SB 1193 — CONS INST LOAN PRACTICES

093_SB1193SB1193 Engrossed LRB093 10704 JLS 11082 b AN ACT concerningin deferredrelation depositto lendingfinancial practices.regulation.

The Consumer Installment Loan actAct is amended by changing Section 15d8 and adding Sections 1.5, 8.2, 17.1, 17.2, 17.3, 17.4, 17.5, and 22.1 as follows:

(205 ILCS 670/1.5670/8) new) _e_____________________._ _D_____________________"______________________i_____________ _____h_____________________l______________________x_____________ _____a_____________________g______________________e_____________ ______o____________________t______________________e_____________ _____t_____________________e______________________a_____________ _____e__ _D_____________________e______________________g__ __________________w_____________________s_____________ _e_____________________n______________________t_____________ _h_____________________a_______________________t____________ _e_____________________t_______________________e____________ _i_____________________c______________________,_____________ _r______________________t_____________________a_____________ __l_____________________t________________ _________________i_______________________a____________ _e_____________________n_______________________a____________ _r______________________s_____________________h_____________ _o_____________________d______________________p_____________ _c_____________________f______________________e_____________ _f_____________________g______________________o_____________ _a_________ ____________i______________________n_____________ _____________ -2- LRB093 10704 JLS 11082 b ____________s______________________r_____________ _________________r_______________________i____________ _________________p______________________t_____________ _________________n______________________s_____________ _________________r________________________s___________ _________________n______________________r_____________ _________________l______________________r_____________ _________________o______________________t_____________ _________________o______________________o_____________ _________________a______________________t_____________ _________________s_______________ ____________e______________________d_____________ _________________n__ _________________r______________________a_____________ _t_____________________s______________________,_____________ _g_____________________t______________________l_____________ _a_____________________n______________________t_____________ _u_____________________a______________________o_____________ _e_____________________t______________________r_____________ _a_____________________i______________________o_____________ _e_____________________a______________________i_____________ _h_____________________e_______________________s____________ _i_____________________m________________________t___________ _h______________________b_____________________e__________ _I_____________________a______________________h_____________ _____a_____________________p____________________ _S_____________________s_______________________a____________ _____i_____________________a______________________d_____________ _____A_________________ _C_____________________s_________________________o__________ _____i_____________________n_______________________m____________ _____l______________________t_____________________v_____________ ______i____________________i______________________l_____________ _____a________ -3- LRB093 10704 JLS 11082 b _R_____________________t_______________________d____________ _____n______________________t_____________________r_____________ _____e_____________________n______________________o_____________ _____d______________________a_____________________t_____________ _____n______________________t______________________d____________ _____i______________________t_____________________a_____________ _____i_______________________u_____________________t____________ _____r_____________________c______________________i_____________ _____t_____________________o______________________,_____________ _____m______________________a_____________________t_____________ _____n_____________________e________________ (205 ILCS 670/8.2 new) _e_____________________y______________________e________ _a______________________i_____________________e_____________ _____m_____________________u______________________r_____________ _____v_____________________d______________________i_____________ _____e_____________________d______________________r_____________ _____n_____________________a__________ _b_____________________o______________________d_____________ _____m_____________________l_______________________a____________ ______s_____________________a_____________________m_____________ _____t_____________________,______________________r_____________ ______o____________________e______________________e_____________ _____c_____________________h________________________i___________ _____d_____________________s___________ _c_____________________d______________________r_____________ _____e_____________________o______________________l_____________ _____r_____________________g_______________________l____________ _____d_____________________s______________________a_____________ _____r______________________o_____________________i_____________ _____o_____________________e______________________o_____________ _____m_____________________p______________________b_____________ _____c_____________________h________________________i___________ -4- LRB093 10704 JLS 11082 b ______b____________________a_____________________ (205 ILCS 670/15d) (from Ch.

5419)5408) Sec.

15d.8.

ExtraAnnual chargeslicense prohibited;fee_ expenses.

exceptions.Before the 15th day of each December, a licensee must pay to the Director, and the Department must receive, the annual license fee required by Section 2 for the next succeeding calendar year.

