(815 ILCS 122/4‑5)
(Text of Section before amendment by P.A. 96‑936
)
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
| in this or any other state to collect on the loan. | |
(2) Using any device or agreement that would have the |
| effect of charging or collecting more fees or charges than allowed by this Act, including, but not limited to, entering into a different type of transaction with the consumer. | |
(3) Engaging in unfair, deceptive, or fraudulent |
| practices in the making or collecting of a payday loan. | |
(4) Using or attempting to use the check provided by |
| the consumer in a payday loan as collateral for a transaction not related to a payday loan. | |
(5) Knowingly accepting payment in whole or in part |
| of a payday loan through the proceeds of another payday loan provided by any licensee. | |
(6) Knowingly accepting any security, other than that |
| specified in the definition of payday loan in Section 1‑10, for a payday loan. | |
(7) Charging any fees or charges other than those |
| specifically authorized by this Act. | |
(8) Threatening to take any action against a consumer |
| that is prohibited by this Act or making any misleading or deceptive statements regarding the payday loan or any consequences thereof. | |
(9) Making a misrepresentation of a material fact by |
| an applicant for licensure in obtaining or attempting to obtain a license. | |
(10) Including any of the following provisions in |
| loan documents required by subsection (b) of Section 2‑20: | |
(A) a confession of judgment clause;
(B) a waiver of the right to a jury trial, if |
| applicable, in any action brought by or against a consumer, unless the waiver is included in an arbitration clause allowed under subparagraph (C) of this paragraph (11); | |
(C) a mandatory arbitration clause that is |
| oppressive, unfair, unconscionable, or substantially in derogation of the rights of consumers; or | |
(D) a provision in which the consumer agrees not |
| to assert any claim or defense arising out of the contract. | |
(11) Selling any insurance of any kind whether or not |
| sold in connection with the making or collecting of a payday loan. | |
(12) Taking any power of attorney.
(13) Taking any security interest in real estate.
(14) Collecting a delinquency or collection charge on |
| any installment regardless of the period in which it remains in default. | |
(15) Collecting treble damages on an amount owing |
|
(16) Refusing, or intentionally delaying or |
| inhibiting, the consumer's right to enter into a repayment plan pursuant to this Act. | |
(17) Charging for, or attempting to collect, |
| attorney's fees, court costs, or arbitration costs incurred in connection with the collection of a payday loan. | |
(18) Making a loan in violation of this Act.
(19) Garnishing the wages or salaries of a consumer |
| who is a member of the military. | |
(20) Failing to suspend or defer collection activity |
| against a consumer who is a member of the military and who has been deployed to a combat or combat‑support posting. | |
(21) Contacting the military chain of command of a |
| consumer who is a member of the military in an effort to collect on a payday loan. | |
(Source: P.A. 94‑13, eff. 12‑6‑05.)
(Text of Section after amendment by P.A. 96‑936 )
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 |
| in this or any other state to collect on the loan. | |
(2) Using any device or agreement that would have the |
| effect of charging or collecting more fees or charges than allowed by this Act, including, but not limited to, entering into a different type of transaction with the consumer. | |
(3) Engaging in unfair, deceptive, or fraudulent |
| practices in the making or collecting of a payday loan. | |
(4) Using or attempting to use the check provided by |
| the consumer in a payday loan as collateral for a transaction not related to a payday loan. | |
(5) Knowingly accepting payment in whole or in part |
| of a payday loan through the proceeds of another payday loan provided by any licensee, except as provided in subsection (c) of Section 2.5. | |
(6) Knowingly accepting any security, other than that |
| specified in the definition of payday loan in Section 1‑10, for a payday loan. | |
(7) Charging any fees or charges other than those |
| specifically authorized by this Act. | |
(8) Threatening to take any action against a consumer |
| that is prohibited by this Act or making any misleading or deceptive statements regarding the payday loan or any consequences thereof. | |
(9) Making a misrepresentation of a material fact by |
| an applicant for licensure in obtaining or attempting to obtain a license. | |
(10) Including any of the following provisions in |
| loan documents required by subsection (b) of Section 2‑20: | |
(A) a confession of judgment clause;
(B) a waiver of the right to a jury trial, if |
| applicable, in any action brought by or against a consumer, unless the waiver is included in an arbitration clause allowed under subparagraph (C) of this paragraph (11); | |
(C) a mandatory arbitration clause that is |
| oppressive, unfair, unconscionable, or substantially in derogation of the rights of consumers; or | |
(D) a provision in which the consumer agrees not |
| to assert any claim or defense arising out of the contract. | |
(11) Selling any insurance of any kind whether or not |
| sold in connection with the making or collecting of a payday loan. | |
(12) Taking any power of attorney.
(13) Taking any security interest in real estate.
