Public Act 101-0658
 
SB1792 EnrolledLRB101 09871 AMC 54973 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
Article 1.

 
    Section 1-5. The Farmer Equity Act is amended by adding
Section 25 as follows:
 
    (505 ILCS 72/25 new)
    Sec. 25. Disparity study; report.
    (a) The Department shall conduct a study and use the data
collected to determine economic and other disparities
associated with farm ownership and farm operations in this
State. The study shall focus primarily on identifying and
comparing economic, land ownership, education, and other
related differences between African American farmers and white
farmers, but may include data collected in regards to farmers
from other socially disadvantaged groups. The study shall
collect, compare, and analyze data relating to disparities or
differences in farm operations for the following areas:
        (1) Farm ownership and the size or acreage of the
    farmland owned compared to the number of farmers who are
    farm tenants.
        (2) The distribution of farm-related generated income
    and wealth.
        (3) The accessibility and availability to grants,
    loans, commodity subsidies, and other financial
    assistance.
        (4) Access to technical assistance programs and
    mechanization.
        (5) Participation in continuing education, outreach,
    or other agriculturally related services or programs.
        (6) Interest in farming by young or beginning farmers.
    (b) The Department shall submit a report of study to the
Governor and General Assembly on or before January 1, 2022. The
report shall be made available on the Department's Internet
website.
 
Article 5.

 
    Section 5-5. The Cannabis Regulation and Tax Act is amended
by adding Section 10-45 as follows:
 
    (410 ILCS 705/10-45 new)
    Sec. 10-45. Cannabis Equity Commission.
    (a) The Cannabis Equity Commission is created and shall
reflect the diversity of the State of Illinois, including
geographic, racial, and ethnic diversity. The Cannabis Equity
Commission shall be responsible for the following:
        (1) Ensuring that equity goals in the Illinois cannabis
    industry, as stated in Section 10-40, are met.
        (2) Tracking and analyzing minorities in the
    marketplace.
        (3) Ensuring that revenue is being invested properly
    into R3 areas under Section 10-40.
        (4) Recommending changes to make the law more equitable
    to communities harmed the most by the war on drugs.
        (5) Create standards to protect true social equity
    applicants from predatory businesses.
    (b) The Cannabis Equity Commission's ex officio members
shall, within 4 months after the effective date of this
amendatory Act of the 101st General Assembly, convene the
Commission to appoint a full Cannabis Equity Commission and
oversee, provide guidance to, and develop an administrative
structure for the Cannabis Equity Commission. The ex officio
members are:
        (1) The Governor, or his or her designee, who shall
    serve as chair.
        (2) The Attorney General, or his or her designee.
        (3) The Director of Commerce and Economic Opportunity,
    or his or her designee.
        (4) The Director of Public Health, or his or her
    designee.
        (5) The Director of Corrections, or his or her
    designee.
        (6) The Director of Financial and Professional
    Regulation, or his or her designee.
        (7) The Director of Agriculture, or his or her
    designee.
        (8) The Executive Director of the Illinois Criminal
    Justice Information Authority, or his or her designee.
        (9) The Secretary of Human Services, or his or her
    designee.
        (10) A member of the Senate, designated by the
    President of the Senate.
        (11) A member of the House of Representatives,
    designated by the Speaker of the House of Representatives.
        (12) A member of the Senate, designated by the Minority
    Leader of the Senate.
        (13) A member of the House of Representatives,
    designated by the Minority Leader of the House of
    Representatives.
    (c) Within 90 days after the ex officio members convene,
the following members shall be appointed to the Commission by
the chair:
        (1) Four community-based providers or community
    development organization representatives who provide
    services to treat violence and address the social
    determinants of health, or promote community investment,
    including, but not limited to, services such as job
    placement and training, educational services, workforce
    development programming, and wealth building. No more than
    2 community-based organization representatives shall work
    primarily in Cook County. At least one of the
    community-based providers shall have expertise in
    providing services to an immigrant population.
        (2) Two experts in the field of violence reduction.
        (3) One male who has previously been incarcerated and
    is over the age of 24 at the time of appointment.
        (4) One female who has previously been incarcerated and
    is over the age of 24 at the time of appointment.
        (5) Two individuals who have previously been
    incarcerated and are between the ages of 17 and 24 at the
    time of appointment.
    As used in this subsection (c), "an individual who has been
previously incarcerated" has the same meaning as defined in
paragraph (2) of subsection (e) of Section 10-40.
 
Article 15.

 
Division 1. General Provisions

 
    Section 15-1-1. Short title. This Act may be cited as the
Predatory Loan Prevention Act. References in this Article to
"this Act" mean this Article.
 
    Section 15-1-5. Purpose and construction. Illinois
families pay over $500,000,000 per year in consumer
installment, payday, and title loan fees. As reported by the
Department in 2020, nearly half of Illinois payday loan
borrowers earn less than $30,000 per year, and the average
annual percentage rate of a payday loan is 297%. The purpose of
this Act is to protect consumers from predatory loans
consistent with federal law and the Military Lending Act which
protects active duty members of the military. This Act shall be
construed as a consumer protection law for all purposes. This
Act shall be liberally construed to effectuate its purpose.
 
    Section 15-1-10. Definitions. As used in this Act:
    "Consumer" means any natural person, including consumers
acting jointly.
    "Department" means the Department of Financial and
Professional Regulation.
    "Lender" means any person or entity, including any
affiliate or subsidiary of a lender, that offers or makes a
loan, buys a whole or partial interest in a loan, arranges a
loan for a third party, or acts as an agent for a third party in
making a loan, regardless of whether approval, acceptance, or
ratification by the third party is necessary to create a legal
obligation for the third party, and includes any other person
or entity if the Department determines that the person or
entity is engaged in a transaction that is in substance a
disguised loan or a subterfuge for the purpose of avoiding this
Act.
    "Person" means any natural person.
    "Secretary" means the Secretary of Financial and
Professional Regulation or a person authorized by the
Secretary.
    "Loan" means money or credit provided to a consumer in
exchange for the consumer's agreement to a certain set of
terms, including, but not limited to, any finance charges,
interest, or other conditions. "Loan" includes closed-end and
open-end credit, retail installment sales contracts, motor
vehicle retail installment sales contracts, and any
transaction conducted via any medium whatsoever, including,
but not limited to, paper, facsimile, Internet, or telephone.
"Loan" does not include a commercial loan.
 
    Section 15-1-15. Applicability.
    (a) Except as otherwise provided in this Section, this Act
applies to any person or entity that offers or makes a loan to
a consumer in Illinois.
    (b) The provisions of this Act apply to any person or
entity that seeks to evade its applicability by any device,
subterfuge, or pretense whatsoever.
    (c) Banks, savings banks, savings and loan associations,
credit unions, and insurance companies organized, chartered,
or holding a certificate of authority to do business under the
laws of this State or any other state or under the laws of the
United States are exempt from the provisions of this Act.
 
Division 5. Predatory Loan Prevention

 
    Section 15-5-5. Rate cap. Notwithstanding any other
provision of law, for loans made or renewed on and after the
effective date of this Act, a lender shall not contract for or
receive charges exceeding a 36% annual percentage rate on the
unpaid balance of the amount financed for a loan. For purposes
of this Section, the annual percentage rate shall be calculated
as such rate is calculated using the system for calculating a
military annual percentage rate under Section 232.4 of Title 32
of the Code of Federal Regulations as in effect on the
effective date of this Act. Nothing in this Act shall be
construed to permit a person or entity to contract for or
receive a charge exceeding that permitted by the Interest Act
or other law.
 
    Section 15-5-10. Violation. Any loan made in violation of
this Act is null and void and no person or entity shall have
any right to collect, attempt to collect, receive, or retain
any principal, fee, interest, or charges related to the loan.
 
    Section 15-5-15. No evasion.
    (a) No person or entity may engage in any device,
subterfuge, or pretense to evade the requirements of this Act,
including, but not limited to, making loans disguised as a
personal property sale and leaseback transaction; disguising
loan proceeds as a cash rebate for the pretextual installment
sale of goods or services; or making, offering, assisting, or
arranging a debtor to obtain a loan with a greater rate or
interest, consideration, or charge than is permitted by this
Act through any method including mail, telephone, internet, or
any electronic means regardless of whether the person or entity
has a physical location in the State.
    (b) If a loan exceeds the rate permitted by Section 15-5-5,
a person or entity is a lender subject to the requirements of
this Act notwithstanding the fact that the person or entity
purports to act as an agent, service provider, or in another
capacity for another entity that is exempt from this Act, if,
among other things:
        (1) the person or entity holds, acquires, or maintains,
    directly or indirectly, the predominant economic interest
    in the loan; or
        (2) the person or entity markets, brokers, arranges, or
    facilitates the loan and holds the right, requirement, or
    first right of refusal to purchase loans, receivables, or
    interests in the loans; or
        (3) the totality of the circumstances indicate that the
    person or entity is the lender and the transaction is
    structured to evade the requirements of this Act.
    Circumstances that weigh in favor of a person or entity
    being a lender include, without limitation, where the
    person or entity:
            (i) indemnifies, insures, or protects an exempt
        person or entity for any costs or risks related to the
        loan;
            (ii) predominantly designs, controls, or operates
        the loan program; or
            (iii) purports to act as an agent, service
        provider, or in another capacity for an exempt entity
        while acting directly as a lender in other states.
 
    Section 15-5-20. Rules. The Secretary may adopt rules
consistent with this Act and rescind or amend rules that are
inconsistent. The adoption, amendment, or rescission of rules
shall be in conformity with the Illinois Administrative
Procedure Act.
 
