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91_SB0358
LRB9103612JSpcA
1 AN ACT to amend the Financial Institutions Code by adding
2 Section 19.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Financial Institutions Code is amended by
6 adding Section 19 as follows:
7 (20 ILCS 1205/19 new)
8 Sec. 19. Payday loan study.
9 (a) The Department shall conduct a study of the business
10 of making payday loans. The study shall include a
11 determination of the number and location of institutions
12 engaged in payday loan transactions and the annual percentage
13 rate of interest and amount of other charges imposed by the
14 institutions for payday loans. The study shall also include a
15 profile of the borrowers who obtain payday loans. This
16 profile shall disclose whether the borrowers are unable to
17 get a loan from other sources and whether the borrowers
18 constitute a captive market for lenders. In addition, the
19 study shall determine whether rates and fees charged by
20 lenders are excessive and whether the lenders engage in sharp
21 loan practices. "Payday loan" means a loan made by licensee
22 under the Consumer Installment Loan Act for a term of not
23 more than 30 days in a transaction whereby the licensee
24 receives from the borrower a check postdated to the maturity
25 date of the loan in an amount that fully satisfies the
26 borrower's obligation to the licensee.
27 (b) The Department shall report its findings and
28 recommendations to the General Assembly by September 15,
29 1999. The report shall include a discussion of problems
30 payday loan practices cause for borrowers and consumers in
31 general.
-2- LRB9103612JSpcA
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.