NoThe amountlicense inshall additionexpire toon the chargesfirst authorizedof byJanuary thisunless Actthe shalllicense befee directlyhas orbeen indirectly charged, contracted for, or received, except (1) lawful fees paid toprior anythereto. public officer or agency to record, file or release security;

(2)In (i)addition coststo and___ disbursements-u--- actuallylicense incurredfee, inthe connectionreasonable withexpense aof real estate loan, for any title insurance, title examination, abstractinvestigation of title, survey, or appraisal,custody 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 InterestDirector Act,under whetherany calledprovisions "points"of orthis otherwise,Act whichshall chargesbe areborne imposedby as a condition for making the loanlicensee. and are not refundable in the event of prepayment of the loan;

(3)If costsa andlicensee disbursements,fails includingto reasonablerenew attorney'shis fees,or incurredher inlicense legalby proceedingsthe to31st collectday aof loanDecember, orit toshall realizeautomatically onexpire aand securitythe afterlicensee default;is not entitled to a hearing;

(4)however, anthe amountDirector, not exceeding $25, plus any actual expenses incurred in connectionhis withor aher checkdiscretion, ormay draftreinstate thatan isexpired notlicense honoredupon becausepayment of insufficientthe orannual uncollectedrenewal fundsfee orand becauseproof noof suchgood accountcause exists,____________t______________________h_____________for _____i_____________________u______________________t_____________failure _____e_____________________c______________________r____;to renew.

--- (5) a document preparation fee not to exceed $25 for obtaining and reviewing credit reports and preparation of other documents;_________________r______________________n_____________ _____o_____________________t_______________________l____________ _____o______________________$_____________________p_____________ _____l_____________________a______________________a_____________ _______m___________________o______________________r_____________ _____d_____________________a______________________e_____________ _____r_____________________r______________________s_____________ -5- LRB093 10704 JLS 11082 b _____o_____________________a______________________d_____________ ______u____________________n______________________n_____________ _____o_____________________u______________________r_____________ _____r_____________________u______________________s_____________ _____f____________________.

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.

89-400,92-398, eff.

8-20-95;1-1-02.)

90-437, eff.

