(815 ILCS 405/25) (from Ch. 121 1/2, par. 525)
Sec. 25.
Agreement requirements.
(a) A retail charge agreement must be in writing and must be
signed by the buyer. If a charge agreement was executed on or after January
1, 1968, the seller must deliver or mail to the buyer a copy of that charge
agreement before the date when the first payment is due under that
agreement except where such charge agreement was negotiated by mail and
otherwise meets the requirements of this Section. An acknowledgment of the
delivery of the agreement when contained in the body of the charge
agreement is presumptive proof of delivery in any action. All charge
agreements executed on or after January 1, 1968 must state the amount or
rate of the finance charge to be charged and paid pursuant thereto.
A retail charge agreement shall be deemed to be signed or accepted by the
buyer if, after a request for a retail charge account, that retail charge
agreement or application for a retail charge account is in fact signed by the
buyer, or if that retail charge account is used by the buyer, or if that retail
charge account is used by another person authorized by
the buyer to use it. The retail charge agreement shall
not
become effective unless and until the buyer has received the disclosures
required pursuant to the federal Truth in Lending Act (15 U.S.C. 1601 et seq.),
and the buyer or a person authorized by the buyer uses the retail charge
account.
(b) The seller under a holder of a retail charge agreement must promptly
supply the buyer under the agreement, as of the end of each monthly period
(which need not be a calendar month) or other regular period agreed upon by
the seller and the buyer in which there is any unpaid balance under that
agreement, a statement reciting the following terms (although not
necessarily in the sequence stated):
(1) the unpaid balance under the retail charge |
(c) (Blank)
(d) Additionally, the following information shall be printed either on
an application for a retail charge agreement, literature accompanying the
application or on or with any retail charge account solicitation: (1) the
annual percentage rate or rates of the finance charge applicable to the
account, or if the rate is variable, that fact, and the rate as of a
specified date or the index from which the rate is determined; (2) the
annualized membership or participation fee or charge, if any; (3) the grace
period, which is defined as the period within which any credit extended
under such credit plan must be repaid to avoid incurring a finance charge
represented in terms of an annual percentage rate, and if no such
period is offered such
fact shall be clearly stated; (4) transaction fees, if assessed, for the use
of the charge account, a late payment charge, minimum finance charge
and over limit charge. The term "solicitation" means written material
mailed or any other solicitation in a written form which constitutes an
application for, or an offer to open a charge account without
completing an application.
Additional items may be included to explain the computations made in
determining the amount to be paid by the buyer.
A retail charge agreement which complies with the Federal Truth in
Lending Act, amendments thereto, and any regulations issued or which may be
issued thereunder, shall be deemed to be in compliance with the provisions
of this Section.
(Source: P.A. 88-546; 89-321, eff. 1-1-96; 89-635, eff. 8-9-96.)
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