Bill Amendment: IL SB3561 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: BUY-NOW-PAY-LATER ACT

Status: 2026-06-25 - Public Act . . . . . . . . . 104-0475 [SB3561 Detail]

Download: Illinois-2025-SB3561-Senate_Amendment_002.html

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Sen. Michael E. Hastings

Filed: 4/13/2026

 

 

 

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AMENDMENT TO SENATE BILL 3561
AMENDMENT NO. ______. Amend Senate Bill 3561 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the
Buy-Now-Pay-Later Loan Consumer Protection Act.
Section 2. Definitions. As used in this Act:
"Applicant" means a person who has submitted an
application for a license under this Act.
"Annual percentage rate" means the nominal annual
percentage rate of finance charge determined in accordance
with the actuarial method of computation with an accuracy at
least to the nearest 1/4 of 1% or, at the option of the
licensee by application of the federal rule, so that it may be
disclosed with an accuracy at least to the nearest 1/4 of 1%.
"Buy-now-pay-later loan" or "loan" means credit provided
to a consumer at the time of a transaction in connection with

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the consumer's particular purchase of goods or services that:
(1) is payable in 4 or fewer installments; or
(2) has a term of 120 days or less.
"Buy-now-pay-later loan" or "loan" includes any other loan
identified by the Secretary by rule. "Buy-now-pay-later loan"
or "loan" also includes (i) a buy-now-pay-later loan payable
in one or more installments without any interest or finance
charge and (ii) a buy-now-pay-later loan with either interest
or finance charges or both.
"Buy-now-pay-later loan" or "loan" does not include credit
where the creditor is the seller of the goods or services,
unless it is credit pursuant to an agreement where, at a
consumer's request, the creditor purchases specific goods or
services from a seller and resells the specific goods or
services to the consumer on closed-end credit.
"Buy-now-pay-later loan" or "loan" also does not include (i) a
loan for a motor vehicle or (ii) a residential mortgage loan,
as that term is defined in Section 1-4 of the Residential
Mortgage License Act of 1987.
"Consumer" means a natural person who, singly or jointly
with another consumer, enters into, seeks out, applies for, or
requests a buy-now-pay-later loan.
"Department" means the Department of Financial and
Professional Regulation.
"Division" means the Division of Financial Institutions of
the Department of Financial and Professional Regulation.

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"Finance charge" means the cost of financing as a dollar
amount.
"Lender" means a person that offers or makes a
buy-now-pay-later loan to a person in this State or is
otherwise subject to this Act.
"Licensee" means a person licensed under this Act.
"Motor vehicle" means a vehicle which is self-propelled
and every vehicle which is propelled by electric power
obtained from overhead trolley wires, but not operated upon
rails, except for vehicles moved solely by human power,
motorized wheelchairs, low-speed electric bicycles, and
low-speed gas bicycles.
"Multistate licensing system" means a third-party,
multistate licensing system used by the Secretary for
licensing, examinations, or any other regulatory purpose under
this Act.
"Person" means an individual, a partnership, joint
venture, trust, estate, firm, corporation, cooperative society
or association, or any other form of business association or
legal entity. "Person" includes the employees, owners, agents,
managers, members, principals, and directors of a person.
"Secretary" means the Secretary of Financial and
Professional Regulation or the Secretary's designee, including
the Director of the Division of Financial Institutions.
Section 3. Administration by the Division of Financial

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Institutions. This Act shall be administered by the Division
on behalf of the Secretary.
Section 4. Licensure requirement. No person shall engage
in the business regulated by this Act without licensure under
this Act. The Secretary may investigate any person the
Secretary believes may require licensure under this Act,
including, but not limited to, compelling production of
testimony, books, records, or any other information necessary
for the Secretary to determine whether the person requires
licensure.
Section 5. Applicability.
(a) Except as otherwise provided in this Section, this Act
applies to any person, including any affiliate or subsidiary
of a person, that offers or makes a loan, buys a whole or
partial interest in a loan, arranges a loan for a third party,
or acts as an agent for a third party in making a loan to a
consumer, 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 loan or a subterfuge for the purpose of avoiding
this Act. This Act applies to loan transactions conducted by
any medium, including, but not limited to, paper, facsimile,

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Internet, or telephone. This Act also applies to any servicer
of a loan. This Act does not apply to a merchant or merchant
platform that makes a buy-now-pay-later loan available to a
consumer through an agreement with a licensed
buy-now-pay-later lender, if the merchant or merchant platform
does not originate, underwrite, service, or hold an interest
in any buy-now-pay-later loan.
(b) The provisions of this Act apply to any person that
seeks to evade its applicability by any device, subterfuge, or
pretense or making, offering, assisting, or arranging a
consumer to obtain a loan with a greater rate of interest,
consideration, or charge than is permitted by this Act through
any method, including mail, telephone, Internet, or any
electronic means regardless of whether the person or entity
has a physical location in this State.
(c) The provisions of this Act apply to any person that
facilitates or aids or abets a violation of this Act or rules
adopted under this Act.
(d) Banks, savings banks, savings and loan associations,
credit unions, and insurance companies organized, chartered,
or holding a certificate of authority to do business under the
laws of this State, any other state, or the United States are
exempt from the provisions of this Act and rules adopted under
this Act. The Secretary may exempt from this Act other persons
or transactions by rule on a finding that the application of
the Act to the persons or transactions is not necessary to

