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| Public Act 103-1014
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| SB3550 Enrolled | LRB103 37880 RTM 68011 b |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Financial Institutions Code is amended by |
changing Sections 1, 2, 4, 6, 6a, 7, 8, 15, 16, 17, and 18 and |
by adding Sections 18.2, 18.3, and 18.5 as follows:
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(20 ILCS 1205/1) (from Ch. 17, par. 101) |
Sec. 1. Short title. This Act shall be known and shall be |
cited as the "Financial Institutions Act Code." |
(Source: Laws 1957, p. 369.)
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(20 ILCS 1205/2) (from Ch. 17, par. 102) |
Sec. 2. Purpose. The purpose of the Financial Institutions |
Act Code is to provide under the Governor for the orderly |
administration and enforcement of laws relating to financial |
institutions under the authority of the Governor. |
(Source: Laws 1957, p. 369.)
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(20 ILCS 1205/4) (from Ch. 17, par. 104) |
Sec. 4. Definitions. As used in this Act: |
"Address of record" means the designated address recorded |
by the Division in the applicant's application file or the |
licensee's license file, as maintained by the Division. |
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"Department" means the Department of Financial and |
Professional Regulation. |
"Director" means the Director or acting Director of the |
Division of Financial Institutions and any authorized |
representative of the Director. |
"Division" means the Division of Financial Institutions of |
the Department. |
"Financial institutions" means ambulatory and community |
currency exchanges, credit unions, guaranteed credit unions, |
money transmitters, title insuring or guaranteeing companies |
and their agents, consumer installment lenders, payday |
lenders, sales finance agencies, consumer legal funding |
companies, collection agencies, and any other person who |
industry or business that offers services or products that are |
regulated under any Act administered by the Director. |
"License" means any certificate or authorization issued to |
any person, party, or entity pursuant to any Act administered |
by the Division. |
"Licensee" means any person, party, or entity who is or |
comes to be certified, chartered, registered, licensed, or |
otherwise authorized by the Division pursuant to any Act |
administered by the Division. |
"Payday loan" has the meaning ascribed to that term in the |
Payday Loan Reform Act. |
"Person" means any individual, partnership, joint venture, |
trust, estate, firm, corporation, cooperative society or |
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association, or any other form of business association or |
legal entity. |
"Regulated person" means a person whose activities are |
subject to an Act or rule that is administered by the Division. |
"Regulated person" includes licensees as well as persons who |
are lawfully or unlawfully unlicensed. "Regulated person" also |
includes managers and owners of the licensee. |
"Secretary" means the Secretary or acting Secretary of |
Financial and Professional Regulation and any authorized |
representative of the Secretary. |
(Source: P.A. 102-975, eff. 1-1-23.)
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(20 ILCS 1205/6) |
Sec. 6. General powers and duties. In addition to the |
powers and duties provided by law and imposed elsewhere in |
this Act, the Division has the following powers and duties: |
(1) To administer and enforce the Consumer Installment |
Loan Act and its implementing rules. |
(2) To administer and enforce the Currency Exchange |
Act and its implementing rules. |
(3) To administer and enforce the Debt Management |
Service Act and its implementing rules. |
(4) To administer and enforce the Debt Settlement |
Consumer Protection Act and its implementing rules. |
(5) To administer and enforce the Illinois Development |
Credit Corporation Act and its implementing rules. |
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(6) To administer and enforce the Payday Loan Reform |
Act and its implementing rules. |
(7) To administer and enforce the Safety Deposit |
License Act and its implementing rules. |
(8) To administer and enforce the Sales Finance Agency |
Act and its implementing rules. |
(9) To administer and enforce the Title Insurance Act |
and its implementing rules. |
(10) To administer and enforce the Transmitters of |
Money Act and its implementing rules. |
(11) To administer and enforce the Predatory Loan |
Prevention Act and its implementing rules. |
(12) To administer and enforce the Motor Vehicle |
Retail Installment Sales Act and its implementing rules. |
(13) To administer and enforce the Retail Installment |
Sales Act and its implementing rules. |
(14) To administer and enforce the Illinois Credit |
Union Act and its implementing rules. |
(15) To administer and enforce the Collection Agency |
Act and its implementing rules. |
(16) To administer and enforce the Consumer Legal |
Funding Act and its implementing rules. |
(17) (16) To administer and enforce this Act and any |
other Act administered by the Director or Division. |
(17) If the Division is authorized or required by law |
to consider some aspect of criminal history record |
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information for the purpose of carrying out its statutory |
powers and responsibilities, to obtain from the Illinois |
State Police, upon request and payment of the fees |
required by the Illinois State Police Law of the Civil |
Administrative Code of Illinois, pursuant to positive |
identification, such information contained in State files |
as is necessary to carry out the duties of the Division. |
(18) To authorize and administer examinations to |
ascertain the qualifications of applicants and licensees |
for which the examination is held. |
(19) To conduct hearings in proceedings to revoke, |
suspend, refuse to renew, or take other disciplinary |
action regarding licenses, charters, certifications, |
registrations, or authorities of persons as authorized in |
any Act administered by the Division. |
Whenever the Division 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 |
Illinois State Police Law, the Illinois State Police is |
authorized to furnish, pursuant to positive identification, |
the information contained in State files that is necessary to |
fulfill the request. |
(Source: P.A. 102-538, eff. 8-20-21; 102-813, eff. 5-13-22; |
102-975, eff. 1-1-23; 103-154, eff. 6-30-23.)
