Full Text of SB0171 95th General Assembly
SB0171ham001 95TH GENERAL ASSEMBLY
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Rep. John A. Fritchey
Filed: 5/25/2007
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LRB095 06643 MJR 37061 a |
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| AMENDMENT TO SENATE BILL 171
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| AMENDMENT NO. ______. Amend Senate Bill 171 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Credit Card Issuance Act is amended by | 5 |
| adding Section 1d as follows: | 6 |
| (815 ILCS 140/1d new)
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| Sec. 1d. Universal default provisions prohibited. No | 8 |
| issuer of a credit card shall include in the issuer's credit | 9 |
| card contract or agreement a universal default clause. | 10 |
| For purposes of this Section, "universal default clause" | 11 |
| means any clause or provision included within a credit card | 12 |
| agreement or contract that allows an issuer of a credit card to | 13 |
| increase the interest rate on the issuer's credit card if a | 14 |
| holder is late with a payment to another credit card issuer or | 15 |
| creditor. | 16 |
| Notwithstanding any other law of this State, this Section |
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| shall not be deemed or construed to prohibit an issuer from | 2 |
| increasing the rate of interest or imposing a fee upon the | 3 |
| account of a holder based upon a change in the holder's credit | 4 |
| rating. | 5 |
| Section 10. The Interest Act is amended by changing Section | 6 |
| 4.2 as follows:
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| (815 ILCS 205/4.2) (from Ch. 17, par. 6407)
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| Sec. 4.2. Revolving credit; billing statements; | 9 |
| disclosures. On a
revolving credit which complies with | 10 |
| subparagraphs (a), (b),
(c), (d) and (e) of this Section 4.2, | 11 |
| it is lawful for any bank that has its main office or, after | 12 |
| May 31, 1997,
a branch in this State, a state or federal | 13 |
| savings and
loan association with its main office in this | 14 |
| State, a state or federal
credit union with its main office in | 15 |
| this State, or a lender licensed under
the Consumer Finance | 16 |
| Act, the Consumer Installment Loan Act or the Sales
Finance | 17 |
| Agency Act, as such Acts are now and hereafter amended, to
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| receive or contract to receive and collect interest
in any | 19 |
| amount or at any rate agreed upon by the parties to the | 20 |
| revolving
credit arrangement. It is lawful for any other lender | 21 |
| to receive or contract
to receive and collect interest in an | 22 |
| amount not in excess of 1 1/2% per
month of either the average | 23 |
| daily unpaid balance of the principal of the
debt during the | 24 |
| billing cycle, or of the unpaid balance of the debt on
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| approximately the same day of the billing cycle. If a lender | 2 |
| under a revolving
credit arrangement notifies the debtor at | 3 |
| least 30 days in advance of any
lawful increase in the amount | 4 |
| or rate of interest to be charged under
the revolving credit | 5 |
| arrangement, and the debtor, after the effective date
of such | 6 |
| notice, incurs new debt pursuant to the revolving credit
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| arrangement, the increased interest amount or rate may be | 8 |
| applied only to
any such new debt incurred under the revolving | 9 |
| credit arrangement.
For purposes of determining the balances to | 10 |
| which the increased interest
rate applies, all payments and | 11 |
| other credits may be deemed to be applied
to the balance | 12 |
| existing prior to the change in rate until that balance is
paid | 13 |
| in full. The face amount of the
drafts, items, orders for the | 14 |
| payment of money, evidences of debt, or
similar written | 15 |
| instruments received by the lender in connection with the
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| revolving credit, less the amounts applicable to principal from | 17 |
| time to
time paid thereon by the debtor, are the unpaid balance | 18 |
| of the debt upon
which the interest is computed. If the billing | 19 |
| cycle is not monthly, the
maximum interest rate for the billing | 20 |
| cycle is the percentage which bears
the same relation to the | 21 |
| monthly percentage provided for in the preceding
sentence as | 22 |
| the number of days in the billing cycle bears to 30. For the
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| purposes of the foregoing computation, a "month" is deemed to | 24 |
| be any time
of 30 consecutive days. In addition to the interest | 25 |
| charge provided for, it
is lawful to receive, contract for or | 26 |
| collect a charge not exceeding 25
cents for each transaction in |
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| which a loan or advance is made under the
revolving credit or | 2 |
| in lieu of this additional charge an annual fee for the
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| privilege of receiving and using the revolving credit in an | 4 |
| amount not
exceeding $20. In addition, with respect to | 5 |
| revolving credit secured by an
interest in real estate, it is | 6 |
| also lawful to receive, contract for or
collect fees lawfully
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| paid to any public officer or agency to record, file or release | 8 |
| the security,
and costs and disbursements actually incurred for | 9 |
| any title insurance,
title examination, abstract of title, | 10 |
| survey, appraisal, escrow fees, and fees
paid to a trustee in | 11 |
| connection with a trust deed.
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| (a) At or before the date a bill or statement is first | 13 |
| rendered to the
debtor under a revolving credit arrangement, | 14 |
| the lender must mail or
deliver to the debtor a written | 15 |
| description of the conditions under which a
charge for interest | 16 |
| may be made and the method, including the rate, of
computing | 17 |
| these interest charges. The rate of interest must be expressed | 18 |
| as
an annual percentage rate.
