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91_HB2704
LRB9105543LDmb
1 AN ACT in relation to payday loans.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be known as the
5 Payday Loan Interest Cap Act.
6 Section 5. Definitions. For the purpose of this Act:
7 "Payday lender" means a currency exchange or other
8 financial institution that provides short-term loans to an
9 individual borrower.
10 "Payday loan" means a short-term loan that is based on an
11 individual borrower's paycheck and the use of a pre-dated
12 personal check of the individual borrower for collateral.
13 Section 10. Payday loan interest cap. A payday lender
14 may charge no more than the prime interest rate for any
15 payday loan.
16 Section 90. The Financial Institutions Code is amended
17 by changing Section 6 as follows:
18 (20 ILCS 1205/6) (from Ch. 17, par. 106)
19 Sec. 6. In addition to the duties imposed elsewhere in
20 this Act, the Department has the following powers:
21 (1) To exercise the rights, powers and duties vested by
22 law in the Auditor of Public Accounts under "An Act to
23 provide for the incorporation, management and regulation of
24 pawners' societies and limiting the rate of compensation to
25 be paid for advances, storage and insurance on pawns and
26 pledges and to allow the loaning of money upon personal
27 property", approved March 29, 1899, as amended.
28 (2) To exercise the rights, powers and duties vested by
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1 law in the Auditor of Public Accounts under "An Act in
2 relation to the definition, licensing and regulation of
3 community currency exchanges and ambulatory currency
4 exchanges, and the operators and employees thereof, and to
5 make an appropriation therefor, and to provide penalties and
6 remedies for the violation thereof", approved June 30, 1943,
7 as amended.
8 (3) To exercise the rights, powers, and duties vested by
9 law in the Auditor of Public Accounts under "An Act in
10 relation to the buying and selling of foreign exchange and
11 the transmission or transfer of money to foreign countries",
12 approved June 28, 1923, as amended.
13 (4) To exercise the rights, powers, and duties vested by
14 law in the Auditor of Public Accounts under "An Act to
15 provide for and regulate the business of guaranteeing titles
16 to real estate by corporations", approved May 13, 1901, as
17 amended.
18 (5) To exercise the rights, powers and duties vested by
19 law in the Department of Insurance under "An Act to define,
20 license, and regulate the business of making loans of eight
21 hundred dollars or less, permitting an interest charge
22 thereon greater than otherwise allowed by law, authorizing
23 and regulating the assignment of wages or salary when taken
24 as security for any such loan or as consideration for a
25 payment of eight hundred dollars or less, providing
26 penalties, and to repeal Acts therein named", approved July
27 11, 1935, as amended.
28 (6) To administer and enforce "An Act to license and
29 regulate the keeping and letting of safety deposit boxes,
30 safes, and vaults, and the opening thereof, and to repeal a
31 certain Act therein named", approved June 13, 1945, as
32 amended.
33 (7) Whenever the Department is authorized or required by
34 law to consider some aspect of criminal history record
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1 information for the purpose of carrying out its statutory
2 powers and responsibilities, then, upon request and payment
3 of fees in conformance with the requirements of subsection 22
4 of Section 55a of "The Civil Administrative Code of
5 Illinois", the Department of State Police is authorized to
6 furnish, pursuant to positive identification, such
7 information contained in State files as is necessary to
8 fulfill the request.
9 (8) To establish rules for the regulation of payday
10 lenders under the Payday Loan Interest Cap Act.
11 (Source: P.A. 86-610.)
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.