Division 10. Administrative Provisions

 
    Section 15-10-5. Enforcement and remedies.
    (a) The remedies provided in this Act are cumulative and
apply to persons or entities subject to this Act.
    (b) Any violation of this Act, including the commission of
an act prohibited under Article 5, constitutes a violation of
the Consumer Fraud and Deceptive Business Practices Act.
    (c) Subject to the Illinois Administrative Procedure Act,
the Secretary may hold hearings, make findings of fact,
conclusions of law, issue cease and desist orders, have the
power to issue fines of up to $10,000 per violation, and refer
the matter to the appropriate law enforcement agency for
prosecution under this Act. All proceedings shall be open to
the public.
    (d) The Secretary may issue a cease and desist order to any
person or entity, when in the opinion of the Secretary the
person or entity is violating or is about to violate any
provision of this Act. The cease and desist order permitted by
this subsection (d) may be issued prior to a hearing.
    The Secretary shall serve notice of the action, including,
but not limited to, a statement of the reasons for the action,
either personally or by certified mail. Service by certified
mail shall be deemed completed when the notice is deposited in
the U.S. Mail.
    Within 10 days of service of the cease and desist order,
the person or entity may request a hearing in writing.
    If it is determined that the Secretary had the authority to
issue the cease and desist order, the Secretary may issue such
orders as may be reasonably necessary to correct, eliminate, or
remedy the conduct.
    The powers vested in the Secretary by this subsection (d)
are additional to any and all other powers and remedies vested
in the Secretary by law, and nothing in this subsection (d)
shall be construed as requiring that the Secretary shall employ
the power conferred in this subsection instead of or as a
condition precedent to the exercise of any other power or
remedy vested in the Secretary.
    (e) After 10 days' notice by certified mail to the person
or entity stating the contemplated action and in general the
grounds therefor, the Secretary may fine the person or entity
an amount not exceeding $10,000 per violation if the person or
entity has failed to comply with any provision of this Act or
any order, decision, finding, rule, regulation, or direction of
the Secretary lawfully made in accordance with the authority of
this Act. Service by certified mail shall be deemed completed
when the notice is deposited in the U.S. Mail.
    (f) A violation of this Act by a person or entity licensed
under another Act including, but not limited to, the Consumer
Installment Loan Act, the Payday Loan Reform Act, and the Sales
Finance Agency Act shall subject the person or entity to
discipline in accordance with the Act or Acts under which the
person or entity is licensed.
 
    Section 15-10-10. Preemption of administrative rules. Any
administrative rule regarding loans that is adopted by the
Department prior to the effective date of this Act and that is
inconsistent with the provisions of this Act is hereby
preempted to the extent of the inconsistency.
 
    Section 15-10-15. Reporting of violations. The Department
shall report to the Attorney General all material violations of
this Act of which it becomes aware.
 
    Section 15-10-20. Judicial review. All final
administrative decisions of the Department under this Act are
subject to judicial review under the Administrative Review Law
and any rules adopted under the Administrative Review Law.
 
    Section 15-10-25. No waivers. There shall be no waiver of
any provision of this Act.
 
    Section 15-10-30. Superiority of Act. To the extent this
Act conflicts with any other State laws, this Act is superior
and supersedes those laws, except that nothing in this Act
applies to any lender that is a bank, savings bank, savings and
loan association, or credit union chartered under laws of the
United States.
 
    Section 15-10-35. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.
 
Division 90. Amendatory Provisions

 
    Section 15-90-5. The Financial Institutions Code is
amended by changing Section 6 as follows:
 
    (20 ILCS 1205/6)  (from Ch. 17, par. 106)
    Sec. 6. In addition to the duties imposed elsewhere in this
Act, the Department has the following powers:
    (1) To exercise the rights, powers and duties vested by law
in the Auditor of Public Accounts under "An Act to provide for
the incorporation, management and regulation of pawners'
societies and limiting the rate of compensation to be paid for
advances, storage and insurance on pawns and pledges and to
allow the loaning of money upon personal property", approved
March 29, 1899, as amended.
    (2) To exercise the rights, powers and duties vested by law
in the Auditor of Public Accounts under "An Act in relation to
the definition, licensing and regulation of community currency
exchanges and ambulatory currency exchanges, and the operators
and employees thereof, and to make an appropriation therefor,
and to provide penalties and remedies for the violation
thereof", approved June 30, 1943, as amended.
    (3) To exercise the rights, powers, and duties vested by
law in the Auditor of Public Accounts under "An Act in relation
to the buying and selling of foreign exchange and the
transmission or transfer of money to foreign countries",
approved June 28, 1923, as amended.
    (4) To exercise the rights, powers, and duties vested by
law in the Auditor of Public Accounts under "An Act to provide
for and regulate the business of guaranteeing titles to real
estate by corporations", approved May 13, 1901, as amended.
    (5) To exercise the rights, powers and duties vested by law
in the Department of Insurance under "An Act to define,
license, and regulate the business of making loans of eight
hundred dollars or less, permitting an interest charge thereon
greater than otherwise allowed by law, authorizing and
regulating the assignment of wages or salary when taken as
security for any such loan or as consideration for a payment of
eight hundred dollars or less, providing penalties, and to
repeal Acts therein named", approved July 11, 1935, as amended.
    (6) To administer and enforce "An Act to license and
regulate the keeping and letting of safety deposit boxes,
safes, and vaults, and the opening thereof, and to repeal a
certain Act therein named", approved June 13, 1945, as amended.
    (7) Whenever the Department is authorized or required by
law to consider some aspect of criminal history record
information for the purpose of carrying out its statutory
powers and responsibilities, then, upon request and payment of
fees in conformance with the requirements of Section 2605-400
of the Department of State Police Law (20 ILCS 2605/2605-400),
the Department of State Police is authorized to furnish,
pursuant to positive identification, such information
contained in State files as is necessary to fulfill the
request.
    (8) To administer the Payday Loan Reform Act, the Consumer
Installment Loan Act, the Predatory Loan Prevention Act, the
Motor Vehicle Retail Installment Sales Act, and the Retail
Installment Sales Act.
(Source: P.A. 94-13, eff. 12-6-05.)
 
    Section 15-90-10. The Consumer Installment Loan Act is
amended by changing Sections 1, 15, 15d, and 17.5 as follows:
 
    (205 ILCS 670/1)  (from Ch. 17, par. 5401)
    Sec. 1. License required to engage in business. No person,
partnership, association, limited liability company, or
corporation shall engage in the business of making loans of
money in a principal amount not exceeding $40,000, and charge,
contract for, or receive on any such loan a greater annual
percentage rate than 9% rate of interest, discount, or
consideration therefor than the lender would be permitted by
law to charge if he were not a licensee hereunder, except as
authorized by this Act after first obtaining a license from the
Director of Financial Institutions (hereinafter called the
Director). No licensee, or employee or affiliate thereof, that
is licensed under the Payday Loan Reform Act shall obtain a
license under this Act except that a licensee under the Payday
Loan Reform Act may obtain a license under this Act for the
exclusive purpose and use of making title-secured loans, as
defined in subsection (a) of Section 15 of this Act and
governed by Title 38, Section 110.300 of the Illinois
Administrative Code. For the purpose of this Section,
"affiliate" means any person or entity that directly or
indirectly controls, is controlled by, or shares control with
another person or entity. A person or entity has control over
another if the person or entity has an ownership interest of
25% or more in the other.
    In this Act, "Director" means the Director of Financial
Institutions of the Department of Financial and Professional
Regulation.
(Source: P.A. 96-936, eff. 3-21-11; 97-420, eff. 1-1-12.)
 