(14) Collecting a delinquency or collection charge on |
| any installment regardless of the period in which it remains in default. | |
(15) Collecting treble damages on an amount owing |
|
(16) Refusing, or intentionally delaying or |
| inhibiting, the consumer's right to enter into a repayment plan pursuant to this Act. | |
(17) Charging for, or attempting to collect, |
| attorney's fees, court costs, or arbitration costs incurred in connection with the collection of a payday loan. | |
(18) Making a loan in violation of this Act.
(19) Garnishing the wages or salaries of a consumer |
| who is a member of the military. | |
(20) Failing to suspend or defer collection activity |
| against a consumer who is a member of the military and who has been deployed to a combat or combat‑support posting. | |
(21) Contacting the military chain of command of a |
| consumer who is a member of the military in an effort to collect on a payday loan. | |
(22) Making or offering to make any loan other than a |
| payday loan or a title‑secured loan, provided however, that to make or offer to make a title‑secured loan, a licensee must obtain a license under the Consumer Installment Loan Act. | |
(Source: P.A. 96‑936, eff. 3‑21‑11.) |
(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 a violation of the Consumer Fraud and Deceptive Business Practices Act.
(c) If any provision of the written agreement described in subsection (b) of Section 2‑20 violates this Act, then that provision is unenforceable against the consumer.
(d) Subject to the Illinois Administrative Procedure Act, the Secretary may hold hearings, make findings of fact, conclusions of law, issue cease and desist orders, have the power to issue fines of up to $10,000 per violation, refer the matter to the appropriate law enforcement agency for prosecution under this Act, and suspend or revoke a license granted under this Act. All proceedings shall be open to the public.
(e) The Secretary may issue a cease and desist order to any licensee or other person doing business without the required license, when in the opinion of the Secretary the licensee or other person is violating or is about to violate any provision of this Act or any rule or requirement imposed in writing by the Department as a condition of granting any authorization permitted by this Act. The cease and desist order permitted by this subsection (e) may be issued prior to a hearing.
The Secretary shall serve notice of his or her action, including, but not limited to, a statement of the reasons for the action, either personally or by certified mail, return receipt requested. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. Mail.
Within 10 days of service of the cease and desist order, the licensee or other person may request a hearing in writing. The Secretary shall schedule a hearing within 30 days after the request for a hearing unless otherwise agreed to by the parties.
If it is determined that the Secretary had the authority to issue the cease and desist order, he or she may issue such orders as may be reasonably necessary to correct, eliminate, or remedy the conduct.
The powers vested in the Secretary by this subsection (e) are additional to any and all other powers and remedies vested in the Secretary by law, and nothing in this subsection (e) shall be construed as requiring that the Secretary shall employ the power conferred in this subsection instead of or as a condition precedent to the exercise of any other power or remedy vested in the Secretary.
(f) The Secretary may, after 10 days notice by registered mail to the licensee at the address set forth in the license stating the contemplated action and in general the grounds therefore, fine the licensee an amount not exceeding $10,000 per violation, or revoke or suspend any license issued hereunder if he or she finds that:
(1) the
| licensee has failed to comply with any provision of this Act or any order, decision, finding, rule, regulation, or direction of the Secretary lawfully made pursuant to the authority of this Act; or | |
(2) any fact |
| or condition exists which, if it had existed at the time of the original application for the license, clearly would have warranted the Secretary in refusing to issue the license. | |
The Secretary may fine, suspend, or revoke only the |
| particular license with respect to which grounds for the fine, revocation, or suspension occur or exist, but if the Secretary finds that grounds for revocation are of general application to all offices or to more than one office of the licensee, the Secretary shall fine, suspend, or revoke every license to which the grounds apply. | |
No revocation, suspension, or surrender of any license |
| shall impair or affect the obligation of any pre‑existing lawful contract between the licensee and any obligor. | |
The Secretary may issue a new license to a licensee whose |
| license has been revoked when facts or conditions which clearly would have warranted the Secretary in refusing originally to issue the license no longer exist. | |
In every case in which a license is suspended or revoked |
| or an application for a license or renewal of a license is denied, the Secretary shall serve the licensee with notice of his or her action, including a statement of the reasons for his or her actions, either personally, or by certified mail, return receipt requested. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. Mail. | |
An order assessing a fine, an order revoking or |
| suspending a license, or an order denying renewal of a license shall take effect upon service of the order unless the licensee requests a hearing, in writing, within 10 days after the date of service. In the event a hearing is requested, the order shall be stayed until a final administrative order is entered. | |
If the licensee requests a hearing, the Secretary shall |
| schedule a hearing within 30 days after the request for a hearing unless otherwise agreed to by the parties. | |
The hearing shall be held at the time and place |
| designated by the Secretary. The Secretary and any administrative law judge designated by him or her shall have the power to administer oaths and affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of books, papers, correspondence, and other records or information that he or she considers relevant or material to the inquiry. | |
(g) The costs of administrative hearings conducted pursuant to this Section shall be paid by the licensee.
(Source: P.A. 94‑13, eff. 12‑6‑05.) |