Full Text of SB2426 99th General Assembly
SB2426 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2426 Introduced 2/9/2016, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Provides for the regulation of the use of starter interrupt technology by vehicle dealers and creditors in the sale of motor vehicles. Provides the consent of the consumer must be obtained before starter interrupt technology may be used in connection with the sale and financing of motor vehicles. Sets forth notice requirements. Limits circumstances under which starter interrupt technology may be used. Defines terms.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Consumer Fraud and Deceptive Business | 5 | | Practices Act is amended by adding Section 2TTT as follows: | 6 | | (815 ILCS 505/2TTT new) | 7 | | Sec. 2TTT. Use of starter interrupt technology. | 8 | | (a) As used in this Section: | 9 | | "Creditor" means a sales finance agency as defined in the | 10 | | Sales Finance Agency Act. | 11 | | "Dealer" means a motor vehicle dealer within the meaning of | 12 | | Chapter 5 of the Illinois Vehicle Code. | 13 | | "Electronic tracking technology" means global positioning | 14 | | satellite or similar technology used to obtain or record the | 15 | | location of a motor vehicle. | 16 | | "Starter interrupt technology" means technology used to | 17 | | remotely disable the starter of a motor vehicle. | 18 | | "Transaction" means any credit sale, loan, or lease of a | 19 | | motor vehicle made to a consumer by a dealer or other creditor. | 20 | | Transaction includes any post default redemption and | 21 | | reinstatement of the credit sale, loan, or lease by the | 22 | | consumer. | 23 | | (b) Any credit sale, loan, or lease of a motor vehicle made |
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| 1 | | after the effective date of this amendatory Act of the 99th | 2 | | General Assembly to a consumer by a dealer or other creditor is | 3 | | made subject to this Section. In connection with the credit | 4 | | sale, loan, or lease of a motor vehicle to a consumer, a dealer | 5 | | or other creditor shall not: | 6 | | (1) Install and utilize electronic tracking technology | 7 | | to obtain or record the location of the vehicle unless the | 8 | | dealer expressly notifies the consumer in a written | 9 | | disclosure provided at the time of the transaction that the | 10 | | vehicle is equipped with electronic tracking technology, | 11 | | obtains the consumer's written consent to install and | 12 | | utilize the electronic tracking technology, and either | 13 | | subparagraph (A) or (B), or both apply. | 14 | | (A) The electronic tracking technology is used by | 15 | | the dealer or other creditor to verify and maintain the | 16 | | operational status of the tracking technology, to | 17 | | service the transaction, or to locate the vehicle for | 18 | | repossession. | 19 | | (B) The electronic tracking technology is used by | 20 | | the consumer as an optional service elected and all of | 21 | | the following conditions set forth in (i) and (ii) are | 22 | | met: | 23 | | (i) The agreement to allow the consumer to | 24 | | utilize electronic tracking technology is optional | 25 | | and separate from the transaction or extension of | 26 | | credit, is not a condition of or incident to the |
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| 1 | | transaction or extension of credit, and is | 2 | | executed after the transaction or extension of | 3 | | credit. | 4 | | (ii) The consumer is permitted to cancel the | 5 | | optional service at any point without affecting | 6 | | the transaction or the extension of credit, and the | 7 | | consumer is notified of his or her ability to do | 8 | | so. | 9 | | (2) Install and utilize starter interrupt technology | 10 | | unless the dealer or other creditor expressly notifies the | 11 | | consumer in a written disclosure provided at the time of | 12 | | the transaction that the vehicle is equipped with starter | 13 | | interrupt technology that the dealer or other creditor may | 14 | | use to disable the starter of the vehicle remotely and | 15 | | obtains the consumer's written consent to install and | 16 | | utilize the starter interrupt technology. The written | 17 | | disclosure shall clearly and conspicuously: | 18 | | (A) Inform the consumer that a warning will be | 19 | | provided 5 days before the use of the starter interrupt | 20 | | technology for all weekly payment term contracts and 10 | 21 | | days before the use of the starter interrupt technology | 22 | | on all other contracts and that a final warning will be | 23 | | provided no less than 48 hours before the use of the | 24 | | starter interrupt technology to shut down the vehicle | 25 | | remotely. The disclosure shall indicate the manner and | 26 | | method in which that warning will occur. Warning |
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| 1 | | methods may include a warning from the device, | 2 | | telephone call, email, text message, or any other | 3 | | reasonable method available, provided that the warning | 4 | | method does not violate applicable State or federal | 5 | | law. | 6 | | (B) Inform the consumer that the dealer or other | 7 | | creditor intends to disable a vehicle using starter | 8 | | interrupt technology following default under the | 9 | | credit sale contract, loan, or lease. | 10 | | (C) Include the name, address, and a telephone | 11 | | number to contact in the event of the failure of the | 12 | | starter interrupt technology to operate properly or | 13 | | upon payment in full of the credit sale contract, loan, | 14 | | or lease. | 15 | | (D) Provide that, in the event of an emergency, the | 16 | | consumer will be provided with the ability to start a | 17 | | disabled vehicle for no less than 24 hours after the | 18 | | vehicle is initially disabled. | 19 | | (3) Use starter interrupt technology to disable the | 20 | | vehicle without warning the consumer according to the time | 21 | | periods provided in subparagraph (b)(2)(A). | 22 | | (4) Use starter interrupt technology if the consumer | 23 | | tenders the amount currently due on the loan to the dealer | 24 | | in an acceptable form of payment before the due date on the | 25 | | payment contract. | 26 | | (5) Use starter interrupt technology to disable the |
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| 1 | | vehicle for any reason other than the consumer's failure to | 2 | | tender timely payment. | 3 | | (6) Install and utilize any electronic tracking | 4 | | technology or starter interrupt technology that would | 5 | | disable a vehicle after the vehicle's engine has been | 6 | | enabled and is running. | 7 | | (7) Separately charge the consumer for the | 8 | | installation or use of the starter interrupt technology or | 9 | | electronic tracking technology or for wireless airtime | 10 | | unless the consumer agrees to purchase optional services | 11 | | offered by the dealer or other creditor. | 12 | | (8) Require the consumer to make payments, other than | 13 | | the down payment, to the dealer or other creditor in | 14 | | person. If the buyer tenders timely payment of a deferred | 15 | | down payment, the dealer or other creditor shall not | 16 | | repossess the vehicle or impose any other charge or penalty | 17 | | on the grounds that the payment was not made in person. | 18 | | (c) If the dealer or other creditor uses starter interrupt | 19 | | technology to disable a vehicle in accordance with this Section | 20 | | because the consumer fails to tender timely payment and the | 21 | | consumer subsequently tenders the amount currently due to the | 22 | | dealer, the dealer shall cease to use the starter interrupt | 23 | | technology no longer than 24 hours after the consumer tenders | 24 | | the amount currently due to the dealer. | 25 | | (d) A dealer or other creditor is not in violation of this | 26 | | Section if law enforcement instructed the dealer or other |
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| 1 | | creditor to use the starter interrupt technology for a lawful | 2 | | criminal investigation. | 3 | | (e) A consumer damaged by a violation of this Section by a | 4 | | dealer or other creditor is entitled to recover from the dealer | 5 | | or other creditor actual damages and reasonable attorney's fees | 6 | | and court costs. Nothing in this Section limits a consumer's | 7 | | cause of action against any party if the consumer is damaged by | 8 | | a malfunction of the starter interrupt technology. | 9 | | (f) Any person who knowingly violates this Section commits | 10 | | an unlawful practice within the meaning of this Act and is | 11 | | guilty of a business offense and may be fined not more than | 12 | | $1,500.
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