Bill Amendment: IL HB3968 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: SPECIAL PURPOSE TRUST COMPANY
Status: 2023-01-05 - Added as Alternate Co-Sponsor Sen. Bill Cunningham [HB3968 Detail]
Download: Illinois-2021-HB3968-Senate_Amendment_001.html
Bill Title: SPECIAL PURPOSE TRUST COMPANY
Status: 2023-01-05 - Added as Alternate Co-Sponsor Sen. Bill Cunningham [HB3968 Detail]
Download: Illinois-2021-HB3968-Senate_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 3968
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2 | AMENDMENT NO. ______. Amend House Bill 3968 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Pawnbroker Regulation Act is amended by | ||||||
5 | changing Section 2 as follows:
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6 | (205 ILCS 510/2) (from Ch. 17, par. 4652)
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7 | Sec. 2.
Pursuant to Section 15-10-30 of the Predatory Loan | ||||||
8 | Prevention Act, it It shall be unlawful for any pawnbroker to | ||||||
9 | charge or collect a
greater benefit or percentage upon money | ||||||
10 | advanced, and for the use and
forbearance thereof, than | ||||||
11 | permitted under Section 15-5-5 of the Predatory Loan | ||||||
12 | Prevention Act than the rate of 3%
per month. Nothing in this | ||||||
13 | Section
shall be construed so as to conflict with the law | ||||||
14 | pertaining to usury and
the person receiving money so advanced | ||||||
15 | may hold such moneys to pay any fees
in addition to interest as | ||||||
16 | herein provided .
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1 | Each pawnbroker, when making a loan under this Section, | ||||||
2 | must disclose
in printed form on the pawn contract
the
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3 | following information to the persons receiving the loan:
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4 | (1) the amount of money advanced, which must be | ||||||
5 | designated as the amount
financed;
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6 | (2) the maturity date of the pawn, which must be at | ||||||
7 | least 30 days after
the date of the pawn;
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8 | (3) the total pawn
interest and
service charge payable | ||||||
9 | on the maturity date, which must
be designated as the | ||||||
10 | finance charge;
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11 | (4) the
total of payments
that must be paid to
redeem | ||||||
12 | the pledged goods on the maturity date, which must be | ||||||
13 | designated as the
total of payments; and
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14 | (5) the annual percentage rate, computed according to | ||||||
15 | the regulations
adopted by the Board of Governors of the | ||||||
16 | Federal Reserve System under the
Federal Truth in Lending | ||||||
17 | Act.
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18 | Each pawnbroker may contract for and receive
a monthly | ||||||
19 | finance charge including
interest and fees
not to exceed | ||||||
20 | one-fifth of the loan amount,
as set forth herein, for | ||||||
21 | appraising,
investigating
title, storing and insuring the | ||||||
22 | collateral, closing the loan,
making daily
reports to local | ||||||
23 | law enforcement officers including enhanced computerized
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24 | reporting, complying with regulatory requirements, and for | ||||||
25 | other expenses
and
losses of every nature whatsoever and for | ||||||
26 | all other services. Such fees,
when made and collected, shall |
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1 | not be deemed interest for any purpose of law .
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2 | (Source: P.A. 90-477, eff. 7-1-98.)
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3 | Section 10. The Predatory Loan Prevention Act is amended | ||||||
4 | by changing Sections 15-1-5, 15-1-10, 15-5-10, and 15-10-5 as | ||||||
5 | follows:
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6 | (815 ILCS 123/15-1-5)
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7 | Sec. 15-1-5. Purpose and construction. Illinois families | ||||||
8 | pay over $500,000,000 per year in consumer installment, | ||||||
9 | payday, and title loan fees. As reported by the Department in | ||||||
10 | 2020, nearly half of Illinois payday loan borrowers earn less | ||||||
11 | than $30,000 per year, and the average annual percentage rate | ||||||
12 | of a payday loan is 297%. The purpose of this Act is to protect | ||||||
13 | consumers from all types of predatory loans , including, but | ||||||
14 | not limited to, the types of loans covered under consistent | ||||||
15 | with federal law and the federal Military Lending Act , which | ||||||
16 | protects active duty members of the military and their | ||||||
17 | dependents . This Act shall be construed as a consumer | ||||||
18 | protection law for all purposes. This Act shall be liberally | ||||||
19 | construed to effectuate its purpose.
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20 | (Source: P.A. 101-658, eff. 3-23-21.)
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21 | (815 ILCS 123/15-1-10)
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22 | Sec. 15-1-10. Definitions. As used in this Act: | ||||||
23 | "Consumer" means any natural person, including consumers |
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1 | acting jointly. | ||||||
2 | "Department" means the Department of Financial and | ||||||
3 | Professional Regulation. | ||||||
4 | "Lender" means any person or entity, including any | ||||||
5 | affiliate or subsidiary of a lender, that offers or makes a | ||||||
6 | loan, buys a whole or partial interest in a loan, arranges a | ||||||
7 | loan for a third party, or acts as an agent for a third party | ||||||
8 | in making a loan, regardless of whether approval, acceptance, | ||||||
9 | or ratification by the third party is necessary to create a | ||||||
10 | legal obligation for the third party, and includes any other | ||||||
11 | person or entity if the Department determines that the person | ||||||
12 | or entity is engaged in a transaction that is in substance a | ||||||
13 | disguised loan or a subterfuge for the purpose of avoiding | ||||||
14 | this Act. | ||||||
15 | "Person" means any natural person. | ||||||
16 | "Secretary" means the Secretary of Financial and | ||||||
17 | Professional Regulation or a person authorized by the | ||||||
18 | Secretary. | ||||||
19 | "Loan" means money or credit provided to a consumer in | ||||||
20 | exchange for the consumer's agreement to a certain set of | ||||||
21 | terms, including, but not limited to, any finance charges, | ||||||
22 | interest, or other conditions. "Loan" includes closed-end and | ||||||
23 | open-end credit, retail installment sales contracts, motor | ||||||
24 | vehicle retail installment sales contracts, transactions | ||||||
25 | subject to the Pawnbroker Regulation Act, and any transaction | ||||||
26 | conducted via any medium whatsoever, including, but not |
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1 | limited to, paper, facsimile, Internet, or telephone. "Loan" | ||||||
2 | does not include a commercial loan.
