Senate Sponsors: O'MALLEY-SIEBEN. Short description: SHORT-TERM LENDER ACT Synopsis of Bill as introduced: Creates the Short-term Loan Act. Provides for the Department of Financial Institutions to license and regulate short-term lenders. Establishes minimum net worth requirements. Prohibits these lenders from locating within one mile of gambling establishments or college campuses. Requires lenders to make disclosures regarding borrowers' rights. Authorizes counties and municipalities to prohibit the operation of short-term lenders and require the business to be conducted within a specific geographic zone and to require that disclosures be made in languages other than English. Effective immediately. SENATE AMENDMENT NO. 1. Adds reference to: 815 ILCS 205/4 from Ch. 17, par. 6404 Adjusts net worth and bond requirements for multiple licensed locations. Requires disclosures regarding repossession of vehicles. Limits the manner in which vehicles may be repossessed. Allows binding arbitration if required by court rule. Requires licensees to disclose when renewing the license the number of loans made secured by title to a motor vehicle, the number of vehicle repossessions, the number of loans secured by post-dated checks, and the number of loans secured by post-dated checks that were defaulted. Provides that the appraisal of motor vehicles that secure loans may not exceed the vehicle's "blue book" value. Prohibits additional charges for cashing instruments issued by the licensee. Imposes limits on origination fees for loans. Authorizes a borrower to make partial payments at any time without charge. Provides that with respect to a check received as payment for a loan that is returned for nonpayment, a licensee may assess a fee only once regardless of how many times the check is redeposited and that the fee is the exclusive charge for late payment. Amends the Interest Act to provide that charges made under the Short-term Loan Act do not violate the Interest Act. Effective September 1, 2000. SENATE AMENDMENT NO. 2. Replaces the title and everything after the enacting clause. Inserts and modifies the bill as introduced. Adjusts net worth and bond requirements for multiple licensed locations. Requires disclosures regarding repossession of vehicles. Limits the manner in which vehicles may be repossessed. Allows binding arbitration if required by court rule. Requires licensees to disclose when renewing the license the number of loans made secured by title to a motor vehicle, the number of vehicle repossessions, the number of loans secured by post-dated checks, and the number of loans secured by post-dated checks that were defaulted. Provides that the appraisal of motor vehicles that secure loans may not exceed the vehicle's "blue book" value. Prohibits additional charges for cashing instruments issued by the licensee. Requires lenders to notify borrowers of the availability of debt management services. Authorizes a borrower to make partial payments at any time without charge. Provides that with respect to a check received as payment for a loan that is returned for nonpayment, a licensee may assess a fee only once regardless of how many times the check is redeposited and that the fee is the exclusive charge for late payment. Amends the Interest Act to provide that charges made under the Short-term Loan Act do not violate the Interest Act. Effective September 1, 2000. FISCAL NOTE, S-AM 1,2,6 (Dept. of Financial Institutions) The total cost to the Department for additional staff and related expenses is $543,429 and total revenue is $589,700, for an overall increase of $46,272 in gross revenue. SENATE AMENDMENT NO. 6. Provides that net worth requirements for licensed locations established before the effective date of this Act are the greater of $75,000 or 15% of all loans outstanding at all locations plus $30,000 for each additional location. Provides that a licensee that has established 2 or more licensed locations before January 1, 2000 may aggregate and attribute the net worth of all licensed locations for the purpose of meeting the $75,000 net worth requirement. Provides an exemption for currency exchanges. Last action on Bill: SESSION SINE DIE Last action date: 01-01-09 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 3 END OF INQUIRY Full Text Bill Status