100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2521

 

Introduced 2/6/2018, by Sen. Steve Stadelman

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 505/2VVV new

    Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a dealer or other creditor shall not use electronic tracking technology or starter interrupt technology in connection with the credit sale, loan, or lease of a motor vehicle unless the technology is used solely to verify and maintain the operational status of the tracking technology, to locate the vehicle for repossession, to repossess the vehicle, or to locate the vehicle to service the account or keep the account current. Requires specified conditions to be met and certain written disclosures to be made to the consumer regarding the use of the technology. Contains provisions regarding: use of the technology in a criminal investigation; damages for violations; repossession; privacy, storage, and destruction of data; and other matters. Provides that specified violations are unlawful practices within the meaning of the Act


LRB100 16642 JLS 31779 b

 

 

A BILL FOR

 

SB2521LRB100 16642 JLS 31779 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by adding Section 2VVV as follows:
 
6    (815 ILCS 505/2VVV new)
7    Sec. 2VVV. Use of starter interrupt technology.
8    (a) As used in this Section:
9    "Creditor" means a person that engages in the business of
10financing the purchase or lease of motor vehicles for personal
11use or lending money secured by those motor vehicles, including
12any person servicing such transactions.
13    "Dealer" means a motor vehicle dealer as defined in Chapter
145 of the Illinois Vehicle Code.
15    "Electronic tracking technology" means global positioning
16satellite or similar technology used to obtain or record the
17location of a motor vehicle.
18    "Motor vehicle" or "vehicle" means a motor vehicle as
19defined in Chapter 5 of the Illinois Vehicle Code.
20    "Optional services" means services that are optional and
21separate from the retail purchase or lease of a motor vehicle
22or extension of credit, are not a condition of or incident to
23the transaction or extension of credit, and may be canceled at

 

 

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1any time.
2    "Person" means a natural person, partnership, corporation,
3limited liability company, trust, estate, cooperative,
4association, or other similar entity.
5    "Starter interrupt technology" means technology used to
6remotely disable the starter of a motor vehicle.
7    "Transaction" means any credit sale, loan, or lease of a
8motor vehicle made to a consumer by a dealer or other creditor.
9"Transaction" includes any post default redemption and
10reinstatement of the credit sale, loan, or lease by the
11consumer.
12    (b) Any credit sale, loan, or lease of a motor vehicle made
13after the effective date of this amendatory Act of the 100th
14General Assembly to a consumer by a dealer or other creditor is
15made subject to this Section. In connection with the credit
16sale, loan, or lease of a motor vehicle to a consumer, a dealer
17or other creditor shall not use electronic tracking technology
18or starter interrupt technology unless it is used solely to
19verify and maintain the operational status of the tracking
20technology, to locate for repossession, to repossess the
21vehicle, or to locate the vehicle to service the account or
22keep the account current and the following conditions are met:
23        (1) The dealer or other creditor clearly and
24    conspicuously notifies the consumer at the time of the
25    transaction that the vehicle is equipped with electronic
26    tracking technology or starter interrupt technology and

 

 

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1    the technology may be used by the dealer or creditor to
2    locate or disable the starter of the vehicle remotely.
3        (2) The dealer or other creditor obtains written
4    consent from the consumer that the vehicle is equipped with
5    electronic tracking technology or starter interrupt
6    technology and that the dealer or other creditor may use
7    the electronic tracking technology or starter interrupt
8    technology to locate or disable the starter of the vehicle
9    remotely.
10        (3) The dealer or creditor must provide notice to the
11    consumer upon default within the time periods established
12    in subsection (c).
13        (4) The dealer or creditor may not use starter
14    interrupt technology if the consumer tenders the amount
15    currently due on the loan to the dealer in an acceptable
16    form of payment before the due date on the payment contract
17    or provides proof of insurance as required under the
18    contract.
19        (5) The dealer or creditor shall not use starter
20    interrupt technology to locate or disable the vehicle for
21    any reason other than the consumer's failure to tender
22    timely payment or for failure to maintain insurance as
23    required under the contract.
24        (6) The dealer or creditor shall not install or utilize
25    any starter interrupt technology that would disable a
26    vehicle after the vehicle's engine has been enabled and is

 

 

