Bill Text: IL HB4873 | 2017-2018 | 100th General Assembly | Chaptered

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Bill Title: Amends the Payday Loan Reform Act. Authorizes a lender to charge a borrower for the verification that the proposed loan agreement is permissible: a fee not to exceed $1 for a payday loan or a fee not to exceed $1 for each month that a balance is scheduled to be outstanding on an installment payday loan (rather than a fee not to exceed $1). Authorizes a certified consumer reporting service to charge the following verification fees upon a loan being made or entered into a certified database: a fee not to exceed $1 for a payday loan or a fee not to exceed $1 for each month that a balance is scheduled to be outstanding on an installment payday loan (rather than a fee not to exceed $1). Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2019-01-04 - Public Act . . . . . . . . . 100-1168 [HB4873 Detail]

Download: Illinois-2017-HB4873-Chaptered.html

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Public Act 100-1168
HB4873 Enrolled LRB100 18031 JLS 33219 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Payday Loan Reform Act is amended by
changing Sections 2-10 and 2-15 as follows:
(815 ILCS 122/2-10)
Sec. 2-10. Permitted fees.
(a) If there are insufficient funds to pay a check,
Automatic Clearing House (ACH) debit, or any other item
described in the definition of payday loan under Section 1-10
on the day of presentment and only after the lender has
incurred an expense, a lender may charge a fee not to exceed
$25. Only one such fee may be collected by the lender with
respect to a particular check, ACH debit, or item even if it
has been deposited and returned more than once. A lender shall
present the check, ACH debit, or other item described in the
definition of payday loan under Section 1-10 for payment not
more than twice. A fee charged under this subsection (a) is a
lender's exclusive charge for late payment.
(a-5) A lender may charge a borrower a fee not to exceed $1
for the verification required under Section 2-15 of this Act in
connection with a payday loan and, until July 1, 2020, in
connection with an installment payday loan. Beginning July 1,

2020, a lender may charge a borrower a fee not to exceed $3 for
the verification required under Section 2-15 of this Act in
connection with an installment payday loan. In no event may a
fee be greater than the amount charged by the certified
consumer reporting service. Only one such fee may be collected
by the lender with respect to a particular loan.
(b) Except for the finance charges described in Section 2-5
and as specifically allowed by this Section, a lender may not
impose on a consumer any additional finance charges, interest,
fees, or charges of any sort for any purpose.
(Source: P.A. 96-936, eff. 3-21-11.)
(815 ILCS 122/2-15)
Sec. 2-15. Verification.
(a) Before entering into a loan agreement with a consumer,
a lender must use a commercially reasonable method of
verification to verify that the proposed loan agreement is
permissible under this Act.
(b) Within 6 months after the effective date of this Act,
the Department shall certify that one or more consumer
reporting service databases are commercially reasonable
methods of verification. Upon certifying that a consumer
reporting service database is a commercially reasonable method
of verification, the Department shall:
(1) provide reasonable notice to all licensees
identifying the commercially reasonable methods of

verification that are available; and
(2) immediately upon certification, require each
licensee to use a commercially reasonable method of
verification as a means of complying with subsection (a) of
this Section.
(c) Except as otherwise provided in this Section, all
personally identifiable information regarding any consumer
obtained by way of the certified database and maintained by the
Department is strictly confidential and shall be exempt from
disclosure under Section 7(1)(b)(i) of the Freedom of
Information Act.
(d) Notwithstanding any other provision of law to the
contrary, a consumer seeking a payday loan may make a direct
inquiry to the consumer reporting service to request a more
detailed explanation of the basis for a consumer reporting
service's determination that the consumer is ineligible for a
new payday loan.
(e) In certifying a commercially reasonable method of
verification, the Department shall ensure that the certified
database:
(1) provides real-time access through an Internet
connection or, if real-time access through an Internet
connection becomes unavailable to lenders due to a consumer
reporting service's technical problems incurred by the
consumer reporting service, through alternative
verification mechanisms, including, but not limited to,

verification by telephone;
(2) is accessible to the Department and to licensees in
order to ensure compliance with this Act and in order to
provide any other information that the Department deems
necessary;
(3) requires licensees to input whatever information
is required by the Department;
(4) maintains a real-time copy of the required
reporting information that is available to the Department
at all times and is the property of the Department;
(5) provides licensees only with a statement that a
consumer is eligible or ineligible for a new payday loan
and a description of the reason for the determination; and
(6) contains safeguards to ensure that all information
contained in the database regarding consumers is kept
strictly confidential.
(f) The licensee shall update the certified database by
inputting all information required under item (3) of subsection
(e):
(1) on the same day that a payday loan is made;
(2) on the same day that a consumer elects a repayment
plan, as provided in Section 2-40; and
(3) on the same day that a consumer's payday loan is
paid in full, including the refinancing of an installment
payday loan as permitted under subsection (c) of Section
2-5.

(g) A licensee may rely on the information contained in the
certified database as accurate and is not subject to any
administrative penalty or liability as a result of relying on
inaccurate information contained in the database.
(h) The certified consumer reporting service shall
indemnify the licensee against all claims and actions arising
from illegal or willful or wanton acts on the part of the
certified consumer reporting service.
(i) The certified consumer reporting service may charge a
verification fee not to exceed $1 upon a loan being made or
entered into in the database. Beginning July 1, 2020, the
certified consumer reporting service may charge a verification
fee not to exceed $3 for an installment payday loan being made
or entered into the data base. The certified consumer reporting
service shall not charge any additional fees or charges.
(Source: P.A. 96-936, eff. 3-21-11.)