102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3045

 

Introduced 2/19/2021, by Rep. Adam Niemerg

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 375/11.1  from Ch. 121 1/2, par. 571.1

    Amends the Motor Vehicle Retail Installment Sales Act. Provides that the maximum amount of the documentary fee for processing documents and performing services related to closing of a sale is restored to $150 (currently, the fee was increased to $300 on January 1, 2020). Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Motor Vehicle Retail Installment Sales Act
5is amended by changing Section 11.1 as follows:
 
6    (815 ILCS 375/11.1)  (from Ch. 121 1/2, par. 571.1)
7    Sec. 11.1. (a) A seller in a retail installment contract
8may add a "documentary fee" for processing documents and
9performing services related to closing of a sale. The maximum
10amount that may be charged by a seller for a documentary fee is
11the base documentary fee beginning January 1, 2008 until
12January 1, 2020, of $150, which shall be subject to an annual
13rate adjustment equal to the percentage of change in the
14Bureau of Labor Statistics Consumer Price Index. Every retail
15installment contract under this Act shall contain or be
16accompanied by a notice containing the following information:
17    "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL
18FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE
19CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING
20SERVICES RELATED TO CLOSING OF A SALE. THE BASE DOCUMENTARY
21FEE BEGINNING JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT
22THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE
23DOCUMENTARY FEE OF $150, WHICH SHALL BE SUBJECT TO AN ANNUAL

 

 

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1RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE
2BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE
3IS REQUIRED BY LAW."
4    (b) (Blank). A seller in a retail installment contract may
5add a "documentary fee" for processing documents and
6performing services related to closing of a sale. The maximum
7amount that may be charged by a seller for a documentary fee is
8the base documentary fee beginning January 1, 2020, of $300,
9which shall be subject to an annual rate adjustment equal to
10the percentage of change in the Bureau of Labor Statistics
11Consumer Price Index. Every retail installment contract under
12this Act shall contain or be accompanied by a notice
13containing the following information:
14    "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL
15FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE
16CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING
17SERVICES RELATED TO CLOSING OF A SALE. THE BASE DOCUMENTARY
18FEE BEGINNING JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT
19THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE
20DOCUMENTARY FEE OF $300, WHICH SHALL BE SUBJECT TO AN ANNUAL
21RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE
22BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE
23IS REQUIRED BY LAW."
24(Source: P.A. 101-31, eff. 6-28-19.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.