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1    running.
2        (7) The dealer or creditor shall not separately charge
3    the consumer for the installation or use of the starter
4    interrupt technology or electronic tracking technology or
5    for wireless airtime.
6        (8) The dealer or creditor shall not separately charge
7    the consumer for optional services purchased by the
8    consumer. However, the consumer may waive this prohibition
9    by clearly and conspicuously agreeing in a written
10    disclosure to pay for the installation or use of the
11    electronic tracking device for optional services.
12        (9) The dealer or creditor shall not use electronic
13    tracking technology or starter interrupt technology with a
14    non-English speaking consumer unless the dealer, creditor,
15    person, or company operating the electronic tracking
16    technology or starter interrupt technology complies with
17    Section 2N of this Act.
18        (10) The dealer or creditor shall provide the consumer
19    the ability to start a disabled vehicle for 24 hours after
20    the vehicle is initially disabled at least once per payment
21    cycle if the vehicle was disabled because the consumer
22    failed to tender timely payment or failed to maintain
23    insurance as required under the contract. Separate
24    instructions on how to restart a disabled vehicle must be
25    provided to consumer in a format that can be kept in the
26    glove compartment of the vehicle in addition to the

 

 

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1    disclosures under this subsection. At a minimum, the dealer
2    or creditor must provide the consumer with a toll free
3    phone number to call to restart a disabled vehicle for 24
4    hours after the vehicle is initially disabled at least once
5    per payment cycle if the vehicle was disabled because the
6    consumer failed to tender timely payment or failed to
7    maintain insurance as required under the contract.
8    However, the one-time per payment cycle limitation does not
9    apply if the vehicle was disabled due to mistake,
10    malfunction or other event not attributable to the
11    consumer.
12    (c) A clear and conspicuous written disclosure shall be a
13separate document in 12-point bold font and shall disclose all
14of the following:
15        (1) Describe the electronic tracking and starter
16    interrupt devices installed on the vehicle and the data
17    that will be collected and stored.
18        (2) Inform the consumer that use of an electronic
19    tracking or starter interrupt device will allow a dealer or
20    creditor to track a vehicle's location.
21        (3) Inform the consumer that warnings will be provided
22    no less than 48 hours before the vehicle is disabled
23    remotely. The warning must be transmitted through at least
24    2 modes of communication, such as e-mail, mail, telephone,
25    text message, or through the device itself.
26        (4) Inform the consumer that the dealer or other

 

 

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1    creditor will locate or disable a vehicle using electronic
2    tracking or starter interrupt technology following failure
3    to tender timely payment or for failure to maintain
4    insurance as required under the contract.
5        (5) Include the name, address, email address, and
6    telephone number of the person or company operating the
7    electronic tracking or starter interrupt device.
8        (6) Include, if known, the name, address, email
9    address, and telephone number of the creditor associated
10    with the person or company operating the electronic
11    tracking or starter interrupt device. If not known at the
12    time of the contract, the dealer must notify the consumer
13    within 7 business days of the contract the creditor's name,
14    address, email address, and telephone number.
15        (7) Provide that, in the event of an emergency, the
16    consumer will be provided with the ability to start a
17    disabled vehicle for 24 hours after the vehicle is
18    initially disabled and the number of times during the
19    payment cycle the restarting may occur. Separate
20    instructions on how to restart a disabled vehicle must be
21    provided to the consumer in a format that can be kept in
22    the glove compartment of the vehicle in addition to the
23    disclosures under this subsection. At a minimum, the dealer
24    or creditor must provide the consumer with a toll free
25    phone number to call to restart a disabled vehicle for 24
26    hours after the vehicle is initially disabled at least once

 

 

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1    per payment cycle if the vehicle was disabled because the
2    consumer failed to tender timely payment or failed to
3    maintain insurance as required under the contract.
4    However, the one-time per payment cycle limitation does not
5    apply if the vehicle was disabled due to a mistake,
6    malfunction, or other event not attributable to the
7    consumer.
8    (d) A dealer or other creditor is not in violation of this
9Section if law enforcement instructs the dealer or other
10creditor to use the electronic tracking or starter interrupt
11technology for a lawful criminal investigation.
12    (e) A consumer damaged by a violation of this Section by a
13dealer or other creditor is entitled to recover from the
14violator actual damages and reasonable attorney's fees and
15court costs. Nothing in this Section limits a consumer's cause
16of action against any party if the consumer is damaged by a
17malfunction of the electronic tracking or starter interrupt
18technology.
19    (f) The electronic tracking technology or starter
20interrupt technology identified in this Section may only be
21used, applied, or associated with a credit sale, loan, or lease
22of a motor vehicle.
23    (g) Any use of starter interrupt technology and any
24repossession of a motor vehicle must meet the requirements of
25Article 9 of the Uniform Commercial Code in addition to any
26requirements required in this Section. In addition, any use of

