee. When summons is served upon
the Secretary as attorney-in-fact for a licensee, the Secretary shall immediately
notify the licensee by registered mail, enclosing the summons and specifying
the hour and day of service.
(e) A licensee must pay an annual fee of $1,000. In addition to the
license fee, the reasonable expense of any examination or hearing
by the Secretary under any provisions of this Act shall be borne by
the licensee. If a licensee fails to renew its license by December 1,
shall automatically expire; however, the Secretary, in his or her discretion,
may reinstate an expired license upon:
(1) payment of the annual fee within 30 days of the
(2) proof of good cause for failure to renew.
(f) Not more than one place of business shall be maintained under the
same license, but the Secretary may issue more than one license to the same
licensee upon compliance with all the provisions of this Act governing
issuance of a single license. The location, except those locations already in
existence as of June 1, 2005, may not be within one mile of a
horse race track subject to the Illinois Horse Racing Act of 1975,
within one mile of a facility at which gambling is conducted under the Illinois
Gambling Act, within one mile of the location at which a
riverboat subject to the Illinois Gambling Act docks, or within one mile of
any State of Illinois or United States military base or naval installation.
(g) No licensee shall conduct the business of making loans under this
Act within any office, suite, room, or place of business in which (1) any loans are offered or made under the Consumer Installment Loan Act other than title secured loans as defined in subsection (a) of Section 15 of the Consumer Installment Loan Act and governed by Title 38, Section 110.330 of the Illinois Administrative Code or (2) any other
business is solicited or engaged in unless the other business is licensed by the Department or, in the opinion of the Secretary, the
other business would not be contrary to the best interests of consumers and
is authorized by the Secretary in writing.
(g-5) Notwithstanding subsection (g) of this Section, a licensee may obtain a license under the Consumer Installment Loan Act (CILA) for the exclusive purpose and use of making title secured loans, as defined in subsection (a) of Section 15 of CILA and governed by Title 38, Section 110.300 of the Illinois Administrative Code. A licensee may continue to service Consumer Installment Loan Act loans that were outstanding as of the effective date of this amendatory Act of the 96th General Assembly.
(h) The Secretary shall maintain a list of licensees that shall be
available to interested consumers and lenders and the public. The Secretary
shall maintain a toll-free number whereby consumers may obtain
information about licensees. The Secretary shall also establish a complaint
process under which an aggrieved consumer
may file a complaint against a licensee or non-licensee who violates any
provision of this Act.
(Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.)
815 ILCS 122/3-10
(815 ILCS 122/3-10)
Closing of business; surrender of license.
At least 10 days
before a licensee ceases operations, closes the business, or files for
bankruptcy, the licensee shall:
(1) Notify the Department of its intended action in
(2) With the exception of filing for bankruptcy,
surrender its license to the Secretary for cancellation. The surrender of the license shall not affect the licensee's civil or criminal liability for acts committed before or after the surrender or entitle the licensee to a return of any part of the annual license fee.
(3) Notify the Department of the location where the
books, accounts, contracts, and records will be maintained.
The accounts, books, records, and contracts shall be maintained and
serviced by the licensee, by another licensee under this Act, or by the Department.
(Source: P.A. 94-13, eff. 12-6-05.)