[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Enrolled ] |
91_HR0164ham001
LRB9106402LDpkam
1 AMENDMENT TO HOUSE RESOLUTION 164
2 AMENDMENT NO. . Amend House Resolution 164 by
3 replacing the entire Resolution with the following:
4 "HOUSE RESOLUTION
5 WHEREAS, The granting of credit is a matter that is of
6 economic importance to the citizens of this State and of
7 concern to the House of Representatives; and
8 WHEREAS, It has come to the attention of the members of
9 this Body that certain lenders are charging fees and interest
10 on short-term loans that result in annual percentage rates in
11 excess of 1,800%; and
12 WHEREAS, The imposition of exceedingly high interest
13 rates creates financial burdens on persons who must borrow
14 on a short-term basis; and
15 WHEREAS, Borrowers who take out short-term loans may
16 constitute a captive market for lenders who charge high rates
17 of interest; and
18 WHEREAS, Without appropriate regulation by the State,
19 consumers who do not have other means to cover what are often
20 basic necessities in times of crisis may be at the mercy of
-2- LRB9106402LDpkam
1 these lenders; and
2 WHEREAS, These short-term loans, commonly called "payday
3 loans", typically require the borrower to give the lender, at
4 the time of the loan, a postdated check in an amount
5 sufficient to pay the loan; and
6 WHEREAS, The "payday loan" industry has proliferated in
7 communities statewide, including locations at the James R.
8 Thompson Center State of Illinois Building in Chicago and on
9 the campus of the University of Illinois at Champaign; and
10 WHEREAS, Additional information about the practices of
11 lenders who make payday loans is necessary to enable the
12 House of Representatives to prepare legislation that protects
13 consumers from predatory lending practices and deceptive
14 business practices; therefore, be it
15 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
16 NINETY-FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
17 there is created the Payday Loan Review Commission consisting
18 of 3 members appointed by the Speaker of the House and 3
19 members appointed by the Minority Leader of the House, all of
20 whom shall serve without compensation but shall be reimbursed
21 for their reasonable and necessary expenses from funds
22 available for that purpose; and be it further
23 RESOLVED, That the Commission is directed to conduct a
24 study of the business of making payday loans; and be it
25 further
26 RESOLVED, That the study include a definition of payday
27 lenders and payday loans and practices pertaining to payday
28 lenders and payday loans as well as a determination of the
29 number and location of entities engaged in the payday loan
30 industry, information on the annual percentage rate of
31 interest and other charges imposed upon borrowers who receive
-3- LRB9106402LDpkam
1 payday loans, and a profile of the borrowers who take out
2 payday loans; and be it further
3 RESOLVED, That the study include a discussion of the
4 costs, profitability, and lending practices of payday
5 lenders, including excessive rates, rollovers, consecutive
6 loans, and concurrent lending, for the purpose of
7 establishing in future legislation a fair rate structure and
8 lending guidelines that protect consumers against
9 unacceptable practices; and be it further
10 RESOLVED, That the study include a discussion of problems
11 payday loan practices cause for borrowers and consumers in
12 general; and be it further
13 RESOLVED, That the Commission report its findings and
14 recommendations to the House of Representatives by September
15 15, 1999; and be it further
16 RESOLVED, That a copy of this resolution be delivered to
17 the Speaker and Minority Leader of the House of
18 Representatives.".