Bill Text: IL HB2300 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Consumer Installment Loan Act. Defines "lawsuit lending", "lawsuit lender", and "dispute". Provides that the Act shall apply to all lawsuit lending and all lawsuit lenders. Provides that, in any dispute in which a lawsuit lender provides lawsuit lending to a party, any and all documents that the lawsuit lender obtained from the party in connection with making any decision to begin lawsuit lending shall be produced to the opposing party without awaiting a discovery request and any agreement between the lawsuit lender and the party must be disclosed to the court and produced to the opposing party. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a lawsuit lender shall be considered a person who is regularly engaged in the business of making loans to consumers for the purposes of provisions concerning repeated violations of certain Acts and advertisements containing certain terms. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Failed) 2014-12-03 - Session Sine Die [HB2300 Detail]

Download: Illinois-2013-HB2300-Introduced.html

---

98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB2300 Introduced , by Rep. André M. Thapedi SYNOPSIS AS INTRODUCED:
205 ILCS 670/21.5 new
815 ILCS 505/2E from Ch. 121 1/2, par. 262E
815 ILCS 505/2K from Ch. 121 1/2, par. 262K
Amends the Consumer Installment Loan Act. Defines "lawsuit lending", "lawsuit lender", and "dispute". Provides that the Act shall apply to all lawsuit lending and all lawsuit lenders. Provides that, in any dispute in which a lawsuit lender provides lawsuit lending to a party, any and all documents that the lawsuit lender obtained from the party in connection with making any decision to begin lawsuit lending shall be produced to the opposing party without awaiting a discovery request and any agreement between the lawsuit lender and the party must be disclosed to the court and produced to the opposing party. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a lawsuit lender shall be considered a person who is regularly engaged in the business of making loans to consumers for the purposes of provisions concerning repeated violations of certain Acts and advertisements containing certain terms. Effective immediately.
LRB098 08622 MGM 38740 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB2300 LRB098 08622 MGM 38740 b
AN ACT concerning financial 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
adding Section 21.5 as follows:
(205 ILCS 670/21.5 new)
Sec. 21.5. Lawsuit lending.
(a) As used in this Section:
"Lawsuit lending" means:
(i) providing to any individual person who is a party
to any dispute any money or its equivalent, with the
repayment of the money or its equivalent conditioned upon
and sourced from the person's proceeds of the dispute, by
judgment or settlement or otherwise; or
(ii) purchasing from any individual person who is a
party to any dispute, or receiving an assignment from the
person, a contingent right to receive a share of the
potential proceeds of the dispute, by judgment or
settlement or otherwise.
"Lawsuit lender" means any individual or other person that
engages in lawsuit lending.
"Dispute" means any civil action, any alternative
dispute-resolution proceeding, or any administrative

HB2300 - 2 - LRB098 08622 MGM 38740 b
proceeding before an agency or instrumentality of this State.
(b) Except as otherwise provided in this Section:
(1) this Act shall apply to all lawsuit lending entered
into after the effective date of this amendatory Act of the
98th General Assembly and to all lawsuit lenders who
provide lawsuit lending after the effective date of this
amendatory Act of the 98th General Assembly;
(2) Section 17.2 of this Act shall not apply to any
lawsuit lending provided by a lawsuit lender; and
(3) when any lawsuit lending provided by a lawsuit
lender would otherwise constitute a "small consumer loan"
within the meaning of this Act, the annual percentage rate
on that lawsuit lending shall be the rate provided in
subsection (a) of Section 15 of this Act.
(c) In any dispute in which a lawsuit lender has provided
lawsuit lending to a party:
(1) any and all documents that the lawsuit lender
obtained from the party or the party's representative in
connection with making any decision to begin or continue
the lawsuit lending shall be produced to the opposing party
without awaiting a discovery request; and
(2) any agreement between the lawsuit lender and the
party must be disclosed to the court and produced to the
opposing party.
Section 10. The Consumer Fraud and Deceptive Business

HB2300 - 3 - LRB098 08622 MGM 38740 b
Practices Act is amended by changing Sections 2E and 2K as
follows:
(815 ILCS 505/2E) (from Ch. 121 1/2, par. 262E)
Sec. 2E. Any person who is regularly engaged in the
business of providing or furnishing merchandise to consumers or
in making loans to consumers and who has committed in any
calendar year 3 or more violations, as determined in any civil
or criminal proceeding, of the "Consumer Finance Act"; the
"Consumer Installment Loan Act"; the "Retail Installment Sales
Act"; the "Motor Vehicle Retail Installment Sales Act"; "An Act
to revise the law in relation to the rate of interest and to
repeal certain acts therein named", approved May 24, 1879, as
amended; "An Act to promote the welfare of wage-earners by
regulating the assignment of wages, and prescribing a penalty
for the violation thereof", approved July 1, 1935, as amended;
or Part 8 of Article XII of the Code of Civil Procedure, as
amended, or of any 2 or more of those Acts, is guilty of an
unlawful practice within the meaning of this Act. Nothing in
this Section prohibits the prosecution of a person under the
Acts specified herein as well as under this Act. A lawsuit
lender, as defined in Section 21.5 of the Consumer Installment
Loan Act, shall be considered a person who is regularly engaged
in the business of making loans to consumers for the purposes
of this Section.
(Source: P.A. 82-783.)

HB2300 - 4 - LRB098 08622 MGM 38740 b
(815 ILCS 505/2K) (from Ch. 121 1/2, par. 262K)
Sec. 2K. No person engaged in the making of loans to
consumers or furnishing goods or services to consumers in a
credit transaction may advertise using the terms "bank rates",
"bank financing" or words of like import unless it is a bank,
banking association or trust company authorized to do business
under the laws of this State or of the United States. A person
who violates this Section commits an unlawful practice within
the meaning of this Act. A lawsuit lender, as defined in
Section 21.5 of the Consumer Installment Loan Act, shall be
considered a person engaged in the making of loans to consumers
for the purposes of this Section.
(Source: Laws 1967, p. 2143.)
Section 99. Effective date. This Act takes effect upon
becoming law.