Bill Text: IL SB2306 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: If and only if Senate Bill 1792 of the 101st General Assembly becomes law, amends the Predatory Loan Prevention Act. In provisions concerning the purpose and construction of the Predatory Loan Prevention Act, provides that the purpose of the Act is to protect consumers from predatory loans consistent with federal law and the federal Truth in Lending Act (rather than the Military Lending Act). In provisions concerning an annual percentage rate cap, provides that the annual percentage rate shall be calculated as such rate is calculated using the system for calculating the annual percentage rate under the federal Truth in Lending Act, and its implementing regulations under Regulation Z of the Code of Federal Regulations (rather than a military annual percentage rate). Effective immediately or on the date Senate Bill 1792 of the 101st General Assembly takes effect, whichever is later.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-02-26 - Referred to Assignments [SB2306 Detail]

Download: Illinois-2021-SB2306-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2306 Introduced 2/26/2021, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED:
10100SB1792enr., Sec. 15-1-5
10100SB1792enr., Sec. 15-5-5
If and only if Senate Bill 1792 of the 101st General Assembly becomes law, amends the Predatory Loan Prevention Act. In provisions concerning the purpose and construction of the Predatory Loan Prevention Act, provides that the purpose of the Act is to protect consumers from predatory loans consistent with federal law and the federal Truth in Lending Act (rather than the Military Lending Act). In provisions concerning an annual percentage rate cap, provides that the annual percentage rate shall be calculated as such rate is calculated using the system for calculating the annual percentage rate under the federal Truth in Lending Act, and its implementing regulations under Regulation Z of the Code of Federal Regulations (rather than a military annual percentage rate). Effective immediately or on the date Senate Bill 1792 of the 101st General Assembly takes effect, whichever is later.
LRB102 14802 BMS 20155 b
A BILL FOR
SB2306 LRB102 14802 BMS 20155 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. If and only if Senate Bill 1792 of the 101st
General Assembly becomes law, then the Predatory Loan
Prevention Act is amended by changing Sections 15-1-5 and
15-5-5 as follows:
(10100SB1792enr., Sec. 15-1-5)
Sec. 15-1-5. Purpose and construction. Illinois families
pay over $500,000,000 per year in consumer installment,
payday, and title loan fees. As reported by the Department in
2020, nearly half of Illinois payday loan borrowers earn less
than $30,000 per year, and the average annual percentage rate
of a payday loan is 297%. The purpose of this Act is to protect
consumers from predatory loans consistent with federal law and
the federal Truth in Lending Act, Military Lending Act which
protects consumers active duty members of the military. This
Act shall be construed as a consumer protection law for all
purposes. This Act shall be liberally construed to effectuate
its purpose.
(Source: 10100SB1792enr.)
(10100SB1792enr., Sec. 15-5-5)

SB2306 - 2 - LRB102 14802 BMS 20155 b
Sec. 15-5-5. Rate cap. Notwithstanding any other provision
of law, for loans made or renewed on and after the effective
date of this Act, a lender shall not contract for or receive
charges exceeding a 36% annual percentage rate on the unpaid
balance of the amount financed for a loan. For purposes of this
Section, the annual percentage rate shall be calculated as
such rate is calculated using the system for calculating the
annual percentage rate under the federal Truth in Lending Act,
15 U.S.C. 1601 et seq., and its implementing regulations under
Regulation Z, 12 CFR 1026.1 et seq., a military annual
percentage rate under Section 232.4 of Title 32 of the Code of
Federal Regulations as in effect on the effective date of this
Act. Nothing in this Act shall be construed to permit a person
or entity to contract for or receive a charge exceeding that
permitted by the Interest Act or other law.
(Source: 10100SB1792enr.)
Section 99. Effective date. This Act takes effect upon
becoming law or on the date Senate Bill 1792 of the 101st
General Assembly takes effect, whichever is later.