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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1323 Introduced , by Rep. Lou Lang SYNOPSIS AS INTRODUCED:
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| 815 ILCS 122/4-10 | |
205 ILCS 670/9 | from Ch. 17, par. 5409 |
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Amends the Payday Loan Reform Act and the Consumer Installment Loan Act. Allows the Department of Financial and Professional Regulation to set rules for the imposition and amount of fines.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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1 | | AN ACT concerning regulation.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Payday Loan Reform Act is amended by |
5 | | changing Section 4-10 as follows:
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6 | | (815 ILCS 122/4-10)
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7 | | Sec. 4-10. Enforcement and remedies. |
8 | | (a) The remedies provided in this Act are cumulative and |
9 | | apply to persons
or entities subject to this Act.
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10 | | (b) Any material violation of this Act, including the |
11 | | commission of an act prohibited under Section 4-5, constitutes |
12 | | a violation of the Consumer Fraud
and Deceptive Business |
13 | | Practices Act.
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14 | | (c) If any provision of the written agreement described in |
15 | | subsection (b) of
Section 2-20 violates this Act, then that |
16 | | provision is unenforceable against the consumer. |
17 | | (d) Subject to the Illinois Administrative Procedure Act, |
18 | | the Secretary may hold hearings, make findings of fact, |
19 | | conclusions of law, issue cease
and desist orders, have the |
20 | | power to issue fines of up to $10,000 per violation, refer the |
21 | | matter to the appropriate law enforcement agency
for |
22 | | prosecution under this Act, and suspend or revoke a license |
23 | | granted
under this Act. All proceedings shall be open to the |
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1 | | public. |
2 | | (e) The Secretary may issue a cease and desist order to any |
3 | | licensee or other person doing business without the required |
4 | | license, when in the opinion of the Secretary the licensee or |
5 | | other person is violating or is about to violate any provision |
6 | | of this Act or any rule or requirement imposed in writing by |
7 | | the Department as a condition of granting any authorization |
8 | | permitted by this Act. The cease and desist order permitted by |
9 | | this subsection (e) may be issued prior to a hearing. |
10 | | The Secretary shall serve notice of his or her action, |
11 | | including, but not limited to, a statement of the reasons for |
12 | | the action, either personally or by certified mail, return |
13 | | receipt requested. Service by certified mail shall be deemed |
14 | | completed when the notice is deposited in the U.S. Mail. |
15 | | Within 10 days of service of the cease and desist order, |
16 | | the licensee or other person may request a hearing in writing.
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17 | | The Secretary shall schedule a hearing within 30 days after the |
18 | | request for a hearing unless otherwise agreed to by the |
19 | | parties. |
20 | | If it is determined that the Secretary had the authority to |
21 | | issue the cease and desist order, he or she may issue such |
22 | | orders as may be reasonably necessary to correct, eliminate, or |
23 | | remedy the conduct. |
24 | | The powers vested in the Secretary by this subsection (e) |
25 | | are additional to any and all other powers and remedies vested |
26 | | in the Secretary by law, and nothing in this subsection (e) |
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1 | | shall be construed as requiring that the Secretary shall employ |
2 | | the power conferred in this subsection instead of or as a |
3 | | condition precedent to the exercise of any other power or |
4 | | remedy vested in the Secretary. |
5 | | (f) The Secretary may, after 10 days notice by registered |
6 | | mail to the licensee at the address set forth in the license |
7 | | stating the contemplated action and in general the grounds |
8 | | therefore, fine the licensee an amount not exceeding $10,000 |
9 | | per violation, or revoke or suspend any license issued |
10 | | hereunder if he or she finds that: |
11 | | (1) the licensee has failed to comply with any |
12 | | provision of this Act or any order, decision, finding, |
13 | | rule, regulation, or direction of the Secretary lawfully |
14 | | made pursuant to the authority of this Act; or |
15 | | (2) any fact or condition exists which, if it had |
16 | | existed at the time of the original application for the |
17 | | license, clearly would have warranted the Secretary in |
18 | | refusing to issue the license. |
19 | | The Secretary may fine, suspend, or revoke only the |
20 | | particular license with respect to which grounds for the fine, |
21 | | revocation, or suspension occur or exist, but if the Secretary |
22 | | finds that grounds for revocation are of general application to |
23 | | all offices or to more than one office of the licensee, the |
24 | | Secretary shall fine, suspend, or revoke every license to which |
25 | | the grounds apply. |
26 | | The Department shall establish by rule and publish a |
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1 | | schedule of fines, the purpose of which shall be remedial and |
2 | | not punitive, that are reasonably tailored to ensure compliance |
3 | | with the provisions of this Act. Such rules shall set forth the |
4 | | standards and procedures to be used in imposing any such fines. |
5 | | No revocation, suspension, or surrender of any license |
6 | | shall impair or affect the obligation of any pre-existing |
7 | | lawful contract between the licensee and any obligor. |
8 | | The Secretary may issue a new license to a licensee whose |
9 | | license has been revoked when facts or conditions which clearly |
10 | | would have warranted the Secretary in refusing originally to |
11 | | issue the license no longer exist. |
12 | | In every case in which a license is suspended or revoked or |
13 | | an application for a license or renewal of a license is denied, |
14 | | the Secretary shall serve the licensee with notice of his or |
15 | | her action, including a statement of the reasons for his or her |
16 | | actions, either personally, or by certified mail, return |
17 | | receipt requested. Service by certified mail shall be deemed |
18 | | completed when the notice is deposited in the U.S. Mail. |
19 | | An order assessing a fine, an order revoking or suspending |
20 | | a license, or an order denying renewal of a license shall take |
21 | | effect upon service of the order unless the licensee requests a |
22 | | hearing, in writing, within 10 days after the date of service. |
23 | | In the event a hearing is requested, the order shall be stayed |
24 | | until a final administrative order is entered. |
25 | | If the licensee requests a hearing, the Secretary shall |
26 | | schedule a hearing within 30 days after the request for a |
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1 | | hearing unless otherwise agreed to by the parties. |
2 | | The hearing shall be held at the time and place designated |
3 | | by the Secretary. The Secretary and any administrative law |
4 | | judge designated by him or her shall have the power to |
5 | | administer oaths and affirmations, subpoena witnesses and |
6 | | compel their attendance, take evidence, and require the |
7 | | production of books, papers, correspondence, and other records |
8 | | or information that he or she considers relevant or material to |
9 | | the inquiry. |
10 | | (g) The costs of administrative hearings conducted |
11 | | pursuant to this Section shall be paid by the licensee.
