Full Text of SB0054 97th General Assembly
SB0054sam001 97TH GENERAL ASSEMBLY | Sen. Ira I. Silverstein Filed: 3/30/2011
| | 09700SB0054sam001 | | LRB097 02857 AEK 53486 a |
|
| 1 | | AMENDMENT TO SENATE BILL 54
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 54 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Rental-Purchase Agreement Act is amended by | 5 | | changing Sections 1, 2, 3, 4 and 5 and by adding Sections 2.1, | 6 | | 2.2, 2.3, 2.4, 2.5, 2.6 and 4.1 as follows:
| 7 | | (815 ILCS 655/1) (from Ch. 121 1/2, par. 1801)
| 8 | | Sec. 1. Definitions. In this Act:
| 9 | | (1) "Advertisement" means a commercial message in any | 10 | | medium that
directly or indirectly promotes or assists a | 11 | | rental-purchase agreement.
| 12 | | (2) "Cash price" means the price for which the merchant | 13 | | would have sold
the merchandise to the consumer for cash on the | 14 | | date of the rental-purchase agreement.
| 15 | | (3) "Consumer" means an individual who leases personal | 16 | | property under a
rental-purchase agreement.
|
| | | 09700SB0054sam001 | - 2 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (4) "Merchandise" means the personal property that is the | 2 | | subject of a
rental-purchase agreement.
| 3 | | (5) "Merchant" means a person who, in the ordinary course | 4 | | of business,
regularly leases, offers to lease or arranges for | 5 | | the leasing of
merchandise under a rental-purchase agreement, | 6 | | and includes a person who is
assigned an interest in a | 7 | | rental-purchase agreement.
| 8 | | (6) "Rental-purchase agreement" means an agreement for the | 9 | | use of
merchandise by a consumer for primarily personal, family | 10 | | or household purposes for
an initial period of 4 months or less | 11 | | that is automatically renewable with
each payment after the | 12 | | initial period and that permits the consumer to
become the | 13 | | owner of the merchandise. | 14 | | (7) "Cost of rental" means the difference between the total | 15 | | of payments necessary to acquire ownership under the | 16 | | rental-purchase agreement and the cash price of the rental | 17 | | merchandise that is subject to the rental-purchase agreement. | 18 | | (8) "Fee" means any payment, charge, fee, cost, or expense, | 19 | | however denominated, other than a rental payment. | 20 | | (9) "Appliance" means and includes any refrigerator, | 21 | | freezer, range including any cook top or oven, microwave oven, | 22 | | washer, dryer, dishwasher, room air conditioner, air purifier, | 23 | | or other machine for routine household tasks. | 24 | | (10) "Electronic set" means and includes any television, | 25 | | radio, camera, video game system, or computer system, or any | 26 | | type of device for the recording, storage, copying, printing, |
| | | 09700SB0054sam001 | - 3 - | LRB097 02857 AEK 53486 a |
|
| 1 | | transmission, display, or playback of any sound or image. | 2 | | (11) "Merchant's cost" means the documented actual cost, | 3 | | including actual freight charges, of the rental merchandise to | 4 | | the merchant from a wholesaler, distributor, supplier, or | 5 | | manufacturer and net of any discounts, rebates, and incentives | 6 | | that are vested and calculable as to a specific item of | 7 | | merchandise at the time the merchant accepts delivery of the | 8 | | merchandise. | 9 | | (12) "Total of payments" means the total amount of periodic | 10 | | payments necessary to acquire ownership of the merchandise if | 11 | | the consumer makes all regularly scheduled payments. | 12 | | (13) "Periodic payment" means a payment to be made by a | 13 | | consumer for the right of the possession and use of merchandise | 14 | | for a specific rental period, but does not include taxes | 15 | | imposed on such payment. | 16 | | (14) "Mandatory arbitration clause" means a term or | 17 | | provision contained in a rental-purchase agreement which | 18 | | requires the consumer to submit any controversy thereafter | 19 | | arising under the agreement to arbitration prior to the | 20 | | commencement of any legal action to enforce the provisions of | 21 | | the agreement and which also provides language to the effect | 22 | | that the decision of the arbitrator or panel of arbitrators in | 23 | | its application to the consumer shall be final and not subject | 24 | | to court review.
| 25 | | (Source: P.A. 85-957.)
|
| | | 09700SB0054sam001 | - 4 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (815 ILCS 655/2) (from Ch. 121 1/2, par. 1802)
| 2 | | Sec. 2. Form.
