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TMCNet:  Metro-east loan companies fined for improper practices

[January 31, 2013]

Metro-east loan companies fined for improper practices

Jan 31, 2013 (Belleville News-Democrat - McClatchy-Tribune Information Services via COMTEX) -- The Illinois Department of Financial and Professional Regulation released its list of professionals who were disciplined in December.

Among those disciplined are the following metro-east businesses: -- Capital Solutions Investments II Inc., of Cahokia, was fined $6,300 for the following violations: Lender did not input information into database within 90 days after making a small consumer loan. Improper acquisition fee was taken.
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-- Cottonwood Financial Illinois LLC, of Highland, was fined $4,325 for the following violations: Original documents or approved equivalent not canceled or returned following payoff. Lender did not input accurate information into the database to determine if the obligor was eligible for a loan. Lender did not obtain any official documentation of the borrower's income before making a payday or title-secured loan.

--Cottonwood Financial Illinois LLC, of Highland, was fined $1,400 for the following violations: 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. Official income documentation was not the required type for a payday loan or was not for income for the 30 days preceding the loan. Lender made an installment payday loan exceeding 22.5 percent of the obligor's gross monthly income or lender made a payday loan exceeding 25 percent of the obligor's gross monthly.

-- Illinois Title Loans Inc., of Belleville, was fined $8,325 for the following violations: Original documents or approved equivalent not canceled or returned following payoff. Lender did not input accurate information into the database to determine if the obligor was eligible for a loan, loans more than 25 percent of borrower's income and lender made a payday loan resulting in borrower having combined outstanding payday loan principal balances greater than 25 percent of borrower's gross monthly income.

-- Illinois Title Loans Inc., of Fairview Heights, was fined $2,100 for the following violation: Original documents or approved equivalent not canceled or returned following payoff. Lender made an installment payday loan exceeding 22.5 percent of the obligor's gross monthly income or lender made a payday loan exceeding 25 percent of the obligor's gross monthly income.

--QC Financial Services Inc., of Belleville, was fined $1,400 for the following violations: Lender made a title-secured loan with a scheduled monthly payment exceeding 50 percent of the obligor's gross monthly income. Title secured lender did not obtain borrower's most recent income documentation available at the time the loan was made. Licensee did not properly update the state database with the required information on the day the transaction or event occurred.

-- Security Leasing & Finance Inc., in Troy, was fined $6,275 for the following violations: A legal instrument taken in connection with the loan does not bear the loan/transaction number. Original documents, or approved equivalent, not canceled or returned following payoff. Licensee did not deliver or mail to the borrower an affidavit of defense.

-- Title Lenders Inc., of Fairview Heights, was fined $6,250 for the following violations: Improper simple interest calculations. Official income documentation was not the required type for a payday loan or was not for income for the 30 days preceding the loan. Lender made an installment payday loan exceeding 22.5 percent of the obligor's gross monthly income or lender made a payday loan exceeding 25 percent of the obligor's gross monthly income.

-- Title Loan Company Inc., of Belleville, was fined $1,000 for the following violation: Improper simple interest calculations.

___ (c)2013 the Belleville News-Democrat (Belleville, Ill.) Visit the Belleville News-Democrat (Belleville, Ill.) at www.bnd.com Distributed by MCT Information Services

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