State of Illinois
90th General Assembly
Legislation

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90_HB3321sam001

                                           LRB9011390MWpcam02
 1                    AMENDMENT TO HOUSE BILL 3321
 2        AMENDMENT NO.     .  Amend House Bill 3321  by  replacing
 3    the title with the following:
 4        "AN  ACT  to  amend  the  Consumer  Fraud  and  Deceptive
 5    Business Practices Act by changing Section 2B."; and
 6    by  replacing  everything  after the enacting clause with the
 7    following:
 8        "Section 5.  The Consumer Fraud  and  Deceptive  Business
 9    Practices Act is amended by changing Section 2B as follows:
10        (815 ILCS 505/2B) (from Ch. 121 1/2, par. 262B)
11        Sec.  2B.   Where  a sale of merchandise involving $25 or
12    more is made or contracted to be made whether under a  single
13    contract  or  under  multiple  contracts,  to a consumer by a
14    seller who is physically present at the consumer's residence,
15    that consumer  may  avoid  the  contract  or  transaction  by
16    notifying  the  seller  within 3 full business days following
17    that day on which the contract was signed  or  the  sale  was
18    made  and  by  returning  to  the  person,  in  its  original
19    condition,  any  merchandise  delivered to the consumer under
20    the contract or sale. At the time the transaction is made  or
21    the  contract  signed,  the person shall furnish the consumer
                            -2-            LRB9011390MWpcam02
 1    with a fully completed receipt or contract pertaining to  the
 2    transaction,  in  substantially  the  same  language  as that
 3    principally used in the oral presentation  to  the  consumer,
 4    containing  a "Notice of Cancellation" informing the consumer
 5    that he may cancel the transaction at any time within 3  days
 6    and  showing  the  date  of the transaction with the name and
 7    address of the person, and  in  immediate  proximity  to  the
 8    space  reserved  in the contract for the consumer's signature
 9    or on the front page of the receipt  if  a  contract  is  not
10    used,  a  statement  which  shall be in bold face type, in at
11    least 10-point type and in substantially the following form:
12        "YOU, THE CONSUMER, MAY CANCEL THIS  TRANSACTION  AT  ANY
13    TIME  PRIOR  TO  MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE
14    DATE OF  THIS  TRANSACTION.    SEE  THE  ATTACHED  NOTICE  OF
15    CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."
16        Attached  to the receipt or contract shall be a completed
17    form in duplicate, captioned "NOTICE OF  CANCELLATION"  which
18    shall  be  easily  detachable  and  which shall contain in 10
19    point bold face type the following information and statements
20    in the same language as that used in the contract:
21                       NOTICE OF CANCELLATION
22                                      (enter date of transaction)
23                                      ...........................
24                                                           (Date)
25        YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY  PENALTY  OR
26    OBLIGATION, WITHIN 3 BUSINESS DAYS FROM THE ABOVE DATE.
27        IF  YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE
28    BY YOU, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY  YOU  UNDER
29    THE  CONTRACT  OR  TRANSACTION  WILL  BE  RETURNED  WITHIN 10
30    BUSINESS  DAYS  FOLLOWING  RECEIPT  BY  THE  SELLER  OF  YOUR
31    CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF
32    THE TRANSACTION WILL BE CANCELLED.
33        IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE  SELLER  AT
34    YOUR  RESIDENCE  IN SUBSTANTIALLY AS GOOD A CONDITION AS WHEN
                            -3-            LRB9011390MWpcam02
 1    RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS  CONTRACT  OR
 2    TRANSACTION,  OR  YOU  MAY  IF  YOU  WISH,  COMPLY  WITH  THE
 3    INSTRUCTIONS  OF  THE SELLER REGARDING THE RETURN SHIPMENT OF
 4    THE GOODS AT THE SELLER'S EXPENSE AND RISK.
 5        IF YOU MAKE THE GOODS AVAILABLE TO  THE  SELLER  AND  THE
 6    SELLER  DOES  NOT  PICK THEM UP WITHIN 20 DAYS OF THE DATE OF
 7    YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE
 8    GOODS WITHOUT ANY FURTHER OBLIGATION.  IF YOU  FAIL  TO  MAKE
 9    THE  GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN
10    THE GOODS TO THE SELLER AND FAIL TO DO SO,  THEN  YOU  REMAIN
11    LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
12        TO  CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND
13    DATED COPY OF THIS CANCELLATION NOTICE OR ANY  OTHER  WRITTEN
14    NOTICE,  OR SEND A TELEGRAM, TO (Name of seller), AT (address
15    of seller's place of business) NOT  LATER  THAN  MIDNIGHT  OF
16    (date).
17        I HEREBY CANCEL THIS TRANSACTION.
18    (Date) ............
19                                              ...................
20                                              (Buyer's signature)
21        Such  written "Notice of Cancellation" may be sent by the
22    consumer to the person to cancel  the  contract.  The  3  day
23    period  provided  for in this Section does not commence until
24    the consumer is furnished a "Notice of Cancellation", and the
25    address at which such notice to the seller can be  given.  If
26    those  conditions  are  met,  the  seller  must return to the
27    consumer the full amount of any payment made or consideration
