HB4554 - Consumer Income Share Agreement Act

• Creates licensing and regulatory framework for income share agreements (ISAs) in Illinois, requiring providers to obtain a license from the Department of Financial and Professional Regulation with a $300 application fee and $450 annual license fee, with a $25,000 surety bond requirement.

• Establishes consumer protections including maximum ISA percentage of 20%, income threshold requirements that leave consumers with at least 200% of federal poverty guidelines, maximum effective APR of 36%, and limits on agreement duration (240 maximum payments, 360-month maximum term).

• Prohibits security interests, co-signers, wage assignments, and powers of attorney; requires comprehensive disclosures including payment schedules, APR tables at various income levels, and income verification procedures before consummation of the agreement.

• Imposes operating restrictions on licensees including prohibition on taking multiple agreements to evade Act limitations, requirements for annual reporting and record-keeping, mandatory examination by Director at least annually, and restrictions on pledge or sale of agreements except to other licensees or regulated financial institutions.

• Makes operating as an unlicensed ISA provider a Class 4 felony; allows Director to issue cease and desist orders and seek civil injunctions with penalties up to $1,000; takes effect immediately upon enactment.