House Sponsors: DART-PARKE-FRITCHEY-BLACK-STROGER AND MORROW. Short description: PAYDAY LOAN INTEREST CAP ACT Synopsis of Bill as introduced: Creates the Payday Loan Interest Cap Act. Provides that a financial institution that makes a short-term loan based on a borrower's paycheck and the use of a pre-dated personal check as collateral may charge no more than the prime interest rate for the loan. Amends the Financial Institutions Code to provide that the Department of Financial Institutions has the power to establish rules for the regulation of the Payday Loan Interest Cap Act. Effective immediately. FISCAL NOTE (Department of Financial Institutions) Costs could be absorbed in the current budget. HOUSE AMENDMENT NO. 1. Deletes reference to: 20 ILCS 1205/6 Deletes everything. Creates the Deferred Presentment Act. Provides that no person may engage in the business of deferring presentment or negotiation of checks without obtaining a license from the Department of Financial Institutions. Provides that a licensee must keep certain records and make reports to the Department. Provides that the Department may examine and investigate licensees. BALANCED BUDGET NOTE, H-AM 1 (Bureau of the Budget) Since this bill is not a supplemental appropriation bill, the Balanced Budget Note Act is inapplicable. JUDICIAL NOTE (Administrative Office of Ill. Courts) There may be a minimal increase in judicial workloads; there would be no increase in the number of judges needed. JUDICIAL NOTE, H-AM 1 (Administrative Office of Ill. Courts) Same as previous note. HOUSING AFFORDABILITY NOTE (Housing Development Auth.) No fiscal effect on a single-family residence. HOUSING AFFORDABILITY NOTE, H-AM 1 (Housing Development Auth.) Same as previous note. HOME RULE NOTE, H-AM 1 (Department of Commerce and Community Affairs) HB 2704 (H-am 1) does not pre-empt home rule authority. STATE MANDATES NOTE, H-AM 1 (Department of Commerce and Community Affairs) HB 2704 (H-am 1) does not create a State mandate. FISCAL NOTE, H-AM 1 (Department of Financial Institutions) First year operational fiscal impact would be $300,727. FISCAL NOTE, H-AM 2 (Deparment of Financial Institutions) Total fiscal impact would be $350,727. HOUSE AMENDMENT NO. 3. Deletes everything except the short title. Last action on Bill: SESSION SINE DIE Last action date: 01-01-09 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0 END OF INQUIRY Full Text Bill Status