28    given under the contract or for the  merchandise.  It  is  an
29    unlawful  practice  within  the  meaning  of this Act for any
30    person to
31        (a)  Fail, before furnishing copies  of  the  "Notice  of
32    Cancellation"  to  the  consumer,  to  complete the copies by
33    entering the name of the person, the address of the  person's
34    place of business, the date of the transaction, and the date,
                            -4-            LRB9011390MWpcam02
 1    not earlier than the third business day following the date of
 2    the  transaction,  by  which  the consumer may give notice of
 3    cancellation;
 4        (b)  Include  in  any  contract  or  receipt  under  this
 5    Section any confession of judgment or any waiver  of  any  of
 6    the  rights  to  which  the  consumer  is entitled under this
 7    Section  including  specifically  his  right  to  cancel  the
 8    transaction  in  accordance  with  the  provisions  of   this
 9    Section;
10        (c)  Fail  to inform each consumer orally, at the time he
11    signs the contract  or  purchases  or  leases  the  goods  or
12    services, of his right to cancel;
13        (d)  Misrepresent  in  any manner the consumer's right to
14    cancel;
15        (e)  Use any  undue  influence,  coercion  or  any  other
16    wilful act or representation to interfere with the consumer's
17    exercise of his rights under this Section;
18        (f)  Fail   or  refuse  to  honor  any  valid  notice  of
19    cancellation by a consumer and within 10 business days  after
20    the receipt of such notice, to
21        (i)  refund all payments made under the contract or sale,
22        (ii)  return   any   goods  or  property  traded  in,  in
23    substantially as good a condition as  when  received  by  the
24    person, or
25        (iii)  cancel   and   return  any  negotiable  instrument
26    executed by the consumer in connection with the  contract  or
27    transaction  and  take any action necessary or appropriate to
28    terminate promptly  any  security  interest  created  in  the
29    transaction;
30        (g)  Negotiate,  transfer,  sell,  or  assign any note or
31    other evidence of indebtedness to a finance company or  other
32    third  party  prior  to  midnight  of  the fifth business day
33    following the day the contract was signed  or  the  goods  or
34    services were purchased or leased; or
                            -5-            LRB9011390MWpcam02
 1        (h)  Fail,  within  10  business  days  of receipt of the
 2    consumer's notice of cancellation, to notify him whether  the
 3    seller  intends  to  repossess  or  to abandon any shipped or
 4    delivered goods.
 5        For  the  purposes  of  this  Section,  the  word  "sale"
 6    includes a sale, lease or rental.
 7        This Section does not apply to any transaction
 8        (a)  made pursuant to prior negotiations in the course of
 9    a visit by the consumer to a  retail  business  establishment
10    having  a  fixed  permanent  location  where  the  goods  are
11    exhibited,  or the services are offered, for sale or lease on
12    a continuing basis;
13        (b)  in which the  consumer  is  accorded  the  right  of
14    rescission   by   the   provisions  of  the  Consumer  Credit
15    Protection  Act  (15  U.S.C.  1635)  or  regulations   issued
16    pursuant thereto;
17        (c)  in  which the consumer has initiated the contact and
18    the goods  or  services  are  needed  to  meet  a  bona  fide
19    immediate   personal  emergency  of  the  consumer,  and  the
20    consumer furnishes the  person  with  a  separate  dated  and
21    signed  personal  statement  in  the  consumer's  handwriting
22    describing  the  situation  requiring  immediate  remedy  and
23    expressly  acknowledging  and waiving the right to cancel the
24    sale within 3 business days;
25        (d)  conducted  and  consummated  entirely  by  mail   or
26    telephone  without any other contact between the consumer and
27    the person or its representative prior  to  delivery  of  the
28    goods or performance of the services;
29        (e)  in  which the consumer has initiated the contact and
30    specifically requested the person to visit his home  for  the
31    purpose  of  repairing  or  performing  maintenance  upon the
32    consumer's personal property, on the condition  that  if,  in
33    the course of such a visit, the person sells the consumer the
34    right  to  receive  additional  services  or goods other than
                            -6-            LRB9011390MWpcam02
 1    replacement  parts  necessarily  used   in   performing   the
 2    maintenance  or  in  making  the  repairs,  the sale of those
 3    additional goods  or  services  does  not  fall  within  this
 4    exclusion; or
 5        (f)  pertaining   to   the   sale   or   rental  of  real
 6    property,  to  the  sale  of  insurance  or   to   the   sale
 7    of    securities    or   commodities   by   a   broker-dealer
 8    registered  with  the  Securities  and  Exchange  Commission;
 9    or
10        (g)  between a consumer and a loan broker licensed  under
11    the  Residential  Mortgage  License  Act of 1987 when (i) the
12    transaction involves obtaining a mortgage loan on real estate
13    and (ii) the first  contact  respecting  the  transaction  is
14    initiated by the consumer or by another person at the request
15    of the consumer.
16    (Source: P.A. 86-898.)".

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