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90_HB3396
205 ILCS 670/20.7
815 ILCS 205/6 from Ch. 17, par. 6413
815 ILCS 375/20.5 new
815 ILCS 375/26.5 new
815 ILCS 505/10a from Ch. 121 1/2, par. 270a
Amends the Consumer Installment Loan Act, the Interest
Act, the Motor Vehicle Retail Installment Sales Act, the
Retail Installment Sales Act, and the Consumer Fraud and
Deceptive Business Practices Act. Provides that the total
recovery under each Act in any class action or series of
class actions arising out of the same or similar violations
of the Act by the same lender, seller, holder, or other
person shall not be more than the sum of (i) the actual
economic damages sustained by members of the class as a
result of the violations plus (ii) the lesser of (A) the
amount by which the liabilities imposed by the Act if sought
in individual actions exceed those actual economic damages,
or (B) $500,000, or (C) 1% of the net worth of the person.
LRB9009753DJcd
LRB9009753DJcd
1 AN ACT concerning recoveries in civil actions, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Consumer Installment Loan Act is amended
6 by changing Section 20.7 as follows:
7 (205 ILCS 670/20.7)
8 Sec. 20.7. Civil action.
9 (a) A claim of violation of this Act may be asserted in
10 a civil action.
11 (b) The total recovery under this Section in any class
12 action or series of class actions arising out of the same or
13 similar violations of this Act by the same lender or licensee
14 shall not be more than the sum of (i) the actual economic
15 damages sustained by members of the class as a result of the
16 violations plus (ii) the lesser of (A) the amount by which
17 the liabilities imposed by this Act if sought in individual
18 actions exceed those actual economic damages, or (B)
19 $500,000, or (C) 1% of the net worth of the lender or
20 licensee.
21 (Source: P.A. 90-437, eff. 1-1-98.)
22 Section 10. The Interest Act is amended by changing
23 Section 6 as follows:
24 (815 ILCS 205/6) (from Ch. 17, par. 6413)
25 Sec. 6. Recover by obligor. If any person or corporation
26 knowingly contracts for or receives, directly or indirectly,
27 by any device, subterfuge or other means, unlawful interest,
28 discount or charges for or in connection with any loan of
29 money, the obligor may, recover by means of an action or
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1 defense an amount equal to twice the total of all interest,
2 discount and charges determined by the loan contract or paid
3 by the obligor, whichever is greater, plus such reasonable
4 attorney's fees and court costs as may be assessed by a court
5 against the lender. The payments due and to become due
6 including all interest, discount and charges included in the
7 payments therein under the terms of the loan contract, shall
8 be reduced by the amount that which the obligor is thus
9 entitled to recover. Recovery by means of a defense may be
10 had at any time after the loan is transacted. Recovery by
11 means of an action may be had at any time after the loan is
12 transacted and before prior to the expiration of 2 years
13 after the earlier of (1) the date of the last scheduled
14 payment of the loan after giving effect to all renewals or
15 extensions thereof, if any, or (2) the date on which the
16 total amount due under the terms of the loan contract is
17 fully paid. A bona fide error in connection with a loan shall
18 not be a violation under this section if the lender corrects
19 the error within a reasonable time.
20 No person shall be liable under this Act for any act done
21 or omitted in good faith in conformity with any rule,
22 regulation, interpretation, or opinion issued by the
23 Commissioner of Banks and Real Estate or the Department of
24 Financial Institutions or any other department or agency of
25 the State, notwithstanding that after the such act or
26 omission has occurred, the such rule, regulation,
27 interpretation, or opinion is amended, rescinded, or
28 determined by judicial or other authority to be invalid for
29 any reason.
30 The total recovery under this Section in any class action
31 or series of class actions arising out of the same or similar
32 violations of this Act by the same lender shall not be more
33 than the sum of (i) the actual economic damages sustained by
34 members of the class as a result of the violations plus (ii)
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1 the lesser of (A) the amount by which the liabilities imposed
2 by this Section if sought in individual actions exceed those
3 actual economic damages, or (B) $500,000, or (C) 1% of the
4 net worth of the lender.
