Megasys + Veritec: Enforcing Illinois Lending Requirements Made Simple
Illinois lenders face specific state reporting and rate-cap rules. To make compliance easier, Megasys now includes a simple setting that requires Veritec processing for Illinois loans—so your teams follow the rules as part of their normal workflow.
This post explains what's new, where to turn it on, and what Illinois lenders generally must do under the state's Veritec reporting framework, with links to official resources.
What's New in Megasys
Admins will now see a setting called "State Reporting Requirement" when Illinois is selected:
Where it appears:
- Originations > Maintenance > State Rule Maintenance
- Servicing > Maintenance > State Rule Maintenance
What it does:
When enabled for Illinois, Megasys requires Veritec processing for:
- New loan originations
- Account updates
- Customer updates
This change embeds the Illinois State processing step into your everyday workflow—reducing manual errors and making compliance consistent across branches and channels.
Why This Matters for Illinois Lenders
- Built-in compliance: Make the required state processing a standard step for covered Illinois loans.
- Fewer misses: Prompts help ensure your staff complete the Veritec process at the right time.
- Consistent across teams: One configuration keeps branches, POS, and servicing aligned.
Illinois Overview: Veritec and State Rules Lenders Should Know
Illinois uses a state database administered by Veritec (the "Consumer Reporting Service Database") for certain consumer loans, including CILA loans. The login portal is here: State of Illinois Consumer Reporting Service Database.
Key context and sources:
- The Predatory Loan Prevention Act (PLPA) took effect March 23, 2021 and caps "all‑in" APR at 36% MAPR for covered consumer loans unless an exemption applies. It also expanded database reporting so that all licensed lenders must report CILA loans and pay database fees, not just higher‑APR products. See analysis and DFPR notice references: Consumer Finance Monitor and Mayer Brown.
- Illinois DFPR provides official Acts/Rules and notices (including PLPA FAQs and database reporting notices) on its Consumer Credit page: IDFPR Consumer Credit.
- The Illinois Consumer Installment Loan Act (CILA) is the governing statute for licensees making consumer installment loans: (205 ILCS 670/) Consumer Installment Loan Act.
What Lenders Typically Must Do in Illinois
What lenders typically must do in Illinois with respect to the Veritec database and PLPA/CILA (confirm specifics with your counsel and DFPR guidance for your product types):
- Report covered loans and pay database fees – After PLPA, reporting applies broadly to CILA licensees—not just loans above 36% APR. Sources: Consumer Finance Monitor, Mayer Brown.
- Complete pre‑fund checks and register new loans – Lenders use the state database to run eligibility checks (as applicable) and register new loans at or before funding; see the State's database portal: ilpdl.com.
- Submit lifecycle updates – Report changes such as modifications, extensions/renewals (where permitted), payoffs/closures, and other required status events, per Veritec/DFPR specifications.
- Adhere to the 36% "all‑in" cap and other statutory limits – PLPA enforces a 36% MAPR cap calculated similarly to the Military Lending Act approach; violations can void a loan and carry penalties. See: Mayer Brown.
- Follow DFPR guidance and timelines – DFPR issued notices and FAQs to manage the transition to expanded reporting; review DFPR's Consumer Credit page for updates: IDFPR Consumer Credit.
Important note: Requirements can vary by product, rule updates, and DFPR guidance. Always consult your compliance counsel and the official sources above for current, product‑specific obligations.
How to Enable the Illinois Setting in Megasys (Admin)
- Go to either Originations or Servicing > Maintenance > State Rule Maintenance.
- Select "Illinois."
- Check "State Reporting Requirement."
- Save.
Once enabled, Megasys will require Veritec processing for new loans and for subsequent account and customer updates tied to Illinois.
Best Practices for a Smooth Rollout
- Communicate the change to branch, POS, and servicing teams so they know Illinois loans require Veritec processing.
- Update SOPs and quality checklists to include the Illinois state processing step.
- Review Illinois product settings with your compliance team for PLPA/CILA alignment.
- Bookmark official references for staff:
- Illinois database portal: ilpdl.com
- DFPR Consumer Credit resources: IDFPR Consumer Credit
- CILA statute: (205 ILCS 670/) CILA
- PLPA/36% cap and reporting analyses: Consumer Finance Monitor, Mayer Brown
Scope of This Release
This update adds the Illinois "State Reporting Requirement" setting. When enabled, it requires Veritec processing for:
- New loan originations
- Account updates
- Customer updates
No other states or unrelated workflows are changed by this release.
✅ Need Help?
Our team can help you enable the setting and align procedures quickly. Contact us to get started with Illinois compliance in Omega.