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(20 ILCS 1205/6a) (from Ch. 17, par. 107) |
Sec. 6a. The Secretary Director may, in accordance with |
the The Illinois Administrative Procedure Act, adopt |
reasonable rules with respect to the administration and |
enforcement of any Act the administration of which is vested |
in the Division Director or the Department. |
(Source: P.A. 81-205.)
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(20 ILCS 1205/7) (from Ch. 17, par. 108) |
Sec. 7. Illinois Administrative Procedure Act. The |
provisions of the "The Illinois Administrative Procedure Act", |
as now or hereafter amended, are hereby expressly adopted and |
incorporated herein as though a part of this Act, and shall |
apply to all administrative rules and procedures of the |
Division Director and the Department of Financial Institutions |
under this Act. , except that the provisions of the |
Administrative Procedure Act regarding contested cases shall |
not apply to actions of the Director under Section 15.1 of "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, or Sections 8 and 61 of "The Illinois Credit Union |
Act". |
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(Source: P.A. 100-22, eff. 1-1-18.)
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(20 ILCS 1205/8) (from Ch. 17, par. 109) |
Sec. 8. Duties of the Secretary. The Secretary Director |
shall direct and supervise all Department administrative and |
technical activities, in addition to the duties imposed upon |
the Secretary him elsewhere in this Act Code, and shall: |
(1) Apply and carry out this Act Code and the laws and all |
rules adopted in pursuance thereof. |
(2) Appoint, subject to the provisions of the Personnel |
Code, such employees of the Division Department and such |
experts and special assistants as may be necessary to carry |
out effectively the provisions of this Act Code. |
(3) Foster and develop programs with financial |
institutions, for the best interests of these institutions, |
their services, and the People people of the State of |
Illinois. |
(4) Attend meetings of the Advisory Boards created by laws |
relating to financial institutions. |
(5) Make continuous studies and report his recommendations |
to the Governor for the improvement of the Department. |
(6) Make an annual report regarding the work of the |
Department and such special reports as he may consider |
desirable to the Governor, or as the Governor may request. |
(5) (7) Perform any other lawful acts that the Secretary |
which he may consider necessary or desirable to carry out the |
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purposes and provisions of this Act Law. |
(Source: Laws 1957, p. 369.)
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(20 ILCS 1205/15) (from Ch. 17, par. 116) |
Sec. 15. Pending actions and proceedings. This Act shall |
not affect any act done, ratified or confirmed or any right |
accrued or established, or affect or abate any action or |
proceeding had or commenced in a civil or criminal cause |
before this Act takes effect; but such actions or proceedings |
may be prosecuted and continued by the Division Department of |
Financial Institutions. |
(Source: Laws 1957, p. 369.)
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(20 ILCS 1205/16) (from Ch. 17, par. 117) |
Sec. 16. Director and supervisors. The Governor shall, by |
and with the advice and consent of the Senate, appoint a |
Director of the Division, who shall oversee the Division and |
who shall report to the Secretary. There shall be a Supervisor |
of Consumer Credit, a Supervisor of Currency Exchanges, a |
Supervisor of Title Insurance, and a Supervisor of Credit |
Unions. The respective supervisors Supervisors shall be |
appointed by and responsible to the Director and shall be |
administratively responsible within the Department for the |
financial institutions and title insurance entities to which |
their appointments pertain. The Secretary may appoint other |
supervisory staff as deemed necessary to implement Acts the |
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Division administers. |
(Source: P.A. 99-549, eff. 7-15-16.)
