SB2521 100TH GENERAL ASSEMBLY

LRB100 16642 JLS 31779 b

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

A BILL FOR

AN ACT concerning business.

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 adding Section 2VVV as follows:

(815 ILCS 505/2VVV new)

Sec. 2VVV. Use of starter interrupt technology.

(a) As used in this Section:

"Creditor" means a person that engages in the business of financing the purchase or lease of motor vehicles for personal use or lending money secured by those motor vehicles, including any person servicing such transactions.

"Dealer" means a motor vehicle dealer as defined in Chapter 5 of the Illinois Vehicle Code.

"Electronic tracking technology" means global positioning satellite or similar technology used to obtain or record the location of a motor vehicle.

"Motor vehicle" or "vehicle" means a motor vehicle as defined in Chapter 5 of the Illinois Vehicle Code.

"Optional services" means services that are optional and separate from the retail purchase or lease of a motor vehicle or extension of credit, are not a condition of or incident to the transaction or extension of credit, and may be canceled at any time.

"Person" means a natural person, partnership, corporation, limited liability company, trust, estate, cooperative, association, or other similar entity.

"Starter interrupt technology" means technology used to remotely disable the starter of a motor vehicle.

"Transaction" means any credit sale, loan, or lease of a motor vehicle made to a consumer by a dealer or other creditor. "Transaction" includes any post default redemption and reinstatement of the credit sale, loan, or lease by the consumer.

(b) Any credit sale, loan, or lease of a motor vehicle made after the effective date of this amendatory Act of the 100th General Assembly to a consumer by a dealer or other creditor is made subject to this Section. In connection with the credit sale, loan, or lease of a motor vehicle to a consumer, a dealer or other creditor shall not use electronic tracking technology or starter interrupt technology unless it is used solely to verify and maintain the operational status of the tracking technology, to locate for repossession, to repossess the vehicle, or to locate the vehicle to service the account or keep the account current and the following conditions are met:

(1) The dealer or other creditor clearly and conspicuously notifies the consumer at the time of the transaction that the vehicle is equipped with electronic tracking technology or starter interrupt technology and the technology may be used by the dealer or creditor to locate or disable the starter of the vehicle remotely.

(2) The dealer or other creditor obtains written consent from the consumer that the vehicle is equipped with electronic tracking technology or starter interrupt technology and that the dealer or other creditor may use the electronic tracking technology or starter interrupt technology to locate or disable the starter of the vehicle remotely.

(3) The dealer or creditor must provide notice to the consumer upon default within the time periods established in subsection (c).

(4) The dealer or creditor may not use starter interrupt technology if the consumer tenders the amount currently due on the loan to the dealer in an acceptable form of payment before the due date on the payment contract or provides proof of insurance as required under the contract.

(5) The dealer or creditor shall not use starter interrupt technology to locate or disable the vehicle for any reason other than the consumer's failure to tender timely payment or for failure to maintain insurance as required under the contract.

(6) The dealer or creditor shall not install or utilize any starter interrupt technology that would disable a vehicle after the vehicle's engine has been enabled and is running.

(7) The dealer or creditor shall not separately charge the consumer for the installation or use of the starter interrupt technology or electronic tracking technology or for wireless airtime.

(8) The dealer or creditor shall not separately charge the consumer for optional services purchased by the consumer. However, the consumer may waive this prohibition by clearly and conspicuously agreeing in a written disclosure to pay for the installation or use of the electronic tracking device for optional services.

(9) The dealer or creditor shall not use electronic tracking technology or starter interrupt technology with a non-English speaking consumer unless the dealer, creditor, person, or company operating the electronic tracking technology or starter interrupt technology complies with Section 2N of this Act.

(10) The dealer or creditor shall provide the consumer the ability to start a disabled vehicle for 24 hours after the vehicle is initially disabled at least once per payment cycle if the vehicle was disabled because the consumer failed to tender timely payment or failed to maintain insurance as required under the contract. Separate instructions on how to restart a disabled vehicle must be provided to consumer in a format that can be kept in the glove compartment of the vehicle in addition to the disclosures under this subsection. At a minimum, the dealer or creditor must provide the consumer with a toll free phone number to call to restart a disabled vehicle for 24 hours after the vehicle is initially disabled at least once per payment cycle if the vehicle was disabled because the consumer failed to tender timely payment or failed to maintain insurance as required under the contract. However, the one-time per payment cycle limitation does not apply if the vehicle was disabled due to mistake, malfunction or other event not attributable to the consumer.

(c) A clear and conspicuous written disclosure shall be a separate document in 12-point bold font and shall disclose all of the following:

(1) Describe the electronic tracking and starter interrupt devices installed on the vehicle and the data that will be collected and stored.

(2) Inform the consumer that use of an electronic tracking or starter interrupt device will allow a dealer or creditor to track a vehicle's location.

(3) Inform the consumer that warnings will be provided no less than 48 hours before the vehicle is disabled remotely. The warning must be transmitted through at least 2 modes of communication, such as e-mail, mail, telephone, text message, or through the device itself.

(4) Inform the consumer that the dealer or other creditor will locate or disable a vehicle using electronic tracking or starter interrupt technology following failure to tender timely payment or for failure to maintain insurance as required under the contract.

(5) Include the name, address, email address, and telephone number of the person or company operating the electronic tracking or starter interrupt device.