    (205 ILCS 670/15)  (from Ch. 17, par. 5415)
    Sec. 15. Charges permitted.
    (a) Every licensee may lend a principal amount not
exceeding $40,000 and, except as to small consumer loans as
defined in this Section, may charge, contract for and receive
thereon interest at an annual percentage rate of no more than
36%, subject to the provisions of this Act; provided, however,
that the limitation on the annual percentage rate contained in
this subsection (a) does not apply to title-secured loans,
which are loans upon which interest is charged at an annual
percentage rate exceeding 36%, in which, at commencement, an
obligor provides to the licensee, as security for the loan,
physical possession of the obligor's title to a motor vehicle,
and upon which a licensee may charge, contract for, and receive
thereon interest at the rate agreed upon by the licensee and
borrower. For purposes of this Section, the annual percentage
rate shall be calculated as such rate is calculated using the
system for calculating a military annual percentage rate under
Section 232.4 of Title 32 of the Code of Federal Regulations as
in effect on the effective date of this amendatory Act of the
101st General Assembly in accordance with the federal Truth in
Lending Act.
    (b) For purpose of this Section, the following terms shall
have the meanings ascribed herein.
    "Applicable interest" for a precomputed loan contract
means the amount of interest attributable to each monthly
installment period. It is computed as if each installment
period were one month and any interest charged for extending
the first installment period beyond one month is ignored. The
applicable interest for any monthly installment period is, for
loans other than small consumer loans as defined in this
Section, that portion of the precomputed interest that bears
the same ratio to the total precomputed interest as the
balances scheduled to be outstanding during that month bear to
the sum of all scheduled monthly outstanding balances in the
original contract. With respect to a small consumer loan, the
applicable interest for any installment period is that portion
of the precomputed monthly installment account handling charge
attributable to the installment period calculated based on a
method at least as favorable to the consumer as the actuarial
method, as defined by the federal Truth in Lending Act.
    "Interest-bearing loan" means a loan in which the debt is
expressed as a principal amount plus interest charged on actual
unpaid principal balances for the time actually outstanding.
    "Precomputed loan" means a loan in which the debt is
expressed as the sum of the original principal amount plus
interest computed actuarially in advance, assuming all
payments will be made when scheduled.
    "Small consumer loan" means a loan upon which interest is
charged at an annual percentage rate exceeding 36% and with an
amount financed of $4,000 or less. "Small consumer loan" does
not include a title-secured loan as defined by subsection (a)
of this Section or a payday loan as defined by the Payday Loan
Reform Act.
    "Substantially equal installment" includes a last
regularly scheduled payment that may be less than, but not more
than 5% larger than, the previous scheduled payment according
to a disclosed payment schedule agreed to by the parties.
    (c) Loans may be interest-bearing or precomputed.
    (d) To compute time for either interest-bearing or
precomputed loans for the calculation of interest and other
purposes, a month shall be a calendar month and a day shall be
considered 1/30th of a month when calculation is made for a
fraction of a month. A month shall be 1/12th of a year. A
calendar month is that period from a given date in one month to
the same numbered date in the following month, and if there is
no same numbered date, to the last day of the following month.
When a period of time includes a month and a fraction of a
month, the fraction of the month is considered to follow the
whole month. In the alternative, for interest-bearing loans,
the licensee may charge interest at the rate of 1/365th of the
agreed annual rate for each day actually elapsed.
    (d-5) No licensee or other person may condition an
extension of credit to a consumer on the consumer's repayment
by preauthorized electronic fund transfers. Payment options,
including, but not limited to, electronic fund transfers and
Automatic Clearing House (ACH) transactions may be offered to
consumers as a choice and method of payment chosen by the
consumer.
    (e) With respect to interest-bearing loans:
        (1) Interest shall be computed on unpaid principal
    balances outstanding from time to time, for the time
    outstanding, until fully paid. Each payment shall be
    applied first to the accumulated interest and the remainder
    of the payment applied to the unpaid principal balance;
    provided however, that if the amount of the payment is
    insufficient to pay the accumulated interest, the unpaid
    interest continues to accumulate to be paid from the
    proceeds of subsequent payments and is not added to the
    principal balance.
        (2) Interest shall not be payable in advance or
    compounded. However, if part or all of the consideration
    for a new loan contract is the unpaid principal balance of
    a prior loan, then the principal amount payable under the
    new loan contract may include any unpaid interest which has
    accrued. The unpaid principal balance of a precomputed loan
    is the balance due after refund or credit of unearned
    interest as provided in paragraph (f), clause (3). The
    resulting loan contract shall be deemed a new and separate
    loan transaction for all purposes.
        (3) Loans must be fully amortizing and be repayable in
    substantially equal and consecutive weekly, biweekly,
    semimonthly, or monthly installments. Notwithstanding this
    requirement, rates may vary according to an index that is
    independently verifiable and beyond the control of the
    licensee.
        (4) The lender or creditor may, if the contract
    provides, collect a delinquency or collection charge on
    each installment in default for a period of not less than
    10 days in an amount not exceeding 5% of the installment on
    installments in excess of $200, or $10 on installments of
    $200 or less, but only one delinquency and collection
    charge may be collected on any installment regardless of
    the period during which it remains in default.
    (f) With respect to precomputed loans:
        (1) Loans shall be repayable in substantially equal and
    consecutive weekly, biweekly, semimonthly, or monthly
    installments of principal and interest combined, except
    that the first installment period may be longer than one
    month by not more than 15 days, and the first installment
    payment amount may be larger than the remaining payments by
    the amount of interest charged for the extra days; and
    provided further that monthly installment payment dates
    may be omitted to accommodate borrowers with seasonal
    income.
        (2) Payments may be applied to the combined total of
    principal and precomputed interest until the loan is fully
    paid. Payments shall be applied in the order in which they
    become due, except that any insurance proceeds received as
    a result of any claim made on any insurance, unless
    sufficient to prepay the contract in full, may be applied
    to the unpaid installments of the total of payments in
    inverse order.
        (3) When any loan contract is paid in full by cash,
    renewal or refinancing, or a new loan, one month or more
    before the final installment due date, a licensee shall
    refund or credit the obligor with the total of the
    applicable interest for all fully unexpired installment
    periods, as originally scheduled or as deferred, which
    follow the day of prepayment; provided, if the prepayment
    occurs prior to the first installment due date, the
    licensee may retain 1/30 of the applicable interest for a
    first installment period of one month for each day from the
    date of the loan to the date of prepayment, and shall
    refund or credit the obligor with the balance of the total
    interest contracted for. If the maturity of the loan is
    accelerated for any reason and judgment is entered, the
    licensee shall credit the borrower with the same refund as
    if prepayment in full had been made on the date the
    judgement is entered.
        (4) The lender or creditor may, if the contract
    provides, collect a delinquency or collection charge on
    each installment in default for a period of not less than
    10 days in an amount not exceeding 5% of the installment on
    installments in excess of $200, or $10 on installments of
    $200 or less, but only one delinquency or collection charge
    may be collected on any installment regardless of the
    period during which it remains in default.
        (5) If the parties agree in writing, either in the loan
    contract or in a subsequent agreement, to a deferment of
    wholly unpaid installments, a licensee may grant a
    deferment and may collect a deferment charge as provided in
    this Section. A deferment postpones the scheduled due date
    of the earliest unpaid installment and all subsequent
    installments as originally scheduled, or as previously
    deferred, for a period equal to the deferment period. The
    deferment period is that period during which no installment
    is scheduled to be paid by reason of the deferment. The
    deferment charge for a one month period may not exceed the
    applicable interest for the installment period immediately
    following the due date of the last undeferred payment. A
    proportionate charge may be made for deferment for periods
    of more or less than one month. A deferment charge is
    earned pro rata during the deferment period and is fully
    earned on the last day of the deferment period. Should a
    loan be prepaid in full during a deferment period, the
    licensee shall credit to the obligor a refund of the
    unearned deferment charge in addition to any other refund
    or credit made for prepayment of the loan in full.
        (6) If two or more installments are delinquent one full
    month or more on any due date, and if the contract so
    provides, the licensee may reduce the unpaid balance by the
    refund credit which would be required for prepayment in
    full on the due date of the most recent maturing
    installment in default. Thereafter, and in lieu of any
    other default or deferment charges, the agreed rate of
    interest or, in the case of small consumer loans, interest
    at the rate of 18% per annum, may be charged on the unpaid
    balance until fully paid.
        (7) Fifteen days after the final installment as
    originally scheduled or deferred, the licensee, for any
    loan contract which has not previously been converted to
    interest-bearing under paragraph (f), clause (6), may
    compute and charge interest on any balance remaining
    unpaid, including unpaid default or deferment charges, at
    the agreed rate of interest or, in the case of small
    consumer loans, interest at the rate of 18% per annum,
    until fully paid. At the time of payment of said final
    installment, the licensee shall give notice to the obligor
    stating any amounts unpaid.
(Source: P.A. 101-563, eff. 8-23-19.)
 
    (205 ILCS 670/15d)  (from Ch. 17, par. 5419)
    Sec. 15d. Extra charges prohibited; exceptions. No amount
in addition to the charges authorized by this Act shall be
directly or indirectly charged, contracted for, or received,
except (1) lawful fees paid to any public officer or agency to
record, file or release security; (2) (i) costs and
disbursements actually incurred in connection with a real
estate loan, for any title insurance, title examination,
abstract of title, survey, or appraisal, or paid to a trustee
in connection with a trust deed, and (ii) in connection with a
real estate loan those charges authorized by Section 4.1a of
the Interest Act, whether called "points" or otherwise, which
charges are imposed as a condition for making the loan and are
not refundable in the event of prepayment of the loan; (3)
costs and disbursements, including reasonable attorney's fees,
incurred in legal proceedings to collect a loan or to realize
on a security after default; and (4) an amount not exceeding
$25, plus any actual expenses incurred in connection with a
check or draft that is not honored because of insufficient or
uncollected funds or because no such account exists; and (5) a
document preparation fee not to exceed $25 for obtaining and
reviewing credit reports and preparation of other documents.
This Section does not prohibit the receipt of a commission,
dividend, charge, or other benefit by the licensee or by an
employee, affiliate, or associate of the licensee from the
insurance permitted by Sections 15a and 15b of this Act or from
insurance in lieu of perfecting a security interest provided
that the premiums for such insurance do not exceed the fees
that otherwise could be contracted for by the licensee under
this Section. Obtaining any of the items referred to in clause
(i) of item (2) of this Section through the licensee or from
any person specified by the licensee shall not be a condition
precedent to the granting of the loan.
(Source: P.A. 89-400, eff. 8-20-95; 90-437, eff. 1-1-98.)
 
    (205 ILCS 670/17.5)
    Sec. 17.5. Consumer reporting service.
    (a) For the purpose of this Section, "certified database"
means the consumer reporting service database established
pursuant to the Payday Loan Reform Act. "Title-secured loan"
means a loan in which, at commencement, a consumer provides to
the licensee, as security for the loan, physical possession of
the consumer's title to a motor vehicle.
    (b) Licensees shall enter information regarding each loan
into the certified database and shall follow the Department's
related rules. Within 90 days after making a small consumer
loan, a licensee shall enter information about the loan into
the certified database.
    (c) For every title-secured loan small consumer loan made,
the licensee shall input information as provided in 38 Ill.
Adm. Code 110.420. the following information into the certified
database within 90 days after the loan is made:
        (i) the consumer's name and official identification
    number (for purposes of this Act, "official identification
    number" includes a Social Security Number, an Individual
    Taxpayer Identification Number, a Federal Employer
    Identification Number, an Alien Registration Number, or an
    identification number imprinted on a passport or consular
    identification document issued by a foreign government);
        (ii) the consumer's gross monthly income;
        (iii) the date of the loan;
        (iv) the amount financed;
        (v) the term of the loan;
        (vi) the acquisition charge;
        (vii) the monthly installment account handling charge;
        (viii) the verification fee;
        (ix) the number and amount of payments; and
        (x) whether the loan is a first or subsequent
    refinancing of a prior small consumer loan.
    (d) Once a loan is entered with the certified database, the
certified database shall provide to the licensee a dated,
time-stamped statement acknowledging the certified database's
receipt of the information and assigning each loan a unique
loan number.
    (e) The licensee shall update the certified database within
90 days if any of the following events occur:
        (i) the loan is paid in full by cash;
        (ii) the loan is refinanced;
        (iii) the loan is renewed;
        (iv) the loan is satisfied in full or in part by
    collateral being sold after default;
        (v) the loan is cancelled or rescinded; or
        (vi) the consumer's obligation on the loan is otherwise
    discharged by the licensee.
    (f) To the extent a licensee sells a product or service to
a consumer, other than a small consumer loan, and finances any
portion of the cost of the product or service, the licensee
shall, in addition to and at the same time as the information
inputted under subsection (d) of this Section, enter into the
certified database:
        (i) a description of the product or service sold;
        (ii) the charge for the product or service; and
        (iii) the portion of the charge for the product or
    service, if any, that is included in the amount financed by
    a small consumer loan.
    (d) (g) The certified database provider shall indemnify the
licensee against all claims and actions arising from illegal or
willful or wanton acts on the part of the certified database
provider. The certified database provider may charge a fee not
to exceed $1 for each loan entered into the certified database
under subsection (d) of this Section. The database provider
shall not charge any additional fees or charges to the
licensee.
    (h) All personally identifiable information regarding any
consumer obtained by way of the certified database and
maintained by the Department is strictly confidential and shall
be exempt from disclosure under subsection (c) of Section 7 of
the Freedom of Information Act.
    (i) A licensee who submits information to a certified
database provider in accordance with this Section shall not be
liable to any person for any subsequent release or disclosure
of that information by the certified database provider, the
Department, or any other person acquiring possession of the
information, regardless of whether such subsequent release or
disclosure was lawful, authorized, or intentional.
    (j) To the extent the certified database becomes
unavailable to a licensee as a result of some event or events
outside the control of the licensee or the certified database
is decertified, the requirements of this Section and Section
17.4 of this Act are suspended until such time as the certified
database becomes available.
(Source: P.A. 96-936, eff. 3-21-11; 97-813, eff. 7-13-12.)
 