| 3 | | (a) A rental-purchase agreement must be written in
plain | 4 | | English and clearly and simply in any other language used by | 5 | | the
merchant in any oral or written advertisement related to | 6 | | the
rental-purchase agreement. Numerical amounts must be | 7 | | stated in figures.
| 8 | | (b) Disclosures required by this Act must be printed or | 9 | | typed in each
rental-purchase agreement in a size equal to at | 10 | | least 10 point bold-faced
type in a color or shade that clearly | 11 | | contrasts with the background .
| 12 | | (c) A rental-purchase agreement may not contain a | 13 | | provision:
| 14 | | (1) requiring a confession of judgment;
| 15 | | (2) authorizing a merchant or an agent of the merchant | 16 | | to commit a
breach of the peace in the repossession of | 17 | | merchandise;
| 18 | | (3) waiving a defense, counterclaim or right the | 19 | | consumer may have
against the merchant or an agent of the | 20 | | merchant;
| 21 | | (4) requiring the purchase of insurance from the | 22 | | merchant to cover
the merchandise;
| 23 | | (5) requiring the payment of a late charge or | 24 | | reinstatement fee unless a
periodic payment is delinquent | 25 | | for 3 days and the charge or fee is in an
amount not more | 26 | | than $5; or
|
| | | 09700SB0054sam001 | - 5 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (6) requiring a payment at the end of the scheduled | 2 | | rental-purchase term
in excess of or in addition to a | 3 | | regular periodic payment in order to
acquire ownership of | 4 | | the merchandise. In no event shall the consumer be
required | 5 | | to pay a sum greater than the total amount to be paid to | 6 | | acquire
ownership, as disclosed in item (3) of subsection | 7 | | (g) of this Section.
| 8 | | (d) Only one late charge or reinstatement fee may be | 9 | | collected on a
payment regardless of the period during which it | 10 | | remains in default.
| 11 | | (e) A rental-purchase agreement must provide that:
| 12 | | (1) a charge in addition to periodic payments, if any, | 13 | | must be
reasonably related to the service performed; and
| 14 | | (2) a consumer who fails to make a timely payment may | 15 | | reinstate an
agreement, without losing rights or options | 16 | | previously acquired, by taking
the required action before | 17 | | the later of one week or half of the number of
days in a | 18 | | regular payment period after the due date of the payment , | 19 | | this period of time hereinafter referred to as the | 20 | | "reinstatement period"; and . | 21 | | (3) if the
merchandise is returned to the merchant | 22 | | during the applicable reinstatement
period, other than | 23 | | through judicial process, the right to
reinstate the | 24 | | agreement must be extended for a period of not less than | 25 | | one year.
| 26 | | (f) Notice of the right to reinstate an agreement must be |
| | | 09700SB0054sam001 | - 6 - | LRB097 02857 AEK 53486 a |
|
| 1 | | disclosed in
the agreement. This Act does not prevent a | 2 | | merchant from attempting
repossession of merchandise during | 3 | | the reinstatement period, in
accordance with the agreement, and | 4 | | the consumer's right to reinstate an
agreement does not expire | 5 | | because of such a repossession. If the consumer is entitled to | 6 | | reinstatement after repossession, then, within 15 days of the | 7 | | repossession, the merchant must provide written notice to the | 8 | | consumer of the consumer's right to reinstate the agreement. If | 9 | | the
merchandise is returned to the merchant during the | 10 | | applicable reinstatement
period, other than through judicial | 11 | | process, the right to
reinstate the agreement shall be extended | 12 | | for a period of not less than 30
days if the consumer has paid | 13 | | less than 60% of the total amount to be paid to
acquire | 14 | | ownership of the merchandise and shall be extended for a period | 15 | | of not
less than 60 days if the consumer has paid 60% or more of | 16 | | the total amount to
be paid to acquire ownership of the | 17 | | merchandise. On reinstatement,
the merchant shall provide the | 18 | | consumer with the same merchandise or
substitute merchandise of | 19 | | comparable quality and condition. If substitute
merchandise is | 20 | | provided, the merchant shall also provide the consumer with the
| 21 | | disclosures required in subsection (g) of this Section.
