Chapter 815 - Business Transactions - Tax refund Anticipation Loan Disclosure Act.

(815 ILCS 177/1)
Sec. 1. Short title. This Act may be cited as the Tax Refund Anticipation Loan Disclosure Act.
(Source: P.A. 92-664, eff. 1-1-03.)

    (815 ILCS 177/5)
    Sec. 5. Definitions. The following definitions apply in this Act:
    "Facilitator" means a person who individually or in conjunction or cooperation with another person makes a refund anticipation loan, processes, receives, or accepts for delivery an application for a refund anticipation loan, issues a check in payment of refund anticipation loan proceeds, or in any other manner acts to allow the making of a refund anticipation loan. "Facilitator" does not include a bank, savings and loan association, credit union, or licensee under the Consumer Installment Loan Act operating under the laws of theUnited Statesor this State and does not include any person who acts solely as an intermediary and does not deal with the public in the making of the refund anticipation loan.
    "Borrower" means a person who receives the proceeds of a refund anticipation loan.
    "Refund anticipation loan" means a loan arranged to be repaid directly from the proceeds of a borrower's income tax refunds.
    "Refund anticipation loan fee" means the charges, fees, or other consideration charged or imposed by the facilitator for the making of a refund anticipation loan. A "refund anticipation loan fee" does not include charges, fees, or other consideration charged or imposed in the ordinary course of business by a facilitator for services that do not result in the making of a loan, including fees for tax return preparation and fees for electronic filing of tax returns.
(Source: P.A. 92-664, eff. 1-1-03.)

    (815 ILCS 177/10)
    Sec. 10. Disclosure requirements. At the time a borrower applies for a refund anticipation loan, a facilitator shall disclose to the borrower on a document that is separate from the loan application:
        (1) the refund anticipation loan fee schedule;
        (1.5) the Annual Percentage Rate utilizing a 10-day

time period;

(2) the estimated fee for preparing and

electronically filing a tax return;

(2.5) the total cost to the borrower for utilizing a

refund anticipation loan;

(3) the estimated date that the loan proceeds will

be paid to the borrower if the loan is approved;

(4) that the borrower is responsible for repayment

of the loan and related fees in the event the tax refund is not paid or not paid in full; and

(5) the availability of electronic filing for the

incometax return of the borrower and the average time announced by the federal Internal Revenue Service within which the borrower can expect to receive a refund if the borrower's return is filed electronically and the borrower does not obtain a refund anticipation loan.

(Source: P.A. 92-664, eff. 1-1-03; 93-287, eff. 1-1-04.)

(815 ILCS 177/15)
Sec. 15. Penalty. Any person who violates this Act is guilty of a petty offense and shall be fined $500 for each offense. In addition, a facilitator who violates this Act shall be liable to any aggrieved borrower in an amount equal to 3 times the refund anticipation loan fee, plus a reasonable attorney's fee, in a civil action brought in the circuit court by the aggrieved borrower or by the Attorney General on behalf of the aggrieved borrower.
(Source: P.A. 92-664, eff. 1-1-03.)

(815 ILCS 177/99)
Sec. 99. Effective date. This Act takes effect onJanuary 1, 2003.
(Source: P.A. 92-664, eff. 1-1-03.)