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(20 ILCS 1205/17) (from Ch. 17, par. 118) |
Sec. 17. Prohibited interests. Neither the Secretary, the |
Director, nor any supervisor in the Division, nor any examiner |
in the Division shall be an officer, director, owner, or |
shareholder of, or a partner in, or have any proprietary |
interest, direct or indirect, in any financial institution |
under the jurisdiction of the Division. However, ; provided, |
however, that ownership of withdrawable capital accounts or |
shares in credit unions and ownership of diversified |
investment funds, employee benefit plans, pensions, retirement |
and thrift saving plans, or similar financial instruments in |
which the employee has no ability to exercise control over or |
selection of the financial interests held by the fund are |
permitted shall not be deemed to be prevented hereby. If the |
Secretary, Director, or any supervisor, or examiner within the |
Division is a , shall be a shareholder, or partner in, or an |
owner of or has have any interest, direct or indirect, in any |
such financial institution under the jurisdiction of the |
Division at the time of his appointment, that person he shall |
dispose of the his shares of stock or other evidences of |
ownership or property within 120 days from the date of his |
appointment. It is unlawful for the Secretary, Director, or |
any supervisor or examiner within the Division to obtain or |
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repay any loan, product, or service from a financial |
institution subject to the jurisdiction of the Division on |
terms more favorable than those offered to the general public. |
The Secretary is authorized to adopt rules to implement or |
interpret this Section. It is unlawful for the Director, any |
supervisor or examiner to obtain any loan or gratuity from a |
financial institution subject to the jurisdiction of the |
Department as herein provided. If any other employee of the |
Department borrows from or becomes indebted in an aggregate |
amount of $2,500 or more to any financial institution subject |
to the jurisdiction of the Department, he shall make a written |
report to the Director stating the date and amount of such loan |
or indebtedness, the security therefor, if any, and the |
purpose or purposes for which proceeds have been or are to be |
used. |
(Source: P.A. 91-357, eff. 7-29-99.)
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(20 ILCS 1205/18) (from Ch. 17, par. 119) |
Sec. 18. Oaths; subpoenas; penalty. |
(a) At any time during the course of any investigation or |
hearing conducted pursuant to any Act administered by the |
Division, the Secretary The Director shall have the power to |
administer oaths, subpoena witnesses, take evidence, and |
compel the production of any books, records, or any other |
documents that the Secretary deems relevant or and papers |
pertinent to any investigation or hearing regarding the |
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operation of any financial institution. Witnesses in |
investigations or hearings conducted under this Section are |
entitled to the same fees and mileage, and in the same manner, |
as prescribed by law in judicial proceedings in civil cases of |
this State. |
(b) Any person who fails to appear in response to a |
subpoena, or to answer any question, to or produce any books, |
and papers, records, or any documents deemed relevant or |
pertinent to such investigation or hearing, or who knowingly |
gives false testimony therein, is guilty of a Class A |
misdemeanor. Each violation shall constitute a separate and |
distinct offense. In addition to initiating criminal |
proceedings through referral, the Division, through the |
Attorney General, may seek enforcement of any such subpoena in |
any circuit court of this State. |
(Source: P.A. 77-2594.)
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(20 ILCS 1205/18.2 new) |
Sec. 18.2. Court order requiring attendance of witnesses |
or production of materials. Upon application by the Division, |
any Illinois circuit court may enter an order to enforce a |
subpoena issued by the Division for the attendance of |
witnesses and the production of relevant books and papers or |
other documents deemed relevant or pertinent before the |
Division in any hearing relative to the denial of an |
application, refusal to renew, suspension, revocation, placing |
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on probationary status, reprimand, fine, or the taking of any |
other disciplinary action as may be authorized in any Act |
administered by the Division. The court may compel obedience |
to its order through proceedings for contempt.
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(20 ILCS 1205/18.3 new) |
Sec. 18.3. Perjury; penalty. The Secretary may require any |
document filed under any Act administered or rule adopted by |
the Division to be verified or contain a written affirmation |
that it is signed under the penalties of perjury. Any person |
who knowingly signs a fraudulent document commits perjury as |
defined in Section 32-2 of the Criminal Code of 2012 and shall |
be guilty of a Class A misdemeanor.
