Bill Text: IL HB3634 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Consumer Installment Loan Act. Provides that 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 the lesser of $1 or 0.1% of the loan principal for each loan entered into the certified database. Prohibits the database provider from charging any additional fees or charges to the licensee. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3634 Detail]

Download: Illinois-2025-HB3634-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3634 Introduced , by Rep. Jawaharial Williams SYNOPSIS AS INTRODUCED:
205 ILCS 670/17.5
Amends the Consumer Installment Loan Act. Provides that 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 the lesser of $1 or 0.1% of the loan principal for each loan entered into the certified database. Prohibits the database provider from charging any additional fees or charges to the licensee. Effective immediately.
LRB104 09203 BAB 19260 b
A BILL FOR
HB3634 LRB104 09203 BAB 19260 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 17.5 as follows:
(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.
(c) For every title-secured loan made, the licensee shall
input information as provided in 38 Ill. Adm. Code 110.420.
(d) 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 the lesser of $1 or 0.1% of the loan principal for

HB3634 - 2 - LRB104 09203 BAB 19260 b
each loan entered into the certified database. The database
provider shall not charge any additional fees or charges to
the licensee.
(Source: P.A. 101-658, eff. 3-23-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.