Bill Text: IL SB2426 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides for the regulation of the use of starter interrupt technology by vehicle dealers and creditors in the sale of motor vehicles. Provides the consent of the consumer must be obtained before starter interrupt technology may be used in connection with the sale and financing of motor vehicles. Sets forth notice requirements. Limits circumstances under which starter interrupt technology may be used. Defines terms.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2016-04-22 - Rule 3-9(a) / Re-referred to Assignments [SB2426 Detail]

Download: Illinois-2015-SB2426-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 SB2426 Introduced 2/9/2016, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
815 ILCS 505/2TTT new
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides for the regulation of the use of starter interrupt technology by vehicle dealers and creditors in the sale of motor vehicles. Provides the consent of the consumer must be obtained before starter interrupt technology may be used in connection with the sale and financing of motor vehicles. Sets forth notice requirements. Limits circumstances under which starter interrupt technology may be used. Defines terms.
LRB099 18311 JLS 42685 b
A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Fraud and Deceptive Business
Practices Act is amended by adding Section 2TTT as follows:
(815 ILCS 505/2TTT new)
Sec. 2TTT. Use of starter interrupt technology.
(a) As used in this Section:
"Creditor" means a sales finance agency as defined in the
Sales Finance Agency Act.
"Dealer" means a motor vehicle dealer within the meaning of
Chapter 5 of the Illinois Vehicle Code.
"Electronic tracking technology" means global positioning
satellite or similar technology used to obtain or record the
location of a motor vehicle.
"Starter interrupt technology" means technology used to
remotely disable the starter of a motor vehicle.
"Transaction" means any credit sale, loan, or lease of a
motor vehicle made to a consumer by a dealer or other creditor.
Transaction includes any post default redemption and
reinstatement of the credit sale, loan, or lease by the
consumer.
(b) Any credit sale, loan, or lease of a motor vehicle made

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after the effective date of this amendatory Act of the 99th
General Assembly to a consumer by a dealer or other creditor is
made subject to this Section. In connection with the credit
sale, loan, or lease of a motor vehicle to a consumer, a dealer
or other creditor shall not:
(1) Install and utilize electronic tracking technology
to obtain or record the location of the vehicle unless the
dealer expressly notifies the consumer in a written
disclosure provided at the time of the transaction that the
vehicle is equipped with electronic tracking technology,
obtains the consumer's written consent to install and
utilize the electronic tracking technology, and either
subparagraph (A) or (B), or both apply.
(A) The electronic tracking technology is used by
the dealer or other creditor to verify and maintain the
operational status of the tracking technology, to
service the transaction, or to locate the vehicle for
repossession.
(B) The electronic tracking technology is used by
the consumer as an optional service elected and all of
the following conditions set forth in (i) and (ii) are
met:
(i) The agreement to allow the consumer to
utilize electronic tracking technology is optional
and separate from the transaction or extension of
credit, is not a condition of or incident to the

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transaction or extension of credit, and is
executed after the transaction or extension of
credit.
(ii) The consumer is permitted to cancel the
optional service at any point without affecting
the transaction or the extension of credit, and the
consumer is notified of his or her ability to do
so.
(2) Install and utilize starter interrupt technology
unless the dealer or other creditor expressly notifies the
consumer in a written disclosure provided at the time of
the transaction that the vehicle is equipped with starter
interrupt technology that the dealer or other creditor may
use to disable the starter of the vehicle remotely and
obtains the consumer's written consent to install and
utilize the starter interrupt technology. The written
disclosure shall clearly and conspicuously:
(A) Inform the consumer that a warning will be
provided 5 days before the use of the starter interrupt
technology for all weekly payment term contracts and 10
days before the use of the starter interrupt technology
on all other contracts and that a final warning will be
provided no less than 48 hours before the use of the
starter interrupt technology to shut down the vehicle
remotely. The disclosure shall indicate the manner and
method in which that warning will occur. Warning

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methods may include a warning from the device,
telephone call, email, text message, or any other
reasonable method available, provided that the warning
method does not violate applicable State or federal
law.
(B) Inform the consumer that the dealer or other
creditor intends to disable a vehicle using starter
interrupt technology following default under the
credit sale contract, loan, or lease.
(C) Include the name, address, and a telephone
number to contact in the event of the failure of the
starter interrupt technology to operate properly or
upon payment in full of the credit sale contract, loan,
or lease.
(D) Provide that, in the event of an emergency, the
consumer will be provided with the ability to start a
disabled vehicle for no less than 24 hours after the
vehicle is initially disabled.
(3) Use starter interrupt technology to disable the
vehicle without warning the consumer according to the time
periods provided in subparagraph (b)(2)(A).
(4) Use starter interrupt technology if the consumer
tenders the amount currently due on the loan to the dealer
in an acceptable form of payment before the due date on the
payment contract.
(5) Use starter interrupt technology to disable the

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vehicle for any reason other than the consumer's failure to
tender timely payment.
(6) Install and utilize any electronic tracking
technology or starter interrupt technology that would
disable a vehicle after the vehicle's engine has been
enabled and is running.
(7) Separately charge the consumer for the
installation or use of the starter interrupt technology or
electronic tracking technology or for wireless airtime
unless the consumer agrees to purchase optional services
offered by the dealer or other creditor.
(8) Require the consumer to make payments, other than
the down payment, to the dealer or other creditor in
person. If the buyer tenders timely payment of a deferred
down payment, the dealer or other creditor shall not
repossess the vehicle or impose any other charge or penalty
on the grounds that the payment was not made in person.
(c) If the dealer or other creditor uses starter interrupt
technology to disable a vehicle in accordance with this Section
because the consumer fails to tender timely payment and the
consumer subsequently tenders the amount currently due to the
dealer, the dealer shall cease to use the starter interrupt
technology no longer than 24 hours after the consumer tenders
the amount currently due to the dealer.
(d) A dealer or other creditor is not in violation of this
Section if law enforcement instructed the dealer or other

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creditor to use the starter interrupt technology for a lawful
criminal investigation.
(e) A consumer damaged by a violation of this Section by a
dealer or other creditor is entitled to recover from the dealer
or other creditor actual damages and reasonable attorney's fees
and court costs. Nothing in this Section limits a consumer's
cause of action against any party if the consumer is damaged by
a malfunction of the starter interrupt technology.
(f) Any person who knowingly violates this Section commits
an unlawful practice within the meaning of this Act and is
guilty of a business offense and may be fined not more than
$1,500.