Illinois’s Banking Act and Interest Act allow banks to charge any fees agreed to by a borrower. 205 ILCS 5/5e815 ILCS 205/4.1. As to HELOCs (and all revolving credit lines) made for consumer purposes (as opposed to business purposes), the Illinois Financial Services Development Act confirms that Illinois financial institutions may charge any fees or charges. The Act states that “[n]otwithstanding the provisions of any other laws in connection with revolving credit plans, any financial institution may . . . charge and collect interest and other charges . . . as the financial institution and borrower may agree upon from time to time.” 205 ILCS 675/4. It also specifically authorizes several types of fees, including “an annual or other periodic fee for the privileges made available to the borrower under the plan, a transaction charge or charges, late fees or delinquency charges, returned payment charges, over limit charges and fees for services rendered.” 205 ILCS 675/6.

Section 4.1 of the Interest Act appears to prohibit certain fees on HELOCs, as it states that lenders must pay “all expenses, including recording fees and otherwise, to release any such security interest.” 815 ILCS 205/4.1. (It also prohibits lenders from taking a security interest in real property for revolving loans under $5,000.) However, Section 5e of the Banking Act overrules those provisions, as it states that “[n]otwithstanding the provisions of any other law in connection with extensions of credit” banks may charge any “interest, fees, and other charges . . . .” 205 ILCS 5/5e. The Illinois Financial Services Development Act includes similar language, stating that “[n]otwithstanding the provisions of any other laws in connection with revolving credit plans, any financial institution may . . . charge and collect interest and other charges . . . .” 205 ILCS 675/4.