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90_HB3321enr
815 ILCS 505/1 from Ch. 121 1/2, par. 261
815 ILCS 505/2B from Ch. 121 1/2, par. 262B
Amends the Consumer Fraud and Deceptive Business
Practices Act. Provides that where a sale of merchandise is
made to a consumer by a seller pursuant to a home
solicitation sale (now a seller who is physically present at
the consumer's residence), the consumer may avoid the
contract or transaction by notifying the seller within 3 full
business days. Defines "home solicitation sale".
LRB9011390MWpc
HB3321 Enrolled LRB9011390MWpc
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. Where a sale of merchandise involving $25 or
9 more is made or contracted to be made whether under a single
10 contract or under multiple contracts, to a consumer by a
11 seller who is physically present at the consumer's residence,
12 that consumer may avoid the contract or transaction by
13 notifying the seller within 3 full business days following
14 that day on which the contract was signed or the sale was
15 made and by returning to the person, in its original
16 condition, any merchandise delivered to the consumer under
17 the contract or sale. At the time the transaction is made or
18 the contract signed, the person shall furnish the consumer
19 with a fully completed receipt or contract pertaining to the
20 transaction, in substantially the same language as that
21 principally used in the oral presentation to the consumer,
22 containing a "Notice of Cancellation" informing the consumer
23 that he may cancel the transaction at any time within 3 days
24 and showing the date of the transaction with the name and
25 address of the person, and in immediate proximity to the
26 space reserved in the contract for the consumer's signature
27 or on the front page of the receipt if a contract is not
28 used, a statement which shall be in bold face type, in at
29 least 10-point type and in substantially the following form:
30 "YOU, THE CONSUMER, MAY CANCEL THIS TRANSACTION AT ANY
31 TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE
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1 DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF
2 CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."
3 Attached to the receipt or contract shall be a completed
4 form in duplicate, captioned "NOTICE OF CANCELLATION" which
5 shall be easily detachable and which shall contain in 10
6 point bold face type the following information and statements
7 in the same language as that used in the contract:
8 NOTICE OF CANCELLATION
9 (enter date of transaction)
10 ...........................
11 (Date)
12 YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR
13 OBLIGATION, WITHIN 3 BUSINESS DAYS FROM THE ABOVE DATE.
14 IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE
15 BY YOU, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU UNDER
16 THE CONTRACT OR TRANSACTION WILL BE RETURNED WITHIN 10
17 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR
18 CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF
19 THE TRANSACTION WILL BE CANCELLED.
20 IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT
21 YOUR RESIDENCE IN SUBSTANTIALLY AS GOOD A CONDITION AS WHEN
22 RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR
23 TRANSACTION, OR YOU MAY IF YOU WISH, COMPLY WITH THE
24 INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF
25 THE GOODS AT THE SELLER'S EXPENSE AND RISK.
26 IF YOU MAKE THE GOODS AVAILABLE TO THE SELLER AND THE
27 SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF
28 YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE
29 GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE
30 THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN
31 THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN
32 LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
33 TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND
34 DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN
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1 NOTICE, OR SEND A TELEGRAM, TO (Name of seller), AT (address
2 of seller's place of business) NOT LATER THAN MIDNIGHT OF
3 (date).
4 I HEREBY CANCEL THIS TRANSACTION.
5 (Date) ............
6 ...................
7 (Buyer's signature)
8 Such written "Notice of Cancellation" may be sent by the
9 consumer to the person to cancel the contract. The 3 day
10 period provided for in this Section does not commence until
11 the consumer is furnished a "Notice of Cancellation", and the
12 address at which such notice to the seller can be given. If
13 those conditions are met, the seller must return to the
14 consumer the full amount of any payment made or consideration
15 given under the contract or for the merchandise. It is an
16 unlawful practice within the meaning of this Act for any
17 person to
18 (a) Fail, before furnishing copies of the "Notice of
19 Cancellation" to the consumer, to complete the copies by
20 entering the name of the person, the address of the person's
21 place of business, the date of the transaction, and the date,
22 not earlier than the third business day following the date of
23 the transaction, by which the consumer may give notice of
24 cancellation;
25 (b) Include in any contract or receipt under this
26 Section any confession of judgment or any waiver of any of
27 the rights to which the consumer is entitled under this
28 Section including specifically his right to cancel the
29 transaction in accordance with the provisions of this
30 Section;
31 (c) Fail to inform each consumer orally, at the time he
32 signs the contract or purchases or leases the goods or
33 services, of his right to cancel;
34 (d) Misrepresent in any manner the consumer's right to
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1 cancel;
2 (e) Use any undue influence, coercion or any other
3 wilful act or representation to interfere with the consumer's
4 exercise of his rights under this Section;
5 (f) Fail or refuse to honor any valid notice of
6 cancellation by a consumer and within 10 business days after
7 the receipt of such notice, to
8 (i) refund all payments made under the contract or sale,
9 (ii) return any goods or property traded in, in
10 substantially as good a condition as when received by the
11 person, or
12 (iii) cancel and return any negotiable instrument
13 executed by the consumer in connection with the contract or
14 transaction and take any action necessary or appropriate to
15 terminate promptly any security interest created in the
16 transaction;
17 (g) Negotiate, transfer, sell, or assign any note or
18 other evidence of indebtedness to a finance company or other
19 third party prior to midnight of the fifth business day
20 following the day the contract was signed or the goods or
21 services were purchased or leased; or
22 (h) Fail, within 10 business days of receipt of the
23 consumer's notice of cancellation, to notify him whether the
24 seller intends to repossess or to abandon any shipped or
25 delivered goods.
26 For the purposes of this Section, the word "sale"
27 includes a sale, lease or rental.
28 This Section does not apply to any transaction
29 (a) made pursuant to prior negotiations in the course of
30 a visit by the consumer to a retail business establishment
31 having a fixed permanent location where the goods are
32 exhibited, or the services are offered, for sale or lease on
33 a continuing basis;
34 (b) in which the consumer is accorded the right of
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1 rescission by the provisions of the Consumer Credit
2 Protection Act (15 U.S.C. 1635) or regulations issued
3 pursuant thereto;
4 (c) in which the consumer has initiated the contact and
5 the goods or services are needed to meet a bona fide
6 immediate personal emergency of the consumer, and the
7 consumer furnishes the person with a separate dated and
8 signed personal statement in the consumer's handwriting
9 describing the situation requiring immediate remedy and
10 expressly acknowledging and waiving the right to cancel the
11 sale within 3 business days;
12 (d) conducted and consummated entirely by mail or
13 telephone without any other contact between the consumer and
14 the person or its representative prior to delivery of the
15 goods or performance of the services;
16 (e) in which the consumer has initiated the contact and
17 specifically requested the person to visit his home for the
18 purpose of repairing or performing maintenance upon the
19 consumer's personal property, on the condition that if, in
20 the course of such a visit, the person sells the consumer the
21 right to receive additional services or goods other than
22 replacement parts necessarily used in performing the
23 maintenance or in making the repairs, the sale of those
24 additional goods or services does not fall within this
25 exclusion; or
26 (f) pertaining to the sale or rental of real
27 property, to the sale of insurance or to the sale
28 of securities or commodities by a broker-dealer
29 registered with the Securities and Exchange Commission;
30 or
31 (g) between a consumer and a loan broker licensed under
32 the Residential Mortgage License Act of 1987 when (i) the
33 transaction involves obtaining a mortgage loan on real estate
34 and (ii) the first contact respecting the transaction is
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1 initiated by the consumer or by another person at the request
2 of the consumer.
3 (Source: P.A. 86-898.)