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91_HB2825
LRB9104620JSpc
1 AN ACT to amend the Consumer Installment Loan Act by
2 changing Section 20 and adding Section 16c.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Consumer Installment Loan Act is amended
6 by changing Section 20 and adding Section 16c as follows:
7 (205 ILCS 670/16c new)
8 Sec. 16c. Payday and motor vehicle title lenders;
9 disclosure.
10 (a) As used in this Section, "payday lender" or "lender"
11 means a lender that makes loans based upon proof of the
12 borrower's continuing employment and the borrower's delivery
13 to the lender of a postdated check in an amount sufficient to
14 repay the loan and "motor vehicle title lender" or "lender"
15 means a lender that makes loans based upon proof of the
16 borrower's ownership of equity in a motor vehicle and the
17 borrower's delivery to the lender of a postdated check in an
18 amount sufficient to repay the loan.
19 (b) For the purpose of making the disclosure required
20 under this Section, any fee imposed for making the loan or
21 renewing, revolving, or rolling over the loan shall be deemed
22 interest on the loan.
23 (c) In addition to the requirements of Section 16, a
24 lender must disclose to the borrower, in a manner consistent
25 with the requirements of the Truth in Lending Act, the
26 interest rates charged in the transaction calculated as
27 required under subsection (b).
28 (205 ILCS 670/20) (from Ch. 17, par. 5426)
29 Sec. 20. Penalties for violation.
30 (a) Any person who engages in business as a Consumer
-2- LRB9104620JSpc
1 Installment Loan lender without the license required by this
2 Act shall be guilty of a Class 4 felony. A person who
3 violates Section 16c of this Act is guilty of a Class A
4 misdemeanor.
5 (b) The obligor, prior to the expiration of 2 years
6 after the date of his last scheduled payment, may recover
7 such reasonable attorney's fees and court costs as a court
8 may assess against such licensee or lender for a violation of
9 Sections 1, 12, 15, 15a, 15b, 15d, 15e, 16, 17, 18, or 19.1.
10 The balance due under the terms of the loan contract shall be
11 reduced by the amount which the obligor is thus entitled to
12 recover. A bona fide error by a licensee in calculating
13 charges or rebates is not a violation if the licensee
14 corrects the error within a reasonable time, after discovery.
15 (b-5) A license issued under this Act may be revoked if
16 the licensee, or any directors, managers of a limited
17 liability company, partners, or officer thereof is convicted
18 of a felony.
19 (c) No provision of this Section imposing any liability
20 shall apply to any act done or omitted in conformity with any
21 rule or regulation or written interpretation thereof by the
22 Department of Financial Institutions, notwithstanding that
23 after such act or omission has occurred, such rule,
24 regulation or interpretation is amended, rescinded or
25 determined by judicial or other authority to be invalid for
26 any reason. All interpretations issued after January 1, 1998
27 must be written and signed by the Department's Chief Counsel
28 and approved by the Director.
29 (Source: P.A. 90-437, eff. 1-1-98.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.