5 (Source: P.A. 90-161, eff. 7-23-97.)
6 Section 15. The Motor Vehicle Retail Installment Sales
7 Act is amended by adding Section 20.5 as follows:
8 (815 ILCS 375/20.5 new)
9 Sec. 20.5. Recovery; class action. The total recovery
10 under this Act in any class action or series of class actions
11 arising out of the same or similar violations of this Act by
12 the same seller or holder shall not be more than the sum of
13 (i) the actual economic damages sustained by members of the
14 class as a result of the violations plus (ii) the lesser of
15 (A) the amount by which the liabilities imposed by this Act
16 if sought in individual actions exceed those actual economic
17 damages, or (B) $500,000, or (C) 1% of the net worth of the
18 seller or holder.
19 Section 20. The Retail Installment Sales Act is amended
20 by adding Section 26.5 as follows:
21 (815 ILCS 375/26.5 new)
22 Sec. 26.5. Recovery; class action. The total recovery
23 under this Act in any class action or series of class actions
24 arising out of the same or similar violations of this Act by
25 the same seller or holder shall not be more than the sum of
26 (i) the actual economic damages sustained by members of the
27 class as a result of the violations plus (ii) the lesser of
28 (A) the amount by which the liabilities imposed by this Act
29 if sought in individual actions exceed those actual economic
30 damages, or (B) $500,000, or (C) 1% of the net worth of the
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1 seller or holder.
2 Section 25. The Consumer Fraud and Deceptive Business
3 Practices Act is amended by changing Section 10a as follows:
4 (815 ILCS 505/10a) (from Ch. 121 1/2, par. 270a)
5 Sec. 10a. Action for actual damages.
6 (a) Any person who suffers actual damage as a result of
7 a violation of this Act committed by any other person may
8 bring an action against such person. The court, in its
9 discretion may award actual economic damages or any other
10 relief which the court deems proper; provided, however, that
11 no award of punitive damages may be assessed under this
12 Section against a party defendant who is a new vehicle dealer
13 or used vehicle dealer within the meaning of Chapter 5 of the
14 Illinois Vehicle Code, unless the conduct engaged in was
15 willful or intentional and done with evil motive or reckless
16 indifference to the rights of others. Proof of a public
17 injury, a pattern, or an effect on consumers and the public
18 interest generally shall be required in order to state a
19 cause of action under this Section against a party defendant
20 who is a new vehicle dealer or used vehicle dealer within the
21 meaning of Chapter 5 of the Illinois Vehicle Code. Proof of
22 such public injury may be shown by any one of the following
23 factors:
24 (1) Violation of a statute that has a public
25 interest impact.
26 (2) Repeated acts prior to the act involving the
27 plaintiff.
28 (3) Potential for repetition.
29 (a-5) The total recovery under this Section in any class
30 action or series of class actions arising out of the same or
31 similar violations of this Act by the same person shall not
32 be more than the sum of (i) the actual economic damages
-5- LRB9009753DJcd
1 sustained by members of the class as a result of the
2 violations plus (ii) the lesser of (A) the amount by which
3 the liabilities imposed by this Section if sought in
4 individual actions exceed those actual economic damages, or
5 (B) $500,000, or (C) 1% of the net worth of the person.
6 (b) Such action may be commenced in the county in which
7 the person against whom it is brought resides, has his
8 principal place of business, or is doing business, or in the
9 county where the transaction or any substantial portion
10 thereof occurred.
11 (c) Except as provided in subsections (f), (g), and (h)
12 of this Section, in any action brought by a person under this
13 Section, the Court may grant injunctive relief where
14 appropriate and may award, in addition to the relief provided
15 in this Section, reasonable attorney's fees and costs to the
16 prevailing party.
17 (d) Upon commencement of any action brought under this
18 Section the plaintiff shall mail a copy of the complaint or
19 other initial pleading to the Attorney General and, upon
20 entry of any judgment or order in the action, shall mail a
21 copy of such judgment or order to the Attorney General.
