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90_HB0241
815 ILCS 505/2B from Ch. 121 1/2, par. 262B
Amends the Consumer Fraud and Deceptive Business
Practices Act. Provides that persons age 65 or older have up
to 30 days under certain circumstances to cancel contracts
for the sale of merchandise made by telephone or with a
seller who is physically present at the consumer's residence
at the time of sale. Currently all consumers may cancel this
type of contract within 3 business days. Effective
immediately.
LRB9000486KRkb
LRB9000486KRkb
1 AN ACT to amend the Consumer Fraud and Deceptive Business
2 Practices Act by changing Section 2B.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Consumer Fraud and Deceptive Business
6 Practices Act is amended by changing Section 2B as follows:
7 (815 ILCS 505/2B) (from Ch. 121 1/2, par. 262B)
8 Sec. 2B. Avoidance of certain contracts.
9 (a) Where a sale of merchandise involving $25 or more is
10 made or contracted to be made whether under a single contract
11 or under multiple contracts, to a consumer by a seller who is
12 physically present at the consumer's residence, that consumer
13 may avoid the contract or transaction by notifying the seller
14 within 3 full business days, or within 30 days as provided in
15 subsection (b) if the consumer has attained 65 years of age,
16 following that day on which the contract was signed or the
17 sale was made and by returning to the person, in its original
18 condition, any merchandise delivered to the consumer under
19 the contract or sale.
20 (b) When a seller who is physically present at the
21 consumer's residence or by telephone makes a sale of
22 merchandise under a single contract or multiple contracts
23 involving $25 or more to a consumer who is at least 65 years
24 old, the consumer may avoid the contract and transaction by
25 notifying the seller within 30 days following the date on
26 which the contract was signed or the sale was made and by
27 returning merchandise delivered to the consumer to the seller
28 in substantially its original condition. The remedy provided
29 by this subsection is available only when the merchandise is
30 sold at a price in excess of the manufacturer's or supplier's
31 suggested retail list price and no emergency exists that
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1 would cause a reasonable person to believe that the consumer
2 needs to take immediate possession of the merchandise.
3 (c) At the time the transaction is made or the contract
4 signed, the seller person shall furnish the consumer with a
5 fully completed receipt or contract pertaining to the
6 transaction, in substantially the same language as that
7 principally used in the oral presentation to the consumer,
8 containing a "Notice of Cancellation" informing the consumer
9 that he may cancel the transaction at any time within 3 days
10 or 30 days, as the case may be, and showing the date of the
11 transaction with the name and address of the person, and in
12 immediate proximity to the space reserved in the contract for
13 the consumer's signature or on the front page of the receipt
14 if a contract is not used, a statement which shall be in bold
15 face type, in at least 10-point type and in substantially the
16 following form:
17 "YOU, THE CONSUMER, MAY CANCEL THIS TRANSACTION AT ANY
18 TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY OR, IF YOU
19 ARE AT LEAST 65 YEARS OLD, THE THIRTIETH DAY AFTER THE DATE
20 OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION
21 FORM FOR AN EXPLANATION OF THIS RIGHT."
22 Attached to the receipt or contract shall be a completed
23 form in duplicate, captioned "NOTICE OF CANCELLATION" which
24 shall be easily detachable and which shall contain in 10
25 point bold face type the following information and statements
26 in the same language as that used in the contract:
27 NOTICE OF CANCELLATION
28 (enter date of transaction)
29 ...........................
30 (Date)
31 YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR
32 OBLIGATION, WITHIN 3 BUSINESS DAYS FROM THE ABOVE DATE OR
33 WITHIN 30 DAYS FROM THE ABOVE DATE IF YOU ARE AT LEAST 65
34 YEARS OLD.
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1 IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE
2 BY YOU, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU UNDER
3 THE CONTRACT OR TRANSACTION WILL BE RETURNED WITHIN 10
4 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR
5 CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF
6 THE TRANSACTION WILL BE CANCELLED.
7 IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT
8 YOUR RESIDENCE IN SUBSTANTIALLY AS GOOD A CONDITION AS WHEN
9 RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR
10 TRANSACTION, OR YOU MAY IF YOU WISH, COMPLY WITH THE
11 INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF
12 THE GOODS AT THE SELLER'S EXPENSE AND RISK.
13 IF YOU MAKE THE GOODS AVAILABLE TO THE SELLER AND THE
14 SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF
15 YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE
16 GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE
17 THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN
18 THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN
19 LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
20 TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND
21 DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN
22 NOTICE, OR SEND A TELEGRAM, TO (Name of seller), AT (address
23 of seller's place of business) NOT LATER THAN MIDNIGHT OF
24 (date).
