093_SB1141

 
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 1        AN ACT concerning consumer protection.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Consumer Fraud  and  Deceptive  Business
 5    Practices Act is amended by changing Section 2B as follows:

 6        (815 ILCS 505/2B) (from Ch. 121 1/2, par. 262B)
 7        Sec.  2B.   Where  a sale of merchandise involving $25 or
 8    more is made or contracted to be made whether under a  single
 9    contract  or  under  multiple  contracts,  to a consumer by a
10    seller who is physically present at the consumer's residence,
11    that consumer  may  avoid  the  contract  or  transaction  by
12    notifying  the  seller within 3 full business days, or 5 full
13    business days if the consumer is an individual  65  years  of
14    age  or  older,  following that day on which the contract was
15    signed or the sale was made and by returning to  the  person,
16    in  its  original condition, any merchandise delivered to the
17    consumer  under  the  contract  or  sale.  At  the  time  the
18    transaction is made or the contract signed, the person  shall
19    furnish  the  consumer  with  a  fully  completed  receipt or
20    contract pertaining to the transaction, in substantially  the
21    same   language   as   that  principally  used  in  the  oral
22    presentation  to  the  consumer,  containing  a  "Notice   of
23    Cancellation"  informing  the consumer that he may cancel the
24    transaction at any time within 3  days,  or  5  days  if  the
25    consumer  is  an  individual  65  years  of age or older, and
26    showing the date of the transaction with the name and address
27    of the person,  and  in  immediate  proximity  to  the  space
28    reserved  in  the contract for the consumer's signature or on
29    the front page of the receipt if a contract is  not  used,  a
30    statement  which  shall  be  in  bold  face type, in at least
31    10-point type and in substantially the following form:
 
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 1        "YOU, THE CONSUMER, MAY CANCEL THIS  TRANSACTION  AT  ANY
 2    TIME  PRIOR  TO MIDNIGHT OF THE THIRD BUSINESS DAY, OR OF THE
 3    FIFTH BUSINESS DAY IF YOU ARE 65 YEARS OF AGE OR OLDER, AFTER
 4    THE DATE OF THIS TRANSACTION.  SEE  THE  ATTACHED  NOTICE  OF
 5    CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."
 6        Attached  to the receipt or contract shall be a completed
 7    form in duplicate, captioned "NOTICE OF  CANCELLATION"  which
 8    shall  be  easily  detachable  and  which shall contain in 10
 9    point bold face type the following information and statements
10    in the same language as that used in the contract:
11                       NOTICE OF CANCELLATION
12                                      (enter date of transaction)
13                                      ...........................
14                                                           (Date)
15        YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY  PENALTY  OR
16    OBLIGATION, WITHIN 3 BUSINESS DAYS, OR 5 BUSINESS DAYS IF YOU
17    ARE 65 YEARS OF AGE OR OLDER, FROM THE ABOVE DATE.
18        IF  YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE
19    BY YOU, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY  YOU  UNDER
20    THE  CONTRACT  OR  TRANSACTION  WILL  BE  RETURNED  WITHIN 10
21    BUSINESS  DAYS  FOLLOWING  RECEIPT  BY  THE  SELLER  OF  YOUR
22    CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF
23    THE TRANSACTION WILL BE CANCELLED.
24        IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE  SELLER  AT
25    YOUR  RESIDENCE  IN SUBSTANTIALLY AS GOOD A CONDITION AS WHEN
26    RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS  CONTRACT  OR
27    TRANSACTION,  OR  YOU  MAY  IF  YOU  WISH,  COMPLY  WITH  THE
28    INSTRUCTIONS  OF  THE SELLER REGARDING THE RETURN SHIPMENT OF
29    THE GOODS AT THE SELLER'S EXPENSE AND RISK.
30        IF YOU MAKE THE GOODS AVAILABLE TO  THE  SELLER  AND  THE
31    SELLER  DOES  NOT  PICK THEM UP WITHIN 20 DAYS OF THE DATE OF
32    YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE
33    GOODS WITHOUT ANY FURTHER OBLIGATION.  IF YOU  FAIL  TO  MAKE
34    THE  GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN
 
