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HB 3553

Relating to controlled substance crimes; declaring an emergency.

2025 Regular Session Introduced by Tom Andersen and 2 co-sponsors

HB 3553 raises penalties up to $100,000 per violation and adds stronger enforcement to stop nonbanks from implying they are banks or using banking terms.

In committee upon adjournment.
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Bill Summary · HB 3553

Summary — HB 3553 (2025) — Misleading Practices Penalty

Status: Introduced Feb 2025; Rule 19(a) / Re‑referred to Rules Committee (Apr 11, 2025)
Primary sponsor: Rep. Margaret Croke; Co‑sponsor: Rep. Camille Y. Lilly

Purpose

HB 3553 tightens enforcement against businesses that imply they are banks or use banking‑related words in a misleading way. The bill increases the civil penalties available to the Illinois Department of Financial and Professional Regulation (the “Commissioner”) for such violations, clarifies definitions, and confirms that the statutory remedies are cumulative with other legal remedies.

Key provisions and changes

  • Raises the permissible civil penalty for nonbank entities that transact business in a way that is likely to mislead the public into believing they are a bank or that use the words “bank,” “banker,” or “banking” improperly. The bill replaces the current fixed $10,000 per violation with a penalty “up to the maximum amount permitted under paragraph (8) of Section 48 of this Act.” (The bill synopsis cites that maximum as $100,000 per violation.)
  • Confirms that each day an entity continues the misleading conduct is a separate violation; likewise, each instance a marketing/solicitation is sent is a separate violation.
  • Explicitly states that the remedies in this section are in addition to any other remedies available under law.
  • Gives the Commissioner authority to:
    • Issue cease‑and‑desist orders against entities that have transacted or intend to transact misleading business;
    • Permit use of “bank,” “banker,” or “banking” where no substantial likelihood of public confusion exists, subject to conditions; and
    • Promulgate rules to administer the provisions.
  • Adds or refines statutory definitions (e.g., “bank,” “State bank,” “transact business in Illinois,” and “person”).
  • House Amendment 001 (filed 3/11/2025; adopted 3/18/2025) adjusts definitional language: removes the standalone word “State” in one place and revises the definition of “bank” to mean a State bank or any entity whose deposits are FDIC‑insured to the applicable limit.

Who is affected

  • Nonbank businesses, partnerships, corporations, or individuals that use bank‑related names or imply bank status in marketing, solicitations, or in transacting business with Illinois residents — including certain fintech firms, payment companies, or third‑party marketers.
  • Existing state banks (protected from confusing uses of their names in marketing).
  • The Illinois banking regulator (Commissioner) and State/Attorney General for enforcement and rulemaking.

Enforcement and procedural notes

  • The bill authorizes civil enforcement (cease‑and‑desist orders and monetary penalties) and retains criminal exposure (Class A misdemeanor) for violations as currently stated.
  • Legislative actions to date: introduced and read in Feb–Mar 2025, assigned to and acted on in Financial Institutions & Licensing Committee (do pass as amended 8–4), public hearing 4/8/2025 (left pending), re‑referred to Rules Committee under Rule 19(a) on 4/11/2025.

Potential impact

  • Increases the financial risk for entities that use “bank” terminology or name similar to an existing bank in ways likely to confuse consumers, which may deter misleading naming and marketing practices.
  • Could increase administrative enforcement activity and potential penalty revenue, depending on how Section 48(8)’s maximum is applied in practice.
  • Clarified definitions and rulemaking authority aim to provide clearer standards for permissible use of banking terms.

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

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