Bill Text: IL HB3921 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person age 65 and older may cancel certain contracts within 15, rather than 3, days after the day the contract was signed. Effective January 1, 2018.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced) 2017-03-31 - Rule 19(a) / Re-referred to Rules Committee [HB3921 Detail]

Download: Illinois-2017-HB3921-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3921

Introduced , by Rep. Martin J. Moylan

SYNOPSIS AS INTRODUCED:
815 ILCS 505/2B from Ch. 121 1/2, par. 262B

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person age 65 and older may cancel certain contracts within 15, rather than 3, days after the day the contract was signed. Effective January 1, 2018.
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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 Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2B as follows:
6 (815 ILCS 505/2B) (from Ch. 121 1/2, par. 262B)
7 Sec. 2B. Where a sale of merchandise involving $25 or more
8is made or contracted to be made whether under a single
9contract or under multiple contracts, to a consumer by a seller
10who is physically present at the consumer's residence, that
11consumer may avoid the contract or transaction by notifying the
12seller within 3 full business days (or 15 full business days if
13the consumer is age 65 or older) following that day on which
14the contract was signed or the sale was made and by returning
15to the person, in its original condition, any merchandise
16delivered to the consumer under the contract or sale. At the
17time the transaction is made or the contract signed, the person
18shall furnish the consumer with a fully completed receipt or
19contract pertaining to the transaction, in substantially the
20same language as that principally used in the oral presentation
21to the consumer, containing a "Notice of Cancellation"
22informing the consumer that he may cancel the transaction at
23any time within 3 days (or 15 days if the consumer is age 65 or

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1older) and showing the date of the transaction with the name
2and address of the person, and in immediate proximity to the
3space reserved in the contract for the consumer's signature or
4on the front page of the receipt if a contract is not used, a
5statement which shall be in bold face type, in at least
610-point type and in substantially the following form:
7 "YOU, THE CONSUMER, MAY CANCEL THIS TRANSACTION AT ANY TIME
8PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (OR FIFTEENTH
9BUSINESS DAY IF YOU ARE AGE 65 OR OLDER) AFTER THE DATE OF THIS
10TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR
11AN EXPLANATION OF THIS RIGHT."
12 Attached to the receipt or contract shall be a completed
13form in duplicate, captioned "NOTICE OF CANCELLATION" which
14shall be easily detachable and which shall contain in 10 point
15bold face type the following information and statements in the
16same language as that used in the contract:
17
NOTICE OF CANCELLATION
18
(enter date of transaction)
19
...........................
20
(Date)
21 YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR
22OBLIGATION, WITHIN 3 BUSINESS DAYS (OR 15 BUSINESS DAYS IF YOU
23ARE AGE 65 OR OLDER) FROM THE ABOVE DATE.
24 IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY
25YOU, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU UNDER THE
26CONTRACT OR TRANSACTION WILL BE RETURNED WITHIN 10 BUSINESS

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1DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION
2NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE
3TRANSACTION WILL BE CANCELLED.
4 IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT
5YOUR RESIDENCE IN SUBSTANTIALLY AS GOOD A CONDITION AS WHEN
6RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR
7TRANSACTION, OR YOU MAY IF YOU WISH, COMPLY WITH THE
8INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE
9GOODS AT THE SELLER'S EXPENSE AND RISK.
10 IF YOU MAKE THE GOODS AVAILABLE TO THE SELLER AND THE
11SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR
12NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS
13WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS
14AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO
15THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR
16PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
17 TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND
18DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN
19NOTICE, OR SEND A TELEGRAM, TO (Name of seller), AT (address of
20seller's place of business) NOT LATER THAN MIDNIGHT OF (date).
21 I HEREBY CANCEL THIS TRANSACTION.
22(Date) ............
23
...................
24
(Buyer's signature)
25 Such written "Notice of Cancellation" may be sent by the
26consumer to the person to cancel the contract. The 3 day period

