Public Act 097-1039
 
HB3935 EnrolledLRB097 15548 AEK 60685 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Consumer Installment Loan Act is amended by
changing Section 20 as follows:
 
    (205 ILCS 670/20)  (from Ch. 17, par. 5426)
    Sec. 20. Penalties for violation.
    (a) Any person who engages in business as a Consumer
Installment Loan lender without the license required by this
Act shall be guilty of a Class 4 felony.
    (b) The obligor, prior to the expiration of 2 years after
the date of his last scheduled payment, may recover such
reasonable attorney's fees and court costs as a court may
assess against such licensee or lender for a violation of
Sections 1, 12, 15, 15a, 15b, 15d, 15e, 16, 17, 18, or 19.1.
The balance due under the terms of the loan contract shall be
reduced by the amount which the obligor is thus entitled to
recover. A bona fide error by a licensee in calculating charges
or rebates is not a violation if the licensee corrects the
error within a reasonable time, after discovery.
    (b-5) A license issued under this Act may be revoked if the
licensee, or any directors, managers of a limited liability
company, partners, or officer thereof is convicted of a felony.
    (c) No provision of this Section imposing any liability
shall apply to any act done or omitted in conformity with any
rule or regulation or written interpretation thereof by the
Department of Financial and Professional Regulation, Division
of Financial Institutions, notwithstanding that after such act
or omission has occurred, such rule, regulation or
interpretation is amended, rescinded or determined by judicial
or other authority to be invalid for any reason. All
interpretations issued after January 1, 1998 must be written
and signed by the Department's Chief Counsel and approved by
the Director.
    (d) Notwithstanding any other provision of this Section, if
any person who does not have a license issued under this Act
makes a loan pursuant to this Act to an Illinois consumer, then
the loan shall be null and void and the person who made the
loan shall have no right to collect, receive, or retain any
principal, interest, or charges related to the loan.
(Source: P.A. 90-437, eff. 1-1-98.)
 
    Section 10. The Payday Loan Reform Act is amended by
changing Section 4-10 as follows:
 
    (815 ILCS 122/4-10)
    Sec. 4-10. Enforcement and remedies.
    (a) The remedies provided in this Act are cumulative and
apply to persons or entities subject to this Act.
    (b) Any material violation of this Act, including the
commission of an act prohibited under Section 4-5, constitutes
a violation of the Consumer Fraud and Deceptive Business
Practices Act.
    (c) If any provision of the written agreement described in
subsection (b) of Section 2-20 violates this Act, then that
provision is unenforceable against the consumer.
    (d) 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, refer the
matter to the appropriate law enforcement agency for
prosecution under this Act, and suspend or revoke a license
granted under this Act. All proceedings shall be open to the
public.
    (e) The Secretary may issue a cease and desist order to any
licensee or other person doing business without the required
license, when in the opinion of the Secretary the licensee or
other person is violating or is about to violate any provision
of this Act or any rule or requirement imposed in writing by
the Department as a condition of granting any authorization
permitted by this Act. The cease and desist order permitted by
this subsection (e) may be issued prior to a hearing.
    The Secretary shall serve notice of his or her action,
including, but not limited to, a statement of the reasons for
the action, either personally or by certified mail, return
receipt requested. 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 licensee or other person may request a hearing in writing.
The Secretary shall schedule a hearing within 30 days after the
request for a hearing unless otherwise agreed to by the
parties.
    If it is determined that the Secretary had the authority to
issue the cease and desist order, he or she 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 (e)
are additional to any and all other powers and remedies vested
in the Secretary by law, and nothing in this subsection (e)
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.
    (f) The Secretary may, after 10 days notice by registered
mail to the licensee at the address set forth in the license
stating the contemplated action and in general the grounds
therefore, fine the licensee an amount not exceeding $10,000
per violation, or revoke or suspend any license issued
hereunder if he or she finds that:
        (1) the licensee has failed to comply with any
    provision of this Act or any order, decision, finding,
    rule, regulation, or direction of the Secretary lawfully
    made pursuant to the authority of this Act; or
        (2) any fact or condition exists which, if it had
    existed at the time of the original application for the
    license, clearly would have warranted the Secretary in
    refusing to issue the license.
    The Secretary may fine, suspend, or revoke only the
particular license with respect to which grounds for the fine,
revocation, or suspension occur or exist, but if the Secretary
finds that grounds for revocation are of general application to
all offices or to more than one office of the licensee, the
Secretary shall fine, suspend, or revoke every license to which
the grounds apply.
    No revocation, suspension, or surrender of any license
shall impair or affect the obligation of any pre-existing
lawful contract between the licensee and any obligor.
    The Secretary may issue a new license to a licensee whose
license has been revoked when facts or conditions which clearly
would have warranted the Secretary in refusing originally to
issue the license no longer exist.
    In every case in which a license is suspended or revoked or
an application for a license or renewal of a license is denied,
the Secretary shall serve the licensee with notice of his or
her action, including a statement of the reasons for his or her
actions, either personally, or by certified mail, return
receipt requested. Service by certified mail shall be deemed
completed when the notice is deposited in the U.S. Mail.
    An order assessing a fine, an order revoking or suspending
a license, or an order denying renewal of a license shall take
effect upon service of the order unless the licensee requests a
hearing, in writing, within 10 days after the date of service.
In the event a hearing is requested, the order shall be stayed
until a final administrative order is entered.
    If the licensee requests a hearing, the Secretary shall
schedule a hearing within 30 days after the request for a
hearing unless otherwise agreed to by the parties.
    The hearing shall be held at the time and place designated
by the Secretary. The Secretary and any administrative law
judge designated by him or her shall have the power to
administer oaths and affirmations, subpoena witnesses and
compel their attendance, take evidence, and require the
production of books, papers, correspondence, and other records
or information that he or she considers relevant or material to
the inquiry.
    (g) The costs of administrative hearings conducted
pursuant to this Section shall be paid by the licensee.
    (h) Notwithstanding any other provision of this Section, if
a lender who does not have a license issued under this Act
makes a loan pursuant to this Act to an Illinois consumer, then
the loan shall be null and void and the lender who made the
loan shall have no right to collect, receive, or retain any
principal, interest, or charges related to the loan.
(Source: P.A. 94-13, eff. 12-6-05.)
 
    Section 99. Effective date. This Act takes effect January
1, 2013.