    (205 ILCS 670/17.1 rep.)
    (205 ILCS 670/17.2 rep.)
    (205 ILCS 670/17.3 rep.)
    (205 ILCS 670/17.4 rep.)
    Section 15-90-15. The Consumer Installment Loan Act is
amended by repealing Sections 17.1, 17.2, 17.3, and 17.4.
 
    Section 15-90-20. The Payday Loan Reform Act is amended by
changing Sections 1-10, 2-5, 2-10, 2-15, 2-20, 2-30, 2-40,
2-45, and 4-5 as follows:
 
    (815 ILCS 122/1-10)
    Sec. 1-10. Definitions. As used in this Act:
    "Check" means a "negotiable instrument", as defined in
Article 3 of the Uniform Commercial Code, that is drawn on a
financial institution.
    "Commercially reasonable method of verification" or
"certified database" means a consumer reporting service
database certified by the Department as effective in verifying
that a proposed loan agreement is permissible under this Act,
or, in the absence of the Department's certification, any
reasonably reliable written verification by the consumer
concerning (i) whether the consumer has any outstanding payday
loans, (ii) the principal amount of those outstanding payday
loans, and (iii) whether any payday loans have been paid in
full by the consumer in the preceding 7 days.
    "Consumer" means any natural person who, singly or jointly
with another consumer, enters into a loan.
    "Consumer reporting service" means an entity that provides
a database certified by the Department.
    "Department" means the Department of Financial and
Professional Regulation.
    "Secretary" means the Secretary of Financial and
Professional Regulation.
    "Gross monthly income" means monthly income as
demonstrated by official documentation of the income,
including, but not limited to, a pay stub or a receipt
reflecting payment of government benefits, for the period 30
days prior to the date on which the loan is made.
    "Lender" and "licensee" mean any person or entity,
including any affiliate or subsidiary of a lender or licensee,
that offers or makes a payday loan, buys a whole or partial
interest in a payday loan, arranges a payday loan for a third
party, or acts as an agent for a third party in making a payday
loan, regardless of whether approval, acceptance, or
ratification by the third party is necessary to create a legal
obligation for the third party, and includes any other person
or entity if the Department determines that the person or
entity is engaged in a transaction that is in substance a
disguised payday loan or a subterfuge for the purpose of
avoiding this Act.
    "Loan agreement" means a written agreement between a lender
and consumer to make a loan to the consumer, regardless of
whether any loan proceeds are actually paid to the consumer on
the date on which the loan agreement is made.
    "Member of the military" means a person serving in the
armed forces of the United States, the Illinois National Guard,
or any reserve component of the armed forces of the United
States. "Member of the military" includes those persons engaged
in (i) active duty, (ii) training or education under the
supervision of the United States preliminary to induction into
military service, or (iii) a period of active duty with the
State of Illinois under Title 10 or Title 32 of the United
States Code pursuant to order of the President or the Governor
of the State of Illinois.
    "Outstanding balance" means the total amount owed by the
consumer on a loan to a lender, including all principal,
finance charges, fees, and charges of every kind.
    "Payday loan" or "loan" means a loan with a finance charge
exceeding an annual percentage rate of 36% and with a term that
does not exceed 120 days, including any transaction conducted
via any medium whatsoever, including, but not limited to,
paper, facsimile, Internet, or telephone, in which:
        (1) A lender accepts one or more checks dated on the
    date written and agrees to hold them for a period of days
    before deposit or presentment, or accepts one or more
    checks dated subsequent to the date written and agrees to
    hold them for deposit; or
        (2) A lender accepts one or more authorizations to
    debit a consumer's bank account; or
        (3) A lender accepts an interest in a consumer's wages,
    including, but not limited to, a wage assignment.
    The term "payday loan" includes "installment payday loan",
unless otherwise specified in this Act.
    "Principal amount" means the amount received by the
consumer from the lender due and owing on a loan, excluding any
finance charges, interest, fees, or other loan-related
charges.
    "Rollover" means to refinance, renew, amend, or extend a
loan beyond its original term.
(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-5)
    Sec. 2-5. Loan terms.
    (a) Without affecting the right of a consumer to prepay at
any time without cost or penalty, no payday loan may have a
minimum term of less than 13 days.
    (b) No Except for an installment payday loan as defined in
this Section, no payday loan may be made to a consumer if the
loan would result in the consumer being indebted to one or more
payday lenders for a period in excess of 45 consecutive days.
Except as provided under subsection (c) of this Section and
Section 2-40, if a consumer has or has had loans outstanding
for a period in excess of 45 consecutive days, no payday lender
may offer or make a loan to the consumer for at least 7
calendar days after the date on which the outstanding balance
of all payday loans made during the 45 consecutive day period
is paid in full. For purposes of this subsection, the term
"consecutive days" means a series of continuous calendar days
in which the consumer has an outstanding balance on one or more
payday loans; however, if a payday loan is made to a consumer
within 6 days or less after the outstanding balance of all
loans is paid in full, those days are counted as "consecutive
days" for purposes of this subsection.
    (c) (Blank). Notwithstanding anything in this Act to the
contrary, a payday loan shall also include any installment loan
otherwise meeting the definition of payday loan contained in
Section 1-10, but that has a term agreed by the parties of not
less than 112 days and not exceeding 180 days; hereinafter an
"installment payday loan". The following provisions shall
apply:
        (i) Any installment payday loan must be fully
    amortizing, with a finance charge calculated on the
    principal balances scheduled to be outstanding and be
    repayable in substantially equal and consecutive
    installments, according to a payment schedule agreed by the
    parties with not less than 13 days and not more than one
    month between payments; except that the first installment
    period may be longer than the remaining installment periods
    by not more than 15 days, and the first installment payment
    may be larger than the remaining installment payments by
    the amount of finance charges applicable to the extra days.
    In calculating finance charges under this subsection, when
    the first installment period is longer than the remaining
    installment periods, the amount of the finance charges
    applicable to the extra days shall not be greater than
    $15.50 per $100 of the original principal balance divided
    by the number of days in a regularly scheduled installment
    period and multiplied by the number of extra days
    determined by subtracting the number of days in a regularly
    scheduled installment period from the number of days in the
    first installment period.
        (ii) An installment payday loan may be refinanced by a
    new installment payday loan one time during the term of the
    initial loan; provided that the total duration of
    indebtedness on the initial installment payday loan
    combined with the total term of indebtedness of the new
    loan refinancing that initial loan, shall not exceed 180
    days. For purposes of this Act, a refinancing occurs when
    an existing installment payday loan is paid from the
    proceeds of a new installment payday loan.
        (iii) In the event an installment payday loan is paid
    in full prior to the date on which the last scheduled
    installment payment before maturity is due, other than
    through a refinancing, no licensee may offer or make a
    payday loan to the consumer for at least 2 calendar days
    thereafter.
        (iv) No installment payday loan may be made to a
    consumer if the loan would result in the consumer being
    indebted to one or more payday lenders for a period in
    excess of 180 consecutive days. The term "consecutive days"
    does not include the date on which a consumer makes the
    final installment payment.
    (d) (Blank).
    (e) No lender may make a payday loan to a consumer if the
total of all payday loan payments coming due within the first
calendar month of the loan, when combined with the payment
amount of all of the consumer's other outstanding payday loans
coming due within the same month, exceeds the lesser of:
        (1) $1,000; or
        (2) in the case of one or more payday loans, 25% of the
    consumer's gross monthly income. ; or
        (3) in the case of one or more installment payday
    loans, 22.5% of the consumer's gross monthly income; or
        (4) in the case of a payday loan and an installment
    payday loan, 22.5% of the consumer's gross monthly income.
    No loan shall be made to a consumer who has an outstanding
balance on 2 payday loans, except that, for a period of 12
months after March 21, 2011 (the effective date of Public Act
96-936), consumers with an existing CILA loan may be issued an
installment loan issued under this Act from the company from
which their CILA loan was issued.
    (e-5) A lender shall not contract for or receive a charge
exceeding a 36% annual percentage rate on the unpaid balance of
the amount financed for a payday loan. For purposes of this
Section, the annual percentage rate shall be calculated as such
rate is calculated using the system for calculating a military
annual percentage rate under 32 CFR 232.4 as in effect on the
effective date of this amendatory Act of the 101st General
Assembly. Except as provided in subsection (c)(i), no lender
may charge more than $15.50 per $100 loaned on any payday loan,
or more than $15.50 per $100 on the initial principal balance
and on the principal balances scheduled to be outstanding
during any installment period on any installment payday loan.
Except for installment payday loans and except as provided in
Section 2-25, this charge is considered fully earned as of the
date on which the loan is made. For purposes of determining the
finance charge earned on an installment payday loan, the
disclosed annual percentage rate shall be applied to the
principal balances outstanding from time to time until the loan
is paid in full, or until the maturity date, whichever occurs
first. No finance charge may be imposed after the final
scheduled maturity date.
    When any loan contract is paid in full, the licensee shall
refund any unearned finance charge. The unearned finance charge
that is refunded shall be calculated based on a method that is
at least as favorable to the consumer as the actuarial method,
as defined by the federal Truth in Lending Act. The sum of the
digits or rule of 78ths method of calculating prepaid interest
refunds is prohibited.
    (f) A lender may not take or attempt to take an interest in
any of the consumer's personal property to secure a payday
loan.
    (g) A consumer has the right to redeem a check or any other
item described in the definition of payday loan under Section
1-10 issued in connection with a payday loan from the lender
holding the check or other item at any time before the payday
loan becomes payable by paying the full amount of the check or
other item.
    (h) (Blank). For the purpose of this Section,
"substantially equal installment" includes a last regularly
scheduled payment that may be less than, but no more than 5%
larger than, the previous scheduled payment according to a
disclosed payment schedule agreed to by the parties.
(Source: P.A. 100-201, eff. 8-18-17; 101-563, eff. 8-23-19.)
 
    (815 ILCS 122/2-10)
    Sec. 2-10. Permitted fees.
    (a) If there are insufficient funds to pay a check,
Automatic Clearing House (ACH) debit, or any other item
described in the definition of payday loan under Section 1-10
on the day of presentment and only after the lender has
incurred an expense, a lender may charge a fee not to exceed
$25. Only one such fee may be collected by the lender with
respect to a particular check, ACH debit, or item even if it
has been deposited and returned more than once. A lender shall
present the check, ACH debit, or other item described in the
definition of payday loan under Section 1-10 for payment not
more than twice. A fee charged under this subsection (a) is a
lender's exclusive charge for late payment.
    (a-5) A lender may charge a borrower a fee not to exceed $1
for the verification required under Section 2-15 of this Act in
connection with a payday loan. and, until July 1, 2020, in
connection with an installment payday loan. Beginning July 1,
2020, a lender may charge a borrower a fee not to exceed $3 for
the verification required under Section 2-15 of this Act in
connection with an installment payday loan. In no event may a
fee be greater than the amount charged by the certified
consumer reporting service. Only one such fee may be collected
by the lender with respect to a particular loan.
    (b) Except for the finance charges described in Section 2-5
and as specifically allowed by this Section, a lender may not
impose on a consumer any additional finance charges, interest,
fees, or charges of any sort for any purpose.
(Source: P.A. 100-1168, eff. 6-1-19.)
 
