101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5624

 

Introduced , by Rep. Barbara Hernandez

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 422/110

    Amends the Collateral Recovery Act. Provides that a licensed repossession agency may charge a debtor a one-time administration fee of $100 and a storage fee of $35 per day for expenses reasonably incurred for inventory and storage of a debtor's personal property.


LRB101 18870 SPS 68328 b

 

 

A BILL FOR

 

HB5624LRB101 18870 SPS 68328 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Collateral Recovery Act is amended by
5changing Section 110 as follows:
 
6    (225 ILCS 422/110)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 110. Repossession of vehicles.
9    (a) With regard to collateral subject to a security
10agreement, repossession occurs when the licensed repossession
11agency employee gains entry into the collateral, the collateral
12becomes connected to a tow vehicle, or the licensed
13repossession agency employee has physical control, custody, or
14possession of the collateral.
15    (b) The licensed repossession agency shall confirm with the
16legal owner of a recovered vehicle whether the legal owner
17holds a security interest in the personal effects or other
18property contained in or on the recovered vehicle.
19    (c) If personal effects or other property not covered by a
20security agreement are contained in or on a recovered vehicle
21at the time it is recovered, then the personal effects and
22other property not covered by a security agreement must be
23completely and accurately inventoried, and a record of the

 

 

HB5624- 2 -LRB101 18870 SPS 68328 b

1inventory shall be maintained on file with the licensed
2repossession agency for a period of 2 years following the date
3of repossession. The licensed repossession agency shall hold
4all personal effects and other property not covered by a
5security agreement until the licensed repossession agency
6either returns the personal effects and other property to the
7debtor or disposes of the personal effects and other property
8in accordance with this Section.
9    (d) Within 5 working days following the date of
10repossession, the licensed repossession agency shall give
11written notification to the debtor of the whereabouts of
12personal effects or other property inventoried. At least 45
13days prior to disposing of such personal effects or other
14property, the licensed repossession agency shall, by United
15States Postal Service certified mail, notify the debtor of the
16intent to dispose of the property. Should the debtor, or his or
17her lawful designee, appear to retrieve the personal property
18prior to the date on which the licensed repossession agency is
19allowed to dispose of the property, the licensed repossession
20agency shall surrender the personal property to that individual
21upon payment of any reasonably incurred expenses for inventory
22and storage. The licensed repossession agency may charge the
23debtor a one-time administration fee of $100 and a storage fee
24of $35 per day.
25    (e) If personal property is not claimed within 45 days of
26the notice of intent to dispose, then the licensed repossession

 

 

HB5624- 3 -LRB101 18870 SPS 68328 b

1agency may dispose of the personal property at its discretion,
2except that illegal items or contraband shall be surrendered to
3a law enforcement agency, and the licensed repossession agency
4shall retain a receipt or other proof of surrender as part of
5the inventory and disposal records it maintains. The inventory
6of the personal property and the records regarding any disposal
7of personal property shall be maintained for a period of 2
8years in the permanent records of the licensed repossession
9agency and shall be made available upon request to the
10Commission.
11(Source: P.A. 97-576, eff. 7-1-12.)