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HB 3634

CONSUMER REPORTING SERVICE

104th Regular Session Introduced by Omar Williams

The bill creates a certified database for title-secured loans, requiring licensees to report each loan and limiting the licensee's database fees to a max of $1 per loan or 0.1% of

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3634

HB 3634 — Consumer Reporting Service (Illinois)

A concise overview of HB 3634, which amends the Consumer Installment Loan Act to regulate a “certified database” used for title-secured and related loans, including financial protections for licensees and cost provisions for database providers.

What the bill aims to do

  • Establish and govern a certified database used by licensees under the Consumer Installment Loan Act to report information on title-secured loans.
  • Clarify indemnification and cost terms between licensees and the certified database provider, aligning protections and fees with the statutory framework.

Key provisions and changes

  • Section amended: 205 ILCS 670/17.5 (Consumer reporting service)
    • Certified database defined in relation to the Payday Loan Reform Act.
    • Definition of “title-secured loan”: a loan where the borrower provides the vehicle title to the lender as security at loan origination.
    • Licensees’ obligations:
    • Enter information about each loan into the certified database.
    • Follow related Department rules, and for every title-secured loan, input information as required by 38 Ill. Adm. Code 110.420.
    • Certified database provider obligations:
    • Indemnify the licensee against all claims or actions arising from illegal, willful, or wanton acts by the certified database provider.
    • May charge the licensee a per-loan fee, but the fee must not exceed the lesser of $1 or 0.1% of the loan principal for each loan entered into the database.
    • May not impose any additional fees or charges on the licensee.
    • Effective date: immediate upon becoming law (no separate delayed effective date).

Who is affected

  • Primary affected entities: licensees under the Consumer Installment Loan Act that issue title-secured or related loans and use the certified database for reporting loan data.
  • Certified database providers: responsible for compliance with indemnification terms and allowable per-loan charges.
  • State regulators/Department: responsible for enforcing related reporting rules (consistent with existing 38 Ill. Adm. Code 110.420 and Payday Loan Reform Act provisions).

Procedural and timeline notes

  • Introduced: February 18, 2025 by Rep. Jawaharial Williams; formally filed March 3, 2025.
  • Legislative actions:
    • February 18, 2025: First reading; referred to Rules Committee.
    • March 11, 2025: Assigned to Judiciary – Civil Committee.
    • March 21, 2025: Rule 19(a) / Re-referred to Rules Committee.
    • April 14, 2025: Held in public hearing; testimony taken; left pending in committee.
  • Related legislation: Companion bill SB 1410.

Summary of impact

  • Financial: Licensees face a capped per-loan cost for database entries (max $1 or 0.1% of loan principal) and cannot incur additional database-related fees. The indemnity provision shifts risk from licensees to the certified database provider for illegal/willful/wanton acts.
  • Operational: Licensees must input loan data into the certified database per specified rules and formats, ensuring data consistency with current administrative code requirements.
  • Legal/regulatory: Tightens liability and cost structure around certified databases within the consumer installment loan framework, aligning with existing payday loan reporting rules.

If you’d like, I can align this summary to a plain-language explainer for borrowers or assemble a side-by-side comparison with the current law.

Compiled from official sources — confirm details with the bill’s official record.

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