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3 | (Source: P.A. 101-658, eff. 3-23-21.)
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4 | (815 ILCS 123/15-5-10)
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5 | Sec. 15-5-10. Violation. | ||||||
6 | (a) Any loan made in violation of this Act is null and void | ||||||
7 | and no person or entity shall have any right to collect, | ||||||
8 | attempt to collect, receive, or retain any principal, fee, | ||||||
9 | interest, or charges related to the loan.
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10 | (b) It is a violation of this Act for any person or entity | ||||||
11 | to solicit, broker, or otherwise engage in any other activity | ||||||
12 | intended to facilitate or result in, or that in fact | ||||||
13 | facilitates or results in, the origination of a loan that | ||||||
14 | violates Section 15-5-5 of this Act. | ||||||
15 | (c) It is a violation of this Act for any person or entity | ||||||
16 | to advertise or cause to be advertised a loan that violates | ||||||
17 | Section 15-5-5 of this Act. | ||||||
18 | (Source: P.A. 101-658, eff. 3-23-21.)
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19 | (815 ILCS 123/15-10-5)
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20 | Sec. 15-10-5. Enforcement and remedies. | ||||||
21 | (a) The remedies provided in this Act are cumulative and | ||||||
22 | apply to persons or entities subject to this Act. | ||||||
23 | (b) Any violation of this Act, including the commission of | ||||||
24 | an act prohibited under Article 5, constitutes a violation of |
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1 | the Consumer Fraud and Deceptive Business Practices Act. | ||||||
2 | (c) Subject to the Illinois Administrative Procedure Act, | ||||||
3 | the Secretary may hold hearings, make findings of fact, | ||||||
4 | conclusions of law, issue cease and desist orders, have the | ||||||
5 | power to issue fines of up to $10,000 per violation, and refer | ||||||
6 | the matter to the appropriate law enforcement agency for | ||||||
7 | prosecution under this Act. All proceedings shall be open to | ||||||
8 | the public. | ||||||
9 | (d) The Secretary may issue a cease and desist order to any | ||||||
10 | person or entity, when in the opinion of the Secretary the | ||||||
11 | person or entity is violating or is about to violate any | ||||||
12 | provision of this Act. The cease and desist order permitted by | ||||||
13 | this subsection (d) may be issued prior to a hearing. | ||||||
14 | The Secretary shall serve notice of the action, including, | ||||||
15 | but not limited to, a statement of the reasons for the action, | ||||||
16 | either personally or by certified mail. Service by certified | ||||||
17 | mail shall be deemed completed when the notice is deposited in | ||||||
18 | the U.S. Mail. | ||||||
19 | Within 10 days of service of the cease and desist order, | ||||||
20 | the person or entity may request a hearing in writing. | ||||||
21 | If it is determined that the Secretary had the authority | ||||||
22 | to issue the cease and desist order, the Secretary may issue | ||||||
23 | such orders as may be reasonably necessary to correct, | ||||||
24 | eliminate, or remedy the conduct. | ||||||
25 | The powers vested in the Secretary by this subsection (d) | ||||||
26 | are additional to any and all other powers and remedies vested |
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1 | in the Secretary by law, and nothing in this subsection (d) | ||||||
2 | shall be construed as requiring that the Secretary shall | ||||||
3 | employ the power conferred in this subsection instead of or as | ||||||
4 | a condition precedent to the exercise of any other power or | ||||||
5 | remedy vested in the Secretary. | ||||||
6 | (e) After 10 days' notice by certified mail to the person | ||||||
7 | or entity stating the contemplated action and in general the | ||||||
8 | grounds therefor, the Secretary may fine the person or entity | ||||||
9 | an amount not exceeding $10,000 per violation if the person or | ||||||
10 | entity has failed to comply with any provision of this Act or | ||||||
11 | any order, decision, finding, rule, regulation, or direction | ||||||
12 | of the Secretary lawfully made in accordance with the | ||||||
13 | authority of this Act. Service by certified mail shall be | ||||||
14 | deemed completed when the notice is deposited in the U.S. | ||||||
15 | Mail. | ||||||
16 | (f) A violation of this Act by a person or entity licensed | ||||||
17 | under another Act including, but not limited to, the | ||||||
18 | Pawnbroker Regulation Act, the Consumer Installment Loan Act, | ||||||
19 | the Payday Loan Reform Act, and the Sales Finance Agency Act | ||||||
20 | shall subject the person or entity to discipline in accordance | ||||||
21 | with the Act or Acts under which the person or entity is | ||||||
22 | licensed.
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23 | (Source: P.A. 101-658, eff. 3-23-21.)
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.".
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