103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2029

 

Introduced 2/9/2023, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/48.7 new

    Amends the Illinois Banking Act. Provides that a financial institution shall investigate promptly and determine whether fraud has occurred within 10 business days after receiving a notice of fraud. Provides that the financial institution shall report the results of the investigation to the consumer within 3 business days after completing its investigation. Provides that if the financial institution determines that fraud has occurred, the financial institution shall credit the customer with the amount of the fraud within one business day. Provides that if the financial institution is unable to complete its investigation within 10 business days, the financial institution may take up to 45 days after receipt of a notice of fraud to investigate and determine whether fraud has occurred so long as the financial institution provisionally credits the consumer's account in the amount of the alleged fraud, including interest if applicable, within 10 business days after receiving the fraud notice. Provides that if the financial institution has a reasonable basis for believing that fraud has occurred and if the consumer notifies the financial institution within 2 business days after learning of the alleged fraud, then the financial institution may withhold a maximum of $50 from the amount credited.


LRB103 29110 BMS 55496 b

 

 

A BILL FOR

 

SB2029LRB103 29110 BMS 55496 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 Illinois Banking Act is amended by adding
5Section 48.7 as follows:
 
6    (205 ILCS 5/48.7 new)
7    Sec. 48.7. Check fraud; investigation.
8    (a) This Section applies only to fraud related to the
9conventional method for processing paper checks.
10    (b) A financial institution shall investigate promptly and
11determine whether fraud has occurred within 10 business days
12after receiving a notice of fraud. The financial institution
13shall report the results of the investigation to the consumer
14within 3 business days after completing its investigation. If
15the financial institution determines that fraud has occurred,
16then the financial institution shall credit the customer with
17the amount of the fraud within one business day.
18    (c) If the financial institution is unable to complete its
19investigation within 10 business days, then the financial
20institution may take up to 45 days after receipt of a notice of
21fraud to investigate and determine whether fraud has occurred
22so long as the financial institution provisionally credits the
23consumer's account in the amount of the alleged fraud,

 

 

SB2029- 2 -LRB103 29110 BMS 55496 b

1including interest if applicable, within 10 business days
2after receiving the fraud notice. If the financial institution
3has a reasonable basis for believing that fraud has occurred
4and if the consumer notifies the financial institution within
52 business days after learning of the alleged fraud, then the
6financial institution may withhold a maximum of $50 from the
7amount credited. A financial institution need not
8provisionally credit the consumer's account if the institution
9requires but does not receive written confirmation within 10
10business days after an oral notice of error.