Illinois General Assembly - Full Text of SB2426
Illinois General Assembly

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Full Text of SB2426  99th General Assembly




State of Illinois
2015 and 2016


Introduced 2/9/2016, by Sen. Steve Stadelman


815 ILCS 505/2TTT new

    Amends the Consumer Fraud and Deceptive Business Practices Act. Provides for the regulation of the use of starter interrupt technology by vehicle dealers and creditors in the sale of motor vehicles. Provides the consent of the consumer must be obtained before starter interrupt technology may be used in connection with the sale and financing of motor vehicles. Sets forth notice requirements. Limits circumstances under which starter interrupt technology may be used. Defines terms.

LRB099 18311 JLS 42685 b





SB2426LRB099 18311 JLS 42685 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 2TTT as follows:
6    (815 ILCS 505/2TTT new)
7    Sec. 2TTT. Use of starter interrupt technology.
8    (a) As used in this Section:
9    "Creditor" means a sales finance agency as defined in the
10Sales Finance Agency Act.
11    "Dealer" means a motor vehicle dealer within the meaning of
12Chapter 5 of the Illinois Vehicle Code.
13    "Electronic tracking technology" means global positioning
14satellite or similar technology used to obtain or record the
15location of a motor vehicle.
16    "Starter interrupt technology" means technology used to
17remotely disable the starter of a motor vehicle.
18    "Transaction" means any credit sale, loan, or lease of a
19motor vehicle made to a consumer by a dealer or other creditor.
20Transaction includes any post default redemption and
21reinstatement of the credit sale, loan, or lease by the
23    (b) Any credit sale, loan, or lease of a motor vehicle made



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1after the effective date of this amendatory Act of the 99th
2General Assembly to a consumer by a dealer or other creditor is
3made subject to this Section. In connection with the credit
4sale, loan, or lease of a motor vehicle to a consumer, a dealer
5or other creditor shall not:
6        (1) Install and utilize electronic tracking technology
7    to obtain or record the location of the vehicle unless the
8    dealer expressly notifies the consumer in a written
9    disclosure provided at the time of the transaction that the
10    vehicle is equipped with electronic tracking technology,
11    obtains the consumer's written consent to install and
12    utilize the electronic tracking technology, and either
13    subparagraph (A) or (B), or both apply.
14            (A) The electronic tracking technology is used by
15        the dealer or other creditor to verify and maintain the
16        operational status of the tracking technology, to
17        service the transaction, or to locate the vehicle for
18        repossession.
19            (B) The electronic tracking technology is used by
20        the consumer as an optional service elected and all of
21        the following conditions set forth in (i) and (ii) are
22        met:
23                (i) The agreement to allow the consumer to
24            utilize electronic tracking technology is optional
25            and separate from the transaction or extension of
26            credit, is not a condition of or incident to the



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1            transaction or extension of credit, and is
2            executed after the transaction or extension of
3            credit.
4                (ii) The consumer is permitted to cancel the
5            optional service at any point without affecting
6            the transaction or the extension of credit, and the
7            consumer is notified of his or her ability to do
8            so.
9        (2) Install and utilize starter interrupt technology
10    unless the dealer or other creditor expressly notifies the
11    consumer in a written disclosure provided at the time of
12    the transaction that the vehicle is equipped with starter
13    interrupt technology that the dealer or other creditor may
14    use to disable the starter of the vehicle remotely and
15    obtains the consumer's written consent to install and
16    utilize the starter interrupt technology. The written
17    disclosure shall clearly and conspicuously:
18            (A) Inform the consumer that a warning will be
19        provided 5 days before the use of the starter interrupt
20        technology for all weekly payment term contracts and 10
21        days before the use of the starter interrupt technology
22        on all other contracts and that a final warning will be
23        provided no less than 48 hours before the use of the
24        starter interrupt technology to shut down the vehicle
25        remotely. The disclosure shall indicate the manner and
26        method in which that warning will occur. Warning



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1        methods may include a warning from the device,
2        telephone call, email, text message, or any other
3        reasonable method available, provided that the warning
4        method does not violate applicable State or federal
5        law.
6            (B) Inform the consumer that the dealer or other
7        creditor intends to disable a vehicle using starter
8        interrupt technology following default under the
9        credit sale contract, loan, or lease.
10            (C) Include the name, address, and a telephone
11        number to contact in the event of the failure of the
12        starter interrupt technology to operate properly or
13        upon payment in full of the credit sale contract, loan,
14        or lease.
15            (D) Provide that, in the event of an emergency, the
16        consumer will be provided with the ability to start a
17        disabled vehicle for no less than 24 hours after the
18        vehicle is initially disabled.
19        (3) Use starter interrupt technology to disable the
20    vehicle without warning the consumer according to the time
21    periods provided in subparagraph (b)(2)(A).
22        (4) Use starter interrupt technology if the consumer
23    tenders the amount currently due on the loan to the dealer
24    in an acceptable form of payment before the due date on the
25    payment contract.
26        (5) Use starter interrupt technology to disable the



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1    vehicle for any reason other than the consumer's failure to
2    tender timely payment.
3        (6) Install and utilize any electronic tracking
4    technology or starter interrupt technology that would
5    disable a vehicle after the vehicle's engine has been
6    enabled and is running.
7        (7) Separately charge the consumer for the
8    installation or use of the starter interrupt technology or
9    electronic tracking technology or for wireless airtime
10    unless the consumer agrees to purchase optional services
11    offered by the dealer or other creditor.
12        (8) Require the consumer to make payments, other than
13    the down payment, to the dealer or other creditor in
14    person. If the buyer tenders timely payment of a deferred
15    down payment, the dealer or other creditor shall not
16    repossess the vehicle or impose any other charge or penalty
17    on the grounds that the payment was not made in person.
18    (c) If the dealer or other creditor uses starter interrupt
19technology to disable a vehicle in accordance with this Section
20because the consumer fails to tender timely payment and the
21consumer subsequently tenders the amount currently due to the
22dealer, the dealer shall cease to use the starter interrupt
23technology no longer than 24 hours after the consumer tenders
24the amount currently due to the dealer.
25    (d) A dealer or other creditor is not in violation of this
26Section if law enforcement instructed the dealer or other



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1creditor to use the starter interrupt technology for a lawful
2criminal investigation.
3    (e) A consumer damaged by a violation of this Section by a
4dealer or other creditor is entitled to recover from the dealer
5or other creditor actual damages and reasonable attorney's fees
6and court costs. Nothing in this Section limits a consumer's
7cause of action against any party if the consumer is damaged by
8a malfunction of the starter interrupt technology.
9    (f) Any person who knowingly violates this Section commits
10an unlawful practice within the meaning of this Act and is
11guilty of a business offense and may be fined not more than