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achieve the purposes of this Act.
Section 5.5. Licensee name. No person engaged in the
business regulated by this Act shall operate the business
under a name other than the real name of the person conducting
business. The business may, as authorized by the Secretary,
also operate under an assumed corporate name under the
Business Corporation Act of 1983, an assumed limited liability
company name under the Limited Liability Company Act, or an
assumed business name under the Assumed Business Name Act.
Section 6. Application process; investigation; fees.
(a) The Secretary may issue a license to a person after the
person completes the following:
(1) the filing of an application for licensure with
the Secretary or the multistate licensing system, as
approved by the Secretary;
(2) the filing with the Secretary or the multistate
licensing system, as approved by the Secretary, of a
listing of judgments entered against, and bankruptcy
petitions by, the applicant for the preceding 10 years;
(3) the payment, in certified funds, of investigation
and application fees, the total of which shall be in an
amount equal to $5,000, unless modified by the Secretary
in accordance with subsection (b) of Section 11; and
(4) the filing of an audited balance sheet, including

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all footnotes prepared by a certified public accountant in
accordance with generally accepted accounting principles
and generally accepted auditing standards; notwithstanding
the requirements of this subsection, an applicant that is
a subsidiary may submit audited consolidated financial
statements of its parent, intermediary parent, or ultimate
parent as long as the consolidated statements are
supported by consolidating statements that include the
applicant's financial statement; if the consolidating
statements are unaudited, the applicant's chief financial
officer shall attest to the applicant's financial
statements disclosed in the consolidating statements.
(b) The Secretary may, for good cause shown, waive or
modify the requirements of paragraph (4) of subsection (a).
(c) Upon receipt of the license, a licensee shall be
authorized to engage in the business regulated by this Act.
The license shall remain in full force and effect until it
expires, is surrendered by the licensee, or is revoked or
suspended as provided in this Act.
(d) The Secretary may impose conditions on a license if
the Secretary determines that those conditions are necessary
or appropriate. The conditions shall be imposed in writing and
shall continue in effect for the period prescribed by the
Secretary.
Section 7. Application form.

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(a) Application for a license shall be made in accordance
with this Act and in accordance with requirements of the
multistate licensing system, if required by the Secretary. The
application shall be in writing, under oath, and on a form
obtained from and prescribed by the Secretary. The Secretary
may require part or all of the application to be submitted
electronically, with attestation, to the multistate licensing
system.
(b) The application shall contain the name and complete
business and residential address of the applicant. The
application shall also include a description of the activities
of the applicant in such detail and for such periods as the
Secretary may require, including the following:
(1) an affirmation that the applicant and its owners,
principals, officers, and directors, as may be
appropriate, are at least 18 years of age;
(2) information as to the name, complete business
address, complete residential address, character, fitness,
financial and business responsibility, background,
experience, and criminal record of any:
(i) person, including an ultimate equitable owner,
that directly or indirectly owns or controls 10% or
more of any class of stock of the applicant;
(ii) person, including an ultimate equitable owner
that is not a depository institution, as defined in
Section 17.50 of the Savings Bank Act, that lends,

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provides, or infuses, directly or indirectly, in any
way, funds to or into an applicant in an amount equal
to or more than 10% of the applicant's net worth;
(iii) person, including an ultimate equitable
owner that controls, directly or indirectly, the
election of 25% or more of the members of the board of
directors of an applicant;
(iv) person, including an ultimate equitable owner
that the Secretary finds influences the management of
the applicant;
(v) directors of an applicant; and
(vi) principal officers of an applicant; and
(3) any other information as required by the Secretary
to assess whether the applicant and its owners, officers,
and directors have the financial responsibility, financial
condition, business experience, character, and general
fitness to justify the confidence of the public and that
the applicant and its owners, officers, and directors are
fit, willing, and able to carry on the proposed business
in a lawful and fair manner.
Section 8. License application and issuance.
(a) Applicants for a license shall apply in a form
prescribed by the Secretary. The form may be changed or
updated by the Secretary to carry out the purposes of this Act.
(b) In order to fulfill the purposes of this Act, the

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Secretary may establish relationships or contracts with a
multistate licensing system or other persons to collect and
maintain records and process fees related to licensees or
other persons subject to this Act.
(c) In connection with an application for licensing, the
applicant, owners, officers, and directors of an applicant may
be required, at a minimum, to furnish to the Secretary or the
multistate licensing system information concerning the
identity of the applicant, owners, officers, and directors,
including personal history and experience in a form prescribed
by the Secretary or the multistate licensing system including,
but not limited to:
(1) a complete and accurate copy of an independent
credit report obtained from a consumer reporting agency as
described in Section 603(p) of the Fair Credit Reporting
Act (15 U.S.C. 1681a(p)); and
(2) information related to any administrative, civil,
or criminal findings by any governmental jurisdiction.
(d) For the purposes of this Section, and to reduce the
points of contact that the Secretary may have to maintain, the
Secretary may use a multistate licensing system as a
channeling agent for requesting and distributing information
to and from any source.
(e) Each application shall be accompanied by averments as
determined by the Secretary to fulfill the purposes of this
Act.

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Section 9. Refusal to issue license. The Secretary may
refuse to issue or renew a license if the Secretary determines
that:
(a) the applicant has not complied with a provision of
this Act, rule adopted under this Act, or other laws that
apply to the applicant;
(b) there is substantial continuity between the
applicant and any violator of this Act, rule adopted under
this Act, or other laws that apply to the applicant or
related violator; and
(c) the applicant or its owners, officers, or
directors do not have the financial responsibility,
financial condition, business experience, character, and
general fitness to justify the confidence of the public
and that the license applicant and its owners, officers,
and directors are not fit, willing, and able to carry on
the proposed business in a lawful and fair manner.
Section 10. License issuance and renewal.
(a) Absent a written extension from the Department and
payment of any late fees required by the Department, a license
shall expire on the last day of December of each calendar year
if a licensee fails to timely submit a properly completed
renewal application form and fees.
(b) Licensees shall apply to renew their license every

