(815 ILCS 122/1-10)
Sec. 1-10. Definitions. As used in this Act: "Check" means a "negotiable instrument", as defined in Article 3 of the Uniform Commercial Code, that is drawn on a financial institution. "Commercially reasonable method of verification" or "certified database" means a consumer reporting service database certified by the Department as effective in verifying that a proposed loan agreement is permissible under this Act, or, in the absence of the Department's certification, any reasonably reliable written verification by the consumer concerning (i) whether the consumer has any outstanding payday loans, (ii) the principal amount of those outstanding payday loans, and (iii) whether any payday loans have been paid in full by the consumer in the preceding 7 days. "Consumer" means any natural person who, singly or jointly with another consumer, enters into a loan. "Consumer reporting service" means an entity that provides a database certified by the Department. "Department" means the Department of Financial and Professional Regulation. "Secretary" means the Secretary of Financial and Professional Regulation. "Gross monthly income" means monthly income as demonstrated by official documentation of the income, including, but not limited to, a pay stub or a receipt reflecting payment of government benefits, for the period 30 days prior to the date on which the loan is made. "Lender" and "licensee" mean any person or entity, including any affiliate or subsidiary of a lender or licensee, that offers or makes a payday loan, buys a whole or partial interest in a payday loan, arranges a payday loan for a third party, or acts as an agent for a third party in making a payday loan, regardless of whether approval, acceptance, or ratification by the third party is necessary to create a legal obligation for the third party, and includes any other person or entity if the Department determines that the person or entity is engaged in a transaction that is in substance a disguised payday loan or a subterfuge for the purpose of avoiding this Act. "Loan agreement" means a written agreement between a lender and consumer to make a loan to the consumer, regardless of whether any loan proceeds are actually paid to the consumer on the date on which the loan agreement is made. "Member of the military" means a person serving in the armed forces of the United States, the Illinois National Guard, or any reserve component of the armed forces of the United States. "Member of the military" includes those persons engaged in (i) active duty, (ii) training or education under the supervision of the United States preliminary to induction into military service, or (iii) a period of active duty with the State of Illinois under Title 10 or Title 32 of the United States Code pursuant to order of the President or the Governor of the State of Illinois. "Outstanding balance" means the total amount owed by the consumer on a loan to a lender, including all principal, finance charges, fees, and charges of every kind. "Payday loan" or "loan" means a loan with a term that does not exceed 120 days, including any transaction conducted via any medium whatsoever, including, but not limited to, paper, facsimile, Internet, or telephone, in which: (1) A lender accepts one or more checks dated on |
| the date written and agrees to hold them for a period of days before deposit or presentment, or accepts one or more checks dated subsequent to the date written and agrees to hold them for deposit; or
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(2) A lender accepts one or more authorizations to
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| debit a consumer's bank account; or
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(3) A lender accepts an interest in a consumer's
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| wages, including, but not limited to, a wage assignment.
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"Principal amount" means the amount received by the consumer from the lender due and owing on a loan, excluding any finance charges, interest, fees, or other loan-related charges.
"Rollover" means to refinance, renew, amend, or extend a loan beyond its original term.
(Source: P.A. 101-658, eff. 3-23-21.)
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(815 ILCS 122/2-5)
Sec. 2-5. Loan terms. (a) Without affecting the right of a consumer to prepay at any time without cost or penalty, no payday loan may have a minimum term of less than 13 days. (b) No payday loan may be made to a consumer if the loan would result in the consumer being indebted to one or more payday lenders for a period in excess of 45 consecutive days. Except as provided under subsection (c) of this Section and Section 2-40, if a consumer has or has had loans outstanding for a period in excess of 45 consecutive days, no payday lender may offer or make a loan to the consumer for at least 7 calendar days after the date on which the outstanding balance of all payday loans made during the 45 consecutive day period is paid in full. For purposes of this subsection, the term "consecutive days" means a series of continuous calendar days in which the consumer has an outstanding balance on one or more payday loans; however, if a payday loan is made to a consumer within 6 days or less after the outstanding balance of all loans is paid in full, those days are counted as "consecutive days" for purposes of this subsection. (c) (Blank).
