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90_HB1577
815 ILCS 120/6 from Ch. 17, par. 856
815 ILCS 375/20 from Ch. 121 1/2, par. 580
815 ILCS 375/24 from Ch. 121 1/2, par. 584
Amends the Motor Vehicle Retail Installment Sales Act and
the Illinois Fairness in Lending Act. Amends the Motor
Vehicle Retail Installment Sales Act to provide that parties
shall have the rights and remedies provided in the Uniform
Commercial Code with respect to redemption of collateral.
Provides that the holder may extend the period during which
the buyer may redeem the collateral beyond the 15 days
allowed. Provides that no person who violates the Act may
recover any unpaid finance charge, delinquency or collection
charge, or refinance charge (instead of no recovery of any
finance charge, delinquency or collection charge, or
refinance charge). Amends the Illinois Fairness in Lending
Act in the provisions concerning a financial institution
repossessing a vehicle used as collateral. Provides that a
financial institution may extend the period during which the
borrower may redeem the collateral beyond the 15 days
allowed. Makes other changes. Effective immediately.
LRB9004331NTmbA
LRB9004331NTmbA
1 AN ACT concerning vehicles, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Illinois Fairness in Lending Act is
5 amended by changing Section 6 as follows:
6 (815 ILCS 120/6) (from Ch. 17, par. 856)
7 Sec. 6. Where a financial institution, other than a
8 credit union, as defined in Section 1.1 of the Illinois
9 Credit Union Act, as now or hereafter amended, repossesses a
10 motor vehicle that was used as a collateral and which is
11 used primarily for the borrower's personal, family or
12 household purposes, and the borrower at the time of
13 repossession has paid an amount equal to 30% or more of the
14 total of payments due, the borrower may, within 15 days,
15 redeem the motor vehicle from the financial institution by
16 tendering:
17 (a) the total of all unpaid amounts, including any
18 unpaid delinquency or deferral charges due without
19 acceleration, and
20 (b) performance necessary to cure any default other than
21 nonpayment of the amounts due; and
22 (c) any reasonable cost or fees incurred by the
23 financial institution in the retaking of the goods. Tender of
24 payment and performance pursuant to this Section restores to
25 the borrower his rights under the loan as though no default
26 had occurred. The borrower has a right to redeem the
27 collateral from the financial institution only once under
28 this Section. The financial institution may, in the financial
29 institution's sole discretion, extend the period during which
30 the borrower may redeem the collateral beyond the 15 days
31 allowed under this Section, and the extension shall not
-2- LRB9004331NTmbA
1 subject the financial institution to liability to the
2 borrower under the laws of this State.
3 The financial institution must give written notice to the
4 borrower, within 3 days of the repossession, of the
5 borrower's right to redeem the collateral pursuant to this
6 Section. The written notice shall be in substantially the
7 following form:
8 NOTICE OF RIGHT TO RECOVER VEHICLE
9 Your vehicle car was repossessed on (specify date) for
10 failure to make payments on the loan (or other reason).
11 Under Illinois law, because you have paid at least 30% of
12 the loan before repossession, you may be able to get the
13 vehicle car back. You have the right to recover the vehicle
14 if car you must do the following within with 15 days of the
15 date of repossession:
16 1. Make payment of all back payments so
17 that you are current on the loan. $...........
18 2. Pay any late charge due. $...........
19 3. Pay the costs of repossession. $...........
20 Total Amount Now Due $...........
21 Bring cash, a certified check or money order for the
22 total amount now due that is listed above to our office
23 located at (specify address) by (specify date) to get your
24 vehicle you car back.
25 (Source: P.A. 86-421.)
26 Section 5. The Motor Vehicle Retail Installment Sales
27 Act is amended by changing Sections 20 and 24 as follows:
28 (815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
29 Sec. 20. Unless otherwise limited by this Act Section,
30 the parties shall have the rights and remedies provided in
31 Article 9 of the Uniform Commercial Code with respect to
32 default, and disposition, and redemption of collateral.
-3- LRB9004331NTmbA
1 If the buyer has paid an amount equal to 60% or more of
2 the deferred payment price at the time of his default under
3 the contract and if the buyer, at the request of the holder
4 and without legal proceedings, surrenders the goods to the
5 holder in ordinary condition and free from malicious damage,
6 the holder must, within a period of 5 days from the date of
7 receipt of the goods at his place of business, elect either
8 (a) to retain the goods and release the buyer from further
9 obligation under the contract, or (b) to return the goods to
10 the buyer at the holder's expense and be limited to an action
11 to recover the balance of the indebtedness.
12 If the buyer has paid an amount equal to 30% or more of
13 the deferred payment price at the time of repossession, the
14 buyer shall have the right to may, within 15 days, redeem the
15 collateral from the holder within 15 days from the date of
16 repossession by tendering (a) the total of all unpaid
17 amounts, including any unpaid delinquency or deferral charges
18 due at the time of tender, without acceleration, and (b)
19 performance necessary to cure any default other than
20 nonpayment of the amounts due; and (c) any reasonable cost or
21 fees incurred by the holder in the retaking of the goods.
22 Tender of payment and performance pursuant to this Section
23 restores to the buyer his rights under the contract as though
24 no default had occurred. The buyer has a right to redeem the
25 collateral from the holder only once under this Section. The
26 holder may, in the holder's sole discretion, extend the
27 period during which the buyer may redeem the collateral
28 beyond the 15 days allowed under this Section, and the
29 extension shall not subject the holder to liability to the
30 buyer under the laws of this State.
31 The holder must give written notice to the buyer, within
32 3 days of the repossession, of the buyer's right to redeem
33 the collateral pursuant to this Section. The written notice
34 shall be in substantially the following form:
-4- LRB9004331NTmbA
1 NOTICE OF RIGHT TO RECOVER VEHICLE
2 Your vehicle car was repossessed on (specify date) for
3 failure to make payments on the contract (or other reason).
4 Under Illinois law, because you have paid at least 30% of
5 the deferred payment price before repossession, you may be
6 able to get the vehicle car back. You have the right to
7 recover the vehicle if car you must do the following within
8 15 days of the date of repossession:
9 1. Make payment of all back payments so
10 that you are current on the contract. $
11 2. Pay any late charges due. $
12 3. Pay the costs of repossession. $
13 TOTAL AMOUNT NOW DUE $
14 Bring cash, a certified check or a money order for the
15 total amount now due that is listed above to our office
16 located at (specify address) by (specify date) to get your
17 vehicle car back.
18 (Source: P.A. 83-302.)
19 (815 ILCS 375/24) (from Ch. 121 1/2, par. 584)
20 Sec. 24.
21 (a) Any person who knowingly violates this Act is guilty
22 of a Class A misdemeanor.
23 (b) No person who violates this Act, except as a result
24 of an accident or bona fide error of computation, may recover
25 any unpaid finance charge, any delinquency or collection
26 charge, or any refinance charge in connection with the
27 related retail installment contract.
28 (Source: P.A. 77-2266.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.