    (815 ILCS 122/2-15)
    Sec. 2-15. Verification.
    (a) Before entering into a loan agreement with a consumer,
a lender must use a commercially reasonable method of
verification to verify that the proposed loan agreement is
permissible under this Act.
    (b) Within 6 months after the effective date of this Act,
the Department shall certify that one or more consumer
reporting service databases are commercially reasonable
methods of verification. Upon certifying that a consumer
reporting service database is a commercially reasonable method
of verification, the Department shall:
        (1) provide reasonable notice to all licensees
    identifying the commercially reasonable methods of
    verification that are available; and
        (2) immediately upon certification, require each
    licensee to use a commercially reasonable method of
    verification as a means of complying with subsection (a) of
    this Section.
    (c) Except as otherwise provided in this Section, all
personally identifiable information regarding any consumer
obtained by way of the certified database and maintained by the
Department is strictly confidential and shall be exempt from
disclosure under Section 7(1)(b)(i) of the Freedom of
Information Act.
    (d) Notwithstanding any other provision of law to the
contrary, a consumer seeking a payday loan may make a direct
inquiry to the consumer reporting service to request a more
detailed explanation of the basis for a consumer reporting
service's determination that the consumer is ineligible for a
new payday loan.
    (e) In certifying a commercially reasonable method of
verification, the Department shall ensure that the certified
database:
        (1) provides real-time access through an Internet
    connection or, if real-time access through an Internet
    connection becomes unavailable to lenders due to a consumer
    reporting service's technical problems incurred by the
    consumer reporting service, through alternative
    verification mechanisms, including, but not limited to,
    verification by telephone;
        (2) is accessible to the Department and to licensees in
    order to ensure compliance with this Act and in order to
    provide any other information that the Department deems
    necessary;
        (3) requires licensees to input whatever information
    is required by the Department;
        (4) maintains a real-time copy of the required
    reporting information that is available to the Department
    at all times and is the property of the Department;
        (5) provides licensees only with a statement that a
    consumer is eligible or ineligible for a new payday loan
    and a description of the reason for the determination; and
        (6) contains safeguards to ensure that all information
    contained in the database regarding consumers is kept
    strictly confidential.
    (f) The licensee shall update the certified database by
inputting all information required under item (3) of subsection
(e):
        (1) on the same day that a payday loan is made;
        (2) on the same day that a consumer elects a repayment
    plan, as provided in Section 2-40; and
        (3) on the same day that a consumer's payday loan is
    paid in full. , including the refinancing of an installment
    payday loan as permitted under subsection (c) of Section
    2-5.
    (g) A licensee may rely on the information contained in the
certified database as accurate and is not subject to any
administrative penalty or liability as a result of relying on
inaccurate information contained in the database.
    (h) The certified consumer reporting service shall
indemnify the licensee against all claims and actions arising
from illegal or willful or wanton acts on the part of the
certified consumer reporting service.
    (i) The certified consumer reporting service may charge a
verification fee not to exceed $1 upon a loan being made or
entered into in the database. Beginning July 1, 2020, the
certified consumer reporting service may charge a verification
fee not to exceed $3 for an installment payday loan being made
or entered into the data base. The certified consumer reporting
service shall not charge any additional fees or charges.
(Source: P.A. 100-1168, eff. 6-1-19.)
 
    (815 ILCS 122/2-20)
    Sec. 2-20. Required disclosures.
    (a) Before a payday loan is made, a lender shall deliver to
the consumer a pamphlet prepared by the Secretary that:
        (1) explains, in simple English and Spanish, all of the
    consumer's rights and responsibilities in a payday loan
    transaction;
        (2) includes a toll-free number to the Secretary's
    office to handle concerns or provide information about
    whether a lender is licensed, whether complaints have been
    filed with the Secretary, and the resolution of those
    complaints; and
        (3) provides information regarding the availability of
    debt management services.
    (b) Lenders shall provide consumers with a written
agreement that may be kept by the consumer. The written
agreement must include the following information in English and
in the language in which the loan was negotiated:
        (1) the name and address of the lender making the
    payday loan, and the name and title of the individual
    employee who signs the agreement on behalf of the lender;
        (2) disclosures required by the federal Truth in
    Lending Act;
        (3) a clear description of the consumer's payment
    obligations under the loan;
        (4) the following statement, in at least 14-point bold
    type face: "You cannot be prosecuted in criminal court to
    collect this loan." The information required to be
    disclosed under this subdivision (4) must be conspicuously
    disclosed in the loan document and shall be located
    immediately preceding the signature of the consumer; and
        (5) the following statement, in at least 14-point bold
    type face:
        "WARNING: This loan is not intended to meet long-term
    financial needs. This loan should be used only to meet
    short-term cash needs. The cost of your loan may be higher
    than loans offered by other lending institutions. This loan
    is regulated by the Department of Financial and
    Professional Regulation."
    (c) The following notices in English and Spanish must be
conspicuously posted by a lender in each location of a business
providing payday loans:
        (1) A notice that informs consumers that the lender
    cannot use the criminal process against a consumer to
    collect any payday loan.
        (2) The schedule of all finance charges to be charged
    on loans with an example of the amounts that would be
    charged on a $100 loan payable in 13 days and , a $400 loan
    payable in 30 days, and an installment payday loan of $400
    payable on a monthly basis over 180 days, giving the
    corresponding annual percentage rate.
        (3) In one-inch bold type, a notice to the public in
    the lending area of each business location containing the
    following statement:
        "WARNING: This loan is not intended to meet long-term
    financial needs. This loan should be used only to meet
    short-term cash needs. The cost of your loan may be higher
    than loans offered by other lending institutions. This loan
    is regulated by the Department of Financial and
    Professional Regulation."
        (4) In one-inch bold type, a notice to the public in
    the lending area of each business location containing the
    following statement:
        "INTEREST-FREE REPAYMENT PLAN: If you still owe on one
    or more payday loans, other than an installment payday
    loan, after 35 days, you are entitled to enter into a
    repayment plan. The repayment plan will give you at least
    55 days to repay your loan in installments with no
    additional finance charges, interest, fees, or other
    charges of any kind."
(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-30)
    Sec. 2-30. Rollovers prohibited. Rollover of a payday loan
by any lender is prohibited. , except as provided in subsection
(c) of Section 2-5. This Section does not prohibit entering
into a repayment plan, as provided under Section 2-40.
(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-40)
    Sec. 2-40. Repayment plan.
    (a) At the time a payday loan is made, the lender must
provide the consumer with a separate written notice signed by
the consumer of the consumer's right to request a repayment
plan. The written notice must comply with the requirements of
subsection (c).
    (b) The loan agreement must include the following language
in at least 14-point bold type: IF YOU STILL OWE ON ONE OR MORE
PAYDAY LOANS AFTER 35 DAYS, YOU ARE ENTITLED TO ENTER INTO A
REPAYMENT PLAN. THE REPAYMENT PLAN WILL GIVE YOU AT LEAST 55
DAYS TO REPAY YOUR LOAN IN INSTALLMENTS WITH NO ADDITIONAL
FINANCE CHARGES, INTEREST, FEES, OR OTHER CHARGES OF ANY KIND.
    (c) At the time a payday loan is made, on the first page of
the loan agreement and in a separate document signed by the
consumer, the following shall be inserted in at least 14-point
bold type: I UNDERSTAND THAT IF I STILL OWE ON ONE OR MORE
PAYDAY LOANS AFTER 35 DAYS, I AM ENTITLED TO ENTER INTO A
REPAYMENT PLAN THAT WILL GIVE ME AT LEAST 55 DAYS TO REPAY THE
LOAN IN INSTALLMENTS WITH NO ADDITIONAL FINANCE CHARGES,
INTEREST, FEES, OR OTHER CHARGES OF ANY KIND.
    (d) If the consumer has or has had one or more payday loans
outstanding for 35 consecutive days, any payday loan
outstanding on the 35th consecutive day shall be payable under
the terms of a repayment plan as provided for in this Section,
if the consumer requests the repayment plan. As to any loan
that becomes eligible for a repayment plan under this
subsection, the consumer has until 28 days after the default
date of the loan to request a repayment plan. Within 48 hours
after the request for a repayment plan is made, the lender must
prepare the repayment plan agreement and both parties must
execute the agreement. Execution of the repayment plan
agreement shall be made in the same manner in which the loan
was made and shall be evidenced in writing.
    (e) The terms of the repayment plan for a payday loan must
include the following:
        (1) The lender may not impose any charge on the
    consumer for requesting or using a repayment plan.
    Performance of the terms of the repayment plan extinguishes
    the consumer's obligation on the loan.
        (2) No lender shall charge the consumer any finance
    charges, interest, fees, or other charges of any kind,
    except a fee for insufficient funds, as provided under
    Section 2-10.
        (3) The consumer shall be allowed to repay the loan in
    at least 4 equal installments with at least 13 days between
    installments, provided that the term of the repayment plan
    does not exceed 90 days. The first payment under the
    repayment plan shall not be due before at least 13 days
    after the repayment plan is signed by both parties. The
    consumer may prepay the amount due under the repayment plan
    at any time, without charge or penalty.
        (4) The length of time between installments may be
    extended by the parties so long as the total period of
    repayment does not exceed 90 days. Any such modification
    must be in writing and signed by both parties.
    (f) Notwithstanding any provision of law to the contrary, a
lender is prohibited from making a payday loan to a consumer
who has a payday loan outstanding under a repayment plan and
for at least 14 days after the outstanding balance of the loan
under the repayment plan and the outstanding balance of all
other payday loans outstanding during the term of the repayment
plan are paid in full.
    (g) A lender may not accept postdated checks for payments
under a repayment plan.
    (h) Notwithstanding any provision of law to the contrary, a
lender may voluntarily agree to enter into a repayment plan
with a consumer at any time. If a consumer is eligible for a
repayment plan under subsection (d), any repayment agreement
constitutes a repayment plan under this Section and all
provisions of this Section apply to that agreement.
    (i) (Blank). The provisions of this Section 2-40 do not
apply to an installment payday loan, except for subsection (f)
of this Section.
(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/2-45)
    Sec. 2-45. Default.
    (a) No legal proceeding of any kind, including, but not
limited to, a lawsuit or arbitration, may be filed or initiated
against a consumer to collect on a payday loan until 28 days
after the default date of the loan, or, in the case of a payday
loan under a repayment plan, for 28 days after the default date
under the terms of the repayment plan. , or in the case of an
installment payday loan, for 28 days after default in making a
scheduled payment.
    (b) Upon and after default, a lender shall not charge the
consumer any finance charges, interest, fees, or charges of any
kind, other than the insufficient fund fee described in Section
2-10.
    (c) Notwithstanding whether a loan is or has been in
default, once the loan becomes subject to a repayment plan, the
loan shall not be construed to be in default until the default
date provided under the terms of the repayment plan.
(Source: P.A. 96-936, eff. 3-21-11.)
 
