Illinois 2023-2024 Regular Session

Illinois House Bill HB0073 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HB0073 EngrossedLRB103 03589 SPS 48595 b HB0073 Engrossed LRB103 03589 SPS 48595 b
2		-	HB0073 Engrossed LRB103 03589 SPS 48595 b
	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0073 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED: 815 ILCS 120/1 from Ch. 17, par. 851 Amends the Illinois Fairness in Lending Act. Makes a technical change in a Section concerning the short title. LRB103 03589 SPS 48595 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0073 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED: 815 ILCS 120/1 from Ch. 17, par. 851 815 ILCS 120/1 from Ch. 17, par. 851 Amends the Illinois Fairness in Lending Act. Makes a technical change in a Section concerning the short title. LRB103 03589 SPS 48595 b LRB103 03589 SPS 48595 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0073 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED:
	3	+	815 ILCS 120/1 from Ch. 17, par. 851 815 ILCS 120/1 from Ch. 17, par. 851
	4	+	815 ILCS 120/1 from Ch. 17, par. 851
	5	+	Amends the Illinois Fairness in Lending Act. Makes a technical change in a Section concerning the short title.
	6	+	LRB103 03589 SPS 48595 b LRB103 03589 SPS 48595 b
	7	+	LRB103 03589 SPS 48595 b
	8	+	A BILL FOR
	9	+	HB0073LRB103 03589 SPS 48595 b HB0073 LRB103 03589 SPS 48595 b
	10	+	HB0073 LRB103 03589 SPS 48595 b
3	11		1 AN ACT concerning business.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6		-	4 Section 5. The Consumer Legal Funding Act is amended by
7		-	5 changing Sections 5 and 55 as follows:
8		-	6 (815 ILCS 121/5)
9		-	7 Sec. 5. Definitions.
10		-	8 "Advertise" means publishing or disseminating any written,
11		-	9 electronic, or printed communication, or any communication by
12		-	10 means of recorded telephone messages or transmitted on radio,
13		-	11 television, the Internet, or similar communications media,
14		-	12 including film strips, motion pictures, and videos, published,
15		-	13 disseminated, circulated, or placed before the public,
16		-	14 directly or indirectly, for the purpose of inducing a consumer
17		-	15 to enter into a consumer legal funding.
18		-	16 "Charges" means the fees, as set forth in Section 25, to be
19		-	17 paid to the consumer legal funding company by or on behalf of
20		-	18 the consumer above the funded amount provided by or on behalf
21		-	19 of the company to an Illinois consumer pursuant to this Act.
22		-	20 "Consumer" means a natural person who has a pending legal
23		-	21 claim and who resides or is domiciled in Illinois.
24		-	22 "Consumer legal funding" or "funding" means a nonrecourse
25		-	23 transaction in which a company purchases and a consumer
	14	+	4 Section 5. The Illinois Fairness in Lending Act is amended
	15	+	5 by changing Section 1 as follows:
	16	+	6 (815 ILCS 120/1) (from Ch. 17, par. 851)
	17	+	7 Sec. 1. This Act shall be known and and may be cited as the
	18	+	8 "Illinois Fairness in Lending Act".
	19	+	9 (Source: P.A. 81-1391.)
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34		-	1 transfers to the company an unvested, contingent future
35		-	2 interest in the potential net proceeds of a settlement or
36		-	3 judgment obtained from the consumer's legal claim; and in
37		-	4 which, if no proceeds are obtained from the consumer's legal
38		-	5 claim, the consumer is not required to repay the company the
39		-	6 consumer legal funding amount or charges.
40		-	7 "Consumer legal funding company" or "company" means a
41		-	8 person or entity that enters into, purchases, or services a
42		-	9 consumer legal funding transaction with an Illinois consumer.
43		-	10 "Consumer legal funding company" does not include:
44		-	11 (1) an immediate family member of the consumer;
45		-	12 (2) a bank, lender, financing entity, or other special
46		-	13 purpose entity:
47		-	14 (A) that provides financing to a consumer legal
48		-	15 funding company; or
49		-	16 (B) to which a consumer legal funding company
50		-	17 grants a security interest or transfers any rights or
51		-	18 interest in a consumer legal funding; or
52		-	19 (3) an attorney or accountant who provides services to
53		-	20 a consumer.
