State of Illinois
92nd General Assembly

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 1                    AMENDMENT TO HOUSE BILL 4106

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

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

 7        Section  5.  Definitions. The following definitions apply
 8    in this Act:
 9        "Facilitator" means  a  person  who  individually  or  in
10    conjunction or cooperation with another person makes a refund
11    anticipation   loan,  processes,  receives,  or  accepts  for
12    delivery an  application  for  a  refund  anticipation  loan,
13    issues  a  check  in  payment  of  refund  anticipation  loan
14    proceeds,  or in any other manner acts to allow the making of
15    a refund anticipation loan. "Facilitator" does not include  a
16    bank, savings and loan association, credit union, or licensee
17    under  the  Consumer Installment Loan Act operating under the
18    laws of the United States or this State and does not  include
19    any  person  who  acts solely as an intermediary and does not
20    deal with the public in the making of the refund anticipation
21    loan.
22        "Borrower" means a person who receives the proceeds of  a
                            -2-            LRB9214871JSpcam03
 1    refund anticipation loan.
 2        "Refund  anticipation  loan"  means a loan arranged to be
 3    repaid directly from the proceeds of a borrower's income  tax
 4    refunds.
 5        "Refund  anticipation  loan fee" means the charges, fees,
 6    or other consideration charged or imposed by the  facilitator
 7    for  the  making  of  a  refund  anticipation loan. A "refund
 8    anticipation loan fee" does not  include  charges,  fees,  or
 9    other consideration charged or imposed in the ordinary course
10    of  business by a facilitator for services that do not result
11    in the making of  a  loan,  including  fees  for  tax  return
12    preparation and fees for electronic filing of tax returns.

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

31        Section 15.  Penalty. Any person who violates this Act is
32    guilty of a petty offense and shall be fined  $500  for  each
                            -3-            LRB9214871JSpcam03
 1    offense.  In  addition,  a  facilitator who violates this Act
 2    shall be liable to any aggrieved borrower in an amount  equal
 3    to   3  times  the  refund  anticipation  loan  fee,  plus  a
 4    reasonable attorney's fee, in a civil action brought  in  the
 5    circuit  court  by  the aggrieved borrower or by the Attorney
 6    General on behalf of the aggrieved borrower.

 7        Section 99.  Effective date. This  Act  takes  effect  on
 8    January 1, 2003.".

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