1-1-98.) (205 ILCS 670/17.1 new) _e_____________________o________________ _a_____________________s______________________x_____________ _____i______________________n_____________________a_____________ _____t_____________________a______________________m_____________ _____d_____________________n______________________l_____________ _____e__________________ _b_____________________n______________________i_____________ _____a_____________________a___ _n_____________________w______________________l_____________ _____i_____________________t______________________i_____________ _____o_________ _n______________________d______________________a____________ _____e_____________________0_______________________t____________ _____ _n______________________d______________________m____________ -6- LRB093 10704 JLS 11082 b ______i___ _________________h_______________________t____________ _o________ _________________e_______________________c____________ _e_____________________o______________________m_____________ _r______________________(____ _c_____________________v______________________e_____________ _____o______________________r_____________________l_____________ _____t_____________________t______________________f_____________ _____e_____________________i______________________p_____________ _____t_____________________t______________________b_____________ _____-______________________d______________________a__________ _f_____________________s______________________l_____________ _______t___________________e______________________e_____________ _____a_____________________o______________________e_____________ _____s_____________________y______________________t_____________ _____:_ _________________m______________________m_____________ _r_____________________n______________________e_____________ _h_____________________o____ __________________s_____________________o_____________ _e_____________________n______________________e_____________ _n_____________________h______________________t_____________ _w______________________b_____________________;_ _________________s________________________e___________ _o_____________________n____________ ___________________s____________________n_____________ _d_____________________p______________________p_____________ _e_____________________o______________________n_____________ _a_________________ _d_____________________e______________________o_____________ _____i______________________l________________ _e_____________________t______________________i_____________ _____d_____________________e______________________g_____________ -7- LRB093 10704 JLS 11082 b _____t_____________________a________________________a___________ _____i_____________________e______________________t_____________ ______f____________________t______________________a_____________ _____e______________________b_____________________o_____________ _____t_____________________ _f_____________________e_______________________o____________ _____r_____________________e_______________________t____________ _____l_____________________a______________________r_____________ _____t_____________________n_______________________D____________ _____s_____________________e___ _g_____________________e______________________i_____________ _____t_____________________l______________________,_____________ _____i_____________________r______________________a_____________ ______(____________________o______________________h_____________ _____n_____________________t________________________i___________ _____d_____________________s___________ (205 ILCS 670/17.2 new) _e______________________d_____________________t_____________ _____a_____________________n______________________n_____________ _____o_____________________b______________________r_____________ _____y_____________________i_______________________a____________ _____h______________________l_____________________s_____________ _____t_____________________t______________________n_____________ _____e_____________________l______________________e_____________ _____c_____________________f______________________g_____________ _____t_____________________i______________________s_____________ _____t_____________________T______________________o_____________ _____d_____________________l______________________o_____________ _____t____ (205 ILCS 670/17.3 new) _e_____________________i______________________e_____________ _____o_____________________t______________________h_____________ -8- LRB093 10704 JLS 11082 b _____r______________________c_____________________t_____________ _____i_____________________t_________ (205 ILCS 670/17.4 new) _e_____________________e________________________A___________ _____i______________________t_____________________e_____________ _____i_____________________k______________________e_____________ _____n______________________m______________________p____________ _____d_____________________e______________________e_____________ _____n_____________________e_______________________c____________ _____a_____________________o______________________s_____________ _____e_____________________.______________________a_____________ ______t____________________i______________________h_____________ _____i_____________________h______________________l_____________ _____d_____________________ (205 ILCS 670/17.5 new) _e_____________________e______________________m_____________ _____r_____________________e________________________l___________ _____e_____________________a______________________n_____________ ______t_____________________l______________________r____________ _____r_____________________o______________________e_____________ _____o_____________________s______________________o_____________ _____n_____________________d_______________________a____________ _____e_____________________a______________________e_______ (205 ILCS 670/22.1 new) _e_____________________n_______________________r____________ _____s______________________t_______________________t___________ _____i______________________S_____________________2_____________ ______1____________________,______________________i_____________ _____o_____________________o______________________e_____________ _____i_____________________d______________________s_____________ _____I_____________________.______________________2_____________ -9- LRB093 10704 JLS 11082 b _____6______________________1______________________1________ Section 15.

The Criminal Code of 1961 is amended by changing Section 17-1a as follows:

(720 ILCS 5/17-1a) (from Ch.

38, par.

17-1a) Sec.

17-1a.

Civil liability for deceptive practices.

A person who issues a check or order to a payee in violation of Section 17-1(B) (d) and who fails to pay the amount of the check or order to the payee within 30 days following either delivery and acceptance by the addressee of a written demand by both certified mail and by first class mail to the person's last know address;

or attempted delivery of a written demand sent by both certified mail and by first class mail to the person's last known address and the demand by certified mail is returned to the sender with a notation that delivery was refused or unclaimed, shall be liable to the payee or a person subrogated to the rights of the payee for, in addition to the amount owing upon such check or order, damages of treble the amount so owing, but in no case less than $100 nor more than $1,500, plus attorney fees and court costs,_____________________f_______________________a____________ _____f_____________________o______________________a_____________ _____s______________________t______________________t____________ _____t_____________________e_______________.

A cause of action under this Section may be brought in small claims court or in any other appropriate court.

As part of the written demand required by this Section, the plaintiff shall provide written notice to the defendant of the fact that prior to the hearing of any action under this Section, the defendant may tender to the plaintiff and the plaintiff shall accept as satisfaction of the claim, an amount of money equal to the sum of the amount of the check and the incurred court costs, and service and attorney fees.

-10- LRB093 10704 JLS 11082 b (Source:

P.A.

89-378, eff.

8-18-95;

90-227, eff.

1-1-98;

90-721, eff.

1-1-99.) Section 97.

Severability.

The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99.

Effective date.