Bill
SB 1512
Illinois SB 1512 creates a statewide Consumer Financial Protection Law to regulate and supervise more financial products and services, expanding DFPR authority and protections for
Status and timeline
- Introduced: February 4, 2025 (Sen. Mark L. Walker listed as the Illinois introducer).
- Effective date (as written): January 1, 2026.
- Note: The SB 1512 designation appears for different measures in other states (Arizona, Hawaii, Florida) in the provided materials; this summary addresses the Illinois “Consumer Financial Protection Law” text included in the packet.
Purpose
SB 1512 creates a comprehensive state-level consumer financial protection framework intended to expand oversight of financial products and services offered to Illinois residents, strengthen consumer protections, and provide enforcement tools and funding to regulate a broad array of financial actors not otherwise fully supervised.
Key provisions and changes
- Establishes the “Consumer Financial Protection Law” (new statutory framework) and defines key terms (consumer; financial product or service; regulated person; service provider; covered employee; etc.).
- Creates a Financial Protection Fund to support implementation, enforcement, examinations, and consumer relief activities. The bill authorizes collection and use of fees, penalties, repayments, and appropriations in that fund.
- Expands the authority, powers, and duties of the Department of Financial and Professional Regulation (DFPR) and its Divisions (Division of Financial Institutions / Division of Banking), including registration, supervision, examination, and rulemaking authority over regulated persons and certain service providers. Renames/recodifies parts of existing financial regulatory law (e.g., renames Financial Institutions Code to Financial Institutions Act).
- Imposes registration/licensing or supervisory requirements on persons offering financial products or services to Illinois consumers (to the extent not preempted by federal law). Clarifies when affiliates and service providers fall within scope.
- Establishes consumer protection, anti‑fraud, anti–money laundering, and cybersecurity expectations and reporting duties (detailed rules to be developed by the Department).
- Grants enforcement tools: administrative orders, consent orders, civil penalties, investigations, and procedures for hearings; addresses penalties (including perjury in certain filings), character/fitness standards for licensees, and court enforcement mechanisms.
- Makes conforming and technical changes across multiple existing statutes (e.g., Freedom of Information Act, State Finance Act, Currency Exchange Act, Sales Finance Agency Act, Debt Management Service Act, Consumer Installment Loan Act, Debt Settlement Consumer Protection Act), and adjusts related fees.
- Provides for transitional and administrative provisions and directs rulemaking authority to the Secretary/Department.
Who would be affected
- Financial firms and other entities offering financial products or services to Illinois consumers that are not already comprehensively regulated at the state or federal level (including certain loan and payment providers, service providers, and affiliates).
- Service providers that materially participate in product design, operation, or transaction processing for regulated persons.
- Consumers may gain expanded protections, disclosure requirements, and remedies.
- DFPR will require staffing, rulemaking, and administrative capacity to implement the new program.
Potential impacts and considerations
- Regulatory expansion likely increases compliance costs for covered firms (registration, examinations, cybersecurity, AML controls, recordkeeping).
- The Financial Protection Fund and fee/penalty structure aim to support program costs, but the bill may have fiscal implications for state administration and regulated entities.
- The scope of preemption relative to federal law and interaction with existing federal consumer finance rules will be important in practice; details will depend on rulemaking and enforcement choices.
- Many substantive details (definitions, covered activities, fee schedules, enforcement procedures) are left to department rules and implementing regulations.
Next steps
- Department rulemaking and guidance will be required to operationalize the law.
- Legislative or administrative clarifications may be forthcoming as stakeholders respond and the bill moves through the legislative process (committee hearings, amendments, final passage).
Compiled from official sources — confirm details with the bill’s official record.
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