IllinoisHB5290104th General Assembly (2025–2026)HouseWALLET

SALES FINANCE AGENCY-VARIOUS

Sponsored By: Sponsor information unavailable

Became Law

Summary

Amends the Sales Finance Agency Act. Makes changes to defined terms. Provides that applicants for a license shall apply in a form prescribed by the Secretary of Financial and Professional Regulation. Prohibits any person, partnership, association, corporation, limited liability company, or other entity engaged in a business regulated by the Act from operating the business under a name other than the real names of the entity and individuals conducting the business. Grants the Secretary authority to issue a license upon completion of the specified filing and investigatory requirements. Sets forth further licensing requirements. Provides that all moneys received by the Secretary under the Act in conjunction with the provisions relating to sales finance agencies shall be paid into the Financial Institution Fund. Prohibits a sales finance agency from aiding or seeking to aid any person in the violation of the Retail Installment Sales Act or the Motor Vehicle Retail Installment Sales Act. Grants additional investigatory, disciplinary, and examination authority to the Secretary. Establishes rulemaking provisions. Grants the Department authority to adopt rules to provide for review within the Department of the Secretary's decisions affecting the rights of persons or entities under the Act. Allows the Secretary to request a circuit court to assess a civil penalty of up to $10,000 (rather than $1,000) for violations of the Act. Repeals various provisions of the Act. Makes other changes. Effective immediately.

financial institutions and licensingassignments

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 3 costs, 2 mixed.

Licenses now need capital, bonds, fees

To get or keep a license, you must keep at least $30,000 in net worth. You must also post and maintain a $50,000 surety bond, and the Secretary can require more. Fees include $1,000 to apply, $800 for the background check, and $300 each year to renew. Branch licenses cost $100 to open and $100 to renew. Exams are billed at $1,200 per examiner day, and you pay out‑of‑state travel and a share of admin costs. Licenses renew yearly; file 60 to 30 days before expiration or the license goes inactive.

Harsher fines, lower court penalties

The Secretary can suspend or revoke licenses, order restitution, and fine up to $25,000 per violation, or up to $75,000 for certain serious violations. Emergency suspensions can last up to 180 days. Licensees pay hearing costs. In court cases, the maximum civil penalty is now $1,000 per violation, down from $10,000. The Secretary may still seek costs and attorney fees.

Stronger protections on financed purchases

Sales finance agencies cannot buy contracts that break Illinois retail‑installment laws or buy motor‑vehicle contracts from unlicensed sellers. Financing for dogs and cats is banned. Any such new loans are void, and agencies cannot collect principal, interest, or fees. People can sue for violations of this law. Courts may award attorney fees and costs to the person who wins.

Banks and securitizations are exempt

Banks, credit unions, and similar depository institutions are not covered by this law. Purchasers in securitizations are exempt if a licensed agency keeps servicing and records. Special purpose vehicles run by a bank for securitizations are also exempt.

Stricter licensing rules and checks

The law tightens licensing checks. You must list judgments and bankruptcies from the last 10 years and provide an audited balance sheet. The Secretary can use NMLS and obtain independent credit reports and civil, criminal, and administrative history. Your application must promise to report changes within 30 days and any judgment or bankruptcy within 5 days. You must show your license at each physical and digital location, and use your legal name or a properly registered assumed name. The Secretary may refuse or not renew if you are not compliant, continue a violator, or lack fitness. You cannot sue to collect pay for work that required a license unless you held a valid license the whole time.

Stronger exams and enforcement powers

The Secretary can examine you as often as needed. You must open your books and offices and you pay exam expenses. Keep transaction records for at least 2 years; offsite storage or third‑party servicing needs approval. Before closing or filing bankruptcy, give 10 days’ written notice, surrender your license (except in bankruptcy), and provide a plan to return customer titles and contracts. The Secretary can subpoena records and seek court orders to stop ads, freeze assets, or require bonds. The Secretary can issue cease‑and‑desist orders before a hearing. You can request a hearing within 15 days; the Department should schedule it within 30 days.

Stronger privacy for finance records

In hearings, a person’s financial information held by a licensee stays confidential. It is released only in the court review record or with the person’s written consent. Documents you submit to NMLS stay privileged and confidential. They are not public or usable in private lawsuits unless you waive the privilege. Regulators may share them under confidentiality agreements.

Department fund, rules, and appeals

All money the Department collects under this law goes to the Financial Institution Fund. Program costs are paid from that fund. The Department can make consumer‑protection rules and must send them to licensees. It must also offer an internal review with an independent hearing officer and deadlines, and final decisions can go to court. The law repeals many old sections and replaces them with this updated structure.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Laura Ellman

    Affiliation unavailable

  • Margaret Croke

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 121 • No: 62

Senate vote 5/14/2026

Third Reading - Passed;

Yes: 36 • No: 19

House vote 4/9/2026

Third Reading - Short Debate - Passed

Yes: 70 • No: 36

House vote 3/24/2026

House Floor Amendment No. 1 Recommends Be Adopted Financial Institutions and Licensing Committee;

Yes: 8 • No: 4

House vote 3/18/2026

Do Pass / Short Debate Financial Institutions and Licensing Committee;

Yes: 7 • No: 3

Actions Timeline

  1. Public Act . . . . . . . . . 104-0516

    6/26/2026House
  2. Effective Date June 26, 2026

    6/26/2026House
  3. Governor Approved

    6/26/2026House
  4. Sent to the Governor

    6/12/2026House
  5. Passed Both Houses

    5/14/2026House
  6. Third Reading - Passed; 036-019-000

    5/14/2026Senate
  7. Placed on Calendar Order of 3rd Reading May 5, 2026

    4/30/2026Senate
  8. Second Reading

    4/30/2026Senate
  9. Placed on Calendar Order of 2nd Reading April 28, 2026

    4/22/2026Senate
  10. Approved for Consideration Assignments

    4/22/2026Senate
  11. Referred to Assignments

    4/10/2026Senate
  12. First Reading

    4/10/2026Senate
  13. Chief Senate Sponsor Sen. Laura Ellman

    4/10/2026Senate
  14. Placed on Calendar Order of First Reading

    4/10/2026Senate
  15. Arrive in Senate

    4/10/2026Senate
  16. Third Reading - Short Debate - Passed 070-036-000

    4/9/2026House
  17. Placed on Calendar Order of 3rd Reading - Short Debate

    4/7/2026House
  18. Second Reading - Short Debate

    4/7/2026House
  19. House Floor Amendment No. 1 Adopted

    4/7/2026House
  20. House Floor Amendment No. 1 Recommends Be Adopted Financial Institutions and Licensing Committee; 008-004-000

    3/24/2026House
  21. House Floor Amendment No. 1 Rules Refers to Financial Institutions and Licensing Committee

    3/24/2026House
  22. House Floor Amendment No. 1 Referred to Rules Committee

    3/23/2026House
  23. House Floor Amendment No. 1 Filed with Clerk by Rep. Margaret Croke

    3/23/2026House
  24. Placed on Calendar 2nd Reading - Short Debate

    3/19/2026House
  25. Do Pass / Short Debate Financial Institutions and Licensing Committee; 007-003-000

    3/18/2026House

Bill Text

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