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(20 ILCS 1205/18.5 new) |
Sec. 18.5. Consent orders and settlement agreements. The |
Secretary may enter into a consent order or settlement |
agreement at any time with a regulated person to resolve a |
matter arising under this Act or any other Act under the |
jurisdiction of the Division. A consent order or settlement |
agreement need not constitute an admission by a regulated |
person that this Act or a rule or order issued or adopted under |
this Act or any Act under the jurisdiction of the Division has |
been violated, nor need it constitute a finding by the |
Secretary that the person has violated this Act or a rule or |
order adopted under this Act or any Act under the jurisdiction |
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of the Division. Nothing in this Section shall be construed as |
requiring a regulated person to enter a consent order or |
settlement agreement with the Secretary.
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(20 ILCS 1205/9 rep.) |
(20 ILCS 1205/10 rep.) |
(20 ILCS 1205/11 rep.) |
(20 ILCS 1205/12 rep.) |
(20 ILCS 1205/13 rep.) |
(20 ILCS 1205/13.5 rep.) |
(20 ILCS 1205/14 rep.) |
Section 10. The Financial Institutions Code is amended by |
repealing Sections 9, 10, 11, 12, 13, 13.5, and 14.
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Section 15. The Currency Exchange Act is amended by |
changing Section 19 as follows:
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(205 ILCS 405/19) (from Ch. 17, par. 4835) |
Sec. 19. The Department may make and enforce such |
reasonable rules, directions, orders, decisions and findings |
as the execution and enforcement of the provisions of this Act |
require, and as are not inconsistent within this Act. All such |
rules, directions, orders, decisions and findings shall be |
filed and entered by the Secretary in an indexed permanent |
book or record, or electronic record, with the effective date |
thereof suitably indicated, and such book or record shall be a |
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public document. All rules and directions, which are of a |
general character, shall be made available in electronic form |
to all licensees within 10 days after filing and any changes |
shall be emailed to all licensees shall receive by mail notice |
of any changes. Copies of all findings, orders and decisions |
shall be mailed to the parties affected thereby by United |
States mail within 5 days of such filing. |
The Department shall adopt rules concerning classes of |
violations, which may include continuing violations of this |
Act, and factors in mitigation of violations. |
(Source: P.A. 99-445, eff. 1-1-16.)
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Section 20. The Sales Finance Agency Act is amended by |
changing Section 8 as follows:
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(205 ILCS 660/8) (from Ch. 17, par. 5208) |
Sec. 8. The Department may deny an application for a |
license, deny an application for renewal of a license, or |
suspend or revoke a license on any of the grounds listed in |
Sections 8.1 through 8.14 and the Financial Institutions Act. |
(Source: P.A. 90-437, eff. 1-1-98.)
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Section 25. The Consumer Installment Loan Act is amended |
by changing Sections 9, 15 and 20.5 as follows:
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(205 ILCS 670/9) (from Ch. 17, par. 5409) |
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Sec. 9. Fines, Suspension or Revocation of license. |
(a) The Director may fine a licensee or any other person or |
entity doing business without the required license , 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 therefor, fine such 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 Director 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 Director in |
refusing to issue the license. |
(a-5) All orders issued pursuant to this Act shall be |
served on the licensee, person, or entity with notice of his or |
her action, including a statement of the reasons for his or her |
actions, either personally, or by certified mail. Service by |
certified mail shall be deemed completed when the notice is |
deposited in the U.S. Mail. |
(b) The Director 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 Director |
shall find that grounds for revocation are of general |
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application to all offices or to more than one office of the |
licensee, the Director shall fine, suspend, or revoke every |
license to which such grounds apply. |
(c) (Blank). |
(d) 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. |
(e) The Director may issue a new license to a licensee |
whose license has been revoked when facts or conditions which |
clearly would have warranted the Director in refusing |
originally to issue the license no longer exist. |
(f) (Blank). |
(g) 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 Director 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. |
(h) 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, in writing, within 10 days after the date |
of service, a hearing. In the event a hearing is requested, the |
order shall be stayed until a final administrative order is |
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entered. |
(i) If the licensee requests a hearing, the Director shall |
schedule a preliminary hearing within 30 days after the |
request for a hearing unless otherwise agreed to by the |
parties. |
(j) The hearing shall be held at the time and place |
designated by the Director. The Director 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. |
(k) The costs for the administrative hearing shall be set |
by rule. |
(l) The Director shall have the authority to prescribe |
rules for the administration of this Section. |
(m) The Department shall establish by rule and publish a |
schedule of fines that are reasonably tailored to ensure |
compliance with the provisions of this Act and which include |
remedial measures intended to improve licensee compliance. |
Such rules shall set forth the standards and procedures to be |
used in imposing any such fines and remedies. |
(Source: P.A. 98-209, eff. 1-1-14.)
