July 6, 2026
On June 26, 2026, Illinois Governor Pritzker signed House Bill 5290 into law, with an immediate effective date. The law makes a variety of modifications to the state's Sales Finance Agency Act, including broad changes to the Act's licensing application, regulatory examination, and enforcement provisions.
In addition to these administrative changes, the new law prohibits sales finance agencies from purchasing retail installment contracts that create or provide for a security interest in a motor vehicle that qualifies as a consumer good under the Uniform Commercial Code (i.e., consumer-purpose motor vehicle retail installment contracts) from any person who is not licensed under the Illinois Vehicle Code, not licensed as a sales finance agency, or not exempt from licensing as a sales finance agency.
The law permits the Illinois Department of Financial and Professional Regulation to assess fines of up to $25,000 for violations of the Sales Finance Agency Act, including the prohibition on acquiring retail installment contracts from unlicensed persons.
Also of note, the new law makes sales finance companies liable for purchasing any contract that violates the Retail Installment Sales Act or the Motor Vehicle Retail Installment Sales Act and prohibits licensed sales finance agencies from engaging in business except under their real or legally assumed names.