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calendar year. Licensees may submit properly completed renewal
application forms and filing fees 60 days before the license
expiration date. To be deemed timely, the completed renewal
application forms and filing fees must be received by the
Secretary at least 30 days before the license expiration date.
(c) It shall be the responsibility of each licensee to
accomplish timely renewal of its license.
(d) No activity regulated by this Act shall be conducted
by a licensee whose license has expired. The Secretary may,
within the Secretary's discretion, reinstate an expired
license upon payment of the renewal fee, payment of a
reactivation fee equal to 5 times the renewal fee, submission
of a completed renewal application, and an affidavit of good
cause for late renewal.
Section 11. Fees.
(a) The expenses of administering this Act, including
licensing, investigations, and examinations provided for in
this Act, shall be borne by and assessed against persons and
entities regulated by this Act in the proportions and in the
manner as the Secretary deems appropriate. The Secretary may
establish by rule the category and amount of any fees that the
person and entities pay to the Department.
(b) The Secretary may modify any fees established by this
Act by rule beginning one year after the effective date of this
Act.

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Section 12. Functions; powers; duties. The functions,
powers, and duties of the Secretary shall include, but shall
not be limited to:
(a) to issue or refuse to issue any license or
renewal;
(b) to impose fines, revoke, or suspend for cause any
license issued under this Act;
(c) to impose fines for any unlicensed activity under
this Act;
(d) to keep records of all licenses issued under this
Act;
(e) to receive, consider, investigate, and act upon
complaints made by any person in connection with any
licensee in this State or unlicensed activity under this
Act of any person;
(f) to prescribe the forms of and receive:
(1) applications for licenses and renewals; and
(2) all reports and all books and records required
to be made by any licensee, including annual audited
financial statements if required by the Secretary and
annual reports of activity;
(g) to adopt rules necessary and proper for the
administration of this Act, to protect consumers and to
promote fair competition;
(h) to subpoena documents and witnesses and compel

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attendance and production, to administer oaths, and to
require the production of any books, papers, or other
materials relevant to any inquiry authorized by this Act
or rules adopted under this Act;
(i) to issue orders against any person if the
Secretary has reasonable cause to believe that an unsafe,
unsound, or unlawful practice has occurred, is occurring,
or is about to occur; if any person is violating, or is
about to violate any law, rule, or written agreement with
the Secretary; or for the purpose of administering the
provisions of this Act and any rule adopted in accordance
with this Act;
(j) to address any inquiries to any licensee, or the
owners, officers, or directors, in relation to its
activities and conditions, or any other matter connected
with its affairs, and it shall be the duty of any licensee
or person so addressed to promptly reply in writing to
those inquiries; and to require reports from any licensee
at any time the Secretary may deem desirable;
(k) to examine the books and records of every licensee
or any person requiring a license or who the Secretary
reasonably believes may require a license at any time
interval reasonably determined appropriate by the
Secretary;
(l) to enforce provisions of this Act and rules
adopted under this Act;

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(m) to levy fees including, but not limited to,
contingent fees, assessments, examination fees, licensing
fees, fines, and charges for services performed in
administering this Act;
(n) to issue refunds to licensees within one year of
any overpayment for good cause shown;
(o) to appoint examiners, supervisors, experts, and
special assistants as needed to effectively and
efficiently administer this Act;
(p) to conduct hearings for the purpose of carrying
out the purposes of this Act;
(q) to exercise visitorial power over a licensee;
(r) to enter into cooperative agreements with state
regulatory authorities of other states to provide for
examination of corporate offices or branches in those
states, participate in joint examinations with other
regulators, and to accept reports of the examinations;
(s) to assign an examiner or examiners to monitor the
affairs of a licensee with whatever frequency the
Secretary determines appropriate and to charge the
licensee for reasonable and necessary expenses of the
Secretary if in the opinion of the Secretary an emergency
exists or appears likely to occur;
(t) to impose civil penalties of up to $1,000 per day
against a licensee for failing to respond to a regulatory
request or reporting requirement; and

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(u) to enter into agreements in connection with a
multistate licensing system.
Section 13. Financial Institutions Fund. All moneys
received by the Secretary under this Act shall be paid into the
Financial Institutions Fund. The amounts deposited into the
Fund shall be used for the ordinary and contingent expenses of
the Department. Nothing in this Act shall prevent paying
expenses involving salaries, retirement, social security, and
State-paid insurance of State employees, or any other expenses
incurred under this Act by appropriation from the General
Revenue Fund, PIC Fund, or any other fund.
Section 14. Examination; prohibited activities.
(a) The Secretary shall examine the business affairs of a
licensee as often as the Secretary deems necessary and proper.
The Secretary may adopt rules with respect to the frequency
and manner of examination. The Secretary shall appoint a
suitable person to perform the examination. The Secretary and
the Secretary's appointees may examine the entire books,
records, documents, and operations of each licensee and its
subsidiary, affiliate, or agent, and may examine any of the
licensee's or its subsidiaries', owners', affiliates', or
agents' officers, directors, employees, and agents under oath.
(b) Affiliates of a licensee shall be subject to
examination by the Secretary only to the extent reasonably

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necessary to evaluate the licensee's compliance with this Act
and only with respect to records directly related to the
licensee's regulated activities under this Act.
(c) The expenses of any examination of the licensee or its
affiliates shall be borne by the licensee and assessed by the
Secretary as may be established by rule.
(d) All confidential supervisory information, including
the examination report and the work papers of the report,
shall belong to the Secretary's office and may not be
disclosed to anyone other than the licensee, law enforcement
officials, or other regulatory agencies that have an
appropriate regulatory interest as determined by the
Secretary, or to a party presenting a lawful subpoena to the
Department. The Secretary may, through the Attorney General,
immediately appeal to the court of jurisdiction the disclosure
of the confidential supervisory information and seek a stay of
the subpoena pending the outcome of the appeal. Reports
required of licensees by the Secretary under this Act and
results of examinations performed by the Secretary under this
Act shall be the property of only the Secretary, but may be
shared with the licensee. Any person demanded to produce the
Department's confidential supervisory information, whether by
subpoena, order, or other judicial or administrative process,
shall withhold production of the confidential supervisory
information and notify the Secretary of the demand. The
Secretary may intervene for the purpose of enforcing the