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(205 ILCS 670/15) (from Ch. 17, par. 5415) |
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Sec. 15. Charges permitted. |
(a) Every licensee may lend a principal amount not |
exceeding $40,000 and 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. 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. |
(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 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. |
"Interest-bearing loan" means a loan in which the debt is |
expressed as a principal amount plus interest charged on |
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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. |
"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 |
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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 |
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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. |
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(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 |
judgment judgement is entered. |
(4) The lender or creditor may, if the contract |
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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 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 2 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 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 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; 101-658, eff. 3-23-21.)
|
(205 ILCS 670/20.5) |
Sec. 20.5. Cease and desist. |
(a) The Director may issue a cease and desist order to any |
|
licensee, or other person or entity doing business without the |
required license, when in the opinion of the Director, the |
licensee, or other person or entity, has violated, 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. |
(b) The Director may issue a cease and desist order prior |
to a hearing. |
(c) The Director shall serve notice of his or her action, |
designated as a cease and desist order made pursuant to this |
Section, including 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. |
(d) Within 15 days of service of the cease and desist |
order, the licensee or other person may request, in writing, a |
hearing. |
(e) The Director shall schedule a preliminary hearing |
within 30 days after the request for a hearing unless |
otherwise agreed to by the parties. |
(f) The Director shall have the authority to prescribe |
rules for the administration of this Section. |
(g) If it is determined that the Director 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 such conduct. |
(h) The powers vested in the Director by this Section are |
additional to any and all other powers and remedies vested in |
the Director by law, and nothing in this Section shall be |
construed as requiring that the Director shall employ the |
power conferred in this Section instead of or as a condition |
precedent to the exercise of any other power or remedy vested |
in the Director. |
(i) The cost for the administrative hearing shall be set |
by rule. |
(Source: P.A. 90-437, eff. 1-1-98.)
|
Section 35. The Collection Agency Act is amended by |
changing Section 13.2 as follows:
|
(205 ILCS 740/13.2) (was 225 ILCS 425/13.2) |
(Section scheduled to be repealed on January 1, 2026) |
Sec. 13.2. Powers and duties of Department. The Department |
shall exercise the powers and duties prescribed by the |
Financial Institutions Act Code for the administration of |
licensing Acts and shall exercise such other powers and duties |
necessary for effectuating the purposes of this Act. |
Subject to the provisions of this Act, the Department may: |
(1) Conduct hearings on proceedings to refuse to issue |
or renew or to revoke licenses or suspend, place on |
probation, or reprimand persons licensed under this Act. |
|
(2) To adopt rules consistent with the purposes of |
this Act, including, but not limited to: (i) rules in |
connection with the activities of collection agencies as |
may be necessary and appropriate for the protection of |
consumers in this State; (ii) rules as may be necessary |
and appropriate to define and enforce against improper or |
fraudulent business practices in connection with the |
activities of collection agencies; (iii) rules that define |
the terms used in this Act and as may be necessary and |
appropriate to interpret and implement the provisions of |
this Act; and (iv) rules as may be necessary for the |
enforcement of this Act. |
(3) Obtain written recommendations from the Board |
regarding standards of professional conduct, formal |
disciplinary actions and the formulation of rules |
affecting these matters. Notice of proposed rulemaking |
shall be transmitted to the Board and the Department shall |
review the response of the Board and any recommendations |
made in the response. The Department may solicit the |
advice of the Board on any matter relating to the |
administration and enforcement of this Act. |
(4) (Blank). |
(Source: P.A. 102-975, eff. 1-1-23.)
|
Section 40. 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 or entity doing business without the |
required license, when in the opinion of the Secretary the |
licensee or other person or entity has violated, 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 a the licensee or other person or entity doing |
business without the required license 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. |
The Department shall establish by rule and publish a |
schedule of fines that are reasonably tailored to ensure |
compliance with the provisions of this Act and which include |
remedial measures intended to improve licensee compliance. |
Such rules shall set forth the standards and procedures to be |
used in imposing any such fines and remedies. |
|
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 or other person or |
entity doing business without the required license 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 preliminary 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. 97-1039, eff. 1-1-13; 98-209, eff. 1-1-14.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law. |
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INDEX
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Statutes amended in order of appearance
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