State of Illinois
91st General Assembly
Legislation

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91_SB0218

 
                                               LRB9101666JSpc

 1        AN  ACT  to  amend  the  Consumer Installment Loan Act by
 2    changing Section 20 and adding Section 15f.

 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 15f as follows:

 7        (205 ILCS 670/15f new)
 8        Sec. 15f.  Consumer credit counseling; notice.
 9        (a)  The  Department  of   Financial   Institutions,   in
10    cooperation with an organization representing consumer credit
11    counseling  corporations,  shall  prepare  a  statement  that
12    describes the services provided by consumer credit counseling
13    corporations.   The  statement  shall  include  the  address,
14    telephone  number,  and  general  area served by all consumer
15    credit counseling corporations in Illinois.
16        (b)  A licensee shall provide a  copy  of  the  statement
17    prepared  pursuant  to  subsection (a) to its borrowers.  The
18    statement shall be provided to the borrower  separately  from
19    the  loan contract at the time the loan contract is signed by
20    the borrower.
21        (c)  Each loan contract  executed  by  a  licensee  shall
22    include   a  statement,  which  shall  be  initialed  by  the
23    borrower, as follows:
24        "I have received from (name of lender) a  statement  that
25    discloses   information   about  consumer  credit  counseling
26    services and the address and telephone number of the consumer
27    credit counseling corporation nearest my residence.".

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-                LRB9101666JSpc
 1    Installment  Loan lender without the license required by this
 2    Act shall be guilty of a Class 4 felony.
 3        (b)   The obligor, prior to the  expiration  of  2  years
 4    after  the  date  of  his last scheduled payment, may recover
 5    such reasonable attorney's fees and court costs as a    court
 6    may assess against such licensee or lender for a violation of
 7    Sections  1,  12, 15, 15a, 15b, 15d, 15e, 15f, 16, 17, 18, or
 8    19.1.  The balance due under the terms of the  loan  contract
 9    shall  be  reduced  by  the  amount which the obligor is thus
10    entitled to recover.  A bona fide  error  by  a  licensee  in
11    calculating  charges  or  rebates  is  not a violation if the
12    licensee corrects the error within a reasonable  time,  after
13    discovery.
14        (b-5)  A  license issued under this Act may be revoked if
15    the  licensee,  or  any  directors,  managers  of  a  limited
16    liability company, partners, or officer thereof is  convicted
17    of a felony.
18        (c)  No  provision of this Section imposing any liability
19    shall apply to any act done or omitted in conformity with any
20    rule or regulation or written interpretation thereof  by  the
21    Department  of  Financial  Institutions, notwithstanding that
22    after  such  act  or  omission  has  occurred,   such   rule,
23    regulation   or   interpretation  is  amended,  rescinded  or
24    determined by judicial or other authority to be  invalid  for
25    any reason.  All interpretations issued after January 1, 1998
26    must  be written and signed by the Department's Chief Counsel
27    and approved by the Director.
28    (Source: P.A. 90-437, eff. 1-1-98.)

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