Public Act 90-0343 of the 90th General Assembly

State of Illinois
Public Acts
90th General Assembly

[ Home ] [ Public Acts ] [ ILCS ] [ Search ] [ Bottom ]


Public Act 90-0343

HB1577 Enrolled                               LRB9004331NTmbA

    AN ACT concerning vehicles, amending named Acts.

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

    Section  3.   The  Illinois  Fairness  in  Lending Act is
amended by changing Section 6 as follows:

    (815 ILCS 120/6) (from Ch. 17, par. 856)
    Sec. 6. Where  a  financial  institution,  other  than  a
credit  union,  as  defined  in  Section  1.1 of the Illinois
Credit Union Act, as now or hereafter amended, repossesses  a
motor  vehicle  that  was  used as a collateral and  which is
used  primarily  for  the  borrower's  personal,  family   or
household   purposes,   and  the  borrower  at  the  time  of
repossession has paid an amount equal to 30% or more  of  the
total  of  payments  due,  the  borrower may, within 15 days,
redeem the motor vehicle from the  financial  institution  by
tendering:
    (a)  the  total  of  all  unpaid  amounts,  including any
unpaid  delinquency   or   deferral   charges   due   without
acceleration, and
    (b)  performance necessary to cure any default other than
nonpayment of the amounts due; and
    (c)  any   reasonable   cost  or  fees  incurred  by  the
financial institution in the retaking of the goods. Tender of
payment and performance pursuant to this Section restores  to
the  borrower  his rights under the loan as though no default
had  occurred.  The  borrower  has  a  right  to  redeem  the
collateral from the financial  institution  only  once  under
this Section. The financial institution may, in the financial
institution's sole discretion, extend the period during which
the  borrower  may  redeem  the collateral beyond the 15 days
allowed under this  Section,  and  the  extension  shall  not
subject   the  financial  institution  to  liability  to  the
borrower under the laws of this State.
    The financial institution must give written notice to the
borrower,  within  3  days  of  the  repossession,   of   the
borrower's  right  to  redeem the collateral pursuant to this
Section. The written notice shall  be  in  substantially  the
following form:
             NOTICE OF RIGHT TO RECOVER VEHICLE
    Your  vehicle  car  was repossessed on (specify date) for
failure to make payments on the loan (or other reason).
    Under Illinois law, because you have paid at least 30% of
the loan before repossession, you may  be  able  to  get  the
vehicle  car  back. You have the right to recover the vehicle
if car you must do the following within with 15 days  of  the
date of repossession:
    1.   Make  payment of all back payments so
         that you are current on the loan.       $...........
    2.   Pay any late charge due.                $...........
    3.   Pay the costs of repossession.          $...........
         Total Amount Now Due                    $...........
    Bring cash, a certified check  or  money  order  for  the
total  amount  now  due  that  is  listed above to our office
located at (specify address) by (specify date)  to  get  your
vehicle you car back.
(Source: P.A. 86-421.)

    Section  5.   The  Motor Vehicle Retail Installment Sales
Act is amended by changing Sections 20 and 24 as follows:

    (815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
    Sec. 20.  Unless otherwise limited by this  Act  Section,
the  parties  shall  have the rights and remedies provided in
Article 9 of the Uniform  Commercial  Code  with  respect  to
default, and disposition, and redemption of collateral.
    If  the  buyer has paid an amount equal to 60% or more of
the deferred payment price at the time of his  default  under
the  contract  and if the buyer, at the request of the holder
and without legal proceedings, surrenders the  goods  to  the
holder  in ordinary condition and free from malicious damage,
the holder must, within a period of 5 days from the  date  of
receipt  of  the goods at his place of business, elect either
(a) to retain the goods and release the  buyer  from  further
obligation  under the contract, or (b) to return the goods to
the buyer at the holder's expense and be limited to an action
to recover the balance of the indebtedness.
    If the buyer has paid an amount equal to 30% or  more  of
the  deferred  payment price at the time of repossession, the
buyer shall have the right to may, within 15 days, redeem the
collateral from the holder within 15 days from  the  date  of
repossession  by  tendering  (a)   the  total  of  all unpaid
amounts, including any unpaid delinquency or deferral charges
due at the time of  tender,  without  acceleration,  and  (b)
performance   necessary   to  cure  any  default  other  than
nonpayment of the amounts due; and (c) any reasonable cost or
fees incurred by the holder in the  retaking  of  the  goods.
Tender  of  payment  and performance pursuant to this Section
restores to the buyer his rights under the contract as though
no default had occurred.  The buyer has a right to redeem the
collateral from the holder only once under this Section.  The
holder  may,  in  the  holder's  sole  discretion, extend the
period during which  the  buyer  may  redeem  the  collateral
beyond  the  15  days  allowed  under  this  Section, and the
extension shall not subject the holder to  liability  to  the
buyer under the laws of this State.
    The  holder must give written notice to the buyer, within
3 days of the repossession, of the buyer's  right  to  redeem
the  collateral pursuant to this Section.  The written notice
shall be in substantially the following form:
             NOTICE OF RIGHT TO RECOVER VEHICLE
    Your vehicle car was repossessed on  (specify  date)  for
failure to make payments on the contract (or other reason).
    Under Illinois law, because you have paid at least 30% of
the  deferred  payment  price before repossession, you may be
able to get the vehicle car back.   You  have  the  right  to
recover  the  vehicle if car you must do the following within
15 days of the date of repossession:
    1.  Make payment of all back payments so
      that you are current on the contract.            $
    2.  Pay any late charges due.                      $
    3.  Pay the costs of repossession.                 $
         TOTAL AMOUNT NOW DUE                          $
    Bring cash, a certified check or a money  order  for  the
total  amount  now  due  that  is  listed above to our office
located at (specify address) by (specify date)  to  get  your
vehicle car back.
(Source: P.A. 83-302.)

    (815 ILCS 375/24) (from Ch. 121 1/2, par. 584)
    Sec. 24.
    (a)  Any person who knowingly violates this Act is guilty
of a Class A misdemeanor.
    (b)  No  person who violates this Act, except as a result
of an accident or bona fide error of computation, may recover
any unpaid finance  charge,  any  delinquency  or  collection
charge,  or  any  refinance  charge  in  connection  with the
related retail installment contract.
(Source: P.A. 77-2266.)

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

[ Top ]