    (815 ILCS 122/4-5)
    Sec. 4-5. Prohibited acts. A licensee or unlicensed person
or entity making payday loans may not commit, or have committed
on behalf of the licensee or unlicensed person or entity, any
of the following acts:
        (1) Threatening to use or using the criminal process in
    this or any other state to collect on the loan.
        (2) Using any device or agreement that would have the
    effect of charging or collecting more fees or charges than
    allowed by this Act, including, but not limited to,
    entering into a different type of transaction with the
    consumer.
        (3) Engaging in unfair, deceptive, or fraudulent
    practices in the making or collecting of a payday loan.
        (4) Using or attempting to use the check provided by
    the consumer in a payday loan as collateral for a
    transaction not related to a payday loan.
        (5) Knowingly accepting payment in whole or in part of
    a payday loan through the proceeds of another payday loan
    provided by any licensee, except as provided in subsection
    (c) of Section 2.5.
        (6) Knowingly accepting any security, other than that
    specified in the definition of payday loan in Section 1-10,
    for a payday loan.
        (7) Charging any fees or charges other than those
    specifically authorized by this Act.
        (8) Threatening to take any action against a consumer
    that is prohibited by this Act or making any misleading or
    deceptive statements regarding the payday loan or any
    consequences thereof.
        (9) Making a misrepresentation of a material fact by an
    applicant for licensure in obtaining or attempting to
    obtain a license.
        (10) Including any of the following provisions in loan
    documents required by subsection (b) of Section 2-20:
            (A) a confession of judgment clause;
            (B) a waiver of the right to a jury trial, if
        applicable, in any action brought by or against a
        consumer, unless the waiver is included in an
        arbitration clause allowed under subparagraph (C) of
        this paragraph (11);
            (C) a mandatory arbitration clause that is
        oppressive, unfair, unconscionable, or substantially
        in derogation of the rights of consumers; or
            (D) a provision in which the consumer agrees not to
        assert any claim or defense arising out of the
        contract.
        (11) Selling any insurance of any kind whether or not
    sold in connection with the making or collecting of a
    payday loan.
        (12) Taking any power of attorney.
        (13) Taking any security interest in real estate.
        (14) Collecting a delinquency or collection charge on
    any installment regardless of the period in which it
    remains in default.
        (15) Collecting treble damages on an amount owing from
    a payday loan.
        (16) Refusing, or intentionally delaying or
    inhibiting, the consumer's right to enter into a repayment
    plan pursuant to this Act.
        (17) Charging for, or attempting to collect,
    attorney's fees, court costs, or arbitration costs
    incurred in connection with the collection of a payday
    loan.
        (18) Making a loan in violation of this Act.
        (19) Garnishing the wages or salaries of a consumer who
    is a member of the military.
        (20) Failing to suspend or defer collection activity
    against a consumer who is a member of the military and who
    has been deployed to a combat or combat-support posting.
        (21) Contacting the military chain of command of a
    consumer who is a member of the military in an effort to
    collect on a payday loan.
        (22) Making or offering to make any loan other than a
    payday loan or a title-secured loan, provided however, that
    to make or offer to make a title-secured loan, a licensee
    must obtain a license under the Consumer Installment Loan
    Act.
        (23) Making or offering a loan in violation of the
    Predatory Loan Prevention Act.
(Source: P.A. 96-936, eff. 3-21-11.)
 
    Section 15-90-25. The Interest Act is amended by changing
Sections 4 and 4a as follows:
 
    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
    Sec. 4. General interest rate.
    (1) Except as otherwise provided in Section 4.05, in all
written contracts it shall be lawful for the parties to
stipulate or agree that an annual percentage rate of 9% per
annum, or any less sum of interest, shall be taken and paid
upon every $100 of money loaned or in any manner due and owing
from any person to any other person or corporation in this
state, and after that rate for a greater or less sum, or for a
longer or shorter time, except as herein provided.
    The maximum rate of interest that may lawfully be
contracted for is determined by the law applicable thereto at
the time the contract is made. Any provision in any contract,
whether made before or after July 1, 1969, which provides for
or purports to authorize, contingent upon a change in the
Illinois law after the contract is made, any rate of interest
greater than the maximum lawful rate at the time the contract
is made, is void.
    It is lawful for a state bank or a branch of an
out-of-state bank, as those terms are defined in Section 2 of
the Illinois Banking Act, to receive or to contract to receive
and collect interest and charges at any rate or rates agreed
upon by the bank or branch and the borrower. It is lawful for a
savings bank chartered under the Savings Bank Act or a savings
association chartered under the Illinois Savings and Loan Act
of 1985 to receive or contract to receive and collect interest
and charges at any rate agreed upon by the savings bank or
savings association and the borrower.
    It is lawful to receive or to contract to receive and
collect interest and charges as authorized by this Act and as
authorized by the Consumer Installment Loan Act, and by the
"Consumer Finance Act", approved July 10, 1935, as now or
hereafter amended, or by the Payday Loan Reform Act, the Retail
Installment Sales Act, the Illinois Financial Services
Development Act, or the Motor Vehicle Retail Installment Sales
Act. It is lawful to charge, contract for, and receive any rate
or amount of interest or compensation, except as otherwise
provided in the Predatory Loan Prevention Act, with respect to
the following transactions:
        (a) Any loan made to a corporation;
        (b) Advances of money, repayable on demand, to an
    amount not less than $5,000, which are made upon warehouse
    receipts, bills of lading, certificates of stock,
    certificates of deposit, bills of exchange, bonds or other
    negotiable instruments pledged as collateral security for
    such repayment, if evidenced by a writing;
        (c) Any credit transaction between a merchandise
    wholesaler and retailer; any business loan to a business
    association or copartnership or to a person owning and
    operating a business as sole proprietor or to any persons
    owning and operating a business as joint venturers, joint
    tenants or tenants in common, or to any limited
    partnership, or to any trustee owning and operating a
    business or whose beneficiaries own and operate a business,
    except that any loan which is secured (1) by an assignment
    of an individual obligor's salary, wages, commissions or
    other compensation for services, or (2) by his household
    furniture or other goods used for his personal, family or
    household purposes shall be deemed not to be a loan within
    the meaning of this subsection; and provided further that a
    loan which otherwise qualifies as a business loan within
    the meaning of this subsection shall not be deemed as not
    so qualifying because of the inclusion, with other security
    consisting of business assets of any such obligor, of real
    estate occupied by an individual obligor solely as his
    residence. The term "business" shall be deemed to mean a
    commercial, agricultural or industrial enterprise which is
    carried on for the purpose of investment or profit, but
    shall not be deemed to mean the ownership or maintenance of
    real estate occupied by an individual obligor solely as his
    residence;
        (d) Any loan made in accordance with the provisions of
    Subchapter I of Chapter 13 of Title 12 of the United States
    Code, which is designated as "Housing Renovation and
    Modernization";
        (e) Any mortgage loan insured or upon which a
    commitment to insure has been issued under the provisions
    of the National Housing Act, Chapter 13 of Title 12 of the
    United States Code;
        (f) Any mortgage loan guaranteed or upon which a
    commitment to guaranty has been issued under the provisions
    of the Veterans' Benefits Act, Subchapter II of Chapter 37
    of Title 38 of the United States Code;
        (g) Interest charged by a broker or dealer registered
    under the Securities Exchange Act of 1934, as amended, or
    registered under the Illinois Securities Law of 1953,
    approved July 13, 1953, as now or hereafter amended, on a
    debit balance in an account for a customer if such debit
    balance is payable at will without penalty and is secured
    by securities as defined in Uniform Commercial
    Code-Investment Securities;
        (h) Any loan made by a participating bank as part of
    any loan guarantee program which provides for loans and for
    the refinancing of such loans to medical students, interns
    and residents and which are guaranteed by the American
    Medical Association Education and Research Foundation;
        (i) Any loan made, guaranteed, or insured in accordance
    with the provisions of the Housing Act of 1949, Subchapter
    III of Chapter 8A of Title 42 of the United States Code and
    the Consolidated Farm and Rural Development Act,
    Subchapters I, II, and III of Chapter 50 of Title 7 of the
    United States Code;
        (j) Any loan by an employee pension benefit plan, as
    defined in Section 3 (2) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
    individual participating in such plan, provided that such
    loan satisfies the prohibited transaction exemption
    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
    (1)) of the Employee Retirement Income Security Act of
    1974;
        (k) Written contracts, agreements or bonds for deed
    providing for installment purchase of real estate,
    including a manufactured home as defined in subdivision
    (53) of Section 9-102 of the Uniform Commercial Code that
    is real property as defined in the Conveyance and
    Encumbrance of Manufactured Homes as Real Property and
    Severance Act;
        (l) Loans secured by a mortgage on real estate,
    including a manufactured home as defined in subdivision
    (53) of Section 9-102 of the Uniform Commercial Code that
    is real property as defined in the Conveyance and
    Encumbrance of Manufactured Homes as Real Property and
    Severance Act;
        (m) Loans made by a sole proprietorship, partnership,
    or corporation to an employee or to a person who has been
    offered employment by such sole proprietorship,
    partnership, or corporation made for the sole purpose of
    transferring an employee or person who has been offered
    employment to another office maintained and operated by the
    same sole proprietorship, partnership, or corporation;
        (n) Loans to or for the benefit of students made by an
    institution of higher education.
    (2) Except for loans described in subparagraph (a), (c),
(d), (e), (f) or (i) of subsection (1) of this Section, and
except to the extent permitted by the applicable statute for
loans made pursuant to Section 4a or pursuant to the Consumer
Installment Loan Act:
        (a) Whenever the rate of interest exceeds an annual
    percentage rate of 8% per annum on any written contract,
    agreement or bond for deed providing for the installment
    purchase of residential real estate, or on any loan secured
    by a mortgage on residential real estate, it shall be
    unlawful to provide for a prepayment penalty or other
    charge for prepayment.
        (b) No agreement, note or other instrument evidencing a
    loan secured by a mortgage on residential real estate, or
    written contract, agreement or bond for deed providing for
    the installment purchase of residential real estate, may
    provide for any change in the contract rate of interest
    during the term thereof. However, if the Congress of the
    United States or any federal agency authorizes any class of
    lender to enter, within limitations, into mortgage
    contracts or written contracts, agreements or bonds for
    deed in which the rate of interest may be changed during
    the term of the contract, any person, firm, corporation or
    other entity not otherwise prohibited from entering into
    mortgage contracts or written contracts, agreements or
    bonds for deed in Illinois may enter into mortgage
    contracts or written contracts, agreements or bonds for
    deed in which the rate of interest may be changed during
    the term of the contract, within the same limitations.
    (3) In any contract or loan which is secured by a mortgage,
deed of trust, or conveyance in the nature of a mortgage, on
residential real estate, the interest which is computed,
calculated, charged, or collected pursuant to such contract or
loan, or pursuant to any regulation or rule promulgated
pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on
which the total indebtedness, with the exception of late
payment penalties, is paid in full.
    (4) For purposes of this Section, a prepayment shall mean
the payment of the total indebtedness, with the exception of
late payment penalties if incurred or charged, on any date
before the date specified in the contract or loan agreement on
which the total indebtedness shall be paid in full, or before
the date on which all payments, if timely made, shall have been
made. In the event of a prepayment of the indebtedness which is
made on a date after the date on which interest on the
indebtedness was last computed, calculated, charged, or
collected but before the next date on which interest on the
indebtedness was to be calculated, computed, charged, or
collected, the lender may calculate, charge and collect
interest on the indebtedness for the period which elapsed
between the date on which the prepayment is made and the date
on which interest on the indebtedness was last computed,
calculated, charged or collected at a rate equal to 1/360 of
the annual rate for each day which so elapsed, which rate shall
be applied to the indebtedness outstanding as of the date of
prepayment. The lender shall refund to the borrower any
interest charged or collected which exceeds that which the
lender may charge or collect pursuant to the preceding
sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after the
effective date of this amendatory Act, but shall not apply to
contracts or loans entered into on or after that date that are
subject to Section 4a of this Act, the Consumer Installment
Loan Act, the Payday Loan Reform Act, the Predatory Loan
Prevention Act, or the Retail Installment Sales Act, or that
provide for the refund of precomputed interest on prepayment in
the manner provided by such Act.
    (5) For purposes of items (a) and (c) of subsection (1) of
this Section, a rate or amount of interest may be lawfully
computed when applying the ratio of the annual interest rate
over a year based on 360 days. The provisions of this
amendatory Act of the 96th General Assembly are declarative of
existing law.
    (6) For purposes of this Section, "real estate" and "real
property" include a manufactured home, as defined in
subdivision (53) of Section 9-102 of the Uniform Commercial
Code that is real property as defined in the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act.
(Source: P.A. 98-749, eff. 7-16-14.)
 