| 22 | | (g) A rental-purchase agreement must be contained in a | 23 | | single document and must clearly and conspicuously disclose all | 24 | | of the following disclose :
| 25 | | (1) whether the merchandise is new or used;
| 26 | | (2) the names of the merchant and the consumer, the |
| | | 09700SB0054sam001 | - 7 - | LRB097 02857 AEK 53486 a |
|
| 1 | | merchant's business address and telephone number, the | 2 | | consumer's address, the date on which the agreement is | 3 | | executed, and a description of the merchandise sufficient | 4 | | to identify it the amount and timing of payments ;
| 5 | | (3) the minimum period for which the consumer is | 6 | | obligated under the rental-purchase agreement, the | 7 | | duration of the rental-purchase agreement if all regularly | 8 | | scheduled periodic payments are made, the amount of each | 9 | | periodic payment, and the total amount and number of | 10 | | periodic payments necessary to acquire ownership of the | 11 | | merchandise if the renter makes all regularly scheduled | 12 | | periodic payments the total number of payments necessary | 13 | | and the total amount to be
paid to acquire ownership of the | 14 | | merchandise ;
| 15 | | (4) the amount and purpose of any payment, charge or | 16 | | fee in addition to
the regular periodic payments;
| 17 | | (5) whether the consumer is liable for loss or damage | 18 | | to the
merchandise, and, if so, the maximum amount for | 19 | | which the consumer
may be liable , which in the case of loss | 20 | | shall in no event be greater than the price the consumer | 21 | | would have paid to exercise an early purchase option | 22 | | pursuant to this Act or the cost of repair as determined by | 23 | | the merchant ;
| 24 | | (6) that the consumer does not acquire ownership rights | 25 | | unless the
consumer has complied with the ownership terms | 26 | | of the agreement; and
|
| | | 09700SB0054sam001 | - 8 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (7) the cash price of the merchandise, whether the | 2 | | merchandise is
new or used ; . | 3 | | (8) the cost of rental; | 4 | | (9) a statement of the consumer's right to acquire | 5 | | ownership by the early purchase option as provided in this | 6 | | Act, including substantially the following statement: "The | 7 | | attached chart shows the amount required to exercise your | 8 | | early purchase option after each renewal payment, assuming | 9 | | you make each periodic payment on time." The | 10 | | rental-purchase agreement shall be accompanied by a chart | 11 | | showing the amount required to exercise the consumer's | 12 | | early purchase option after each periodic payment if | 13 | | payments are made as scheduled; | 14 | | (10) a description of the consumer's reinstatement | 15 | | rights as provided in subsection (e) of this Section; | 16 | | (11) a description of the consumer's right to lower | 17 | | periodic payment amounts as provided in Section 2.2 of this | 18 | | Act; | 19 | | (12) a statement that the unexpired portion of all | 20 | | warranties provided by the manufacturer, distributor, or | 21 | | seller of the merchandise will be transferred by the | 22 | | merchant to the consumer at the time the consumer acquires | 23 | | ownership of the merchandise from the merchant, if such | 24 | | warranty coverage is transferable; | 25 | | (13) a description of the merchant's obligation to | 26 | | maintain the rental merchandise and to repair or replace |
| | | 09700SB0054sam001 | - 9 - | LRB097 02857 AEK 53486 a |
|
| 1 | | rental merchandise that is not operating properly, as | 2 | | provided in Section 2.3 of this Act; and | 3 | | (14) the following notice:
| 4 | | NOTICE | 5 | | You are renting this merchandise. You will not own it until | 6 | | you make all of the regularly scheduled payments or until you | 7 | | exercise the early purchase option. | 8 | | You do not have the right to keep this merchandise if you | 9 | | do not make required payments or do not use the early purchase | 10 | | option. If you miss a payment, the merchant can repossess the | 11 | | merchandise, but you may have the right to have the same or | 12 | | similar merchandise returned. | 13 | | See the contract for an explanation of your rights. | 14 | | (h) The disclosures required by items (3), (7), and (8) of | 15 | | subsection (g) of this Section shall be printed in the | 16 | | following form that shall appear immediately above the space | 17 | | reserved for the consumer's signature in the rental-purchase | 18 | | agreement: - | 19 | | -------------------------------------------------------- | |