(6) Include, if known, the name, address, email address, and telephone number of the creditor associated with the person or company operating the electronic tracking or starter interrupt device. If not known at the time of the contract, the dealer must notify the consumer within 7 business days of the contract the creditor's name, address, email address, and telephone number.

(7) Provide that, in the event of an emergency, the consumer will be provided with the ability to start a disabled vehicle for 24 hours after the vehicle is initially disabled and the number of times during the payment cycle the restarting may occur. Separate instructions on how to restart a disabled vehicle must be provided to the consumer in a format that can be kept in the glove compartment of the vehicle in addition to the disclosures under this subsection. At a minimum, the dealer or creditor must provide the consumer with a toll free phone number to call to restart a disabled vehicle for 24 hours after the vehicle is initially disabled at least once per payment cycle if the vehicle was disabled because the consumer failed to tender timely payment or failed to maintain insurance as required under the contract. However, the one-time per payment cycle limitation does not apply if the vehicle was disabled due to a mistake, malfunction, or other event not attributable to the consumer.

(d) A dealer or other creditor is not in violation of this Section if law enforcement instructs the dealer or other creditor to use the electronic tracking or starter interrupt technology for a lawful criminal investigation.

(e) A consumer damaged by a violation of this Section by a dealer or other creditor is entitled to recover from the violator actual damages and reasonable attorney's fees and court costs. Nothing in this Section limits a consumer's cause of action against any party if the consumer is damaged by a malfunction of the electronic tracking or starter interrupt technology.

(f) The electronic tracking technology or starter interrupt technology identified in this Section may only be used, applied, or associated with a credit sale, loan, or lease of a motor vehicle.

(g) Any use of starter interrupt technology and any repossession of a motor vehicle must meet the requirements of Article 9 of the Uniform Commercial Code in addition to any requirements required in this Section. In addition, any use of the starter interrupt device will be deemed a constructive repossession.

(h) If a dealer or creditor uses starter interrupt technology to disable a vehicle, the dealer or creditor is deemed to have taken possession and is responsible for all liabilities associated with the vehicle from the time of the use of starter interrupt technology to disable a vehicle. If the consumer cures the default, the consumer shall have a reasonable opportunity to retrieve the vehicle before again becoming responsible for all liabilities. If a consumer cures the default before the creditor takes physical possession of the vehicle, this will not invoke the consumer's right to reinstatement pursuant to Article 9 of the Uniform Commercial Code. A consumer must be in default for a minimum of 5 days before the process can begin.

(i) Privacy, storage, and destruction of data obtained by manufacturers of electronic tracking technology or starter interrupt technology.

(1) A manufacturer of an electronic tracking technology or starter interrupt technology, or an authorized recipient of such data, shall implement and maintain reasonable security measures to protect the data associated with a motor vehicle's electronic tracking technology or starter interrupt technology from unauthorized access, acquisition, destruction, use, modification, or disclosure.

(2) A manufacturer of electronic tracking technology or starter interrupt technology or an authorized recipient of such data, shall destroy, utilizing the following procedures, all data associated with a motor vehicle's electronic tracking technology or starter interrupt technology. Destruction shall occur no later than one and one-half years after the termination of the device or termination of the optional services as permitted under item (8) of subsection (b).

(A) Paper documents containing data associated with a motor vehicle's electronic tracking technology or starter interrupt technology shall be either permanently redacted, burned, pulverized, or shredded so that all data associated with the motor vehicle's electronic tracking technology or starter interrupt technology cannot practicably be read or reconstructed.

(B) Electronic media and other non-paper media containing data associated with a motor vehicle's electronic tracking technology or starter interrupt technology shall be destroyed or erased so that all data associated with the motor vehicle's electronic tracking technology or starter interrupt technology cannot practicably be read or reconstructed.

(3) A manufacturer of electronic tracking technology or starter interrupt technology, its affiliates, subsidiaries, agents, directors, successors and assigns, officers and employees, as well as any recipient of electronic tracking or starter interrupt device data, are prohibited from selling any of the data associated with a motor vehicle's electronic tracking technology or starter interrupt technology except as necessary for the provision of optional services as permitted under item (8) of subsection (b), or, data aggregated in such a manner that only non-identifying information can be obtained.

(j) A consumer's attempt to intentionally disable the device shall be deemed a default and the consumer shall not be granted the normal opportunity to restart the vehicle for 24 hours after the default.

(k) It is an unlawful practice within the meaning of this Act for a dealer or creditor to fail to remove electronic tracking technology or starter interrupt technology in any of the following situations:

(1) Within 5 days after a consumer has fulfilled the credit obligations associated with the credit sale, loan, or lease of the motor vehicle purchase.

(2) Within 7 days after disabling the vehicle using electronic tracking technology or starter interrupt technology.

(3) Prior to sale or resale of a motor vehicle originally equipped with electronic tracking technology or starter interrupt technology to any seller, including but not limited to, another consumer or dealer.

(l) It is an unlawful practice within the meaning of this Act for a dealer or creditor to use or activate starter interrupt technology prior to a consumer defaulting for non-payment or failure to maintain insurance. In the event that a consumer cures the default, redeems or reinstates the vehicle, the dealer or creditor shall, within 24 hours of redemption or reinstatement, provide the consumer with the ability to restart the vehicle and cease using electronic tracking technology or starter interrupt technology. A dealer or creditor continues to have the ability to use or activate electronic tracking technology or starter interrupt technology if a consumer subsequently defaults on a credit sale, loan, or lease of a motor vehicle.