Bill Text: IL SB2521 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a dealer or other creditor shall not use electronic tracking technology or starter interrupt technology in connection with the credit sale, loan, or lease of a motor vehicle unless the technology is used solely to verify and maintain the operational status of the tracking technology, to locate the vehicle for repossession, to repossess the vehicle, or to locate the vehicle to service the account or keep the account current. Requires specified conditions to be met and certain written disclosures to be made to the consumer regarding the use of the technology. Contains provisions regarding: use of the technology in a criminal investigation; damages for violations; repossession; privacy, storage, and destruction of data; and other matters. Provides that specified violations are unlawful practices within the meaning of the Act

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2019-01-09 - Session Sine Die [SB2521 Detail]

Download: Illinois-2017-SB2521-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB2521 Introduced 2/6/2018, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
815 ILCS 505/2VVV new
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a dealer or other creditor shall not use electronic tracking technology or starter interrupt technology in connection with the credit sale, loan, or lease of a motor vehicle unless the technology is used solely to verify and maintain the operational status of the tracking technology, to locate the vehicle for repossession, to repossess the vehicle, or to locate the vehicle to service the account or keep the account current. Requires specified conditions to be met and certain written disclosures to be made to the consumer regarding the use of the technology. Contains provisions regarding: use of the technology in a criminal investigation; damages for violations; repossession; privacy, storage, and destruction of data; and other matters. Provides that specified violations are unlawful practices within the meaning of the Act
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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 2VVV as follows:
(815 ILCS 505/2VVV new)
Sec. 2VVV. Use of starter interrupt technology.
(a) As used in this Section:
"Creditor" means a person that engages in the business of
financing the purchase or lease of motor vehicles for personal
use or lending money secured by those motor vehicles, including
any person servicing such transactions.
"Dealer" means a motor vehicle dealer as defined in 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.
"Motor vehicle" or "vehicle" means a motor vehicle as
defined in Chapter 5 of the Illinois Vehicle Code.
"Optional services" means services that are optional and
separate from the retail purchase or lease of a motor vehicle
or extension of credit, are not a condition of or incident to
the transaction or extension of credit, and may be canceled at

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any time.
"Person" means a natural person, partnership, corporation,
limited liability company, trust, estate, cooperative,
association, or other similar entity.
"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
after the effective date of this amendatory Act of the 100th
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 use electronic tracking technology
or starter interrupt technology unless it is used solely to
verify and maintain the operational status of the tracking
technology, to locate for repossession, to repossess the
vehicle, or to locate the vehicle to service the account or
keep the account current and the following conditions are met:
(1) The dealer or other creditor clearly and
conspicuously notifies the consumer at the time of the
transaction that the vehicle is equipped with electronic
tracking technology or starter interrupt technology and

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the technology may be used by the dealer or creditor to
locate or disable the starter of the vehicle remotely.
(2) The dealer or other creditor obtains written
consent from the consumer that the vehicle is equipped with
electronic tracking technology or starter interrupt
technology and that the dealer or other creditor may use
the electronic tracking technology or starter interrupt
technology to locate or disable the starter of the vehicle
remotely.
(3) The dealer or creditor must provide notice to the
consumer upon default within the time periods established
in subsection (c).
(4) The dealer or creditor may not 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
or provides proof of insurance as required under the
contract.
(5) The dealer or creditor shall not use starter
interrupt technology to locate or disable the vehicle for
any reason other than the consumer's failure to tender
timely payment or for failure to maintain insurance as
required under the contract.
(6) The dealer or creditor shall not install or utilize
any starter interrupt technology that would disable a
vehicle after the vehicle's engine has been enabled and is