25 I HEREBY CANCEL THIS TRANSACTION.
26 (Date) ............
27 ...................
28 (Buyer's signature)
29 (d) The Such written "Notice of Cancellation" may be
30 sent by the consumer to the seller person to cancel the
31 contract. The 3 day period or 30 day period, as the case may
32 be, provided for in this Section does not commence until the
33 consumer is furnished a "Notice of Cancellation", and the
34 address at which such notice to the seller can be given. If
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1 those conditions are met, the seller must return to the
2 consumer the full amount of any payment made or consideration
3 given under the contract or for the merchandise. It is an
4 unlawful practice within the meaning of this Act for any
5 person to:
6 (1) (a) fail, before furnishing copies of the
7 "Notice of Cancellation" to the consumer, to complete the
8 copies by entering the name of the person, the address of
9 the person's place of business, the date of the
10 transaction, and the date, not earlier than the third
11 business day following the date of the transaction, by
12 which the consumer may give notice of cancellation;
13 (2) (b) include in any contract or receipt under
14 this Section any confession of judgment or any waiver of
15 any of the rights to which the consumer is entitled under
16 this Section including specifically his right to cancel
17 the transaction in accordance with the provisions of this
18 Section;
19 (3) (c) fail to inform each consumer orally, at the
20 time he signs the contract or purchases or leases the
21 goods or services, of his right to cancel;
22 (4) (d) misrepresent in any manner the consumer's
23 right to cancel;
24 (5) (e) use any undue influence, coercion or any
25 other wilful act or representation to interfere with the
26 consumer's exercise of his rights under this Section;
27 (6) (f) fail or refuse to honor any valid notice of
28 cancellation by a consumer and within 10 business days
29 after the receipt of such notice, to:
30 (A) (i) refund all payments made under the
31 contract or sale,
32 (B) (ii) return any goods or property traded
33 in, in substantially as good a condition as when
34 received by the person, or
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1 (C) (iii) cancel and return any negotiable
2 instrument executed by the consumer in connection
3 with the contract or transaction and take any action
4 necessary or appropriate to terminate promptly any
5 security interest created in the transaction;
6 (7) (g) Negotiate, transfer, sell, or assign any
7 note or other evidence of indebtedness to a finance
8 company or other third party prior to midnight of the
9 fifth business day following the day the contract was
10 signed or the goods or services were purchased or leased;
11 or
12 (8) (h) Fail, within 10 business days of receipt of
13 the consumer's notice of cancellation, to notify him
14 whether the seller intends to repossess or to abandon any
15 shipped or delivered goods.
16 (e) For the purposes of this Section, the word "sale"
17 includes a sale, lease or rental.
18 (f) This Section does not apply to any transaction:
19 (1) (a) made pursuant to prior negotiations in the
20 course of a visit by the consumer to a retail business
21 establishment having a fixed permanent location where the
22 goods are exhibited, or the services are offered, for
23 sale or lease on a continuing basis;
24 (2) (b) in which the consumer is accorded the right
25 of rescission by the provisions of the Consumer Credit
26 Protection Act (15 U.S.C. 1635) or regulations issued
27 pursuant thereto;
28 (3) (c) in which the consumer has initiated the
29 contact and the goods or services are needed to meet a
30 bona fide immediate personal emergency of the consumer,
31 and the consumer furnishes the person with a separate
32 dated and signed personal statement in the consumer's
33 handwriting describing the situation requiring immediate
34 remedy and expressly acknowledging and waiving the right
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1 to cancel the sale within 3 business days or 30 days, as
2 the case may be;
3 (4) (d) conducted and consummated entirely by mail
4 or telephone without any other contact between the
5 consumer and the person or its representative prior to
6 delivery of the goods or performance of the services;
7 (5) (e) in which the consumer has initiated the
8 contact and specifically requested the person to visit
9 his home for the purpose of repairing or performing
10 maintenance upon the consumer's personal property, on the
11 condition that if, in the course of such a visit, the
12 person sells the consumer the right to receive additional
13 services or goods other than replacement parts
14 necessarily used in performing the maintenance or in
15 making the repairs, the sale of those additional goods or
16 services does not fall within this exclusion; or
17 (6) (f) pertaining to the sale or rental of
18 real property, to the sale of insurance or to
19 the sale of securities or commodities by a
20 broker-dealer registered with the Securities and
21 Exchange Commission.
22 (Source: P.A. 86-898.)
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.