|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
1 | AN ACT concerning financial regulation.
| ||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||
4 | Section 5. The Credit Card Marketing Act of 2009 is amended | ||||||||||||||||||||||||||||
5 | by adding Section 40 as follows: | ||||||||||||||||||||||||||||
6 | (110 ILCS 26/40 new) | ||||||||||||||||||||||||||||
7 | Sec. 40. Applicability. A credit card issuer who complies | ||||||||||||||||||||||||||||
8 | with or is exempt from the applicable college student credit | ||||||||||||||||||||||||||||
9 | card marketing requirements of the federal Truth in Lending Act | ||||||||||||||||||||||||||||
10 | and the regulations promulgated under that Act shall be deemed | ||||||||||||||||||||||||||||
11 | to be in compliance with or exempt from all of the provisions | ||||||||||||||||||||||||||||
12 | of this Act. | ||||||||||||||||||||||||||||
13 | Section 10. The Illinois Financial Services Development | ||||||||||||||||||||||||||||
14 | Act is amended by changing Section 8 as follows:
| ||||||||||||||||||||||||||||
15 | (205 ILCS 675/8) (from Ch. 17, par. 7008)
| ||||||||||||||||||||||||||||
16 | Sec. 8. Amendment of governing agreement.
| ||||||||||||||||||||||||||||
17 | (a) If the agreement governing a revolving credit plan so | ||||||||||||||||||||||||||||
18 | provides or
allows, a financial institution may at any time or | ||||||||||||||||||||||||||||
19 | from time to time amend the
terms of such agreement in | ||||||||||||||||||||||||||||
20 | accordance with the further provisions of this
Section 8. The | ||||||||||||||||||||||||||||
21 | financial institution shall notify each affected borrower of
|
| |||||||
| |||||||
1 | the amendment in the manner set forth in the agreement | ||||||
2 | governing the plan and
in compliance with the requirements of | ||||||
3 | the Truth-in-Lending Act and regulations
promulgated | ||||||
4 | thereunder, as in effect from time to time, if applicable.
| ||||||
5 | (b) Subject to subsection (c) below, if the terms of the | ||||||
6 | agreement
governing the plan, as originally drawn or as amended | ||||||
7 | pursuant to this
Section so provide, any amendment may, on and | ||||||
8 | after the date upon which it
becomes effective as to a | ||||||
9 | particular borrower, apply to all then
outstanding unpaid | ||||||
10 | indebtedness in the borrower's account under the plan,
| ||||||
11 | including any such indebtedness which shall have arisen out of | ||||||
12 | purchases
made or loans obtained prior to the effective date of | ||||||
13 | the amendment.
| ||||||
14 | (c) If such amendment has the effect of increasing the | ||||||
15 | interest or other
charges to be paid by the borrower, the | ||||||
16 | financial institution shall mail or
deliver to the borrower, at | ||||||
17 | least 30 days before the effective date of the
amendment, a | ||||||
18 | clear and conspicuous written notice which shall:
| ||||||
19 | (1) describe the amendment and the existing term or | ||||||
20 | terms of the agreement
affected by the amendment,
| ||||||
21 | (2) set forth the effective date of the amendment,
| ||||||
22 | (3) state whether or not the amendment will apply to | ||||||
23 | the outstanding
unpaid indebtedness as of the effective | ||||||
24 | date of the amendment,
| ||||||
25 | (4) state that absent the borrower's written notice to | ||||||
26 | the financial
institution within 30 days of the earlier of |
| |||||||
| |||||||
1 | the mailing or delivery of the
notice of amendment that the | ||||||
2 | borrower does not agree to accept the amendment,
the | ||||||
3 | amendment will become effective and apply to the borrower's | ||||||
4 | account, and
| ||||||
5 | (5) provide an address to which the borrower may send | ||||||
6 | notice of the
borrower's election not to accept the | ||||||
7 | amendment and include an addressed
postcard that the | ||||||
8 | borrower may return to the financial institution for that
| ||||||
9 | purpose.
| ||||||
10 | (c-5) If such amendment results in an unfavorable change in | ||||||
11 | the
interest or other charges on a revolving credit plan which: | ||||||
12 | (i) relates to a
change in the borrower's credit standing, (ii) | ||||||
13 | does not
affect all or a substantial portion of a class of the | ||||||
14 | creditor's
accounts, and (iii) does not relate to inactivity, | ||||||
15 | default, or delinquency on
that revolving credit plan, the | ||||||
16 | financial institution shall include in
the notice required by | ||||||
17 | subsection (c) of this Section 8 a statement
that is | ||||||
18 | substantially similar to the following:
| ||||||
19 | Change in Credit Standing
| ||||||
20 | The amendment to the terms of your account relates to a
| ||||||
21 | change in your credit standing. The change in your credit
| ||||||
22 | standing may have resulted from a default or delinquency on | ||||||
23 | other
accounts you may have, or other adverse changes in | ||||||
24 | your financial
circumstances. If you submit the enclosed | ||||||
25 | postcard or otherwise
notify us in a timely manner as | ||||||
26 | provided in this notice that you do not accept
the
|
| |||||||
| |||||||
1 | amendment, you will be able to pay off your existing | ||||||
2 | balance at
the rate in effect prior to the amendment. | ||||||
3 | However, in that
instance, you may not be eligible to | ||||||
4 | obtain additional credit
under this plan after the | ||||||
5 | effective date of the amendment. If
you do not provide | ||||||
6 | timely notice to us as provided in this notice that you do
| ||||||
7 | not accept the
amendment, the amendment to the terms of | ||||||
8 | your account will become
effective and apply to your | ||||||
9 | account.
