State of Illinois
92nd General Assembly

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 1                    AMENDMENT TO HOUSE BILL 4106

 2        AMENDMENT NO.     .  Amend House Bill 4106  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  1.  Short  title.  This Act may be cited as the
 5    Tax Refund Anticipation Loan Disclosure Act.

 6        Section 5.  Definitions. The following definitions  apply
 7    in this Act:
 8        "Creditor"   means   a  person  who  individually  or  in
 9    conjunction or cooperation with another person makes a refund
10    anticipation  loan,  processes,  receives,  or  accepts   for
11    delivery  an  application  for  a  refund  anticipation loan,
12    issues  a  check  in  payment  of  refund  anticipation  loan
13    proceeds, or in any other manner acts to allow the making  of
14    a  refund  anticipation  loan.  "Creditor" does not include a
15    bank, savings and loan association, or credit union operating
16    under the laws of the United States or this  State  and  does
17    not include any person who acts solely as an intermediary and
18    does  not  deal  with  the public in the making of the refund
19    anticipation loan.
20        "Debtor" means a person who receives the  proceeds  of  a
21    refund anticipation loan.
22        "Refund  anticipation  loan"  means a loan arranged to be
                            -2-            LRB9214871JSpcam01
 1    repaid directly from the proceeds of a  debtor's  income  tax
 2    refunds.
 3        "Refund  anticipation  loan fee" means the charges, fees,
 4    or other consideration charged or imposed by the creditor for
 5    the  making  of  a  refund  anticipation  loan.   A   "refund
 6    anticipation  loan  fee"  does  not include charges, fees, or
 7    other consideration charged or imposed in the ordinary course
 8    of business by a creditor for services that do not result  in
 9    the   making  of  a  loan,  including  fees  for  tax  return
10    preparation and fees for electronic filing of tax returns.

11        Section 10.  Disclosure  requirements.   At  the  time  a
12    debtor  applies  for  a  refund anticipation loan, a creditor
13    shall disclose to the debtor on a document that  is  separate
14    from the loan application:
15             (1)  the refund anticipation loan fee;
16             (2)  the fee for preparing and electronically filing
17        a tax return;
18             (3)  the date that the loan proceeds will be paid to
19        the debtor if the loan is approved;
20             (4)  that the debtor is responsible for repayment of
21        the  loan and related fees in the event the tax refund is
22        not paid or not paid in full; and
23             (5)  the availability of electronic filing  for  the
24        income  tax  return  of  the  debtor and the average time
25        announced by the federal Internal Revenue Service  within
26        which  the  debtor  can expect to receive a refund if the
27        debtor's return is filed electronically  and  the  debtor
28        does not obtain a refund anticipation loan.

29        Section 15.  Penalty. Any person who violates this Act is
30    guilty  of  a  petty offense and shall be fined $500 for each
31    offense. In addition, a creditor who violates this Act  shall
32    be  liable  to  any  aggrieved debtor in an amount equal to 3
                            -3-            LRB9214871JSpcam01
 1    times the refund anticipation loan  fee,  plus  a  reasonable
 2    attorney's  fee,  in  a  civil  action brought in the circuit
 3    court by the aggrieved debtor or by the Attorney  General  on
 4    behalf of the aggrieved debtor.

 5        Section 99.  This Act takes effect on July 1, 2002.".

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