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Financial Services Law Insights and Observations

Illinois adopts amendments to Consumer Installment Loan Act

Licensing State Issues Illinois State Regulators Consumer Finance Installment Loans

On April 22, the Office of the Illinois Secretary of State published in the Illinois Register a notice by the Department of Financial and Professional Regulation of adopted amendments to certain parts of its Consumer Installment Loan Act (CILA). Under the amendments, a licensee may obtain a license under the CILA for the exclusive purpose and use of making title secured loans. The amendments also require consumer installment lenders to provide a disclosure to consumers regarding the 36 percent annual percentage rate (APR) rate cap established by the Predatory Loan Prevention Act Annual Percentage Rate. These amendments eliminate small consumer loans and implement rules for reporting, to the state database, consumer installment loans. Additionally, the amendments include the implementation of a new definition and new rules for title-secured loans. The amendments are effective August 1.