Chapter 815 — BUSINESS TRANSACTIONS

(815 ILCS 121/65) Sec. 65. License application process; investigation. (a) The Secretary may issue a license upon completion of all of the following: (1) the filing of an application for a license with the Secretary or the Nationwide Multistate Licensing System and Registry as re…

(815 ILCS 121/70) Sec. 70. License application form. (a) An application for a consumer legal funding company license must be made in accordance with Section 65 and, if applicable, in accordance with requirements of the Nationwide Multistate Licensing System and Registry. The appl…

(815 ILCS 121/75) Sec. 75. License application; Nationwide Multistate Licensing System and Registry. (a) Applicants for a license shall apply in a form prescribed by the Secretary. Each form shall contain content as set forth by rule, regulation, instruction, or procedure of the …

(815 ILCS 121/80) Sec. 80. Averments of applicant. Each application for license shall be accompanied by the following averments stating that the applicant: (1) will file with the Secretary or Nationwide Multistate Licensing System and Registry, as applicable, any report or report…

(815 ILCS 121/85) Sec. 85. Refusal to issue license. The Secretary may refuse to issue or renew a license if: (1) it is determined that the applicant is not in compliance with any provisions of this Act; (2) there is substantial continuity between the applicant and any violator o…

(815 ILCS 121/90) Sec. 90. Closing of business; surrender of license. At least 10 days before a licensee ceases operations, closes business, or files for bankruptcy: (1) The licensee shall notify the Department of its action in writing. (2) With the exception of filing for bankru…

(815 ILCS 121/905) Sec. 905. (Amendatory provisions; text omitted). (Source: P.A. 102-987, eff. 5-27-22; text omitted.)

(815 ILCS 121/910) Sec. 910. (Amendatory provisions; text omitted). (Source: P.A. 102-987, eff. 5-27-22; text omitted.)

(815 ILCS 121/95) Sec. 95. License renewal; fees. (a) Licenses shall be renewed every year using the common renewal date of the Nationwide Multistate Licensing System and Registry, as required by the Secretary. Properly completed renewal application forms and filing fees may be r…

(815 ILCS 121/999) Sec. 999. Effective date. This Act takes effect upon becoming law. (Source: P.A. 102-987, eff. 5-27-22.)

(815 ILCS 122/1-1) Sec. 1-1. Short title. This Act may be cited as the Payday Loan Reform Act. (Source: P.A. 94-13, eff. 12-6-05.)

(815 ILCS 122/1-10) Sec. 1-10. Definitions. As used in this Act: "Check" means a "negotiable instrument", as defined in Article 3 of the Uniform Commercial Code, that is drawn on a financial institution. "Commercially reasonable method of verification" or "certified database" mea…

(815 ILCS 122/1-15) Sec. 1-15. Applicability. (a) Except as otherwise provided in this Section, this Act applies to any lender that offers or makes a payday loan to a consumer in Illinois. (b) The provisions of this Act apply to any person or entity that seeks to evade its applic…

(815 ILCS 122/1-5) Sec. 1-5. Purpose and construction. The purpose of this Act is to protect consumers who enter into payday loans and to regulate the lenders of payday loans. This Act shall be construed as a consumer protection law for all purposes. This Act shall be liberally c…

(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 incurre…

(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 effec…

(815 ILCS 122/2-17) Sec. 2-17. Consumer reporting services qualification and bonding. (a) Each consumer reporting service shall have at all times a net worth of not less than $1,000,000 calculated in accordance with generally accepted accounting principles. (b) Each application f…

(815 ILCS 122/2-20) Sec. 2-20. Required disclosures. (a) Before a payday loan is made, a lender shall deliver to the consumer a pamphlet prepared by the Secretary that: (1) explains, in simple English and Spanish, all of the consumer's rights and responsibilities in a payday loan…

(815 ILCS 122/2-25) Sec. 2-25. Right to cancel future payment obligations. A consumer may cancel future payment obligations on a payday loan, without cost or finance charges, no later than the end of the second business day immediately following the day on which the payday loan a…

(815 ILCS 122/2-30) Sec. 2-30. Rollovers prohibited. Rollover of a payday loan by any lender is prohibited. This Section does not prohibit entering into a repayment plan, as provided under Section 2-40. (Source: P.A. 101-658, eff. 3-23-21.)

(815 ILCS 122/2-35) Sec. 2-35. Proceeds and payments. (a) A lender may issue the proceeds of a loan in the form of a check drawn on the lender's bank account, in cash, by money order, by debit card, or by electronic funds transfer. When the proceeds are issued in the form of a ch…

(815 ILCS 122/2-40) Sec. 2-40. Repayment plan. (a) At the time a payday loan is made, the lender must provide the consumer with a separate written notice signed by the consumer of the consumer's right to request a repayment plan. The written notice must comply with the requiremen…

(815 ILCS 122/2-45) Sec. 2-45. Default. (a) No legal proceeding of any kind, including, but not limited to, a lawsuit or arbitration, may be filed or initiated against a consumer to collect on a payday loan until 28 days after the default date of the loan, or, in the case of a pa…

(815 ILCS 122/2-5) Sec. 2-5. Loan terms. (a) Without affecting the right of a consumer to prepay at any time without cost or penalty, no payday loan may have a minimum term of less than 13 days. (b) No payday loan may be made to a consumer if the loan would result in the consumer…

(815 ILCS 122/2-50) Sec. 2-50. Practices concerning members of the military. (a) A lender may not garnish the wages or salaries of a consumer who is a member of the military. (b) In addition to any rights and obligations provided under the federal Servicemembers Civil Relief Act,…

(815 ILCS 122/2-51) Sec. 2-51. Violation of Federal law constitutes a violation of this Act with respect to practices concerning members of the military and their dependents. Notwithstanding any other provision of law, a violation of any provision of Section 670 of the John Warne…