20 | | Total of Payments | Cost of Rental | Cash Price | |
21 | | $ | $ | $ | |
22 | | You must pay this | Amount over cash | Merchandise | |
23 | | amount to own the | price you will pay | available at | |
24 | | merchandise if | if you make all | this price for | |
|
| | | 09700SB0054sam001 | - 10 - | LRB097 02857 AEK 53486 a |
|
| 1 | | you make all the | regular payments. | cash from the | |
2 | | regular payments. | | merchant. See | |
3 | | You can buy the | | about your early | |
4 | | merchandise for | | purchase option | |
5 | | less under the early | | rights. | |
6 | | purchase option. | | |
| - 7 | | -------------------------------------------------------- | |
8 | | Amount of | Number of | Rental Period | |
9 | | each payment | Payments | | |
10 | | $ | | | |
11 | | per | | | |
12 | | .......... | | | |
13 | | (insert period) | | |
| - 14 | | -------------------------------------------------------- | 15 | | (i) The form prescribed in subsection (h) of this Section | 16 | | shall be clearly and conspicuously placed on a tag or sticker | 17 | | affixed to the merchandise available for rental-purchase. If | 18 | | the merchandise available for rental-purchase is not displayed | 19 | | at the merchant's place of business but appears in a photograph | 20 | | or catalog shown to consumers, a tag or sticker of the form | 21 | | shall be affixed to the photograph shown to consumers or shall | 22 | | be given to consumers at the time of the showing. This | 23 | | subsection does not apply to photographic depictions of | 24 | | merchandise in advertisements complying with the provisions of | 25 | | Section 3 of this Act. | 26 | | (Source: P.A. 87-256; 88-644, eff. 9-9-94.)
|
| | | 09700SB0054sam001 | - 11 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (815 ILCS 655/2.1 new) | 2 | | Sec. 2.1. Early purchase option. | 3 | | (a) The consumer has the right to acquire ownership of the | 4 | | merchandise at any time by tendering to the merchant all past | 5 | | due payments and fees and an amount equal to the cash price | 6 | | stated in the rental-purchase agreement multiplied by a | 7 | | fraction that has as its numerator the number of periodic | 8 | | payments remaining under the agreement and that has as its | 9 | | denominator the total number of periodic payments. A consumer | 10 | | must affirmatively elect to exercise an early purchase option. | 11 | | In no event shall the consumer's early purchase option be less | 12 | | than the amount of one periodic payment. | 13 | | (b) In a clear and conspicuous manner on the consumer's | 14 | | receipt for every periodic payment, which the merchant shall | 15 | | deliver to the consumer within a reasonable time after payment, | 16 | | the merchant shall provide the consumer with a written | 17 | | statement of: | 18 | | (1) The total amount the consumer would have to pay | 19 | | to acquire ownership of the rental merchandise if the | 20 | | consumer makes all regularly scheduled payments remaining | 21 | | under the rental-purchase agreement; and | 22 | | (2) The total amount the consumer would have to pay to | 23 | | acquire ownership of that merchandise pursuant to this | 24 | | Section. |
| | | 09700SB0054sam001 | - 12 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (815 ILCS 655/2.2 new) | 2 | | Sec. 2.2. Interruption or reduction of income in certain | 3 | | instances. | 4 | | (a) If any consumer who has signed a rental-purchase | 5 | | agreement experiences an interruption or reduction of 25% or | 6 | | more of income due to involuntary job loss, involuntary reduced | 7 | | employment, illness, pregnancy, or disability after one-half | 8 | | or more of the total amount of the rental payments necessary to | 9 | | acquire ownership under the agreement have been paid, and such | 10 | | consumer provides to the merchant some evidence of the amount | 11 | | and cause of the interruption or reduction of income, the | 12 | | merchant shall reduce the amount of each rental payment by: (1) | 13 | | the percentage of the reduction in the consumer's income or (2) | 14 | | 50%, whichever is less, for the period during which the | 15 | | consumer's income is interrupted or reduced. | 16 | | (b) If payments are reduced, the total dollar amount of | 17 | | payments necessary to acquire ownership shall not be increased, | 18 | | provided, however, that the number of payments necessary to | 19 | | acquire ownership may be increased accordingly and the rights | 20 | | and duties of the merchant and the consumer shall not otherwise | 21 | | be affected. | 22 | | (c) When the consumer's income is restored, the merchant | 23 | | may increase the amount of rental payments, but in no event | 24 | | shall rental payments exceed the originally disclosed amount of | 25 | | rental payments as provided in the rental-purchase agreement. |
