HB 1519

Abstract

Creates the Consumer Income Share Agreement Act. Provides that no person, partnership, association, limited liability company, or corporation may engage in the business of making income share agreements without a license provided under the Act. Sets forth provisions concerning applications for an income share agreement license, investigations, fees, suspension or revocation of licenses, closing of business, books and records, prohibitions and limitations of income share agreements, required disclosures, statements of account, advertising, penalties, and cease and desist orders. Provides that a person who engages in business as a licensee without the license required by the Act commits a Class 4 felony. Provides that the Department of Financial and Professional Regulation may adopt and enforce reasonable rules, directions, orders, decisions, and findings as the execution and enforcement of the provisions of the Act require and rules in connection with the activities of licensees that are necessary and appropriate for the protection of consumers in the State. Provides that if it appears to the Director that a person or any entity has committed or is about to commit a violation of the Act, a rule adopted under the Act, or an order of the Director, the Director may apply to the circuit court for an order enjoining the person or entity from the violation. Provides that the provisions of the Act are severable. Provides that income share agreements and licensees are subject to the Know Before You Owe Private Education Loan Act, the Student Loan Servicing Rights Act, and the Predatory Loan Prevention Act and shall comply with their requirements and any rules adopted by the Department of Financial and Professional Regulation pursuant to those Acts. Defines terms. Makes other changes. Effective immediately. House Floor Amendment No. 1 Deletes reference to: New Act Adds reference to: 110 ILCS 992/1-5 110 ILCS 992/Art. 7 heading new 110 ILCS 992/7-1 new 110 ILCS 992/7-5 new 110 ILCS 992/7-10 new 110 ILCS 992/7-15 new 110 ILCS 992/7-20 new 110 ILCS 992/7-25 new 110 ILCS 992/7-30 new 110 ILCS 992/7-35 new 110 ILCS 992/7-40 new 110 ILCS 992/7-45 new 110 ILCS 992/7-50 new 110 ILCS 992/7-55 new 110 ILCS 992/7-60 new 110 ILCS 992/7-65 new 110 ILCS 992/7-70 new 110 ILCS 992/7-75 new 110 ILCS 992/7-80 new 110 ILCS 992/7-85 new 110 ILCS 992/7-90 new 110 ILCS 992/7-95 new 110 ILCS 992/7-100 new 110 ILCS 992/7-105 new 110 ILCS 992/25-5 205 ILCS 670/1 from Ch. 17, par. 5401 815 ILCS 205/4 from Ch. 17, par. 6404 Replaces everything after the enacting clause. Amends the Student Loan Servicing Rights Act. Creates the Educational Income Share Agreements Article of the Student Loan Servicing Rights Act. Defines terms. Regarding income share agreements, sets forth provisions concerning monthly payment affordability, maximum effective annual percentage rate, Limits on duration of income share agreements, risk sharing, limits on covered income, fees permitted, restrictions on security interests, discharge of obligations, prohibitions on co-signers, limits on acceleration, assignment of wages, limitations on garnishment, use of multiple agreements, required disclosures, early completion of the agreement, assumption of increase in future income, receipts, adjustment of dollar amounts. Provides that the Attorney General may enforce a violation of the Educational Income Share Agreements Article of the Student Loan Servicing Rights Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Makes other changes. Amends the Consumer Installment Loan Act and the Interest Act to make conforming changes. Provides that the provisions of the amendatory Act are severable. Effective immediately. House Floor Amendment No. 2 Provides that income share agreement providers shall (instead of may) not attempt to accelerate or otherwise liquidate a future payment stream under an income share agreement.