 

 

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1the starter interrupt device will be deemed a constructive
2repossession.
3    (h) If a dealer or creditor uses starter interrupt
4technology to disable a vehicle, the dealer or creditor is
5deemed to have taken possession and is responsible for all
6liabilities associated with the vehicle from the time of the
7use of starter interrupt technology to disable a vehicle. If
8the consumer cures the default, the consumer shall have a
9reasonable opportunity to retrieve the vehicle before again
10becoming responsible for all liabilities. If a consumer cures
11the default before the creditor takes physical possession of
12the vehicle, this will not invoke the consumer's right to
13reinstatement pursuant to Article 9 of the Uniform Commercial
14Code. A consumer must be in default for a minimum of 5 days
15before the process can begin.
16    (i) Privacy, storage, and destruction of data obtained by
17manufacturers of electronic tracking technology or starter
18interrupt technology.
19        (1) A manufacturer of an electronic tracking
20    technology or starter interrupt technology, or an
21    authorized recipient of such data, shall implement and
22    maintain reasonable security measures to protect the data
23    associated with a motor vehicle's electronic tracking
24    technology or starter interrupt technology from
25    unauthorized access, acquisition, destruction, use,
26    modification, or disclosure.

 

 

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1        (2) A manufacturer of electronic tracking technology
2    or starter interrupt technology or an authorized recipient
3    of such data, shall destroy, utilizing the following
4    procedures, all data associated with a motor vehicle's
5    electronic tracking technology or starter interrupt
6    technology. Destruction shall occur no later than one and
7    one-half years after the termination of the device or
8    termination of the optional services as permitted under
9    item (8) of subsection (b).
10            (A) Paper documents containing data associated
11        with a motor vehicle's electronic tracking technology
12        or starter interrupt technology shall be either
13        permanently redacted, burned, pulverized, or shredded
14        so that all data associated with the motor vehicle's
15        electronic tracking technology or starter interrupt
16        technology cannot practicably be read or
17        reconstructed.
18            (B) Electronic media and other non-paper media
19        containing data associated with a motor vehicle's
20        electronic tracking technology or starter interrupt
21        technology shall be destroyed or erased so that all
22        data associated with the motor vehicle's electronic
23        tracking technology or starter interrupt technology
24        cannot practicably be read or reconstructed.
25        (3) A manufacturer of electronic tracking technology
26    or starter interrupt technology, its affiliates,

 

 

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1    subsidiaries, agents, directors, successors and assigns,
2    officers and employees, as well as any recipient of
3    electronic tracking or starter interrupt device data, are
4    prohibited from selling any of the data associated with a
5    motor vehicle's electronic tracking technology or starter
6    interrupt technology except as necessary for the provision
7    of optional services as permitted under item (8) of
8    subsection (b), or, data aggregated in such a manner that
9    only non-identifying information can be obtained.
10    (j) A consumer's attempt to intentionally disable the
11device shall be deemed a default and the consumer shall not be
12granted the normal opportunity to restart the vehicle for 24
13hours after the default.
14    (k) It is an unlawful practice within the meaning of this
15Act for a dealer or creditor to fail to remove electronic
16tracking technology or starter interrupt technology in any of
17the following situations:
18        (1) Within 5 days after a consumer has fulfilled the
19    credit obligations associated with the credit sale, loan,
20    or lease of the motor vehicle purchase.
21        (2) Within 7 days after disabling the vehicle using
22    electronic tracking technology or starter interrupt
23    technology.
24        (3) Prior to sale or resale of a motor vehicle
25    originally equipped with electronic tracking technology or
26    starter interrupt technology to any seller, including but

 

 

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1    not limited to, another consumer or dealer.
2    (l) It is an unlawful practice within the meaning of this
3Act for a dealer or creditor to use or activate starter
4interrupt technology prior to a consumer defaulting for
5non-payment or failure to maintain insurance. In the event that
6a consumer cures the default, redeems or reinstates the
7vehicle, the dealer or creditor shall, within 24 hours of
8redemption or reinstatement, provide the consumer with the
9ability to restart the vehicle and cease using electronic
10tracking technology or starter interrupt technology. A dealer
11or creditor continues to have the ability to use or activate
12electronic tracking technology or starter interrupt technology
13if a consumer subsequently defaults on a credit sale, loan, or
14lease of a motor vehicle.