| | | 09700SB0054sam001 | - 13 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (815 ILCS 655/2.3 new) | 2 | | Sec. 2.3. Maintenance of merchandise. | 3 | | (a) The merchant shall maintain the property subject to the | 4 | | rental-purchase agreement in good working order while the | 5 | | agreement is in effect without charging any fee to the consumer | 6 | | in addition to the regularly scheduled rental payments set | 7 | | forth in the rental-purchase agreement. | 8 | | (b) By the end of the second business day following the day | 9 | | on which the merchant received notice from the consumer that | 10 | | the property is not operating properly, the merchant shall | 11 | | repair or replace the property without any fee to the consumer | 12 | | in addition to the regularly scheduled rental payments set | 13 | | forth in the rental-purchase agreement. | 14 | | (c) If a repair or replacement cannot be immediately | 15 | | effected, the merchant shall temporarily substitute property | 16 | | of comparable quality and condition while repairs are being | 17 | | effected. If repairs cannot be completed to the reasonable | 18 | | satisfaction of the consumer within 30 days after the merchant | 19 | | receives notice from the consumer or within a longer period | 20 | | voluntarily agreed to by the consumer, the merchant shall | 21 | | permanently replace the property. | 22 | | (d) All replacement property shall be the same brand, if | 23 | | available, and comparable in quality, age, condition, and | 24 | | warranty coverage to the replaced property. If the same brand | 25 | | is not available, the brand of the replacement property shall | 26 | | be agreeable to the consumer, provided, however, that any |
| | | 09700SB0054sam001 | - 14 - | LRB097 02857 AEK 53486 a |
|
| 1 | | request by the consumer shall not be unreasonable. | 2 | | (e) All of the consumer's and merchant's rights and | 3 | | obligations under the rental-purchase agreement that applied | 4 | | to the property originally subject to the rental-purchase | 5 | | agreement shall apply to any replacement property. | 6 | | (f) The consumer shall not be charged, or held liable for, | 7 | | any pro rata portion of a periodic payment for any period of | 8 | | time greater than one full day and each full day thereafter | 9 | | during which the property that is the subject of the | 10 | | rental-purchase agreement or any property substituted for it | 11 | | pursuant to this Section is not in good working order. | 12 | | (g) This Section shall not apply to repairs or damage for | 13 | | which the consumer is liable under the rental-purchase | 14 | | agreement. | 15 | | (h) A merchant shall not deliver to a consumer any property | 16 | | which the merchant knows or has reason to know is defective. | 17 | | (i) In the case of damage to the merchandise other than | 18 | | normal wear and tear, the consumer shall be liable for the | 19 | | lesser of the price the consumer would have paid to exercise an | 20 | | early purchase option pursuant to Section 2.1 of this Act or | 21 | | the cost of the repair as determined by the merchant. | 22 | | (815 ILCS 655/2.4 new) | 23 | | Sec. 2.4. Availability, enforcement, and cancellation. | 24 | | (a) Every rental-purchase agreement shall indicate that a | 25 | | consumer at his or her request shall be permitted to review a |
| | | 09700SB0054sam001 | - 15 - | LRB097 02857 AEK 53486 a |
|
