Bill Text: IL HB4122 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Consumer Installment Loan Act. Prohibits a licensee from refinancing a small consumer loan during the first 70 days (now, 75 days) of the loan term.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [HB4122 Detail]

Download: Illinois-2011-HB4122-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB4122 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
205 ILCS 670/17.3
Amends the Consumer Installment Loan Act. Prohibits a licensee from refinancing a small consumer loan during the first 70 days (now, 75 days) of the loan term.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Installment Loan Act is amended by
changing Section 17.3 as follows:
(205 ILCS 670/17.3)
Sec. 17.3. Small consumer loans; terms.
(a) A small consumer loan shall be fully amortizing and be
repayable in its entirety in a minimum of 6 substantially equal
and consecutive payments with a period of not less than 180
days to maturity.
(b) No licensee, or employee or affiliate thereof, may
extend to or have open with a consumer more than one small
consumer loan at any time; provided, however, that loans
acquired by a licensee from another licensee are not included
within this prohibition.
(c) A licensee is prohibited from refinancing a small
consumer loan during the first 70 75 days of the loan term. For
purposes of this Act, a refinancing occurs when an existing
small consumer loan is satisfied and replaced by a new small
consumer loan made to the same consumer by the same licensee or
any employee or affiliate of the licensee.
(d) Except for the deferment charge permitted by item (5)

HB4122 - 2 - LRB097 18125 PJG 63349 b
of subsection (f) of Section 15, a licensee is prohibited from
collecting any fee, charge, or remuneration of any sort for
renewing, amending, or extending a small consumer loan beyond
its original term.
(e) Before entering into a small consumer loan agreement, a
licensee must provide to the consumer a pamphlet, prepared by
the Director, describing general information about consumer
credit and about the consumer's rights and responsibilities in
a small consumer loan transaction. Each small consumer loan
agreement executed by a licensee shall include a statement,
located just above the signature line for the consumer, and
shall provide as follows: "In addition to agreeing to the terms
of this agreement, I acknowledge, by my signature below,
receipt from (name of lender) a pamphlet regarding small
consumer loans.".
(f) Each small consumer loan agreement entered into between
a licensee and a consumer shall include a notification, in such
loan agreement, of a toll-free number furnished by the
Department of Financial and Professional Regulation, Division
of Financial Institutions that the consumer may contact for the
purpose of receiving information from the Division regarding
credit or assistance with credit problems.
(Source: P.A. 96-936, eff. 3-21-11.)