No, we are not aware of a maximum or limitation on document preparation fees for consumer loans that are unsecured or secured by collateral that is not real estate.

The Illinois Banking Act generally permits banks to establish fees without limitation, provided that they are agreed to by the borrower. Additionally, the Illinois Interest Act authorizes a bank to collect interest and charges at any rate agreed on by the bank and the borrower.

We do think there should be some sensitivity as to whether a document preparation fee is vastly disproportionate to the document preparation costs, as this conceivably could give rise to one or more UDAAP issues or issues under similar Illinois laws.

For resources related to our guidance, please see:

• Illinois Banking Act, 205 ILCS 5/5e (“Notwithstanding the provisions of any other law in connection with extensions of credit,” banks may charge “interest, fees, and other charges . . . subject only to the provisions of subsection (1) of Section 4 of the Interest Act” and the laws applicable to real estate loans, provided that the bank sets fees based on its “prudent business judgment and safe and sound operating standards.”)

• Interest Act, 815 ILCS 205/4(1) (Authorizes a bank “to receive or contract to receive and collect interest and charges at any rate or rates agreed upon by the bank or branch and the borrower.”)