HB3478 amends the Consumer Installment Loan Act to increase the maximum fee that a certified database provider may charge for each loan entered into the state’s consumer reporting database. Under current law, the fee is capped at $1 per loan; the bill would raise that cap to the lesser of $5 or 0.1% of the loan principal. The bill applies to loans covered by the Act, including title-secured loans, and keeps in place the requirement that licensees enter loan information into the certified database and comply with Department rules.
The measure is a narrow regulatory change focused on the financing of the certified database system used in consumer installment and payday lending oversight. It does not alter loan terms directly, but it would increase the per-loan cost that database providers may recover from lenders, which could affect lender operating expenses and, indirectly, borrower costs if those expenses are passed through. The bill also preserves the existing indemnification provision for licensees against illegal or willful or wanton acts by the database provider.
Impact
HB3478 would amend 205 ILCS 670/17.5 of the Consumer Installment Loan Act by changing the fee cap for certified database providers from a flat $1 per loan to the lesser of $5 or 0.1% of the loan principal. This would affect licensed consumer installment lenders and title-secured loan providers that are required to report loans to the certified database, as well as the database vendor that operates the consumer reporting service established under the Payday Loan Reform Act. The bill would increase the maximum revenue available to the database provider and could modestly increase compliance-related costs in the regulated lending market.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition in the available record. Based on the bill text alone, the measure appears technical and industry-focused rather than ideologically charged, suggesting it may be viewed as an administrative fee adjustment rather than a major policy change. The absence of recorded debate or voting history makes the overall sentiment difficult to assess beyond that neutral characterization.
Contention
The main point of potential contention is the fee increase itself: consumer advocates may view a higher database fee as another cost in a market already associated with high-cost lending, while lenders or the database operator may argue that the current $1 cap is outdated and insufficient to cover compliance and system costs. Another possible issue is whether the fee should be tied to loan principal, which could disproportionately affect larger loans, though the bill limits the charge to the lesser of $5 or 0.1% of principal. No specific objections or supporters are documented in the provided materials.