| ||||||
10 | (c-10) As a condition to the effectiveness of the | ||||||
11 | borrower's notice not
to accept
the amendment, the financial | ||||||
12 | institution may require the borrower to return all
credit | ||||||
13 | devices.
| ||||||
14 | Any borrower who gives a timely notice electing not to | ||||||
15 | accept the
amendment shall be permitted to pay the outstanding | ||||||
16 | unpaid indebtedness in
the borrower's account under the plan in | ||||||
17 | accordance with the terms of the
agreement governing the plan | ||||||
18 | without giving effect to the amendment.
| ||||||
19 | Notwithstanding the financial institution's receipt of the | ||||||
20 | borrower's
notice under item (4) that the borrower does not | ||||||
21 | accept the amendment, the
amendment shall be deemed to have | ||||||
22 | been accepted and effective with respect to
the borrower and | ||||||
23 | the borrower's account if the borrower uses the credit device
| ||||||
24 | to obtain credit under the credit plan on or after the | ||||||
25 | effective date of the
amendment, and the amendment shall be | ||||||
26 | deemed effective as of the effective date
originally disclosed |
| |||||||
| |||||||
1 | by the financial institution.
| ||||||
2 | (d) For purposes of this Section, the following shall not | ||||||
3 | be deemed an
amendment which has the effect of increasing the | ||||||
4 | interest to be paid by the
borrower:
| ||||||
5 | (1) a decrease in the required amount of periodic | ||||||
6 | installment payments;
and
| ||||||
7 | (2) a change from a daily periodic rate to a periodic | ||||||
8 | rate other than
daily, or from a periodic rate other than | ||||||
9 | daily to a daily periodic rate,
provided that there is no | ||||||
10 | resulting change in the annual percentage rate as
| ||||||
11 | determined in accordance with the Truth-in-Lending Act and | ||||||
12 | regulations
promulgated thereunder, as in effect from time | ||||||
13 | to time.
| ||||||
14 | (e) A financial institution that complies with or is exempt | ||||||
15 | from the following federal statutory and regulations standards | ||||||
16 | shall be deemed to be in compliance with or exempt from all of | ||||||
17 | the provisions of this Section: | ||||||
18 | (1) the applicable disclosure requirements and | ||||||
19 | restrictions of the federal Truth in Lending Act and | ||||||
20 | regulations promulgated under that Act pertaining to | ||||||
21 | increasing the interest or other charges to be paid by the | ||||||
22 | borrower under an open end credit plan; and | ||||||
23 | (2) the applicable adverse action notice requirements | ||||||
24 | of the federal Equal Credit Opportunity Act and regulations | ||||||
25 | promulgated under that Act. | ||||||
26 | (Source: P.A. 93-287, eff. 1-1-04.)
|
| |||||||
| |||||||
1 | Section 15. The Credit Card Issuance Act is amended by | ||||||
2 | changing Section 9 as follows:
| ||||||
3 | (815 ILCS 140/9) (from Ch. 17, par. 6012)
| ||||||
4 | Sec. 9. Penalties.
| ||||||
5 | (a) Any credit card issuer who knowingly violates this Act | ||||||
6 | is guilty of a
Class A misdemeanor.
| ||||||
7 | (b) No credit card issuer who violates this Act, except as | ||||||
8 | a result of an
accident or bona fide error of computation, may | ||||||
9 | recover interest, annualized
membership fee or participation | ||||||
10 | fee or charge, late payment charges, minimum
finance charges | ||||||
11 | and over the limit charges in connection with any credit card
| ||||||
12 | issued.
| ||||||
13 | (c) A credit card issuer who complies with or is exempt | ||||||
14 | from the
applicable credit card application, solicitation, and | ||||||
15 | periodic statement disclosure requirements of the Truth in | ||||||
16 | Lending Act and the
regulations promulgated under that Act | ||||||
17 | shall be deemed to be in compliance with
or exempt from all of | ||||||
18 | the provisions of subsection (a) of Section 6 of this
Act.
| ||||||
19 | (d) A credit card issuer who complies with or is exempt | ||||||
20 | from the applicable consumer credit card issuance requirements | ||||||
21 | of the federal Truth in Lending Act and the regulations | ||||||
22 | promulgated under that Act pertaining to credit cards issued to | ||||||
23 | persons under the age of 21 shall be deemed to be in compliance | ||||||
24 | with or exempt from all of the provisions of Section 7.2 of |
| |||||||
| |||||||
1 | this Act. | ||||||
2 | (Source: P.A. 88-569; eff. 8-5-94.)
| ||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
|