| 1 | | rental-purchase agreement for up to 48 hours prior to signing. | 2 | | (b) A copy of the signed rental-purchase agreement and all | 3 | | other documents which the merchant requests the consumer to | 4 | | sign shall be given to the consumer at the time they are | 5 | | signed. The rental-purchase agreement shall not be enforceable | 6 | | against the consumer until the consumer has received a signed | 7 | | copy. | 8 | | (c) In addition to any other right of cancellation, a | 9 | | consumer has the right to cancel a rental-purchase agreement, | 10 | | without penalty or obligation, if the consumer has not taken | 11 | | possession of the merchandise. | 12 | | (815 ILCS 655/2.5 new) | 13 | | Sec. 2.5. Mandatory arbitration. | 14 | | (a) Subject to federal law and regulation, no | 15 | | rental-purchase agreement shall contain a mandatory | 16 | | arbitration clause. Nothing herein shall be construed to | 17 | | prohibit a merchant from incorporating a provision within a | 18 | | rental-purchase agreement that the decision of the arbitrator | 19 | | or panel of arbitrators shall be final in its application to | 20 | | the parties and not subject to court review. | 21 | | (b) The provisions of a mandatory arbitration clause within | 22 | | a rental-purchase agreement shall be null and void but shall | 23 | | not constitute a violation of this Act. The inclusion of a | 24 | | mandatory arbitration clause shall not serve to impair the | 25 | | enforceability of any other provision of the rental-purchase |
| | | 09700SB0054sam001 | - 16 - | LRB097 02857 AEK 53486 a |
|
| 1 | | agreement. | 2 | | (815 ILCS 655/2.6 new) | 3 | | Sec. 2.6. Maximum cash price and total of payments. | 4 | | (a) A merchant shall maintain records that establish the | 5 | | merchant's cost for each item of merchandise that is the | 6 | | subject of a rental-purchase agreement. A merchant shall | 7 | | maintain a copy of each rental-purchase agreement and of the | 8 | | records required by this Section for at least 2 years following | 9 | | the termination of the agreement. | 10 | | (b) The maximum cash price for the merchant's first rental | 11 | | of the merchandise that is the subject of the rental-purchase | 12 | | agreement may not exceed 1.75 times the merchant's cost for | 13 | | appliances, 1.75 times the merchant's cost for electronic sets | 14 | | having a merchant's cost of less than $150, 2.0 times the | 15 | | merchant's cost for electronic sets having a merchant's cost | 16 | | greater than or equal to $150, 2.15 times the merchant's cost | 17 | | for furniture, 2.0 times the merchant's cost for automotive | 18 | | accessories, jewelry, and musical instruments, and 1.75 times | 19 | | the merchant's cost for all other items. | 20 | | (c) The maximum cash price for merchandise on its second or | 21 | | subsequent rental may not exceed the maximum total of payments | 22 | | for that merchandise as permitted under this Section using the | 23 | | terming matrix, divided by 2.25. | 24 | | (d) The maximum total of payments may not exceed 2.25 times | 25 | | the maximum cash price that could have been charged for the |
| | | 09700SB0054sam001 | - 17 - | LRB097 02857 AEK 53486 a |
|
| 1 | | first rental of the merchandise as prescribed by this Act. | 2 | | (e) The maximum total of payments for the merchant's second | 3 | | or subsequent rental of the merchandise that is the subject of | 4 | | a rental-purchase agreement may not exceed the maximum total of | 5 | | payments permitted under the terming matrix contained in this | 6 | | Section. | 7 | | (f) The following terming matrix shall be used to lower the | 8 | | number of periodic payments, which shall result in a lower | 9 | | total of payments and a lower maximum cash price for used | 10 | | merchandise based on its age and condition. The merchant may | 11 | | choose to maintain the number of periodic payments for used | 12 | | merchandise as if it were new in lieu of reducing the number of | 13 | | payments, provided that the merchant lowers the total of | 14 | | payments and maximum cash price on a pro-rata basis using the | 15 | | terming matrix as guidance. The merchant shall keep in | 16 | | electronic or hard copy form, the matrix used, together with a | 17 | | record of the number of periodic payments provided in the first | 18 | | agreement when the merchandise was offered as new, as well as a | 19 | | record of the item's condition as determined by the merchant | 20 | | pursuant to the matrix each time it is priced as used. No | 21 | | merchant shall price used goods in excess of the prices | 22 | | dictated by the matrix. | 23 | | Terming Matrix for Used Merchandise | |
24 | | Original | 34 weeks | 35-38 weeks | 39-90 weeks | 91 weeks | |
|
| | | 09700SB0054sam001 | - 18 - | LRB097 02857 AEK 53486 a |
|
| 1 | | term in | or | | | or | |
2 | | weeks | less | | | more | |
3 | | when new | | | | |
| |
4 | | Excellent | Subtract | Subtract | Subtract | Subtract | |
5 | | Condition | a minimum | a minimum | a minimum | a minimum | |
