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2005 Illinois Code - 815 ILCS 122/ Payday Loan Reform Act. Article 4 - Administrative Provisions
(815 ILCS 122/Art. 4 heading)
Article 4.
Administrative Provisions
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(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
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(2) Using any device or agreement that would have the | ||
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(3) Engaging in unfair, deceptive, or fraudulent | ||
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(4) Using or attempting to use the check provided by | ||
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(5) Knowingly accepting payment in whole or in part | ||
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(6) Knowingly accepting any security, other than that | ||
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(7) Charging any fees or charges other than those | ||
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(8) Threatening to take any action against a consumer | ||
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(9) Making a misrepresentation of a material fact by | ||
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(10) Including any of the following provisions in | ||
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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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(C) a mandatory arbitration clause that is | ||
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(D) a provision in which the consumer agrees not | ||
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(11) Selling any insurance of any kind whether or not | ||
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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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(15) Collecting treble damages on an amount owing | ||
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(16) Refusing, or intentionally delaying or | ||
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(17) Charging for, or attempting to collect, | ||
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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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(20) Failing to suspend or defer collection activity | ||
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(21) Contacting the military chain of command of a | ||
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(Source: P.A. 94‑13, eff. 12‑6‑05.) |
(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 doing business without the required license, when in the opinion of the Secretary the licensee or other person 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, return receipt requested. 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, after 10 days notice by registered mail to the licensee at the address set forth in the license stating the contemplated action and in general the grounds therefore, fine the licensee an amount not exceeding $10,000 per violation, or revoke or suspend any license issued hereunder if he or she finds that:
(1) the
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(2) any fact | ||
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The Secretary may fine, suspend, or revoke only the | ||
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No revocation, suspension, or surrender of any license | ||
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The Secretary may issue a new license to a licensee whose | ||
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In every case in which a license is suspended or revoked | ||
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An order assessing a fine, an order revoking or | ||
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If the licensee requests a hearing, the Secretary shall | ||
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The hearing shall be held at the time and place | ||
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(g) The costs of administrative hearings conducted pursuant to this Section shall be paid by the licensee.
(Source: P.A. 94‑13, eff. 12‑6‑05.) |
(815 ILCS 122/4‑15)
Sec. 4‑15.
Bonding.
(a) A person or entity engaged in making payday loans under
this Act shall post a bond to the Department in the amount of $50,000 for
each location where loans will be made, up to a maximum bond amount of
$500,000.
(b) A bond posted under subsection (a) must continue in effect for the period of licensure and for 3 additional years if the bond is still available. The bond must be
available to pay damages and penalties to a consumer harmed by a violation
of this Act.
(c) From time to time the Secretary may require a
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(Source: P.A. 94‑13, eff. 12‑6‑05.) |
(815 ILCS 122/4‑20)
Sec. 4‑20.
Preemption of administrative rules.
Any
administrative rule
promulgated prior to the effective
date of this Act by the Department regarding payday loans is
preempted.
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(815 ILCS 122/4‑25)
Sec. 4‑25.
Reporting of violations.
The Department shall report to the
Attorney General all material violations of this Act of which it becomes aware.
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(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 printed and copies thereof mailed 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, | ||
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(Source: P.A. 94‑13, eff. 12‑6‑05.) |
(815 ILCS 122/4‑35)
Sec. 4‑35.
Judicial review.
All final administrative decisions of the
Department under this Act are subject to judicial review pursuant to the
provisions of the Administrative Review Law and any rules adopted pursuant
thereto.
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(815 ILCS 122/4‑40)
Sec. 4‑40.
No waivers.
There shall be no waiver of any provision of
this Act.
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(815 ILCS 122/4‑45)
Sec. 4‑45.
Superiority of Act.
To the extent this Act conflicts with
any other State financial regulation laws, this Act is superior and
supersedes those laws for the
purposes of regulating payday loans in Illinois, provided that nothing herein shall apply to any lender that is a bank, savings bank, savings and loan association, credit union, or insurance company organized, chartered, or holding a certificate of authority to do business under the laws of this State or any other state or under the laws of the United States.
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(815 ILCS 122/4‑50)
Sec. 4‑50.
Severability.
The provisions of this Act are severable under Section 1.31 of the Statute
on Statutes.
(Source: P.A. 94‑13, eff. 12‑6‑05.)
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