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limitations of this Section or seeking the withdrawal or
termination of the attempt to compel production of the
confidential supervisory information. The Secretary may impose
any conditions and limitations on the disclosure of
confidential supervisory information that are necessary to
protect the confidentiality of that information. The Secretary
may condition a decision to disclose confidential supervisory
information on entry of a protective order by the court or
administrative tribunal presiding in the particular case or on
a written agreement of confidentiality. In a case in which a
protective order or agreement has already been entered between
parties other than the Secretary, the Secretary may
nevertheless condition approval for release of confidential
supervisory information upon the inclusion of additional or
amended provisions in the protective order. The Secretary may
authorize a party who obtained the records for use in one case
to provide them to another party in another case, subject to
any conditions that the Secretary may impose on either or both
parties. The requester shall promptly notify other parties to
a case of the release of confidential supervisory information
obtained and, upon entry of a protective order, shall provide
copies of confidential supervisory information to the other
parties.
Section 15. Subpoena power of the Secretary.
(a) The Secretary shall have the power to issue and to

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serve subpoenas and subpoenas duces tecum to compel the
attendance of witnesses and the production of all books,
accounts, records, and other documents and materials relevant
to an examination or investigation. The Secretary or the
Secretary's duly appointed representative shall have the power
to administer oaths and affirmations to any person.
(b) If a person does not comply with the Secretary's
subpoena or subpoena duces tecum, the Secretary may, through
the Attorney General, petition the circuit court of the county
in which the subpoenaed person resides or has its principal
place of business for an order requiring the subpoenaed person
to testify and to comply with the subpoena duces tecum.
(c) The court may grant injunctive relief restraining the
person from engaging in activity regulated by this Act. The
court may grant other relief, including, but not limited to,
the restraint, by injunction or appointment of a receiver, of
any transfer, pledge, assignment, or other disposition of the
person's assets, concealment, destruction, or other
disposition of books, accounts, records, or other documents
and materials as the court deems appropriate, until the person
has fully complied with the subpoena or subpoena duces tecum
and the Secretary has completed an investigation or
examination.
(d) If it appears to the Secretary that the compliance
with a subpoena or subpoena duces tecum issued or caused to be
issued by the Secretary under this Section is essential to an

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investigation or examination, the Secretary, in addition to
the other remedies provided for in this Act, may, through the
Attorney General, apply for relief to the circuit court of the
county in which the subpoenaed person resides or has its
principal place of business. The court shall direct the
issuance of an order against the subpoenaed person requiring
sufficient bond conditioned on compliance with the subpoena or
subpoena duces tecum. The court shall cause to be endorsed on
the order a suitable amount of bond or payment under which the
person named shall be freed, having a due regard to the nature
of the case.
(e) In addition, the Secretary may, through the Attorney
General, seek a writ of attachment or an equivalent order from
the circuit court having jurisdiction over the person who has
refused to obey a subpoena, who has refused to give testimony,
or who has refused to produce the matters described in the
subpoena duces tecum.
Section 16. Reports required of licensee. Every licensee
shall produce to the Department written reports or answers to
questions in the time and manner requested by the Secretary.
Section 17. Suspension; revocation of licenses; fines and
other discipline.
(a) The Secretary may enter an order imposing one or more
of the following penalties:

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(1) revocation of license;
(2) suspension of a license subject to reinstatement
upon satisfying all reasonable conditions the Secretary
may specify;
(3) placement of the licensee or applicant on
probation for a period of time and subject to all
reasonable conditions as the Secretary may specify;
(4) issuance of a reprimand;
(5) imposition of a civil penalty or fine not to
exceed $25,000 for each count of separate offense;
(6) restitution, refunds, or any other relief
necessary to protect consumers; and
(7) denial of a license.
(b) Grounds for penalties include:
(1) when a person has violated or aided another to
violate, any provisions of this Act, any rule adopted by
the Secretary, or any other law, rule, or regulation of
this State, any other state, or the United States;
(2) that any fact or condition exists that, if it had
existed at the time of the original application for the
license, would have warranted the Secretary in refusing to
issue the original license;
(3) that a licensee that is not an individual has
acted or failed to act in a way that would be cause for
suspending or revoking a license to an individual;
(4) that a person engaged in unsafe, unsound, unfair,

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deceptive, or abusive business practices related to the
activity covered by this Act;
(5) that a person has been adjudicated guilty of a
crime against the law of this State, any other state, or of
the United States involving moral turpitude, abusive,
deceptive, fraudulent, or dishonest dealing;
(6) that a final judgment has been entered against a
person in a civil action upon grounds of abusive conduct,
conversion, fraud, misrepresentation, or deceit;
(7) that a person made a material misstatement in its
application for licensure or any other communication to
the Secretary;
(8) that a person has demonstrated by course of
conduct, negligence or incompetence in performing any act
for which it is required to hold a license under this Act;
(9) that a person has failed to advise the Secretary
in writing of any changes to the information submitted on
the person's most recent application for license within 30
days after the change;
(10) that a licensee failed to submit to periodic
examination by the Secretary as required by this Act or
failed to maintain, preserve, and keep available for
examination all books, accounts, or other documents
required by the provisions of this Act and rules adopted
under this Act for a period of at least 2 years after the
loan is paid in full or any time period set forth by rule;