    (815 ILCS 205/4a)  (from Ch. 17, par. 6410)
    Sec. 4a. Installment loan rate.
    (a) On money loaned to or in any manner owing from any
person, whether secured or unsecured, except where the money
loaned or in any manner owing is directly or indirectly for the
purchase price of real estate or an interest therein and is
secured by a lien on or retention of title to that real estate
or interest therein, to an amount not more than $25,000
(excluding interest) which is evidenced by a written instrument
providing for the payment thereof in 2 or more periodic
installments over a period of not more than 181 months from the
date of the execution of the written instrument, it is lawful
to receive or to contract to receive and collect either of the
following:
        (i) Interest interest in an amount equivalent to
    interest computed at a rate not exceeding an annual
    percentage rate of 9% per year on the entire principal
    amount of the money loaned or in any manner owing for the
    period from the date of the making of the loan or the
    incurring of the obligation for the amount owing evidenced
    by the written instrument until the date of the maturity of
    the last installment thereof, and to add that amount to the
    principal, except that there shall be no limit on the rate
    of interest which may be received or contracted to be
    received and collected by (1) any bank that has its main
    office or, after May 31, 1997, a branch in this State; or
    (2) a savings and loan association chartered under the
    Illinois Savings and Loan Act of 1985, or a savings bank
    chartered under the Savings Bank Act, or a federal savings
    and loan association established under the laws of the
    United States and having its main office in this State.
        It is lawful to receive or to contract to receive and
    collect interest and charges as authorized by the Interest
    Act, the Consumer Installment Loan Act, the Retail
    Installment Sales Act, the Motor Vehicle Retail
    Installment Sales Act, the Payday Loan Reform Act, and the
    Illinois Financial Services Development Act.
        In any case in which interest is received, contracted
    for, or collected on the basis of paragraph (i) of
    subsection (a) of Section 4a, the debtor may satisfy in
    full at any time before maturity the debt evidenced by the
    written instrument, and in so satisfying must receive a
    refund credit against the total amount of interest added to
    the principal computed in the manner provided under
    paragraph (3) of subsection (f) of Section 15 of the
    Consumer Installment Loan Act for refunds or credits of
    applicable interest on payment in full of precomputed loans
    before the final installment due date. ; or (3) any lender
    licensed under either the Consumer Finance Act or the
    Consumer Installment Loan Act, but in any case in which
    interest is received, contracted for or collected on the
    basis of this clause (i), the debtor may satisfy in full at
    any time before maturity the debt evidenced by the written
    instrument, and in so satisfying must receive a refund
    credit against the total amount of interest added to the
    principal computed in the manner provided under Section
    15(f)(3) of the Consumer Installment Loan Act for refunds
    or credits of applicable interest on payment in full of
    precomputed loans before the final installment due date; or
        (ii) Interest interest accrued on the principal
    balance from time to time remaining unpaid, from the date
    of making of the loan or the incurring of the obligation to
    the date of the payment of the debt in full, at a rate not
    exceeding the annual percentage rate equivalent of the rate
    permitted to be charged under clause (i) above, but in any
    such case the debtor may, provided that the debtor shall
    have paid in full all interest and other charges accrued to
    the date of such prepayment, prepay the principal balance
    in full or in part at any time, and interest shall, upon
    any such prepayment, cease to accrue on the principal
    amount which has been prepaid.
    (b) Whenever the principal amount of an installment loan is
$300 or more and the repayment period is 6 months or more, a
minimum charge of $15 may be collected instead of interest, but
only one minimum charge may be collected from the same person
during one year. When the principal amount of the loan
(excluding interest) is $800 or less, the lender or creditor
may contract for and receive a service charge not to exceed $5
in addition to interest; and that service charge may be
collected when the loan is made, but only one service charge
may be contracted for, received, or collected from the same
person during one year.
    (c) Credit life insurance and credit accident and health
insurance, and any charge therefor which is deducted from the
loan or paid by the obligor, must comply with Article IX 1/2 of
the Illinois Insurance Code and all lawful requirements of the
Director of Insurance related thereto. When there are 2 or more
obligors on the loan contract, only one charge for credit life
insurance and credit accident and health insurance may be made
and only one of the obligors may be required to be insured.
Insurance obtained from, by or through the lender or creditor
must be in effect when the loan is transacted. The purchase of
that insurance from an agent, broker or insurer specified by
the lender or creditor may not be a condition precedent to the
granting of the loan.
    (d) The lender or creditor may require the obligor to
provide property insurance on security other than household
goods, furniture and personal effects. The amount and term of
the insurance must be reasonable in relation to the amount and
term of the loan contract and the type and value of the
security, and the insurance must be procured in accordance with
the insurance laws of this State. The purchase of that
insurance from an agent, broker or insurer specified by the
lender or creditor may not be a condition precedent to the
granting of the loan.
    (e) The lender or creditor may, if the contract provides,
collect a delinquency and collection charge on each installment
in default for a period of not less than 10 days in an amount
not exceeding 5% of the installment on installments in excess
of $200 or $10 on installments of $200 or less, but only one
delinquency and collection charge may be collected on any
installment regardless of the period during which it remains in
default. In addition, the contract may provide for the payment
by the borrower or debtor of attorney's fees incurred by the
lender or creditor. The lender or creditor may enforce such a
provision to the extent of the reasonable attorney's fees
incurred by him in the collection or enforcement of the
contract or obligation. Whenever interest is contracted for or
received under this Section, no amount in addition to the
charges authorized by this Section may be directly or
indirectly charged, contracted for or received, except lawful
fees paid to a public officer or agency to record, file or
release security, and except costs and disbursements including
reasonable attorney's fees, incurred in legal proceedings to
collect a loan or to realize on a security after default. This
Section does not prohibit the receipt of any commission,
dividend or other benefit by the creditor or an employee,
affiliate or associate of the creditor from the insurance
authorized by this Section.
    (f) When interest is contracted for or received under this
Section, the lender must disclose the following items to the
obligor in a written statement before the loan is consummated:
        (1) the amount and date of the loan contract;
        (2) the amount of loan credit using the term "amount
    financed";
        (3) every deduction from the amount financed or payment
    made by the obligor for insurance and the type of insurance
    for which each deduction or payment was made;
        (4) every other deduction from the loan or payment made
    by the obligor in connection with obtaining the loan;
        (5) the date on which the finance charge begins to
    accrue if different from the date of the transaction;
        (6) the total amount of the loan charge for the
    scheduled term of the loan contract with a description of
    each amount included using the term "finance charge";
        (7) the finance charge expressed as an annual
    percentage rate using the term "annual percentage rate".
    "Annual percentage rate" means the nominal annual
    percentage rate of finance charge determined in accordance
    with the actuarial method of computation with an accuracy
    at least to the nearest 1/4 of 1%; or at the option of the
    lender by application of the United States rule so that it
    may be disclosed with an accuracy at least to the nearest
    1/4 of 1%;
        (8) the number, amount and due dates or periods of
    payments scheduled to repay the loan and the sum of such
    payments using the term "total of payments";
        (9) the amount, or method of computing the amount of
    any default, delinquency or similar charges payable in the
    event of late payments;
        (10) the right of the obligor to prepay the loan and
    the fact that such prepayment will reduce the charge for
    the loan;
        (11) a description or identification of the type of any
    security interest held or to be retained or acquired by the
    lender in connection with the loan and a clear
    identification of the property to which the security
    interest relates. If after-acquired property will be
    subject to the security interest, or if other or future
    indebtedness is or may be secured by any such property,
    this fact shall be clearly set forth in conjunction with
    the description or identification of the type of security
    interest held, retained or acquired;
        (12) a description of any penalty charge that may be
    imposed by the lender for prepayment of the principal of
    the obligation with an explanation of the method of
    computation of such penalty and the conditions under which
    it may be imposed;
        (13) unless the contract provides for the accrual and
    payment of the finance charge on the balance of the amount
    financed from time to time remaining unpaid, an
    identification of the method of computing any unearned
    portion of the finance charge in the event of prepayment of
    the loan.
    The terms "finance charge" and "annual percentage rate"
shall be printed more conspicuously than other terminology
required by this Section.
    (g) At the time disclosures are made, the lender shall
deliver to the obligor a duplicate of the instrument or
statement by which the required disclosures are made and on
which the lender and obligor are identified and their addresses
stated. All of the disclosures shall be made clearly,
conspicuously and in meaningful sequence and made together on
either:
        (i) the note or other instrument evidencing the
    obligation on the same side of the page and above or
    adjacent to the place for the obligor's signature; however,
    where a creditor elects to combine disclosures with the
    contract, security agreement, and evidence of a
    transaction in a single document, the disclosures required
    under this Section shall be made on the face of the
    document, on the reverse side, or on both sides, provided
    that the amount of the finance charge and the annual
    percentage rate shall appear on the face of the document,
    and, if the reverse side is used, the printing on both
    sides of the document shall be equally clear and
    conspicuous, both sides shall contain the statement,
    "NOTICE: See other side for important information", and the
    place for the customer's signature shall be provided
    following the full content of the document; or
        (ii) one side of a separate statement which identifies
    the transaction.
    The amount of the finance charge shall be determined as the
sum of all charges, payable directly or indirectly by the
obligor and imposed directly or indirectly by the lender as an
incident to or as a condition to the extension of credit,
whether paid or payable by the obligor, any other person on
behalf of the obligor, to the lender or to a third party,
including any of the following types of charges:
        (1) Interest, time price differential, and any amount
    payable under a discount or other system of additional
    charges.
        (2) Service, transaction, activity, or carrying
    charge.
        (3) Loan fee, points, finder's fee, or similar charge.
        (4) Fee for an appraisal, investigation, or credit
    report.
        (5) Charges or premiums for credit life, accident,
    health, or loss of income insurance, written in connection
    with any credit transaction unless (a) the insurance
    coverage is not required by the lender and this fact is
    clearly and conspicuously disclosed in writing to the
    obligor; and (b) any obligor desiring such insurance
    coverage gives specific dated and separately signed
    affirmative written indication of such desire after
    receiving written disclosure to him of the cost of such
    insurance.
        (6) Charges or premiums for insurance, written in
    connection with any credit transaction, against loss of or
    damage to property or against liability arising out of the
    ownership or use of property, unless a clear, conspicuous,
    and specific statement in writing is furnished by the
    lender to the obligor setting forth the cost of the
    insurance if obtained from or through the lender and
    stating that the obligor may choose the person through
    which the insurance is to be obtained.
        (7) Premium or other charges for any other guarantee or
    insurance protecting the lender against the obligor's
    default or other credit loss.
        (8) Any charge imposed by a lender upon another lender
    for purchasing or accepting an obligation of an obligor if
    the obligor is required to pay any part of that charge in
    cash, as an addition to the obligation, or as a deduction
    from the proceeds of the obligation.
    A late payment, delinquency, default, reinstatement or
other such charge is not a finance charge if imposed for actual
unanticipated late payment, delinquency, default or other
occurrence.
    (h) Advertising for loans transacted under this Section may
not be false, misleading, or deceptive. That advertising, if it
states a rate or amount of interest, must state that rate as an
annual percentage rate of interest charged. In addition, if
charges other than for interest are made in connection with
those loans, those charges must be separately stated. No
advertising may indicate or imply that the rates or charges for
loans are in any way "recommended", "approved", "set" or
"established" by the State government or by this Act.
    (i) A lender or creditor who complies with the federal
Truth in Lending Act, amendments thereto, and any regulations
issued or which may be issued thereunder, shall be deemed to be
in compliance with the provisions of subsections (f), (g) and
(h) of this Section.
    (j) For purposes of this Section, "real estate" and "real
property" include a manufactured home as defined in subdivision
(53) of Section 9-102 of the Uniform Commercial Code that is
real property as defined in the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 98-749, eff. 7-16-14.)
 