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 1    THE GOODS TO THE SELLER AND FAIL TO DO SO,  THEN  YOU  REMAIN
 2    LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
 3        TO  CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND
 4    DATED COPY OF THIS CANCELLATION NOTICE OR ANY  OTHER  WRITTEN
 5    NOTICE,  OR SEND A TELEGRAM, TO (Name of seller), AT (address
 6    of seller's place of business) NOT  LATER  THAN  MIDNIGHT  OF
 7    (date).
 8        I HEREBY CANCEL THIS TRANSACTION.
 9    (Date) ............
10                                              ...................
11                                              (Buyer's signature)
12        Such  written "Notice of Cancellation" may be sent by the
13    consumer to the person to cancel the contract. The 3 day or 5
14    day period provided for in this  Section  does  not  commence
15    until  the  consumer is furnished a "Notice of Cancellation",
16    and the address at which such notice to  the  seller  can  be
17    given. If those conditions are met, the seller must return to
18    the   consumer  the  full  amount  of  any  payment  made  or
19    consideration  given  under   the   contract   or   for   the
20    merchandise. It is an unlawful practice within the meaning of
21    this Act for any person to
22        (a)  Fail,  before  furnishing  copies  of the "Notice of
23    Cancellation" to the consumer,  to  complete  the  copies  by
24    entering  the name of the person, the address of the person's
25    place of business, the date of the transaction, and the date,
26    not earlier than the third business day following the date of
27    the transaction, by which the consumer  may  give  notice  of
28    cancellation;
29        (b)  Include  in  any  contract  or  receipt  under  this
30    Section  any  confession  of judgment or any waiver of any of
31    the rights to which  the  consumer  is  entitled  under  this
32    Section  including  specifically  his  right  to  cancel  the
33    transaction   in  accordance  with  the  provisions  of  this
34    Section;
 
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 1        (c)  Fail to inform each consumer orally, at the time  he
 2    signs  the  contract  or  purchases  or  leases  the goods or
 3    services, of his right to cancel;
 4        (d)  Misrepresent in any manner the consumer's  right  to
 5    cancel;
 6        (e)  Use  any  undue  influence,  coercion  or  any other
 7    wilful act or representation to interfere with the consumer's
 8    exercise of his rights under this Section;
 9        (f)  Fail  or  refuse  to  honor  any  valid  notice   of
10    cancellation  by a consumer and within 10 business days after
11    the receipt of such notice, to
12             (i)  refund all payments made under the contract  or
13        sale,
14             (ii)  return  any  goods  or  property traded in, in
15        substantially as good a condition as when received by the
16        person, or
17             (iii)  cancel and return any  negotiable  instrument
18        executed  by the consumer in connection with the contract
19        or  transaction  and  take  any   action   necessary   or
20        appropriate  to  terminate promptly any security interest
21        created in the transaction;
22        (g)  Negotiate, transfer, sell, or  assign  any  note  or
23    other  evidence of indebtedness to a finance company or other
24    third party prior to  midnight  of  the  fifth  business  day
25    following  the  day  the  contract was signed or the goods or
26    services were purchased or leased; or
27        (h)  Fail, within 10 business  days  of  receipt  of  the
28    consumer's  notice of cancellation, to notify him whether the
29    seller intends to repossess or  to  abandon  any  shipped  or
30    delivered goods.
31        For  the  purposes  of  this  Section,  the  word  "sale"
32    includes a sale, lease or rental.
33        This Section does not apply to any transaction
34        (a)  made pursuant to prior negotiations in the course of
 
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 1    a  visit  by  the consumer to a retail business establishment
 2    having  a  fixed  permanent  location  where  the  goods  are
 3    exhibited, or the services are offered, for sale or lease  on
 4    a continuing basis;
 5        (b)  in  which  the  consumer  is  accorded  the right of
 6    rescission  by  the  provisions  of   the   Consumer   Credit
 7    Protection   Act  (15  U.S.C.  1635)  or  regulations  issued
 8    pursuant thereto;
 9        (c)  in which the consumer has initiated the contact  and
10    the  goods  or  services  are  needed  to  meet  a  bona fide
11    immediate  personal  emergency  of  the  consumer,  and   the
12    consumer  furnishes  the  person  with  a  separate dated and
13    signed  personal  statement  in  the  consumer's  handwriting
14    describing  the  situation  requiring  immediate  remedy  and
15    expressly acknowledging and waiving the right to  cancel  the
16    sale  within  3 business days, or 5 business days in the case
17    of a person 65 years of age or older;
18        (d)  conducted  and  consummated  entirely  by  mail   or
19    telephone  without any other contact between the consumer and
20    the person or its representative prior  to  delivery  of  the
21    goods or performance of the services;
22        (e)  in  which the consumer has initiated the contact and
23    specifically requested the person to visit his home  for  the
24    purpose  of  repairing  or  performing  maintenance  upon the
25    consumer's personal property, on the condition  that  if,  in
26    the course of such a visit, the person sells the consumer the
27    right  to  receive  additional  services  or goods other than
28    replacement  parts  necessarily  used   in   performing   the
29    maintenance  or  in  making  the  repairs,  the sale of those
30    additional goods  or  services  does  not  fall  within  this
31    exclusion;
32        (f)  pertaining   to   the   sale   or   rental  of  real
33    property,  to  the  sale  of  insurance or  to  the  sale  of
34    securities  or  commodities  by  a  broker-dealer  registered
 
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 1    with  the  Securities  and  Exchange  Commission; or
 2        (g)  between a consumer and a loan broker licensed  under
 3    the  Residential  Mortgage  License  Act of 1987 when (i) the
 4    transaction involves obtaining a mortgage loan on real estate
 5    and (ii) the first  contact  respecting  the  transaction  is
 6    initiated by the consumer or by another person at the request
 7    of the consumer.
 8    (Source: P.A. 90-764, eff. 1-1-99.)

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.