(d) (Blank). (e) No lender may make a payday loan to a consumer if the total of all payday loan payments coming due within the first calendar month of the loan, when combined with the payment amount of all of the consumer's other outstanding payday loans coming due within the same month, exceeds the lesser of: (1) $1,000; or (2) in the case of one or more payday loans, 25% of |
| the consumer's gross monthly income.
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No loan shall be made to a consumer who has an outstanding balance on 2 payday loans, except that, for a period of 12 months after March 21, 2011 (the effective date of Public Act 96-936), consumers with an existing CILA loan may be issued an installment loan issued under this Act from the company from which their CILA loan was issued.
(e-5) A lender shall not contract for or receive a charge exceeding a 36% annual percentage rate on the unpaid balance of the amount financed for a payday loan. 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 32 CFR 232.4 as in effect on the effective date of this amendatory Act of the 101st General Assembly.
When any loan contract is paid in full, the licensee shall refund any unearned finance charge. The unearned finance charge that is refunded shall be calculated based on a method that is at least as favorable to the consumer as the actuarial method, as defined by the federal Truth in Lending Act. The sum of the digits or rule of 78ths method of calculating prepaid interest refunds is prohibited.
(f) A lender may not take or attempt to take an interest in any of the consumer's personal property to secure a payday loan.
(g) A consumer has the right to redeem a check or any other item described in the definition of payday loan under Section 1-10 issued in connection with a payday loan from the lender holding the check or other item at any time before the payday loan becomes payable by paying the full amount of the check or other item.
(h) (Blank).
(Source: P.A. 100-201, eff. 8-18-17; 101-563, eff. 8-23-19; 101-658, eff. 3-23-21.)
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(815 ILCS 122/2-15) Sec. 2-15. Verification. (a) Before entering into a loan agreement with a consumer, a lender must use a commercially reasonable method of verification to verify that the proposed loan agreement is permissible under this Act. (b) Within 6 months after the effective date of this Act, the Department shall certify that one or more consumer reporting service databases are commercially reasonable methods of verification. Upon certifying that a consumer reporting service database is a commercially reasonable method of verification, the Department shall:
(1) provide reasonable notice to all licensees |
| identifying the commercially reasonable methods of verification that are available; and
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(2) immediately upon certification, require each
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| licensee to use a commercially reasonable method of verification as a means of complying with subsection (a) of this Section.
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(c) Except as otherwise provided in this Section, all personally identifiable information regarding any consumer obtained by way of the certified database and maintained by the Department is strictly confidential and shall be exempt from disclosure under Section 7(1)(b)(i) of the Freedom of Information Act.
(d) Notwithstanding any other provision of law to the contrary, a consumer seeking a payday loan may make a direct inquiry to the consumer reporting service to request a more detailed explanation of the basis for a consumer reporting service's determination that the consumer is ineligible for a new payday loan.
(e) In certifying a commercially reasonable method of verification, the Department shall ensure that the certified database:
(1) provides real-time access through an Internet
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| connection or, if real-time access through an Internet connection becomes unavailable to lenders due to a consumer reporting service's technical problems incurred by the consumer reporting service, through alternative verification mechanisms, including, but not limited to, verification by telephone;
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(2) is accessible to the Department and to licensees
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| in order to ensure compliance with this Act and in order to provide any other information that the Department deems necessary;
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(3) requires licensees to input whatever information
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| is required by the Department;
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(4) maintains a real-time copy of the required
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| reporting information that is available to the Department at all times and is the property of the Department;
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(5) provides licensees only with a statement that a
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| consumer is eligible or ineligible for a new payday loan and a description of the reason for the determination; and
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(6) contains safeguards to ensure that all
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| information contained in the database regarding consumers is kept strictly confidential.