(815 ILCS 122/2-55) Sec. 2-55. Information, reporting, and examination. (a) A licensee shall keep and use books, accounts, and records that will enable the Secretary to determine if the licensee is complying with the provisions of this Act and maintain any other records as requir…

(815 ILCS 122/2-60) Sec. 2-60. Advertising. (a) Advertising for loans transacted under this Act may not be false, misleading, or deceptive. Payday loan advertising, if it states a rate or amount of charge for a loan, must state the rate as an annual percentage rate. No licensee m…

(815 ILCS 122/2-7) Sec. 2-7. Wage assignments. Any payday loan that is a transaction in which the lender accepts a wage assignment must meet the requirements of this Act, the requirements of the Illinois Wage Assignment Act, and the requirements of 16 C.F.R. 444.2(a)(3)(i)(2003, …

(815 ILCS 122/3-10) Sec. 3-10. Closing of business; surrender of license. At least 10 days before a licensee ceases operations, closes the business, or files for bankruptcy, the licensee shall: (1) Notify the Department of its intended action in writing. (2) With the exception of…

(815 ILCS 122/3-3) Sec. 3-3. Licensure requirement. (a) Except as provided in subsection (b), on and after the effective date of this Act, a person or entity acting as a payday lender must be licensed by the Department as provided in this Article. (b) A person or entity acting as…

(815 ILCS 122/3-5) Sec. 3-5. Licensure. (a) A license to make a payday loan shall state the address, including city and state, at which the business is to be conducted and shall state fully the name of the licensee. The license shall be conspicuously posted in the place of busine…

(815 ILCS 122/4-10) Sec. 4-10. Enforcement and remedies. (a) The remedies provided in this Act are cumulative and apply to persons or entities subject to this Act. (b) Any material violation of this Act, including the commission of an act prohibited under Section 4-5, constitutes…

(815 ILCS 122/4-15) Sec. 4-15. Bonding. (a) A person or entity engaged in making payday loans under this Act shall post a bond to the Department in the amount of $50,000 for each location where loans will be made, up to a maximum bond amount of $500,000. (b) A bond posted under s…

(815 ILCS 122/4-20) Sec. 4-20. Preemption of administrative rules. Any administrative rule promulgated prior to the effective date of this Act by the Department regarding payday loans is preempted. (Source: P.A. 94-13, eff. 12-6-05.)

(815 ILCS 122/4-25) Sec. 4-25. Reporting of violations. The Department shall report to the Attorney General all material violations of this Act of which it becomes aware. (Source: P.A. 94-13, eff. 12-6-05.)

(815 ILCS 122/4-30) Sec. 4-30. Rulemaking; industry review. (a) The Department may make and enforce such reasonable rules, regulations, directions, orders, decisions, and findings as the execution and enforcement of the provisions of this Act require, and as are not inconsistent …

(815 ILCS 122/4-35) Sec. 4-35. Judicial review. All final administrative decisions of the Department under this Act are subject to judicial review pursuant to the provisions of the Administrative Review Law and any rules adopted pursuant thereto. (Source: P.A. 94-13, eff. 12-6-05…

(815 ILCS 122/4-40) Sec. 4-40. No waivers. There shall be no waiver of any provision of this Act. (Source: P.A. 94-13, eff. 12-6-05.)

(815 ILCS 122/4-45) Sec. 4-45. Superiority of Act. To the extent this Act conflicts with any other State financial regulation laws, this Act is superior and supersedes those laws for the purposes of regulating payday loans in Illinois, provided that nothing herein shall apply to …

(815 ILCS 122/4-5) Sec. 4-5. Prohibited acts. A licensee or unlicensed person or entity making payday loans may not commit, or have committed on behalf of the licensee or unlicensed person or entity, any of the following acts: (1) Threatening to use or using the criminal process …

(815 ILCS 122/4-50) Sec. 4-50. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes. (Source: P.A. 94-13, eff. 12-6-05.)

(815 ILCS 122/99) Sec. 99. (Renumbered). (Source: Renumbered by P.A. 95-331, eff. 8-21-07.)

(815 ILCS 122/99-99) (was 815 ILCS 122/99) Sec. 99-99. Effective date. This Act takes effect 180 days after becoming law. (Source: P.A. 94-13, eff. 12-6-05; 95-331, eff. 8-21-07.)

(815 ILCS 123/15-1-1) Sec. 15-1-1. Short title. This Article may be cited as the Predatory Loan Prevention Act. References in this Article to "this Act" mean this Article. (Source: P.A. 101-658, eff. 3-23-21; 102-687, eff. 12-17-21.)

(815 ILCS 123/15-1-10) Sec. 15-1-10. Definitions. As used in this Act: "Consumer" means any natural person, including consumers acting jointly. "Department" means the Department of Financial and Professional Regulation. "Lender" means any person or entity, including any affiliate…

(815 ILCS 123/15-1-15) Sec. 15-1-15. Applicability. (a) Except as otherwise provided in this Section, this Act applies to any person or entity that offers or makes a loan to a consumer in Illinois. (b) The provisions of this Act apply to any person or entity that seeks to evade i…

(815 ILCS 123/15-1-5) 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…

(815 ILCS 123/15-10-10) Sec. 15-10-10. Preemption of administrative rules. Any administrative rule regarding loans that is adopted by the Department prior to the effective date of this Act and that is inconsistent with the provisions of this Act is hereby preempted to the extent …

(815 ILCS 123/15-10-15) Sec. 15-10-15. Reporting of violations. The Department shall report to the Attorney General all material violations of this Act of which it becomes aware. (Source: P.A. 101-658, eff. 3-23-21.)