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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
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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
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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,
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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
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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
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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.)".