    Section 15-90-30. The Motor Vehicle Retail Installment
Sales Act is amended by changing Section 21 and by adding
Section 26.1 as follows:
 
    (815 ILCS 375/21)  (from Ch. 121 1/2, par. 581)
    Sec. 21. The finance charge on any motor vehicle retail
installment contract shall be no more than the maximum rate
permissible under the Predatory Loan Prevention Act.
Notwithstanding the provisions of any other statute, for motor
vehicle retail installment contracts executed after September
25, 1981, there shall be no limit on the finance charges which
may be charged, collected, and received.
(Source: P.A. 90-437, eff. 1-1-98; 91-357, eff. 7-29-99.)
 
    (815 ILCS 375/26.1 new)
    Sec. 26.1. Rulemaking authority. The Secretary of
Financial and Professional Regulation and his or her designees
shall have authority to adopt and enforce reasonable rules,
directions, orders, decisions, and findings necessary to
execute and enforce this Act and protect consumers in this
State. The Secretary's authority to adopt rules shall include,
but not be limited to: licensing, examination, supervision, and
enforcement.
 
    Section 15-90-35. The Retail Installment Sales Act is
amended by changing Sections 27 and 28 and by adding Section
33.1 as follows:
 
    (815 ILCS 405/27)  (from Ch. 121 1/2, par. 527)
    Sec. 27. The finance charge on any retail installment
contract shall be no more than the maximum rate permissible
under the Predatory Loan Prevention Act. Notwithstanding the
provisions of any other statute, retail installment contracts
executed after the effective date of this amendatory Act of
1981, there shall be no limit on the finance charges which may
be charged, collected and received.
(Source: P.A. 90-437, eff. 1-1-98.)
 
    (815 ILCS 405/28)  (from Ch. 121 1/2, par. 528)
    Sec. 28. The finance charge on any retail charge agreement
shall be no more than the maximum rate permissible under the
Predatory Loan Prevention Act. Notwithstanding the provisions
of any other statute, a retail charge agreement may provide for
the charging, collection and receipt of finance charges at any
specified rate on the unpaid balances incurred after the
effective date of this amendatory Act of 1981. If a seller or
holder under a retail charge agreement entered into on, prior
to or after the effective date of this amendatory Act of 1981
notifies the retail buyer at least 15 days in advance of any
lawful increase in the finance charges to be charged under the
agreement, and the retail buyer, after the effective date of
such notice, makes a new or additional purchase or incurs
additional debt pursuant to the agreement, the increased
finance charges may be applied only to any such new or
additional purchase or additional debt incurred regardless of
any other terms of the agreement. For purposes of determining
the balances to which the increased interest rate applies, all
payments and other credits may be deemed to be applied to the
balance existing prior to the change in rate until that balance
is paid in full.
(Source: P.A. 90-437, eff. 1-1-98.)
 
    (815 ILCS 405/33.1 new)
    Sec. 33.1. Rulemaking authority. The Secretary of
Financial and Professional Regulation and his or her designees
shall have authority to adopt and enforce reasonable rules,
directions, orders, decisions, and findings necessary to
execute and enforce this Act and protect consumers in this
State. The Secretary's authority to adopt rules shall include,
but not be limited to: licensing, examination, supervision, and
enforcement.
 
    Section 15-90-40. The Consumer Fraud and Deceptive
Business Practices Act is amended by changing Section 2Z as
follows:
 
    (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
    Sec. 2Z. Violations of other Acts. Any person who knowingly
violates the Automotive Repair Act, the Automotive Collision
Repair Act, the Home Repair and Remodeling Act, the Dance
Studio Act, the Physical Fitness Services Act, the Hearing
Instrument Consumer Protection Act, the Illinois Union Label
Act, the Installment Sales Contract Act, the Job Referral and
Job Listing Services Consumer Protection Act, the Travel
Promotion Consumer Protection Act, the Credit Services
Organizations Act, the Automatic Telephone Dialers Act, the
Pay-Per-Call Services Consumer Protection Act, the Telephone
Solicitations Act, the Illinois Funeral or Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care Act, the Safe and
Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales Act, the
High Risk Home Loan Act, the Payday Loan Reform Act, the
Predatory Loan Prevention Act, the Mortgage Rescue Fraud Act,
subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act,
subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax
Act, the Electronic Mail Act, the Internet Caller
Identification Act, paragraph (6) of subsection (k) of Section
6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115,
18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois
Vehicle Code, Article 3 of the Residential Real Property
Disclosure Act, the Automatic Contract Renewal Act, the Reverse
Mortgage Act, Section 25 of the Youth Mental Health Protection
Act, the Personal Information Protection Act, or the Student
Online Personal Protection Act commits an unlawful practice
within the meaning of this Act.
(Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642,
eff. 7-28-16; 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
100-863, eff. 8-14-18.)
 
Article 20.

 
    Section 20-5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by adding Section 605-1055 as follows:
 
    (20 ILCS 605/605-1055 new)
    Sec. 605-1055. Personal care products industry supplier
disparity study.
    (a) The Department shall compile and publish a disparity
study by December 31, 2022 that: (1) evaluates whether there
exists intentional discrimination at the supplier or
distribution level for retailers of beauty products,
cosmetics, hair care supplies, and personal care products in
the State of Illinois; and (2) if so, evaluates the impact of
such discrimination on the State and includes recommendations
for reducing or eliminating any barriers to entry to those
wishing to establish businesses at the retail level involving
such products. The Department shall forward a copy of its
findings and recommendations to the General Assembly and
Governor.
    (b) The Department may compile, collect, or otherwise
gather data necessary for the administration of this Section
and to carry out the Department's duty relating to the
recommendation of policy changes. The Department shall compile
all of the data into a single report, submit the report to the
Governor and the General Assembly, and publish the report on
its website.
    (c) This Section is repealed on January 1, 2024.
 
Article 99.

 
    Section 99-99. Effective date. This Act takes effect upon
becoming law.