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(f) The licensee shall update the certified database by inputting all information required under item (3) of subsection (e):
(1) on the same day that a payday loan is made;
(2) on the same day that a consumer elects a
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| repayment plan, as provided in Section 2-40; and
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(3) on the same day that a consumer's payday loan is
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(g) A licensee may rely on the information contained in the certified database as accurate and is not subject to any administrative penalty or liability as a result of relying on inaccurate information contained in the database.
(h) The certified consumer reporting service shall indemnify the licensee against all claims and actions arising from illegal or willful or wanton acts on the part of the certified consumer reporting service.
(i) The certified consumer reporting service may charge a verification
fee not to exceed $1 upon a loan being made or entered into the
database. The certified consumer reporting service shall not charge any
additional fees or charges.
(Source: P.A. 100-1168, eff. 6-1-19; 101-658, eff. 3-23-21.)
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(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;
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(2) includes a toll-free number to the Secretary's
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| 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
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(3) provides information regarding the availability
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| of debt management services.
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(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
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| payday loan, and the name and title of the individual employee who signs the agreement on behalf of the lender;
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(2) disclosures required by the federal Truth in
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(3) a clear description of the consumer's payment
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| obligations under the loan;
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(4) the following statement, in at least 14-point
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| 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
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(5) the following statement, in at least 14-point
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"WARNING: This loan is not intended to meet long-term
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| 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."
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(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
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| cannot use the criminal process against a consumer to collect any payday loan.
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(2) The schedule of all finance charges to be
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| 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.
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(3) In one-inch bold type, a notice to the public in
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| the lending area of each business location containing the following statement:
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"WARNING: This loan is not intended to meet long-term
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| 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."
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(4) In one-inch bold type, a notice to the public in
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| the lending area of each business location containing the following statement:
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"INTEREST-FREE REPAYMENT PLAN: If you still owe on
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| 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."
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(Source: P.A. 101-658, eff. 3-23-21.)
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(815 ILCS 122/2-40)
Sec. 2-40. Repayment plan. (a) At the time a payday loan is made, the lender must provide the consumer with a separate written notice signed by the consumer of the consumer's right to request a repayment plan. The written notice must comply with the requirements of subsection (c). (b) The loan agreement must include the following language in at least 14-point bold type: 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. (c) At the time a payday loan is made, on the first page of the loan agreement and in a separate document signed by the consumer, the following shall be inserted in at least 14-point bold type: I UNDERSTAND THAT IF I STILL OWE ON ONE OR MORE PAYDAY LOANS AFTER 35 DAYS, I AM ENTITLED TO ENTER INTO A REPAYMENT PLAN THAT WILL GIVE ME AT LEAST 55 DAYS TO REPAY THE LOAN IN INSTALLMENTS WITH NO ADDITIONAL FINANCE CHARGES, INTEREST, FEES, OR OTHER CHARGES OF ANY KIND. (d) If the consumer has or has had one or more payday loans outstanding for 35 consecutive days, any payday loan outstanding on the 35th consecutive day shall be payable under the terms of a repayment plan as provided for in this Section, if the consumer requests the repayment plan. As to any loan that becomes eligible for a repayment plan under this subsection, the consumer has until 28 days after the default date of the loan to request a repayment plan. Within 48 hours after the request for a repayment plan is made, the lender must prepare the repayment plan agreement and both parties must execute the agreement. Execution of the repayment plan agreement shall be made in the same manner in which the loan was made and shall be evidenced in writing. (e) The terms of the repayment plan for a payday loan must include the following: (1) The lender may not impose any charge on the |
| consumer for requesting or using a repayment plan. Performance of the terms of the repayment plan extinguishes the consumer's obligation on the loan.
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(2) No lender shall charge the consumer any finance
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| charges, interest, fees, or other charges of any kind, except a fee for insufficient funds, as provided under Section 2-10.
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(3) The consumer shall be allowed to repay the loan
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| in at least 4 equal installments with at least 13 days between installments, provided that the term of the repayment plan does not exceed 90 days. The first payment under the repayment plan shall not be due before at least 13 days after the repayment plan is signed by both parties. The consumer may prepay the amount due under the repayment plan at any time, without charge or penalty.
