(815 ILCS 122/2-20)
Sec. 2-20. Required disclosures. (a) Before a payday loan is made, a lender shall
deliver to the consumer a pamphlet prepared by the Secretary that:
(1) explains, in simple English and Spanish, all of |
| the consumer's rights and responsibilities in a payday loan transaction;
|
|
(2) includes a toll-free number to the Secretary's
|
| office to handle concerns or provide information about whether a lender is licensed, whether complaints have been filed with the Secretary, and the resolution of those complaints; and
|
|
(3) provides information regarding the availability
|
| of debt management services.
|
|
(b) Lenders shall provide consumers with a written agreement that may be kept by the
consumer. The written agreement must include the following information in
English and in the language in which the loan was negotiated:
(1) the name and address of the lender making the
|
| payday loan, and the name and title of the individual employee who signs the agreement on behalf of the lender;
|
|
(2) disclosures required by the federal Truth in
|
|
(3) a clear description of the consumer's payment
|
| obligations under the loan;
|
|
(4) the following statement, in at least 14-point
|
| bold type face: "You cannot be prosecuted in criminal court to collect this loan." The information required to be disclosed under this subdivision (4) must be conspicuously disclosed in the loan document and shall be located immediately preceding the signature of the consumer; and
|
|
(5) the following statement, in at least 14-point
|
|
"WARNING: This loan is not intended to meet long-term
|
| financial needs. This loan should be used only to meet short-term cash needs. The cost of your loan may be higher than loans offered by other lending institutions. This loan is regulated by the Department of Financial and Professional Regulation."
|
|
(c) The following notices in English and Spanish must be conspicuously posted by a lender in each location of
a business providing payday loans:
(1) A notice that informs consumers that the lender
|
| cannot use the criminal process against a consumer to collect any payday loan.
|
|
(2) The schedule of all finance charges to be
|
| charged on loans with an example of the amounts that would be charged on a $100 loan payable in 13 days and a $400 loan payable in 30 days, giving the corresponding annual percentage rate.
|
|
(3) In one-inch bold type, a notice to the public in
|
| the lending area of each business location containing the following statement:
|
|
"WARNING: This loan is not intended to meet long-term
|
| financial needs. This loan should be used only to meet short-term cash needs. The cost of your loan may be higher than loans offered by other lending institutions. This loan is regulated by the Department of Financial and Professional Regulation."
|
|
(4) In one-inch bold type, a notice to the public in
|
| the lending area of each business location containing the following statement:
|
|
"INTEREST-FREE REPAYMENT PLAN: If you still owe on
|
| one or more payday loans after 35 days, you are entitled to enter into a repayment plan. The repayment plan will give you at least 55 days to repay your loan in installments with no additional finance charges, interest, fees, or other charges of any kind."
|
|
(Source: P.A. 101-658, eff. 3-23-21.)
|