Public Act 90-0343 of the 90th General Assembly
Public Act 90-0343
HB1577 Enrolled LRB9004331NTmbA
AN ACT concerning vehicles, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Illinois Fairness in Lending Act is
amended by changing Section 6 as follows:
(815 ILCS 120/6) (from Ch. 17, par. 856)
Sec. 6. Where a financial institution, other than a
credit union, as defined in Section 1.1 of the Illinois
Credit Union Act, as now or hereafter amended, repossesses a
motor vehicle that was used as a collateral and which is
used primarily for the borrower's personal, family or
household purposes, and the borrower at the time of
repossession has paid an amount equal to 30% or more of the
total of payments due, the borrower may, within 15 days,
redeem the motor vehicle from the financial institution by
tendering:
(a) the total of all unpaid amounts, including any
unpaid delinquency or deferral charges due without
acceleration, and
(b) performance necessary to cure any default other than
nonpayment of the amounts due; and
(c) any reasonable cost or fees incurred by the
financial institution in the retaking of the goods. Tender of
payment and performance pursuant to this Section restores to
the borrower his rights under the loan as though no default
had occurred. The borrower has a right to redeem the
collateral from the financial institution only once under
this Section. The financial institution may, in the financial
institution's sole discretion, extend the period during which
the borrower may redeem the collateral beyond the 15 days
allowed under this Section, and the extension shall not
subject the financial institution to liability to the
borrower under the laws of this State.
The financial institution must give written notice to the
borrower, within 3 days of the repossession, of the
borrower's right to redeem the collateral pursuant to this
Section. The written notice shall be in substantially the
following form:
NOTICE OF RIGHT TO RECOVER VEHICLE
Your vehicle car was repossessed on (specify date) for
failure to make payments on the loan (or other reason).
Under Illinois law, because you have paid at least 30% of
the loan before repossession, you may be able to get the
vehicle car back. You have the right to recover the vehicle
if car you must do the following within with 15 days of the
date of repossession:
1. Make payment of all back payments so
that you are current on the loan. $...........
2. Pay any late charge due. $...........
3. Pay the costs of repossession. $...........
Total Amount Now Due $...........
Bring cash, a certified check or money order for the
total amount now due that is listed above to our office
located at (specify address) by (specify date) to get your
vehicle you car back.
(Source: P.A. 86-421.)
Section 5. The Motor Vehicle Retail Installment Sales
Act is amended by changing Sections 20 and 24 as follows:
(815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
Sec. 20. Unless otherwise limited by this Act Section,
the parties shall have the rights and remedies provided in
Article 9 of the Uniform Commercial Code with respect to
default, and disposition, and redemption of collateral.
If the buyer has paid an amount equal to 60% or more of
the deferred payment price at the time of his default under
the contract and if the buyer, at the request of the holder
and without legal proceedings, surrenders the goods to the
holder in ordinary condition and free from malicious damage,
the holder must, within a period of 5 days from the date of
receipt of the goods at his place of business, elect either
(a) to retain the goods and release the buyer from further
obligation under the contract, or (b) to return the goods to
the buyer at the holder's expense and be limited to an action
to recover the balance of the indebtedness.
If the buyer has paid an amount equal to 30% or more of
the deferred payment price at the time of repossession, the
buyer shall have the right to may, within 15 days, redeem the
collateral from the holder within 15 days from the date of
repossession by tendering (a) the total of all unpaid
amounts, including any unpaid delinquency or deferral charges
due at the time of tender, without acceleration, and (b)
performance necessary to cure any default other than
nonpayment of the amounts due; and (c) any reasonable cost or
fees incurred by the holder in the retaking of the goods.
Tender of payment and performance pursuant to this Section
restores to the buyer his rights under the contract as though
no default had occurred. The buyer has a right to redeem the
collateral from the holder only once under this Section. The
holder may, in the holder's sole discretion, extend the
period during which the buyer may redeem the collateral
beyond the 15 days allowed under this Section, and the
extension shall not subject the holder to liability to the
buyer under the laws of this State.
The holder must give written notice to the buyer, within
3 days of the repossession, of the buyer's right to redeem
the collateral pursuant to this Section. The written notice
shall be in substantially the following form:
NOTICE OF RIGHT TO RECOVER VEHICLE
Your vehicle car was repossessed on (specify date) for
failure to make payments on the contract (or other reason).
Under Illinois law, because you have paid at least 30% of
the deferred payment price before repossession, you may be
able to get the vehicle car back. You have the right to
recover the vehicle if car you must do the following within
15 days of the date of repossession:
1. Make payment of all back payments so
that you are current on the contract. $
2. Pay any late charges due. $
3. Pay the costs of repossession. $
TOTAL AMOUNT NOW DUE $
Bring cash, a certified check or a money order for the
total amount now due that is listed above to our office
located at (specify address) by (specify date) to get your
vehicle car back.
(Source: P.A. 83-302.)
(815 ILCS 375/24) (from Ch. 121 1/2, par. 584)
Sec. 24.
(a) Any person who knowingly violates this Act is guilty
of a Class A misdemeanor.
(b) No person who violates this Act, except as a result
of an accident or bona fide error of computation, may recover
any unpaid finance charge, any delinquency or collection
charge, or any refinance charge in connection with the
related retail installment contract.
(Source: P.A. 77-2266.)
Section 99. Effective date. This Act takes effect upon
becoming law.