54		-	21 "Department" means the Department of Financial and
55		-	22 Professional Regulation.
56		-	23 "Funded amount" means the amount of moneys provided to, or
57		-	24 on behalf of, the consumer in the consumer legal funding.
58		-	25 "Funded amount" does not include charges except for charges
59		-	26 that are deducted from the funded amount.
	23	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0073 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED:
	24	+	815 ILCS 120/1 from Ch. 17, par. 851 815 ILCS 120/1 from Ch. 17, par. 851
	25	+	815 ILCS 120/1 from Ch. 17, par. 851
	26	+	Amends the Illinois Fairness in Lending Act. Makes a technical change in a Section concerning the short title.
	27	+	LRB103 03589 SPS 48595 b LRB103 03589 SPS 48595 b
	28	+	LRB103 03589 SPS 48595 b
	29	+	A BILL FOR
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	35	+	815 ILCS 120/1 from Ch. 17, par. 851
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70		-	1 "Funding date" means the date on which the funded amount
71		-	2 is transferred to the consumer by the consumer legal funding
72		-	3 company either by personal delivery; via wire, ACH, or other
73		-	4 electronic means; or mailed by insured, certified, or
74		-	5 registered United States mail.
75		-	6 "Immediate family member" means a parent; sibling; child
76		-	7 by blood, adoption, or marriage; spouse; grandparent; or
77		-	8 grandchild.
78		-	9 "Legal claim" means a bona fide civil claim or cause of
79		-	10 action.
80		-	11 "Resolution amount" means the funded amount plus the
81		-	12 agreed-upon charges that are delivered to the consumer legal
82		-	13 funding company on the resolution date.
83		-	14 "Resolution date" means the date the resolution amount is
84		-	15 delivered to the consumer legal funding company.
85		-	16 "Secretary" means the Secretary of Financial and
86		-	17 Professional Regulation or the Secretary's designee.
87		-	18 (Source: P.A. 102-987, eff. 5-27-22.)
88		-	19 (815 ILCS 121/55)
89		-	20 Sec. 55. Consumer legal funding license scope.
90		-	21 (a) It shall be unlawful for any person or entity to
91		-	22 operate as a consumer legal funding provider in this State
92		-	23 except as authorized by this Act and without first having
93		-	24 obtained a license in accordance with this Act. No person or
94		-	25 entity may engage in any device, subterfuge, or pretense to
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105		-	1 evade the requirements of this Act. However, any company that
106		-	2 has a license in good standing under the Consumer Installment
107		-	3 Loan Act on the effective date of this Act shall be entitled to
108		-	4 make consumer legal fundings under the terms of this Act upon
109		-	5 the effective date of this Act if that company files an
110		-	6 application for a consumer legal funding license within 60
111		-	7 days after the Department issues forms for the filing of that
112		-	8 application and until the Department approves or denies the
113		-	9 application for a funding license. Any consumer legal funding
114		-	10 contract made by any person or entity in violation of this
115		-	11 subsection shall be null and void and the person or entity who
116		-	12 entered into the consumer legal funding transaction shall have
117		-	13 no right to collect, attempt to collect, receive, or retain
118		-	14 any principal, interest, or charges related to the consumer
119		-	15 legal funding transaction.
120		-	16 (b) The provisions of this Act do not apply to a bank,
121		-	17 savings bank, savings association, or credit union organized
122		-	18 under the laws of this State, any other state, or under the
123		-	19 laws of the United States.
124		-	20 (b-1) The provisions of this Act do not apply to consumer
125		-	21 legal funding if (i) the amount of funding is greater than
126		-	22 $500,000 and (ii) the consumer does not use or intend to use
127		-	23 any of the proceeds for personal, family, or household
128		-	24 expenses.
129		-	25 (c) Any consumer legal funding made by a person not
130		-	26 licensed under this Act, including a person holding an
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141		-	1 inactive license, and not exempt under this Act shall be null
142		-	2 and void, and no person or entity shall have any right to
143		-	3 collect, attempt to collect, receive, or retain any principal,
144		-	4 fee, interest, or charges related to the funding.
145		-	5 (Source: P.A. 102-987, eff. 5-27-22.)
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	49	+	HB0073 LRB103 03589 SPS 48595 b