91st General Assembly
Summary of HB2704
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House Sponsors:

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      
          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


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