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(11) that a person failed to account or deliver to any
person any property, such as any money, fund, deposit,
check, draft, or other document or thing of value, that
has come into the person's possession and that is not the
person's property or that the person is not in law or
equity entitled to retain, under the circumstances and at
the time which has been agreed upon or is required by law
or, in the absence of a fixed time, upon demand of the
person for the accounting and delivery;
(12) that a person failed to disburse funds in
accordance with agreements or law;
(13) that a person had a license, or the equivalent,
to practice any profession, occupation, other industry or
activity requiring licensure revoked, suspended,
disciplined, or otherwise acted against, including the
denial of licensure by a licensing authority of this State
or another state, territory, or country for fraud,
dishonest dealing, misrepresentations, incompetence,
conversion, any act of moral turpitude or any other
grounds that would constitute grounds for discipline under
this Act;
(14) that a person licensed under this Act failed to
timely notify the Department that the person has been
disciplined by a licensing authority of this State or
another state;
(15) that a person engaged in activities regulated by

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the Act without a current, active license unless
specifically exempted by this Act;
(16) that a person failed to timely pay any fee,
charge, or fine assessed under this Act; and
(17) that a person refused, obstructed, evaded, or
unreasonably delayed an investigation, information
request, or examination authorized under this Act, or
refused, obstructed, evaded, or unreasonably delayed
compliance with the Secretary's subpoena or subpoena duces
tecum.
(c) No license shall be suspended or revoked, except as
provided in this Section nor shall any licensee be fined,
without notice of the licensee's right to a hearing.
(d) The Secretary may suspend any license for a period not
exceeding 90 days pending investigation for good cause shown
that an emergency exists.
(e) No revocation, suspension, or surrender of any license
shall impair or affect the obligation of any preexisting
lawful contract between the licensee and any person. The
Secretary's approval of a licensee's application to surrender
its license shall not affect the licensee's civil or criminal
liability for acts committed prior to surrender. Surrender of
a license does not entitle the licensee to a return of any part
of the fee for initial licensure or any part of the fee for
annual license renewal.
(f) Every license issued under this Act shall remain in

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force and effect until the license expires, is surrendered, is
revoked, or is suspended in accordance with the provisions of
this Act. The Secretary may reinstate a suspended license or
issue a new license to a licensee whose license has been
revoked or surrendered if no fact or condition then exists
which would have warranted the Secretary in refusing
originally to issue that license under this Act.
(g) If the Secretary imposes discipline authorized by this
Section, the Secretary shall execute a written order to that
effect. The Secretary shall serve a copy of the order upon the
person. The Secretary shall serve the person with notice of
the order, including a statement of the reasons for the order,
either personally, or by certified mail. Service by certified
mail shall be deemed completed when the notice is deposited
into the U.S. Mail.
(h) An order assessing a fine, an order imposing
conditions upon a license, 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 serves
the Department with a written request for a hearing in the
manner required by the notice within 20 days after the date of
service of the order. If a person requests a hearing, the order
shall be stayed from its date of service until the Department
enters a final administrative order.
(1) If the licensee requests a hearing, the Secretary
shall schedule a preliminary hearing within 90 days after

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the request for a hearing unless otherwise agreed to by
the parties.
(2) The preliminary hearing shall be held at the time
and place designated by the Secretary. The Secretary and
any administrative law judge designated by the Secretary
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 the
Secretary considers relevant or material to the inquiry.
(i) The costs of administrative hearings conducted under
this Section shall be paid by the licensee or other person
subject to the hearing.
(j) A licensee and other persons subject to this Act shall
be subject to the disciplinary actions specified in this Act
for any violations conducted by any officer, director,
shareholder, joint venture, partner, owner, including, but not
limited to, ultimate equitable owner.
Section 18. Investigation of complaints. The Secretary may
investigate any complaints and inquiries made concerning this
Act and any licensees or persons the Secretary believes may
require a license under this Act. Each licensee or person the
Secretary believes may require a license under this Act shall
open the licensee or person's books, records, documents, and
offices wherever situated to the Secretary as needed to

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facilitate the investigations.
Section 19. Additional investigation and examination
authority. In addition to any authority allowed under this
Act, the Secretary shall have the authority to conduct
investigations and examinations as follows:
(a) For purposes of initial licensing, license
renewal, license suspension, license conditioning, license
probation, license revocation or termination, or general
or specific inquiry or investigation to determine
compliance with this Act, the Secretary shall have the
authority to access, receive, and use any books, accounts,
records, files, documents, information, or evidence,
including, but not limited to, the following:
(1) criminal, civil, licensure, and administrative
history information, including nonconviction data as
specified in the Criminal Identification Act;
(2) personal history and experience information,
including independent credit reports obtained from a
consumer reporting agency described in Section 603(p)
of the federal Fair Credit Reporting Act; and
(3) any other documents, information, or evidence
the Secretary deems relevant to the inquiry or
investigation, regardless of the location, possession,
control, or custody of the documents, information, or
evidence.

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(b) For the purposes of investigating violations or
complaints arising under this Act or for the purposes of
examination, the Secretary may review, investigate, or
examine any licensee, individual, or person subject to
this Act as often as necessary in order to carry out the
purposes of this Act. The Secretary may direct, subpoena,
or order the attendance of, and examine under oath all
persons; and order any person to produce records, files,
and any other documents the Secretary deems relevant to an
inquiry.
(c) Each person subject to this Act shall make
available to the Secretary upon request the books and
records relating to the operations of the person subject
to this Act. The Secretary shall have access to those
books and records and may interview the owners, officers,
principals, employees, independent contractors, agents,
vendors, and customers of any licensee or person subject
to this Act.
(d) Each person subject to this Act shall make or
compile reports or prepare other information as directed
by the Secretary to carry out the purposes of this
Section, including, but not limited to:
(1) accounting compilations;
(2) information lists and data concerning
transactions in a format prescribed by the Secretary;
or

