Bill > SB3480

This bill establishes the Payday Advance Consumer Protection Act, requiring any entity providing "payday advance services" – which includes advancing funds to consumers based on their earned but unpaid income, collecting fees and payments, and attempting to collect from employers or other entities obligated to pay the consumer – to be licensed by the Division of Financial Institutions of the Department of Financial and Professional Regulation. The Act sets forth detailed requirements for obtaining and renewing licenses, grounds for disciplinary actions like license revocation, and administrative procedures, and mandates that all payday advance providers comply with specific consumer protections, such as limits on the amount advanced (no more than 50% of expected earned but unpaid income), that advances must be non-recourse (meaning the provider cannot sue the consumer if they fail to collect), and prohibitions on certain collection practices and fees. Violating this Act is considered an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act, and the bill will take effect on July 1, 2027.

https://www.ilga.gov/Legislation/BillStatus?DocNum=3480&GAID=18&DocTypeID=SB&SessionID=114&GA=104