www.illinois.gov

Pat Quinn, Governor

State Links Skip to Content Skip to State Links

 Government
 Business
 Employment
 Education
 Health & Safety
 Family & Home
 Travel & Recreation
 About Illinois
 Illinois.gov

Stay Informed

Your Government


Illinois Flag Honors

Inspector General


 IGNN: State/All Press Release

ILLINOIS NEWS
The State of Illinois News page provides access to the Illinois Government News Network and all state press releases.


FOR IMMEDIATE RELEASE
September 3, 2009

State Regulators Find Mixed Compliance with New Title Loan Rules
Eight companies fined more than $38,000 for serious violations found during last month’s compliance sweep

CHICAGO – A report released today by the Illinois Department of Financial and Professional Regulation found that most of the almost 1,000 random title loan files reviewed in a late July compliance sweep had no exceptions and were without problems.  Loan documents for 106 borrowers were found to have violations, most pertaining to the new consumer protection rules that took effect in April.  Disciplinary orders have been issued on those violations and lenders have been given 10 days to accept the findings and pay the fines or dispute the findings and seek an administrative hearing.

“Generally we are pleased that the vast majority of loans inspected last month met the stringent consumer protection rules adopted in April.  Unfortunately, some lenders have not changed their lending practices to accommodate the new protections or have failed to train their staff to understand their responsibilities,” said Brent Adams, Acting Secretary of Financial and Professional Regulation.  “We will continue to monitor the lenders with multiple violations.”

Examiners found 205 violations at eight of nine companies visited during the sweep.  All but one company had at least one ‘exception’ or problem loan file.  More than 85 percent of the violations were the result of not meeting the requirements of new consumer protections that took effect in April 2009.  

The violations included: failing to provide customers with information about debt management assistance, not obtaining borrowers’ most recent income statements to make sure the loan would be affordable, making a loan with payments that exceed the limits established in the new rule,  processing a new loan too quickly after a previous loan had been paid off, and finally, repossessing the car of a borrower without providing advance notice for the borrower to make arrangements to empty the vehicle of  personal items or surrender it voluntarily. 

A summary of the findings of the July 30-31 compliance sweep and copies of each order are available at IDFPR.com.



###

News Categories

 State/All
 Governor's Office
 Lt. Governor's Office
 Agriculture
 Budget/Fiscal
 Business
 Children/Families
 Culture
 Disabilities
 Economic Development
 Education
 Environment
 Flag Honors
 Health/Human Services
 History
 Infrastructure
 Opportunity Returns
 Recovery
 Safety/Security
 Technology
 Tourism/Recreation
 Transportation
 Workforce/Jobs

News Resources

 Search the News
 IIS Radio News
 RSS News Feeds
 e-News Subscriptions
 Communications Office
 Privacy Statement

Features

Sign up for an e-news subscription
Copyright © 2014 State of Illinois Site Map | Illinois Privacy Info | Kids Privacy | Web Accessibility | Contact Us