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1(or 15 day period of the consumer is age 65 or older) provided
2for in this Section does not commence until the consumer is
3furnished a "Notice of Cancellation", and the address at which
4such notice to the seller can be given. If those conditions are
5met, the seller must return to the consumer the full amount of
6any payment made or consideration given under the contract or
7for the merchandise. It is an unlawful practice within the
8meaning of this Act for any person to
9 (a) Fail, before furnishing copies of the "Notice of
10Cancellation" to the consumer, to complete the copies by
11entering the name of the person, the address of the person's
12place of business, the date of the transaction, and the date,
13not earlier than the third business day (or fifteenth business
14day if the consumer is age 65 or older) following the date of
15the transaction, by which the consumer may give notice of
16cancellation;
17 (b) Include in any contract or receipt under this Section
18any confession of judgment or any waiver of any of the rights
19to which the consumer is entitled under this Section including
20specifically his right to cancel the transaction in accordance
21with the provisions of this Section;
22 (c) Fail to inform each consumer orally, at the time he
23signs the contract or purchases or leases the goods or
24services, of his right to cancel;
25 (d) Misrepresent in any manner the consumer's right to
26cancel;

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1 (e) Use any undue influence, coercion or any other wilful
2act or representation to interfere with the consumer's exercise
3of his rights under this Section;
4 (f) Fail or refuse to honor any valid notice of
5cancellation by a consumer and within 10 business days after
6the receipt of such notice, to
7 (i) refund all payments made under the contract or
8 sale,
9 (ii) return any goods or property traded in, in
10 substantially as good a condition as when received by the
11 person, or
12 (iii) cancel and return any negotiable instrument
13 executed by the consumer in connection with the contract or
14 transaction and take any action necessary or appropriate to
15 terminate promptly any security interest created in the
16 transaction;
17 (g) Negotiate, transfer, sell, or assign any note or other
18evidence of indebtedness to a finance company or other third
19party prior to midnight of the fifth business day following the
20day the contract was signed or the goods or services were
21purchased or leased; or
22 (h) Fail, within 10 business days of receipt of the
23consumer's notice of cancellation, to notify him whether the
24seller intends to repossess or to abandon any shipped or
25delivered goods.
26 For the purposes of this Section, the word "sale" includes

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1a sale, lease or rental.
2 This Section does not apply to any transaction
3 (a) made pursuant to prior negotiations in the course of a
4visit by the consumer to a retail business establishment having
5a fixed permanent location where the goods are exhibited, or
6the services are offered, for sale or lease on a continuing
7basis;
8 (b) in which the consumer is accorded the right of
9rescission by the provisions of the Consumer Credit Protection
10Act (15 U.S.C. 1635) or regulations issued pursuant thereto;
11 (c) in which the consumer has initiated the contact and the
12goods or services are needed to meet a bona fide immediate
13personal emergency of the consumer, and the consumer furnishes
14the person with a separate dated and signed personal statement
15in the consumer's handwriting describing the situation
16requiring immediate remedy and expressly acknowledging and
17waiving the right to cancel the sale within 3 business days (or
1815 business days if the consumer is age 65 or older);
19 (d) conducted and consummated entirely by mail or telephone
20without any other contact between the consumer and the person
21or its representative prior to delivery of the goods or
22performance of the services;
23 (e) in which the consumer has initiated the contact and
24specifically requested the person to visit his home for the
25purpose of repairing or performing maintenance upon the
26consumer's personal property, on the condition that if, in the

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1course of such a visit, the person sells the consumer the right
2to receive additional services or goods other than replacement
3parts necessarily used in performing the maintenance or in
4making the repairs, the sale of those additional goods or
5services does not fall within this exclusion;
6 (f) pertaining to the sale or rental of real property, to
7the sale of insurance or to the sale of securities or
8commodities by a broker-dealer registered with the Securities
9and Exchange Commission; or
10 (g) between a consumer and a loan broker licensed under the
11Residential Mortgage License Act of 1987 when (i) the
12transaction involves obtaining a mortgage loan on real estate
13and (ii) the first contact respecting the transaction is
14initiated by the consumer or by another person at the request
15of the consumer.
16(Source: P.A. 90-764, eff. 1-1-99.)
17 Section 99. Effective date. This Act takes effect January
181, 2018.
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