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(4) The length of time between installments may be
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| extended by the parties so long as the total period of repayment does not exceed 90 days. Any such modification must be in writing and signed by both parties.
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(f) Notwithstanding any provision of law to the contrary, a lender is prohibited from making a payday loan to a consumer who has a payday loan outstanding under a repayment plan and for at least 14 days after the outstanding balance of the loan under the repayment plan and the outstanding balance of all other payday loans outstanding during the term of the repayment plan are paid in full.
(g) A lender may not accept postdated checks for payments under a repayment plan.
(h) Notwithstanding any provision of law to the contrary, a lender may voluntarily agree to enter into a repayment plan with a consumer at any time.
If a consumer is eligible for a repayment plan under subsection (d), any repayment agreement constitutes a repayment plan under this Section and all provisions of this Section apply to that agreement.
(i) (Blank).
(Source: P.A. 101-658, eff. 3-23-21.)
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(815 ILCS 122/2-55)
Sec. 2-55. Information, reporting, and examination. (a) A licensee shall keep and use books, accounts, and records that
will enable the Secretary to determine if the licensee is complying with the
provisions of this Act and maintain any other records as required by the
Secretary.
(b) A licensee shall collect and maintain information annually for a report that shall
disclose in detail and under appropriate headings:
(1) the total number of payday loans made during the |
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(2) the total number of payday loans outstanding as
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| of December 31 of the preceding calendar year;
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(3) the minimum, maximum, and average dollar amount
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| of payday loans made during the preceding calendar year;
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(4) the average annual percentage rate and the
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| average term of payday loans made during the preceding calendar year; and
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(5) the total number of payday loans paid in full,
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| the total number of loans that went into default, and the total number of loans written off during the preceding calendar year.
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The report shall be verified by the oath or affirmation of the owner,
manager, or president of the licensee. The report must be filed with the
Secretary no later than March 1 of the year following the year for which
the report discloses the information specified in this subsection (b). The
Secretary may impose upon the licensee a fine of $25 per day for each day
beyond the filing deadline that the report is not filed.
(c) No later than July 31 of the second year following the effective date of this Act, the Department shall publish a biennial report that contains a compilation of aggregate data concerning the payday lending industry and shall make the report available to the Governor, the General Assembly, and the general public.
(d) The Department shall have the authority to conduct examinations of
the books, records, and loan documents at any time.
(Source: P.A. 94-13, eff. 12-6-05.)
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(815 ILCS 122/3-5)
Sec. 3-5. Licensure. (a) A license to make a payday loan shall state the address,
including city and state, at which
the business is to be conducted and shall state fully the name of the licensee.
The license shall be conspicuously posted in the place of business of the
licensee and shall not be transferable or assignable.
(b) An application for a license shall be in writing and in a form
prescribed by the Secretary. The Secretary may not issue a payday loan
license unless and until the following findings are made:
(1) that the financial responsibility, experience, |
| character, and general fitness of the applicant are such as to command the confidence of the public and to warrant the belief that the business will be operated lawfully and fairly and within the provisions and purposes of this Act; and
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(2) that the applicant has submitted such other
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| information as the Secretary may deem necessary.
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(c) A license shall be issued for no longer than one year, and no renewal
of a license may be provided if a licensee has substantially violated this
Act and has not cured the violation to the satisfaction of the Department.
(d) A licensee shall appoint, in writing, the Secretary as attorney-in-fact
upon whom all lawful process against the licensee may be served with the
same legal force and validity as if served on the licensee. A copy of the
written appointment, duly certified, shall be filed in the office of the
Secretary, and a copy thereof certified by the Secretary shall be sufficient
evidence to subject a licensee to jurisdiction in a court of law. This appointment shall remain in effect while any liability remains
outstanding in this State against the licensee. When summons is served upon
the Secretary as attorney-in-fact for a licensee, the Secretary shall immediately
notify the licensee by registered mail, enclosing the summons and specifying
the hour and day of service.