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(3) other information deemed necessary to carry
out the purposes of this Section.
(e) In making any examination or investigation
authorized by this Act, the Secretary may control access
to any documents and records of the licensee or person
under examination or investigation. The Secretary may take
possession of the documents and records or otherwise take
constructive control of the documents. During the period
of control, no person shall remove or alter any of the
documents or records, except in accordance with a court
order or with the consent of the Secretary. Unless the
Secretary has reasonable grounds to believe the documents
or records of the licensee have been or are at risk of
being altered or destroyed for purposes of concealing a
violation of this Act, the licensee or owner of the
documents and records shall have access to the documents
or records as necessary to conduct its ordinary business
affairs.
(f) In order to carry out the purposes of this
Section, the Secretary may:
(1) retain attorneys, accountants, or other
professionals and specialists as examiners, auditors,
or investigators to conduct or assist in the conduct
of examinations or investigations;
(2) enter into agreements or relationships with
other government officials or regulatory associations

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to protect consumers, improve efficiencies, and reduce
regulatory burden by sharing resources, standardized
or uniform methods or procedures, and documents,
records, information, or evidence obtained under this
Section;
(3) use, hire, contract, or employ publicly or
privately available analytical systems, methods, or
software to examine or investigate the licensee,
individual, or person subject to this Act;
(4) accept and rely on examination or
investigation reports made by other government
officials, within or outside this State; or
(5) accept audit reports made by an independent
certified public accountant for the person subject to
this Act and incorporate the audit report in the
report of the examination, report of investigation, or
other writing of the Secretary.
(g) The authority of this Section shall remain in
effect, whether a person subject to this Act acts or
claims to act under any licensing or registration law of
this State or claims to act without authority.
(h) No licensee or person subject to investigation or
examination under this Section may knowingly withhold,
alter, abstract, remove, mutilate, destroy, hide, or
conceal any books, records, computer records, or other
information or take actions designed to delay or

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complicate review of records.
Section 20. Confidentiality. To promote more effective
regulation, protect consumers, and reduce regulatory burden
through inter-regulator sharing of confidential supervisory
information:
(a) The privacy or confidentiality of any information
or material provided to the multistate licensing system,
including all privileges arising under federal or State
court rules and law, shall continue to apply to the
information or material after the information or material
has been disclosed to the multistate licensing system.
Information and material may be shared with the multistate
licensing system, federal and state regulatory officials
with relevant oversight authority, and law enforcement
without the loss of privilege or the loss of
confidentiality protections.
(b) The Secretary may enter into agreements or sharing
arrangements with other governmental agencies, the
Conference of State Bank Supervisors, and other
associations representing governmental agencies.
(c) Information or material that is privileged or
confidential under this Act as determined by the Secretary
shall not be subject to the following:
(1) disclosure under any State law governing the
disclosure to the public of information held by an

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officer or an agency of this State; or
(2) subpoena, discovery, or admission into
evidence, in any private civil action or
administrative process except as authorized by the
Secretary.
(d) Any other law relating to the disclosure of
confidential supervisory information that is inconsistent
with this Act shall be superseded by the requirements of
this Section to the extent the other law provides less
confidentiality or a weaker privilege for information that
is privileged or confidential under this Act.
(e) Confidential or privileged information received
from the multistate licensing system, another licensing
body, federal and state regulatory officials, or law
enforcement shall be protected to the same extent as the
Secretary's confidential and privileged information is
protected under this Act. The Secretary may also protect
from disclosure confidential or privileged information
that would be exempt from disclosure to the extent it is
held directly by the multistate licensing system, another
licensing body, federal and state regulatory officials, or
law enforcement.
Section 21. Rules.
(a) In addition to the powers set forth in this Act and
other laws, the Secretary may adopt rules consistent with the

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purposes of this Act, including, but not limited to, rules to:
(1) protect consumers in this State in connection with
the activities of persons subject to this Act;
(2) define improper, deceptive, unfair, abusive, or
fraudulent business practices in connection with providing
products and services under this Act;
(3) define terms used in this Act to interpret and
implement this Act;
(4) promote competition and price transparency; and
(5) enforce the provisions of this Act.
(b) The Secretary may make specific rulings, demands, and
findings deemed necessary for the proper conduct of the
buy-now-pay-later loan industry.
Section 22. Appeal and review.
(a) The Secretary may, in accordance with the Illinois
Administrative Procedure Act, adopt rules to provide for
review within the Department of the Secretary's decisions
affecting the rights of persons under this Act. The review
shall provide for, at a minimum:
(1) appointment of a hearing officer;
(2) appropriate procedural rules, specific deadlines
for filings, and standards of evidence and of proof; and
(3) provisions for apportioning costs among parties to
the appeal.
(b) All final agency determinations of appeals to

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decisions of the Secretary may be reviewed in accordance with
and under the provisions of the Administrative Review Law.
Appeals from all final orders and judgments entered by a court
in review of any final administrative decision of the
Secretary or of any final agency review of a decision of the
Secretary may be taken as in other civil cases.
Section 23. Licensure fees.
(a) The nonrefundable fee for initial licensure shall be
$5,000, unless modified by the Secretary in accordance with
subsection (b) of Section 11.
(b) The nonrefundable fee for annual license renewal shall
be $5,000, unless modified by the Secretary in accordance with
subsection (b) of Section 11.
(c) The Department shall impose a contingent fee
sufficient to cover its operating expenses in administering
this Act not otherwise covered by all other revenue collected
under this Act. Each licensee shall pay to the Division its pro
rata share, based on number or volume of transactions or
revenue or any other metric established by the Department by
rule, of the cost for administration of the Act that exceeds
other fees listed in this Section, as estimated by the
Division, for the current year and any deficit actually
incurred in the administration of the Act in prior years.
Section 24. Cease and desist order.