22 (e) Any action for damages under this Section shall be
23 forever barred unless commenced within 3 years after the
24 cause of action accrued; provided that, whenever any action
25 is brought by the Attorney General or a State's Attorney for
26 a violation of this Act, the running of the foregoing statute
27 of limitations, with respect to every private right of action
28 for damages which is based in whole or in part on any matter
29 complained of in said action by the Attorney General or
30 State's Attorney, shall be suspended during the pendency
31 thereof, and for one year thereafter.
32 (f) At any time more than 30 days before the
33 commencement of trial, a party, who is a new vehicle dealer
34 or used vehicle dealer within the meaning of Chapter 5 of the
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1 Illinois Vehicle Code and who is defending a claim under this
2 Act, may serve upon the party seeking relief under this Act
3 an offer to allow judgment to be taken against the defending
4 party to the effect specified in the offer with costs then
5 accrued. If within 10 days after service of the offer, the
6 offeree serves written notice that the offer is accepted,
7 either party may then file the offer and notice of acceptance
8 together with proof of service of the notice; the court shall
9 then enter judgment. An offer not accepted shall be deemed
10 withdrawn and evidence of the offer is not admissible except
11 in a proceeding to determine costs. When a party seeking
12 relief under this Act does not accept an offer filed with the
13 clerk and served upon the attorney for that party more than
14 30 days before the commencement of trial and when that party
15 fails to obtain a judgment in an amount more than the total
16 offer of settlement, that party shall forfeit and the court
17 may not award any compensation for attorney's fees and costs
18 incurred after the date of the offer.
19 (g) At any time more than 30 days before the
20 commencement of trial, a party who is seeking relief under
21 this Act from a new vehicle dealer or used vehicle dealer
22 within the meaning of Chapter 5 of the Illinois Vehicle Code
23 may serve the dealer an offer to allow judgment to be taken
24 against the dealer to the effect specified in the offer with
25 costs then accrued. If within 10 days after service of the
26 offer, the offeree serves written notice that the offer is
27 accepted, either party may then file the offer and notice of
28 acceptance together with proof of service of the notice; the
29 court shall then enter judgment. An offer not accepted shall
30 be deemed withdrawn and evidence of the offer is not
31 admissible except in a proceeding to determine costs. When a
32 dealer does not accept an offer filed with the clerk and
33 served upon the attorney for the dealer more than 30 days
34 before the commencement of trial and if the party seeking
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1 relief against a dealer obtains a judgment in an amount equal
2 to or in excess of the offer amount, the party seeking relief
3 shall be paid interest on the offer amount at the rate as
4 provided in Section 2-1303 of the Code of Civil Procedure
5 from the date of the offer until the judgment is paid.
6 (h) At least 30 days prior to the filing of an action
7 under this Section, a party who is seeking relief shall serve
8 a written notice of the nature of the alleged violation and
9 demand for relief upon the prospective party, who is a new
10 vehicle dealer or used vehicle dealer within the meaning of
11 Chapter 5 of the Illinois Vehicle Code, against whom such
12 action will be commenced. Any person receiving such a demand
13 for relief may, within 30 days of service of the demand for
14 relief, submit a written offer of settlement, which offer is
15 to be exclusive of attorney's fees, to the party serving the
16 notice and demand. The party who is seeking relief must
17 certify in any cause of action that the notice and demand was
18 served upon the named defendants and the substance of their
19 response, if any. If the offer of settlement is rejected in
20 writing by the party who is seeking relief, then, in any
21 subsequent action, the court shall deny any award of
22 attorney's fees and costs requested by the party seeking
23 relief under this Act incurred after the rejection of the
24 written offer of settlement, if the judgment is less than the
25 amount contained within the offer of settlement. All written
26 offers of settlement under this subsection shall be presumed
27 to be offered without prejudice in compromise of a disputed
28 matter.
29 (Source: P.A. 89-144, eff. 1-1-96.)