(e) A licensee must pay an annual fee of $1,000. In addition to the
license fee, the reasonable expense of any examination or hearing
by the Secretary under any provisions of this Act shall be borne by
the licensee. If a licensee fails to renew its license by December 1,
its license
shall automatically expire; however, the Secretary, in his or her discretion,
may reinstate an expired license upon:
(1) payment of the annual fee within 30 days of the
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(2) proof of good cause for failure to renew.
(f) Not more than one place of business shall be maintained under the
same license, but the Secretary may issue more than one license to the same
licensee upon compliance with all the provisions of this Act governing
issuance of a single license. The location, except those locations already in
existence as of June 1, 2005, may not be within one mile of a
horse race track subject to the Illinois Horse Racing Act of 1975,
within one mile of a facility at which gambling is conducted under the Illinois
Gambling Act, within one mile of the location at which a
riverboat subject to the Illinois Gambling Act docks, or within one mile of
any State of Illinois or United States military base or naval installation.
(g) No licensee shall conduct the business of making loans under this
Act within any office, suite, room, or place of business in which (1) any loans are offered or made under the Consumer Installment Loan Act other than title secured loans as defined in subsection (a) of Section 15 of the Consumer Installment Loan Act and governed by Title 38, Section 110.330 of the Illinois Administrative Code or (2) any other
business is solicited or engaged in unless the other business is licensed by the Department or, in the opinion of the Secretary, the
other business would not be contrary to the best interests of consumers and
is authorized by the Secretary in writing.
(g-5) Notwithstanding subsection (g) of this Section, a licensee may obtain a license under the Consumer Installment Loan Act (CILA) for the exclusive purpose and use of making title secured loans, as defined in subsection (a) of Section 15 of CILA and governed by Title 38, Section 110.300 of the Illinois Administrative Code. A licensee may continue to service Consumer Installment Loan Act loans that were outstanding as of the effective date of this amendatory Act of the 96th General Assembly.
(h) The Secretary shall maintain a list of licensees that shall be
available to interested consumers and lenders and the public. The Secretary
shall maintain a toll-free number whereby consumers may obtain
information about licensees. The Secretary shall also establish a complaint
process under which an aggrieved consumer
may file a complaint against a licensee or non-licensee who violates any
provision of this Act.
(Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.)
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(815 ILCS 122/3-10)
Sec. 3-10. Closing of business; surrender of license. At least 10 days
before a licensee ceases operations, closes the business, or files for
bankruptcy, the licensee shall: (1) Notify the Department of its intended action in |
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(2) With the exception of filing for bankruptcy,
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| surrender its license to the Secretary for cancellation. The surrender of the license shall not affect the licensee's civil or criminal liability for acts committed before or after the surrender or entitle the licensee to a return of any part of the annual license fee.
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(3) Notify the Department of the location where the
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| books, accounts, contracts, and records will be maintained.
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The accounts, books, records, and contracts shall be maintained and
serviced by the licensee, by another licensee under this Act, or by the Department.
(Source: P.A. 94-13, eff. 12-6-05.)
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(815 ILCS 122/4-5)
Sec. 4-5. Prohibited acts. A licensee or unlicensed person or entity making payday
loans may not commit, or have committed on behalf of the
licensee
or unlicensed person or entity, any of the following acts: (1) Threatening to use or using the criminal process |
| in this or any other state to collect on the loan.
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(2) Using any device or agreement that would have the
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| effect of charging or collecting more fees or charges than allowed by this Act, including, but not limited to, entering into a different type of transaction with the consumer.
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(3) Engaging in unfair, deceptive, or fraudulent
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| practices in the making or collecting of a payday loan.
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(4) Using or attempting to use the check provided by
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| the consumer in a payday loan as collateral for a transaction not related to a payday loan.
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(5) Knowingly accepting payment in whole or in part
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| of a payday loan through the proceeds of another payday loan provided by any licensee, except as provided in subsection (c) of Section 2.5.
