Loan companies fined for improper practices

Loan companies fined for improper practices

SPRINGFIELD — Several loan companies in East Central Illinois were fined in December by the Illinois Department of Financial and Professional Regulation for improper business practices.

Among those disciplined by the agency were:

— Cottonwood Financial Illinois LLC of Charleston was fined $19,250 for the following violations: Title-secured lender did not obtain borrower's most recent income documentation available at the time the loan was made. Lender did not enter into the database that the borrower's loan was paid in full or canceled on the day the transaction was made. Title-secured loan is not repayable in weekly, biweekly, semimonthly or monthly installments.

— Cottonwood Financial Illinois LLC of Mattoon was fined $17,050 for the following violations: Original documents or approved equivalent not canceled or returned following payoff. Lender made a title-secured loan with a scheduled monthly payment exceeding 50 percent of the obligor's gross monthly income. Title-secured loan is not repayable in weekly, biweekly, semimonthly or monthly installments.

— Midwest Title Loans Inc. of Danville was fined $6,550 for the following violations: Lender made a title-secured loan with a schedule monthly payment exceeding 50 percent of the obligor's gross monthly income. Lender didn't input accurate information into the database to determine if the obligor was eligible for a loan. Licensee did not properly update state database with the required information on the day the transaction or event occurred.

— QC Financial Services Inc. of Champaign was fined $2,475 for the following violations: A deposited check or automated clearing house debit request on a Payday Loan Reform Act loan was not entered into the database on the deposit of request date. Official income documentation was not required type for a payday loan or was not for income for 30 days preceding the loan. Licensee did not properly update the state database with the required information on the day the transaction or event occurred.

— Midwest Title Loan Inc. of Champaign was fined $2,125 for the following violations: Lender did not immediately take possession of the original title registered to the borrower(s) on the title-secured loan. Documentation is not in file to indicate lien was released or title returned to borrower on a title secured loan within 24 hours or five days if paid by check. Lender did not input accurate information into database to determine if the obligor was eligible for a loan.

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SaintClarence27 wrote on February 02, 2013 at 5:02 pm

These places should be shut down. They are nothing but a blight on any co,mumity that has them.

illini_trucker wrote on February 02, 2013 at 5:02 pm

Agreed! Shut 'em down! Typical interest is 200-250 percent!! At that rate, the consumer would have a better chance with the Danville casino proposal!!

SaintClarence27 wrote on February 03, 2013 at 7:02 am

Actually it's 427%