Public Act 90-0764 of the 90th General Assembly
Public Act 90-0764
HB3321 Enrolled LRB9011390MWpc
AN ACT to amend the Consumer Fraud and Deceptive Business
Practices Act by changing Section 2B.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2B as follows:
(815 ILCS 505/2B) (from Ch. 121 1/2, par. 262B)
Sec. 2B. Where a sale of merchandise involving $25 or
more is made or contracted to be made whether under a single
contract or under multiple contracts, to a consumer by a
seller who is physically present at the consumer's residence,
that consumer may avoid the contract or transaction by
notifying the seller within 3 full business days following
that day on which the contract was signed or the sale was
made and by returning to the person, in its original
condition, any merchandise delivered to the consumer under
the contract or sale. At the time the transaction is made or
the contract signed, the person shall furnish the consumer
with a fully completed receipt or contract pertaining to the
transaction, in substantially the same language as that
principally used in the oral presentation to the consumer,
containing a "Notice of Cancellation" informing the consumer
that he may cancel the transaction at any time within 3 days
and showing the date of the transaction with the name and
address of the person, and in immediate proximity to the
space reserved in the contract for the consumer's signature
or on the front page of the receipt if a contract is not
used, a statement which shall be in bold face type, in at
least 10-point type and in substantially the following form:
"YOU, THE CONSUMER, MAY CANCEL THIS TRANSACTION AT ANY
TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE
DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF
CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT."
Attached to the receipt or contract shall be a completed
form in duplicate, captioned "NOTICE OF CANCELLATION" which
shall be easily detachable and which shall contain in 10
point bold face type the following information and statements
in the same language as that used in the contract:
NOTICE OF CANCELLATION
(enter date of transaction)
...........................
(Date)
YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR
OBLIGATION, WITHIN 3 BUSINESS DAYS FROM THE ABOVE DATE.
IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE
BY YOU, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU UNDER
THE CONTRACT OR TRANSACTION WILL BE RETURNED WITHIN 10
BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR
CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF
THE TRANSACTION WILL BE CANCELLED.
IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT
YOUR RESIDENCE IN SUBSTANTIALLY AS GOOD A CONDITION AS WHEN
RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR
TRANSACTION, OR YOU MAY IF YOU WISH, COMPLY WITH THE
INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF
THE GOODS AT THE SELLER'S EXPENSE AND RISK.
IF YOU MAKE THE GOODS AVAILABLE TO THE SELLER AND THE
SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF
YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE
GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE
THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN
THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN
LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND
DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN
NOTICE, OR SEND A TELEGRAM, TO (Name of seller), AT (address
of seller's place of business) NOT LATER THAN MIDNIGHT OF
(date).
I HEREBY CANCEL THIS TRANSACTION.
(Date) ............
...................
(Buyer's signature)
Such written "Notice of Cancellation" may be sent by the
consumer to the person to cancel the contract. The 3 day
period provided for in this Section does not commence until
the consumer is furnished a "Notice of Cancellation", and the
address at which such notice to the seller can be given. If
those conditions are met, the seller must return to the
consumer the full amount of any payment made or consideration
given under the contract or for the merchandise. It is an
unlawful practice within the meaning of this Act for any
person to
(a) Fail, before furnishing copies of the "Notice of
Cancellation" to the consumer, to complete the copies by
entering the name of the person, the address of the person's
place of business, the date of the transaction, and the date,
not earlier than the third business day following the date of
the transaction, by which the consumer may give notice of
cancellation;
(b) Include in any contract or receipt under this
Section any confession of judgment or any waiver of any of
the rights to which the consumer is entitled under this
Section including specifically his right to cancel the
transaction in accordance with the provisions of this
Section;
(c) Fail to inform each consumer orally, at the time he
signs the contract or purchases or leases the goods or
services, of his right to cancel;
(d) Misrepresent in any manner the consumer's right to
cancel;
(e) Use any undue influence, coercion or any other
wilful act or representation to interfere with the consumer's
exercise of his rights under this Section;
(f) Fail or refuse to honor any valid notice of
cancellation by a consumer and within 10 business days after
the receipt of such notice, to
(i) refund all payments made under the contract or sale,
(ii) return any goods or property traded in, in
substantially as good a condition as when received by the
person, or
(iii) cancel and return any negotiable instrument
executed by the consumer in connection with the contract or
transaction and take any action necessary or appropriate to
terminate promptly any security interest created in the
transaction;
(g) Negotiate, transfer, sell, or assign any note or
other evidence of indebtedness to a finance company or other
third party prior to midnight of the fifth business day
following the day the contract was signed or the goods or
services were purchased or leased; or
(h) Fail, within 10 business days of receipt of the
consumer's notice of cancellation, to notify him whether the
seller intends to repossess or to abandon any shipped or
delivered goods.
For the purposes of this Section, the word "sale"
includes a sale, lease or rental.
This Section does not apply to any transaction
(a) made pursuant to prior negotiations in the course of
a visit by the consumer to a retail business establishment
having a fixed permanent location where the goods are
exhibited, or the services are offered, for sale or lease on
a continuing basis;
(b) in which the consumer is accorded the right of
rescission by the provisions of the Consumer Credit
Protection Act (15 U.S.C. 1635) or regulations issued
pursuant thereto;
(c) in which the consumer has initiated the contact and
the goods or services are needed to meet a bona fide
immediate personal emergency of the consumer, and the
consumer furnishes the person with a separate dated and
signed personal statement in the consumer's handwriting
describing the situation requiring immediate remedy and
expressly acknowledging and waiving the right to cancel the
sale within 3 business days;
(d) conducted and consummated entirely by mail or
telephone without any other contact between the consumer and
the person or its representative prior to delivery of the
goods or performance of the services;
(e) in which the consumer has initiated the contact and
specifically requested the person to visit his home for the
purpose of repairing or performing maintenance upon the
consumer's personal property, on the condition that if, in
the course of such a visit, the person sells the consumer the
right to receive additional services or goods other than
replacement parts necessarily used in performing the
maintenance or in making the repairs, the sale of those
additional goods or services does not fall within this
exclusion; or
(f) pertaining to the sale or rental of real
property, to the sale of insurance or to the sale
of securities or commodities by a broker-dealer
registered with the Securities and Exchange Commission;
or
(g) between a consumer and a loan broker licensed under
the Residential Mortgage License Act of 1987 when (i) the
transaction involves obtaining a mortgage loan on real estate
and (ii) the first contact respecting the transaction is
initiated by the consumer or by another person at the request
of the consumer.
(Source: P.A. 86-898.)