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(6) Knowingly accepting any security, other than that
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| specified in the definition of payday loan in Section 1-10, for a payday loan.
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(7) Charging any fees or charges other than those
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| specifically authorized by this Act.
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(8) Threatening to take any action against a consumer
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| that is prohibited by this Act or making any misleading or deceptive statements regarding the payday loan or any consequences thereof.
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(9) Making a misrepresentation of a material fact by
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| an applicant for licensure in obtaining or attempting to obtain a license.
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(10) Including any of the following provisions in
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| loan documents required by subsection (b) of Section 2-20:
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(A) a confession of judgment clause;
(B) a waiver of the right to a jury trial, if
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| applicable, in any action brought by or against a consumer, unless the waiver is included in an arbitration clause allowed under subparagraph (C) of this paragraph (11);
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(C) a mandatory arbitration clause that is
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| oppressive, unfair, unconscionable, or substantially in derogation of the rights of consumers; or
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(D) a provision in which the consumer agrees not
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| to assert any claim or defense arising out of the contract.
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(11) Selling any insurance of any kind whether or not
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| sold in connection with the making or collecting of a payday loan.
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(12) Taking any power of attorney.
(13) Taking any security interest in real estate.
(14) Collecting a delinquency or collection charge on
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| any installment regardless of the period in which it remains in default.
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(15) Collecting treble damages on an amount owing
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(16) Refusing, or intentionally delaying or
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| inhibiting, the consumer's right to enter into a repayment plan pursuant to this Act.
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(17) Charging for, or attempting to collect,
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| attorney's fees, court costs, or arbitration costs incurred in connection with the collection of a payday loan.
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(18) Making a loan in violation of this Act.
(19) Garnishing the wages or salaries of a consumer
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| who is a member of the military.
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(20) Failing to suspend or defer collection activity
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| against a consumer who is a member of the military and who has been deployed to a combat or combat-support posting.
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(21) Contacting the military chain of command of a
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| consumer who is a member of the military in an effort to collect on a payday loan.
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(22) Making or offering to make any loan other than a
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| payday loan or a title-secured loan, provided however, that to make or offer to make a title-secured loan, a licensee must obtain a license under the Consumer Installment Loan Act.
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(23) Making or offering a loan in violation of the
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| Predatory Loan Prevention Act.
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(Source: P.A. 101-658, eff. 3-23-21.)
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(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. 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 fine a 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
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(2) any fact or condition exists which, if it had
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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. 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. 103-1014, eff. 8-9-24.)
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(815 ILCS 122/4-30)
Sec. 4-30. Rulemaking; industry review. (a) The Department may make and enforce such reasonable rules, regulations, directions, orders, decisions, and findings as the execution and enforcement of the provisions of this Act require, and as are not inconsistent therewith. All rules, regulations, and directions of a general character shall be sent electronically to all licensees. (b) Within 6 months after the effective date of this Act, the Department shall promulgate reasonable rules regarding the issuance of payday loans by banks, savings banks, savings and loan associations, credit unions, and insurance companies. These rules shall be consistent with this Act and shall be limited in scope to the actual products and services offered by lenders governed by this Act. (c) After the effective date of this Act, the Department shall, over a 3-year period, conduct a study of the payday loan industry
to determine the impact and effectiveness of this Act. The Department
shall report its findings to the General Assembly within 3 months of the
third anniversary of the effective date of this Act. The study shall
determine the effect of this Act on the protection of consumers in this
State and on the fair and reasonable regulation of the payday loan industry. The
study shall include, but shall not be limited to, an analysis of the ability
of the industry to use private reporting tools that: (1) ensure substantial compliance with this Act, |
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(2) provide data to the Department in an appropriate
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The report of the Department shall, if necessary, identify and recommend specific amendments to this Act to further protect consumers and to guarantee fair and reasonable regulation of the payday loan industry.
(Source: P.A. 98-44, eff. 6-28-13.)
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