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(a) The Secretary may issue a cease and desist order to any
licensee or person doing business without the required
license, when in the opinion of the Secretary the licensee or
other person has violated, is violating, or is about to
violate any provision of this Act or any rule adopted by the
Department under this Act or any requirement imposed in
writing by the Department as a condition of granting any
authorization permitted by this Act. The cease and desist
order authorized by this Section may be issued prior to a
hearing.
(b) The Secretary shall serve notice of the order, either
personally or by certified mail. Service by certified mail
shall be deemed completed when the notice is deposited into
the U.S. Mail. The Secretary's notice shall include a
statement of the reasons for the action.
(c) Within 15 days after service of the cease and desist
order, the person subject to the order may request a hearing in
writing. The Secretary shall schedule a preliminary hearing
within 60 days after the request for a hearing unless the
parties agree to a later date.
(d) If it is determined that the Secretary had the
authority to issue the cease and desist order, the Secretary
may issue orders as may be reasonably necessary to correct,
eliminate, deter, or remedy the conduct described in the order
and resulting harms.
(e) The powers vested in the Secretary by this Section are

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additional to all other powers and remedies vested in the
Secretary by any law. Nothing in this Section shall be
construed as requiring that the Secretary must 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.
Section 25. Injunction. The Secretary may maintain an
action in the name of the people of the State of Illinois
through the Attorney General and may apply for an injunction
in the circuit court to enjoin a person from violating this Act
or rules adopted under this Act.
Section 26. Underwriting. A lender shall, before providing
or causing to be provided a loan to a consumer, perform, or
cause to be performed, reasonable risk-based underwriting
which shall include, at a minimum, an assessment of the
outstanding loans taken out by the consumer from the lender. A
lender shall maintain or cause to be maintained policies and
procedures for underwriting loans, and shall disclose factors
considered in the underwriting process, in a clear and
conspicuous manner to the consumer. No lender shall collect,
evaluate, report, or maintain in the file on a borrower the
credit worthiness, credit standing, or credit capacity of
members of the borrower's social network for purposes of
determining the credit worthiness of the borrower; the average

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credit worthiness, credit standing, or credit capacity of
members of the borrower's social network; or any group score
that is not the borrower's own credit worthiness, credit
standing, or credit capacity. The Department may adopt rules
with respect to underwriting.
Section 27. Consumer protections.
(a) A lender shall provide the following disclosures to a
consumer, in a clear and conspicuous manner, at the time of
extending a specific offer of a loan:
(1) how to file a complaint with the Department;
(2) the terms of buy-now-pay-later loans, including,
without limitation, the cost, such as interest and fees,
the repayment schedule, the means by which a person may
dispute billing practices, whether the transaction will or
will not be reported to a credit reporting agency, and
other material conditions, in a clear and conspicuous
manner and in a manner that complies with applicable
federal regulations, including, but not limited to,
Regulation Z of Title I of the Consumer Credit Protection
Act;
(3) policies and procedures for underwriting loans,
and factors considered in the underwriting process; and
(4) Any other disclosures required by the Secretary by
rule.
(b) A lender shall maintain policies and procedures for

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maintaining accurate data that may be reported to credit
reporting agencies. A lender may use, sell, or share the data
of a consumer, other than in connection with the making of a
particular loan to the consumer, only with the consumer's
consent. A lender shall disclose or cause to be disclosed to a
consumer in a clear and conspicuous manner how the consumer's
data may be used, shared, or sold by the lender before
obtaining the consumer's consent and also shall disclose or
cause to be disclosed to the consumer in a clear and
conspicuous manner how the consumer may subsequently withdraw
consent to the use, sharing, or sale. A lender shall maintain
policies and procedures regarding its use, sale, and sharing
of consumers' data. Nothing in this subsection shall prevent a
lender from using information in accordance with the Fair
Credit Reporting Act or furnishing credit reporting data to a
credit reporting agency. The Secretary may adopt rules related
to data privacy. No lender shall share consumer data in a
manner inconsistent with this Act and rules adopted under this
Act.
(c) A lender shall resolve disputes in a manner that is
fair and transparent to consumers. A lender shall create a
readily available and prominently disclosed method for
consumers to bring a dispute to the lender. A lender shall
maintain policies and procedures for handling consumer
disputes. A lender shall apply to loans the dispute rights and
unauthorized charges requirements that apply to credit cards

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under the federal Truth in Lending Act, regardless of whether
the law applies to loans or whether the lender offers a credit
card within the scope of the law.
(d) A lender shall provide refunds or credits for goods or
services purchased in connection with a loan, if the consumer
requests and is entitled to a refund, in a manner that is fair,
transparent, and not unduly burdensome to consumers. A lender
shall maintain policies and procedures to provide the refunds
or credits. The policies and procedures shall be fair,
transparent, and not unduly burdensome to the consumer. A
lender shall disclose to consumers, in a clear and conspicuous
manner, the process by which they can obtain refunds or
credits for goods or services they have purchased in
connection with a loan.
(e) A lender shall not require consumers to authorize
automatic payment from the consumer's accounts. If a consumer
voluntarily elects to use automatic payments in relation to
the loan, the lender shall not charge the consumer any amount
to cancel automatic payments should the consumer request to do
so.
(f) A lender shall not require payment by a consumer by
credit card.
(g) A lender shall not attempt to debit a consumer's
account if it is notified that there are insufficient funds to
pay in the account or if it has reason to believe there are
insufficient funds to pay in the account without seeking