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12 | | (h) Notwithstanding any other provision of this Section, if |
13 | | a lender who does not have a license issued under this Act |
14 | | makes a loan pursuant to this Act to an Illinois consumer, then |
15 | | the loan shall be null and void and the lender who made the |
16 | | loan shall have no right to collect, receive, or retain any |
17 | | principal, interest, or charges related to the loan. |
18 | | (Source: P.A. 97-1039, eff. 1-1-13.)
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19 | | Section 10. The Consumer Installment Loan Act is amended by |
20 | | changing Section 9 as follows:
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21 | | (205 ILCS 670/9) (from Ch. 17, par. 5409)
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22 | | Sec. 9. Fines, Suspension or Revocation of license.
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23 | | (a) The Director may, after 10 days notice by registered |
24 | | mail to the
licensee at the address set forth in the license, |
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1 | | stating the contemplated
action and in general the grounds |
2 | | therefor, fine such licensee an
amount not exceeding $10,000 |
3 | | per violation, or revoke or suspend any
license issued |
4 | | hereunder if he or she finds that:
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5 | | (1) The licensee has failed to comply with any |
6 | | provision of this Act or
any order, decision, finding, |
7 | | rule, regulation or direction of the
Director lawfully made |
8 | | pursuant to the authority of this Act; or
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9 | | (2) Any fact or condition exists which, if it had |
10 | | existed at the time of
the original application for the |
11 | | license, clearly would have warranted the
Director in |
12 | | refusing to issue the license.
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13 | | (b) The Director may fine, suspend, or revoke only the |
14 | | particular
license with respect to which grounds for the fine, |
15 | | revocation or
suspension occur or exist, but if the Director |
16 | | shall find that grounds for
revocation are of general |
17 | | application to all offices or to more than one
office of the |
18 | | licensee, the Director shall fine, suspend, or revoke every
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19 | | license to which such grounds apply.
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20 | | (c) (Blank).
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21 | | (d) No revocation, suspension, or surrender of any license |
22 | | shall
impair or affect the obligation of any pre-existing |
23 | | lawful contract between
the licensee and any obligor.
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24 | | (e) The Director may issue a new license to a licensee |
25 | | whose license
has been revoked when facts or conditions which |
26 | | clearly would have warranted
the Director in refusing |
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1 | | originally to issue the license no longer exist.
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2 | | (f) (Blank).
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3 | | (g) In every case in which a license is suspended or |
4 | | revoked or an
application for a license or renewal of a license |
5 | | is denied, the Director shall
serve the licensee with notice of |
6 | | his or her action, including a statement of
the reasons for his |
7 | | or her actions, either personally, or by certified mail,
return |
8 | | receipt requested. Service by certified mail shall be deemed |
9 | | completed
when the notice is deposited in the U.S. Mail.
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10 | | (h) An order assessing a fine, an order revoking or |
11 | | suspending a license or,
an order denying renewal of a license |
12 | | shall take effect upon service of the
order unless the licensee |
13 | | requests, in writing, within 10 days after the date
of service, |
14 | | a hearing. In the event a hearing is requested, the order shall |
15 | | be
stayed until a final administrative order is entered.
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16 | | (i) If the licensee requests a hearing, the Director shall |
17 | | schedule a
hearing within 30 days after the request for a |
18 | | hearing unless otherwise agreed
to by the parties.
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19 | | (j) The hearing shall be held at the time and place |
20 | | designated by the
Director. The Director and any administrative |
21 | | law judge designated by him or
her shall have the power to |
22 | | administer oaths and affirmations, subpoena
witnesses
and |
23 | | compel their attendance, take evidence, and require the |
24 | | production of
books, papers, correspondence, and other records |
25 | | or information that he or she
considers relevant or material to |
26 | | the inquiry.
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1 | | (k) The costs for the administrative hearing shall be set |
2 | | by rule.
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3 | | (l) The Director shall have the authority to prescribe |
4 | | rules for the
administration of this Section.
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5 | | (m) The Department shall establish by rule and publish a |
6 | | schedule of fines, the purpose of which shall be remedial and |
7 | | not punitive, that are reasonably tailored to ensure compliance |
8 | | with the provisions of this Act. Such rules shall set forth the |
9 | | standards and procedures to be used in imposing any such fines. |
10 | | (Source: P.A. 90-437, eff. 1-1-98.)
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