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| (b) If during any billing cycle any debit or credit entry | 20 |
| is made to a
debtor's revolving credit account, and if at the | 21 |
| end of that billing cycle
there is an unpaid balance owing to | 22 |
| the lender from the debtor, the lender
must give to the debtor | 23 |
| the following information within a reasonable time
after the | 24 |
| end of the billing cycle:
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| (i) the unpaid balance at the beginning of the billing | 26 |
| cycle;
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| (ii) the date and amount of all loans or advances made | 2 |
| during the
billing cycle, which information may be supplied | 3 |
| by enclosing a copy of the
drafts, items, orders for the | 4 |
| payment of money, evidences of debt or
similar written | 5 |
| instruments presented to the lender during the billing
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| cycle;
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| (iii) the payments by the debtor to the lender and any | 8 |
| other credits to
the debtor during the billing cycle;
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| (iv) the amount of interest and other charges, if any, | 10 |
| charged to the
debtor's account during the billing cycle;
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| (v) the amount which must be currently paid by the | 12 |
| debtor and the date
on which that amount must be paid in | 13 |
| order to avoid delinquency;
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| (vi) the total amount remaining unpaid at the end of | 15 |
| the billing cycle
and the right of the debtor to prepay | 16 |
| that amount in full without penalty; and
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| (vii) information required by (iv), (v) and (vi) must | 18 |
| be set forth in type of
equal size and equal | 19 |
| conspicuousness.
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| (b-5) In the case of any credit card account under a | 21 |
| revolving credit arrangement containing a universal default | 22 |
| provision, no increase in the annual percentage rate of | 23 |
| interest, applicable to the account or any portion of an | 24 |
| outstanding balance on the account may be made to a credit card | 25 |
| account because the holder is late with a payment to another | 26 |
| credit card issuer or creditor. |
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| Notwithstanding any other law of this State, this Section | 2 |
| shall not be deemed or construed to prohibit an issuer from | 3 |
| increasing the rate of interest or imposing a fee upon the | 4 |
| account of a holder based upon a change in the holder's credit | 5 |
| rating. | 6 |
| (c) The revolving credit arrangement may provide for the | 7 |
| payment by the
debtor and receipt by the lender of all costs | 8 |
| and disbursements, including
reasonable attorney's fees, | 9 |
| incurred by the lender in legal proceedings to
collect or | 10 |
| enforce the debt in the event of delinquency by the debtor or | 11 |
| in
the event of a breach of any obligation of the debtor under | 12 |
| the arrangement.
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| (d) The lender under a revolving credit arrangement may | 14 |
| provide credit
life insurance or credit accident and health | 15 |
| insurance, or both, with
respect to the debtor and may charge | 16 |
| the debtor therefor. Credit life
insurance and credit accident | 17 |
| and health insurance, and any charge therefor
made to the | 18 |
| debtor, shall comply with Article IX 1/2 of the Illinois
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| Insurance Code, as now or hereafter amended, and all lawful
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| requirements of the Director of Insurance
related thereto. This | 21 |
| insurance is in force with respect to each loan or
advance made | 22 |
| under a revolving credit arrangement as soon as the loan or
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| advance is made. The purchase of this insurance from an agent, | 24 |
| broker or
insurer specified by the lender may not be a | 25 |
| condition precedent to the
revolving credit arrangement or to | 26 |
| the making of any loan or advance thereunder.
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| (e) Whenever interest is contracted for or received under | 2 |
| this Section,
no amount in addition to the charges authorized | 3 |
| by this Act may be directly
or indirectly charged, contracted | 4 |
| for or received whether as interest,
service charges, costs of | 5 |
| investigations or enforcements or otherwise.
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| (f) The lender under a revolving credit arrangement must
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| compute at year end the total amount charged to the debtor's
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| account during the year, including service charges, finance | 9 |
| charges,
late charges and any other charges authorized by this | 10 |
| Act,
and upon request must furnish such information to the | 11 |
| debtor within
30 days after the end of the year, or if the | 12 |
| account has been
terminated during such year, may give such | 13 |
| requested information within
30 days after such termination. | 14 |
| The lender shall annually inform the debtor
of his right to | 15 |
| obtain such information.
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| (g) A lender who complies with the federal Truth in Lending | 17 |
| Act, amendments
thereto, and any regulations issued or which | 18 |
| may be issued thereunder, shall
be deemed to be in compliance | 19 |
| with the provisions of subparagraphs (a) and
(b) of this | 20 |
| Section.
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| (h) Anything in this Section 4.2 to the contrary | 22 |
| notwithstanding, if
the Congress of the United States or any | 23 |
| federal agency authorizes any
class of lenders to enter, within | 24 |
| limitations, into a revolving credit
arrangement secured by a | 25 |
| mortgage or deed of trust on residential real
property, any | 26 |
| person, firm, corporation or other entity, not otherwise
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| prohibited by the Congress of the United States or any federal | 2 |
| agency from
entering into revolving credit arrangements | 3 |
| secured by a mortgage or deed
of trust on residential real | 4 |
| property, may enter into such arrangements
within the same | 5 |
| limitations.
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| (Source: P.A. 89-208, eff. 9-29-95.)".
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