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90_SB0481
New Act
Creates the Consumer Late Payment Act. In the case of a
payment for specified types of services provided to
consumers, prohibits a business from charging a late payment
fee or penalty of more than 1.5% if the business receives the
payment within 5 days of the due date. Provides that a
violation of the Act is a petty offense.
LRB9002545WHmgA
LRB9002545WHmgA
1 AN ACT in relation to certain payments by consumers.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Consumer Late Payment Act.
6 Section 5. Definitions. As used in this Act:
7 "Consumer" means a natural person.
8 "Consumer payment" means any scheduled recurring payment
9 contracted by a consumer with a business organization for
10 services.
11 "Business organization" means any entity that provides
12 services to consumers for which the consumer agrees to make
13 scheduled periodic payments for the services. "Services"
14 includes, but is not limited to, telephone and
15 telecommunication service, sanitation and waste hauling,
16 electrical and natural gas utility services, cable
17 television, and Internet and online communication services.
18 "Services" does not include periodic payments for credit card
19 debt under the Credit Card Issuance Act, debt payments
20 contracted under the Interest Act, debt payments under the
21 Retail Sales Act, and debt payments under the Motor Vehicle
22 Retail Installment Sales Act or under any other Act or
23 contract for which the consumer has contracted with a person,
24 financial institution, or business organization for the
25 payment of debt based upon the lending of money or the
26 purchase of goods.
27 "Late payment" means the failure of the consumer to
28 deliver to the business organization the payment for the
29 services on the date by which payment for the services is
30 scheduled to be received.
-2- LRB9002545WHmgA
1 Section 15. Penalty limitation. No business
2 organization may charge a late payment fee or impose a
3 monetary penalty upon a consumer for failure to pay for
4 services on the scheduled date of payment for those services
5 at a rate that exceeds 1.5% of the amount due for the
6 periodic scheduled payment; provided the payment for the
7 services contracted for by the consumer has been received by
8 the business organization within 5 business days of the
9 scheduled payment date. The failure of a consumer to make
10 payment for the services beyond the 5 day period after the
11 scheduled payment date shall entitle the business
12 organization to impose a late payment fee or monetary penalty
13 in an amount contracted by the business organization and the
14 consumer.
15 Section 20. Penalty for violation. A violation of this
16 Act is a petty offense.