HB4573 94TH GENERAL ASSEMBLY

LRB094 16776 LCT 52047 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4573

Introduced 1/11/2006, by Rep. Robert S. Molaro

SYNOPSIS AS INTRODUCED:

815 ILCS 505/2XX new

Amends the Consumer Fraud and Deceptive Business Practices Act. Makes it an unlawful practice for any lender under a revolving credit arrangement to charge a late fee on that account if: (i) the lender provides the debtor with a statement that contains a due date; (ii) the lender has an automated payment system; and (iii) the debtor pays the bill at any time before midnight central time on the due date listed on the statement using the automated payment system. Makes it an unlawful practice for any lender under a revolving credit arrangement to report a late payment of a debtor to any credit reporting agencies if the debtor has paid the bill at any time before midnight central time on the due date listed on the statement using the automated payment system. Effective immediately.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2XX as follows:

(815 ILCS 505/2XX new)

Sec. 2XX. Credit card late fees; credit reporting.

(a) It is an unlawful practice under this Act for any lender under a revolving credit arrangement to charge a late fee on that account if:

(1) the lender provides the debtor with a statement that contains a due date;

(2) the lender has an automated payment system; and

(3) the debtor pays the bill at any time before midnight central time on the due date listed on the statement using the automated payment system.

(b) It is an unlawful practice under this Act for any lender under a revolving credit arrangement to report a late payment of a debtor to any credit reporting agencies if the debtor has paid the bill at any time before midnight central time on the due date listed on the statement using the automated payment system.

(c) For purposes of this Section, "automated payment system" includes any payment method that allows the debtor to make a payment by telephone, without speaking to a live person, or through use of the Internet.

Section 99. Effective date. This Act takes effect upon becoming law.