(205 ILCS 670/17.2)
Sec. 17.2. Small consumer loans; charges permitted.
(a) With respect to a small consumer loan of $1,500 or less:
(1) A licensee may charge, contract for and receive
interest at an annual percentage rate of no more than 99% calculated in accordance with the federal Truth in Lending Act.
(2) A licensee may charge an acquisition charge not
to exceed 10% of the amount financed. The acquisition charge is in lieu of the fee permitted under Section 15d(5) and is fully earned at the time the loan is made and shall not be subject to refund.
(b) With respect to a small consumer loan over $1,500:
(1) A licensee may charge the following finance
charges:
(A) an acquisition charge for making the original
loan, not to exceed $100; for purposes of this subsection (b), "original loan" means a loan in which none of the proceeds are used by the licensee to pay off the outstanding balance of another small consumer loan made to the same consumer by the same licensee or any employee or affiliate of the licensee;
(B) an acquisition charge for the first time that
an original loan is refinanced, not to exceed $50;
(C) an acquisition charge for any subsequent
refinancing not to exceed $25; for purposes of this subsection (b), "refinancing" occurs when an existing small consumer loan is satisfied and replaced by a new small consumer loan made to the same consumer by the same licensee or any employee or affiliate of the licensee; and
(D) a monthly installment account handling
charge, not to exceed the following amounts:
Amount financed Per month charge
$1,500.01 - $1,600 $69
$1,600.01 - $1,700 $72
$1,700.01 - $1,800 $75
$1,800.01 - $1,900 $78
$1,900.01 - $2,000 $81
$2,000.01 - $2,100 $84
$2,100.01 - $2,200 $87
$2,200.01 - $2,300 $90
$2,300.01 - $2,400 $92
$2,400.01 - $2,500 $94
$2,500.01 - $2,600 $96
$2,600.01 - $2,700 $98
$2,700.01 - $2,800 $100
$2,800.01 - $2,900 $102
$2,900.01 - $3,000 $104
$3,000.01 - $3,100 $106
$3,100.01 - $3,200$108
$3,200.01 - $3,300$110
$3,300.01 - $3,400$112
$3,400.01 - $3,500$114
$3,500.01 - $3,600$116
$3,600.01 - $3,700$118
$3,700.01 - $3,800$120
$3,800.01 - $3,900$122
$3,900.01 - $4,000$124
(2) The acquisition charge is in lieu of the fee
permitted under Section 15d(5) and is fully earned at the time the loan is made and shall not be subject to refund; except that, if the loan is paid in full within the first 60 days of the loan term, the first $25 of the acquisition charge may be retained by the licensee and the remainder of the acquisition charge shall be refunded at a rate of one-sixtieth of the remainder of the acquisition charge per day, beginning on the day after the date of the prepayment and ending on the sixtieth day after the loan was made.
(3) In no event shall the annual percentage rate on
the loan transaction as calculated in accordance with the federal Truth in Lending Act exceed 99%.
(c) In addition to the charges permitted in subsections (a) and (b) of this Section, a licensee may charge a consumer a fee not to exceed $1 to cover the licensee's cost of submitting loan information into the consumer reporting service, as required under Section 17.5 of this Act. Only one such fee may be collected by the licensee with respect to a particular loan.
(d) When any loan contract is paid in full by cash, renewal, or refinancing, or a new loan, the licensee shall refund any unearned interest or unearned portion of the monthly installment account handling charge, whichever is applicable. The unearned interest or unearned portion of the monthly installment account handling charge that is refunded shall be calculated based on a method that is at least as favorable to the consumer as the actuarial method, as defined by the federal Truth in Lending Act. The sum of the digits or rule of 78ths method of calculating prepaid interest refunds is prohibited.
(e) The maximum acquisition charges that are expressed as flat dollar amounts under this Section shall be subject to an annual adjustment as of the first day of each year following the effective date of this amendatory Act of the 96th General Assembly equal to the percentage change in the Consumer Price Index compiled by the Bureau of Labor Statistics, United States Department of Labor, or, if that index is canceled or superseded, the index chosen by the Bureau of Labor Statistics as most accurately reflecting the changes in the purchasing power of the dollar for consumers, or, if no such index is chosen by the Bureau of Labor Statistics, the index chosen by the Department as most accurately reflecting the changes in the purchasing power of the dollar for consumers. The adjusted amounts shall take effect on July 1 of the year of the computations.
(Source: P.A. 96-936, eff. 3-21-11.)
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Last modified: February 18, 2015