6 | | | of 1 week | of 2 weeks | of 3 weeks | of 4 weeks | |
7 | | | from | from | from | from | |
8 | | | original | original | original | original | |
9 | | | term | term | term | term |
| |
10 | | Good | Subtract | Subtract | Subtract | Subtract | |
11 | | Condition | a minimum | a minimum | a minimum | a minimum | |
12 | | | of 3 weeks | of 5 weeks | of 7 weeks | of 9 weeks | |
13 | | | from | from | from | from | |
14 | | | original | original | original | original | |
15 | | | term | term | term | term |
| |
16 | | Fair | Subtract | Subtract | Subtract | Subtract | |
17 | | Condition | a minimum | a minimum | a minimum | a minimum | |
18 | | | of | of | of | of | |
19 | | | 4 weeks | 7 weeks | 10 weeks | 13 weeks | |
20 | | | from | from | from | from | |
21 | | | original | original | original | original | |
22 | | | term | term | term | term |
| |
| | | 09700SB0054sam001 | - 19 - | LRB097 02857 AEK 53486 a |
|
| 1 | | Poor | Subtract | Subtract | Subtract | Subtract | |
2 | | Condition | a minimum | a minimum | a minimum | a minimum | |
3 | | | of | of | of | of | |
4 | | | 6 weeks | 10 weeks | 15 weeks | 20 weeks | |
5 | | | from | from | from | from | |
6 | | | original | original | original | original | |
7 | | | term or | term or | term or | term or | |
8 | | | cash sale | cash sale | cash sale | cash sale |
| 9 | | (g) Immediately below the terming matrix the following | 10 | | language shall be printed in 10 point type: | 11 | | New = Full term. | 12 | | Excellent = In great shape. Refurbished to look like | 13 | | new. | 14 | | Good = In good working order. Refurbished, but | 15 | | imperfections still exist. | 16 | | Fair = Completely operational, but refurbishment has | 17 | | not concealed obvious wear and tear. | 18 | | Poor = Ripped, faded, cracked, or broken and | 19 | | refurbishment did not improve the condition. | 20 | | (h) The Attorney General shall make available in printed | 21 | | form in at least 10 point type to merchants and publish on an | 22 | | appropriate website the terming matrix in chart form to be used | 23 | | by merchants as required by this Section. | 24 | | (i) Upon written request of the Attorney General, a | 25 | | merchant shall provide copies of the records described in this | 26 | | Section. |
| | | 09700SB0054sam001 | - 20 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (j) If a merchant intentionally discloses a cash price or a | 2 | | total of payments that exceeds the amount permitted by this | 3 | | Section, the rental-purchase agreement is void, the consumer | 4 | | shall retain the merchandise without any obligation, and the | 5 | | merchant shall refund to the consumer all amounts paid.
| 6 | | (815 ILCS 655/3) (from Ch. 121 1/2, par. 1803)
| 7 | | Sec. 3. Advertisement.
| 8 | | (a) An advertisement for a rental-purchase
agreement that | 9 | | refers to or states the amount of a payment or the right to
| 10 | | acquire ownership of any one particular item under the | 11 | | agreement must
clearly and conspicuously state:
| 12 | | (1) that the transaction advertised is a | 13 | | rental-purchase agreement;
| 14 | | (2) the total amount and number of payments necessary | 15 | | to acquire
ownership; and
| 16 | | (3) that the consumer does not acquire ownership rights | 17 | | unless the
merchandise is rented for a specified number of | 18 | | payment periods ; and . | 19 | | (4) whether the advertised terms are for new or used | 20 | | merchandise.
| 21 | | (b) Every item of property displayed or offered for | 22 | | rental-purchase by a
merchant shall have attached to its front | 23 | | or displayed as prominently as if
attached to its front a tag | 24 | | disclosing whether the merchandise is new or used, in addition | 25 | | to any other tag or sticker required by this Act the amount to |
| | | 09700SB0054sam001 | - 21 - | LRB097 02857 AEK 53486 a |
|
| 1 | | be paid to acquire
ownership of the merchandise .
| 2 | | (Source: P.A. 88-644, eff. 9-9-94.)
| 3 | | (815 ILCS 655/4) (from Ch. 121 1/2, par. 1804)
| 4 | | Sec. 4. Enforcement. (a) A consumer damaged by a violation | 5 | | of this
Act by a merchant is entitled to recover from the | 6 | | merchant:
| 7 | | (1) actual damages;
| 8 | | (2) 25% of an amount equal to the total amount of payments | 9 | | required to
obtain ownership of the merchandise involved, | 10 | | except that the amount
recovered under this item (2) may not be | 11 | | less than $250 nor more than
$1,000; and
| 12 | | (3) reasonable attorney's fees and court costs.
