State of Illinois
91st General Assembly
Legislation

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[ Engrossed ][ House Amendment 001 ]

91_SB1055

 
                                              LRB9105979JSmbA

 1        AN ACT to create the Check Acceptance Firm Act.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.   This Act may be cited as the
 5    Check Acceptance Firm Act.

 6        Section 5.  Definitions.
 7        "Check acceptance firm" means  an  entity  that  provides
 8    information verification for personal checks of consumers and
 9    transmits  that information by electronic or other means to a
10    retail seller.
11        "Credit scoring"  means an objective methodology used  by
12    a  check  acceptance firm to determine, on behalf of a retail
13    seller, if a personal check presented to the retail seller by
14    a  consumer  is  valid  and  sufficient  to  consummate   the
15    transaction  between  the  retail  seller  and  the consumer.
16    Credit scoring shall be performed in a form and  manner  that
17    complies with the federal Fair Credit Reporting Act.
18        "Consumer" means a natural person.
19        "Retail  seller" means a person regularly engaged in, and
20    whose business consists to a substantial extent  of,  selling
21    and  who, in the ordinary course of business, regularly sells
22    or offers to sell goods or  services  to  consumers  who  are
23    retail  buyers  and  who  utilizes  the  services  of a check
24    acceptance firm for the verification of checks  presented  by
25    consumers.

26        Section   10.  Toll-free  number;  disclosure  of  credit
27    scoring criteria.  A  check  acceptance  firm  shall  have  a
28    toll-free  telephone  number  by which a consumer may contact
29    the  check  acceptance  firm   to   obtain   credit   scoring
30    information.  This toll-free telephone number shall be posted

 
                            -2-               LRB9105979JSmbA
 1    in  an area used by the consumer and the retailer to complete
 2    retail transactions.  If a  personal  check  presented  by  a
 3    consumer  to  a  retail  seller is not accepted by the retail
 4    seller  based  upon  information  provided   by   the   check
 5    acceptance   firm,   the  retail  seller  shall  provide  the
 6    toll-free number to the consumer.  Upon request by a consumer
 7    regarding a transaction that was rejected by a retail seller,
 8    a check acceptance firm shall provide the consumer  with  the
 9    specific  reasons the transaction was rejected.  The specific
10    reasons the transaction was rejected shall be provided to the
11    consumer in writing within 14 days after  the  request  at  a
12    mailing address provided by the consumer.

13        Section  15.  Penalty.  A violation of Section 10 of this
14    Act by a check acceptance firm or a retail seller is a  petty
15    offense.  The penalty is a fine of $500.

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