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additional, express approval from the consumer. A lender shall
present an ACH debit for payment not more than twice.
(h) The lender's license shall be kept conspicuously
posted on the mobile application, website, or other consumer
interface of the lender, as well as listed in the terms and
conditions of any loan offered or entered into by the lender.
(i) A consumer shall be permitted to pay off the loan at
any time. A lender may not impose, directly or indirectly, any
additional fee or finance charge other than interest accrued
since the consumer's last payment or the start of the loan if
the consumer elects to pay off or refinance the loan before
full repayment.
(j) A lender may not accept tips, expedited payment fees,
or any other fee identified by the Department by rule from
consumers. Additionally, the Department may limit any fee,
charge, or payment which may be charged to a consumer by a
lender.
(k) All requirements set forth in this Section or in any
rules adopted by the Department relating to servicing of a
loan shall apply to a subsequent purchaser or assignee of a
loan, an agent of the lender, or any other person servicing a
loan.
Section 27.5. Compliance with federal law. All disclosures
required by this Act shall be made in a manner that complies
with the federal Truth in Lending Act, amendments thereto, and

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any regulations issued or which may be issued thereunder.
Section 28. Rate cap. A loan entered into under this Act is
subject to the rate cap set forth in Section 15-5-5 of the
Predatory Loan Prevention Act.
Section 29. Nullification of loans. Any loan made by a
person not licensed or otherwise exempt under this Act is null
and void and no person or entity shall have any right to
collect, attempt to collect, receive, or retain any principal,
fee, interest, or charges related to the loan.
Section 30. Annual report. The Secretary may require an
annual report from all licensees in a form and manner
prescribed by the Secretary. The Department may publish
reports containing a compilation of aggregate data concerning
the buy-now-pay-later loan industry.
Section 31. Surety bond.
(a) An applicant for a license shall post and a licensee
must maintain with the Secretary a bond or bonds issued by
corporations qualified to do business as surety companies in
this State.
(b) The applicant or licensee shall post a bond in a
minimum amount of $50,000. If the Secretary finds at any time
that a bond is of insufficient size, is insecure, exhausted,

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or otherwise doubtful, an additional bond in the amount as
determined by the Secretary shall be filed by the licensee
within 30 days after written demand by the Secretary.
(c) The bond must be in a form satisfactory to the
Secretary and shall run to the State of Illinois for the
benefit of any claimant against the applicant or licensee with
respect to any activity regulated by this Act, including
unpaid fees, fines, or penalties owed to the Department. A
claimant damaged by a breach of the conditions of a bond shall
have a right of action upon the bond for damages suffered and
may bring suit directly on the bond, or the Secretary may bring
suit on behalf of the claimant.
Section 32. Relation to other laws. Nothing in this Act
shall be construed to limit the obligation of a licensee to
comply with any other applicable laws or rules, including, but
not limited to, the Predatory Loan Prevention Act. Any
protections, rights, and remedies provided in this Act to a
consumer with respect to an agreement with a lender shall be
intended to supplement and not be exclusive of any
protections, rights, and remedies otherwise available under
any other law.
Section 33. Limitation on liability. No provision of this
Act imposes any liability on a lender as a result of the actual
annual percentage rate charged by a lender differing from the

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estimated annual percentage rate disclosed in conformity with
any regulation, order, or written interpretive opinion of the
Secretary or any opinion of the Attorney General, whether or
not the regulation, order, or written interpretive opinion is
later amended, rescinded, or repealed or determined by
judicial or other authority to be invalid for any reason.
Section 34. Liberal construction and purpose. This Act
shall be liberally construed to protect consumers.
Section 35. Compliance. No person shall be required to
comply with this Act until January 1, 2028, or a later date
established by the Department by rule.
Section 37. Violations.
(a) Nothing in this Act shall be construed to restrict the
exercise of powers or the performance of the duties of the
Attorney General that the Attorney General is authorized to
exercise or perform by law.
(b) A violation of this Act constitutes an unlawful
practice under the Consumer Fraud and Deceptive Business
Practices Act. All remedies, penalties, and authority granted
to the Attorney General by the Consumer Fraud and Deceptive
Business Practices Act shall be available to the Attorney
General for the enforcement of this Act.

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Section 38. Other licenses. A person holding (i) a license
under the Consumer Installment Loan Act, (ii) a license under
the Collection Agency Act, (iii) a license under the Sales
Finance Agency Act, or (iv) a license identified by the
Department by rule is not required to be licensed under this
Act including, but not limited to, the payment of fees
relating to the activity subject to this Act. Any such person
shall notify the Department that it is conducting activity
subject to this Act at the time of the renewal of its license,
but is otherwise required to comply with this Act.
Section 39. Safe harbor. A person that (i) was providing
buy-now-pay-later loans in this State before January 1, 2028
and (ii) submits an application for a license on or before
January 1, 2028 shall be deemed a provisional licensee
authorized to continue operating under this Act until the
Department acts on the application. In addition to the bases
for denying an application set forth elsewhere under this Act,
the Department may also deny such an application upon a
finding that the application was not submitted in good faith
or that continuation of operations poses a risk of consumer
harm.
Section 40. Relation to other laws. Any loan made under
and in compliance with this Act is not required to comply with
the Consumer Installment Loan Act or the Payday Loan Reform

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Act.
Section 900. The Consumer Fraud and Deceptive Business
Practices Act is amended by adding Section 2MMMM as follows:
(815 ILCS 505/2MMMM new)
Sec. 2MMMM. Violations of the Buy-Now-Pay-Later Loan
Consumer Protection Act. A person who violates the
Buy-Now-Pay-Later Loan Consumer Protection Act commits an
unlawful practice within the meaning of this Act.
Section 997. Severability. If any provision of this Act or
the application of the provision is held invalid, the
invalidity shall not affect other provisions or applications
of the Act which can be given effect without the invalidated
provision or application.
Section 999. Effective date. This Act takes effect upon
becoming law.".