| 13 | | (b) A merchant is not liable under this Section for a | 14 | | violation of this
Act caused by the merchant's error if before | 15 | | the 31st day after the date
the merchant discovers the error, | 16 | | and before an action under this Section
is filed or written | 17 | | notice of the error is received by the merchant from
the | 18 | | consumer, the merchant gives the consumer written notice of the | 19 | | error
and makes adjustments in the consumer's account as | 20 | | necessary to assure that
the consumer will not be required to | 21 | | pay an amount in excess of the amount
disclosed and that the | 22 | | agreement otherwise complies with this Act. | 23 | | (c) Nothing in this Act shall be construed to nullify or
| 24 | | impair any right or rights which a consumer may have against a | 25 | | merchant
at common law, by statute, or otherwise. |
| | | 09700SB0054sam001 | - 22 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (d) A merchant or assignee may not be held liable in an | 2 | | action brought
under this Act for a violation of this Act that | 3 | | was
unintentional and resulted from a bona fide or clerical | 4 | | error
notwithstanding the maintenance of procedures reasonably | 5 | | adopted to
avoid any such error. | 6 | | (e) An action shall not be brought under this Section more | 7 | | than 4
years after the occurrence of the act, method, or | 8 | | practice which is the
subject of the action or more than one | 9 | | year after the last payment in a
transaction involving the | 10 | | method, act, or practice which is the subject
of the action, | 11 | | whichever is later.
| 12 | | (Source: P.A. 85-957.)
| 13 | | (815 ILCS 655/4.1 new) | 14 | | Sec. 4.1. Enforcement by Attorney General. All remedies, | 15 | | penalties, and authority granted to the Attorney General by the | 16 | | Consumer Fraud and Deceptive Business Practices Act shall be | 17 | | available to the Attorney General for the enforcement of this | 18 | | Act. A violation of this Act shall constitute an unlawful | 19 | | practice as provided in the Consumer Fraud and Deceptive | 20 | | Business Practices Act.
| 21 | | (815 ILCS 655/5) (from Ch. 121 1/2, par. 1805)
| 22 | | Sec. 5. Penalty. Any person intentionally violating this | 23 | | Act shall be
guilty of a petty offense and fined not more than | 24 | | $500 , in addition to any other penalty imposed by this Act .
|
| | | 09700SB0054sam001 | - 23 - | LRB097 02857 AEK 53486 a |
|
| 1 | | (Source: P.A. 85-957.)
| 2 | | Section 10. The Consumer Fraud and Deceptive Business | 3 | | Practices Act is amended by changing Section 2Z as follows:
| 4 | | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
| 5 | | Sec. 2Z. Violations of other Acts. Any person who knowingly | 6 | | violates
the Automotive Repair Act, the Automotive Collision | 7 | | Repair Act,
the Home Repair and Remodeling Act,
the Dance | 8 | | Studio Act,
the Physical Fitness Services Act,
the Hearing | 9 | | Instrument Consumer Protection Act,
the Illinois Union Label | 10 | | Act,
the Job Referral and Job Listing Services Consumer | 11 | | Protection Act,
the Travel Promotion Consumer Protection Act,
| 12 | | the Credit Services Organizations Act,
the Automatic Telephone | 13 | | Dialers Act,
the Pay-Per-Call Services Consumer Protection | 14 | | Act,
the Telephone Solicitations Act,
the Illinois Funeral or | 15 | | Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care | 16 | | Act,
the Safe and Hygienic Bed Act,
the Pre-Need Cemetery Sales | 17 | | Act,
the High Risk Home Loan Act, the Payday Loan Reform Act, | 18 | | the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section | 19 | | 3-10 of the
Cigarette Tax Act, subsection
(a) or (b) of Section | 20 | | 3-10 of the Cigarette Use Tax Act, the Electronic
Mail Act, the | 21 | | Internet Caller Identification Act, paragraph (6)
of
| 22 | | subsection (k) of Section 6-305 of the Illinois Vehicle Code, | 23 | | Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, | 24 | | or 18d-153 of the Illinois Vehicle Code, Article 3 of the |
| | | 09700SB0054sam001 | - 24 - | LRB097 02857 AEK 53486 a |
|
| 1 | | Residential Real Property Disclosure Act, the Automatic | 2 | | Contract Renewal Act, the Rental-Purchase Agreement Act, or the | 3 | | Personal Information Protection Act commits an unlawful | 4 | | practice within the meaning of this Act.
| 5 | | (Source: P.A. 95-413, eff. 1-1-08; 95-562, eff. 7-1-08; 95-876, | 6 | | eff. 8-21-08; 96-863, eff. 1-19-10; 96-1369, eff. 1-1-11; | 7 | | 96-1376, eff. 7-29-10; revised 9-2-10.)".
|
|