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running.
(7) The dealer or creditor shall not separately charge
the consumer for the installation or use of the starter
interrupt technology or electronic tracking technology or
for wireless airtime.
(8) The dealer or creditor shall not separately charge
the consumer for optional services purchased by the
consumer. However, the consumer may waive this prohibition
by clearly and conspicuously agreeing in a written
disclosure to pay for the installation or use of the
electronic tracking device for optional services.
(9) The dealer or creditor shall not use electronic
tracking technology or starter interrupt technology with a
non-English speaking consumer unless the dealer, creditor,
person, or company operating the electronic tracking
technology or starter interrupt technology complies with
Section 2N of this Act.
(10) The dealer or creditor shall provide the consumer
the ability to start a disabled vehicle for 24 hours after
the vehicle is initially disabled at least once per payment
cycle if the vehicle was disabled because the consumer
failed to tender timely payment or failed to maintain
insurance as required under the contract. Separate
instructions on how to restart a disabled vehicle must be
provided to consumer in a format that can be kept in the
glove compartment of the vehicle in addition to the

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disclosures under this subsection. At a minimum, the dealer
or creditor must provide the consumer with a toll free
phone number to call to restart a disabled vehicle for 24
hours after the vehicle is initially disabled at least once
per payment cycle if the vehicle was disabled because the
consumer failed to tender timely payment or failed to
maintain insurance as required under the contract.
However, the one-time per payment cycle limitation does not
apply if the vehicle was disabled due to mistake,
malfunction or other event not attributable to the
consumer.
(c) A clear and conspicuous written disclosure shall be a
separate document in 12-point bold font and shall disclose all
of the following:
(1) Describe the electronic tracking and starter
interrupt devices installed on the vehicle and the data
that will be collected and stored.
(2) Inform the consumer that use of an electronic
tracking or starter interrupt device will allow a dealer or
creditor to track a vehicle's location.
(3) Inform the consumer that warnings will be provided
no less than 48 hours before the vehicle is disabled
remotely. The warning must be transmitted through at least
2 modes of communication, such as e-mail, mail, telephone,
text message, or through the device itself.
(4) Inform the consumer that the dealer or other

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creditor will locate or disable a vehicle using electronic
tracking or starter interrupt technology following failure
to tender timely payment or for failure to maintain
insurance as required under the contract.
(5) Include the name, address, email address, and
telephone number of the person or company operating the
electronic tracking or starter interrupt device.
(6) Include, if known, the name, address, email
address, and telephone number of the creditor associated
with the person or company operating the electronic
tracking or starter interrupt device. If not known at the
time of the contract, the dealer must notify the consumer
within 7 business days of the contract the creditor's name,
address, email address, and telephone number.
(7) Provide that, in the event of an emergency, the
consumer will be provided with the ability to start a
disabled vehicle for 24 hours after the vehicle is
initially disabled and the number of times during the
payment cycle the restarting may occur. Separate
instructions on how to restart a disabled vehicle must be
provided to the consumer in a format that can be kept in
the glove compartment of the vehicle in addition to the
disclosures under this subsection. At a minimum, the dealer
or creditor must provide the consumer with a toll free
phone number to call to restart a disabled vehicle for 24
hours after the vehicle is initially disabled at least once

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per payment cycle if the vehicle was disabled because the
consumer failed to tender timely payment or failed to
maintain insurance as required under the contract.
However, the one-time per payment cycle limitation does not
apply if the vehicle was disabled due to a mistake,
malfunction, or other event not attributable to the
consumer.
(d) A dealer or other creditor is not in violation of this
Section if law enforcement instructs the dealer or other
creditor to use the electronic tracking or 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
violator 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 electronic tracking or starter interrupt
technology.
(f) The electronic tracking technology or starter
interrupt technology identified in this Section may only be
used, applied, or associated with a credit sale, loan, or lease
of a motor vehicle.
(g) Any use of starter interrupt technology and any
repossession of a motor vehicle must meet the requirements of
Article 9 of the Uniform Commercial Code in addition to any
requirements required in this Section. In addition, any use of

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the starter interrupt device will be deemed a constructive
repossession.
(h) If a dealer or creditor uses starter interrupt
technology to disable a vehicle, the dealer or creditor is
deemed to have taken possession and is responsible for all
liabilities associated with the vehicle from the time of the
use of starter interrupt technology to disable a vehicle. If
the consumer cures the default, the consumer shall have a
reasonable opportunity to retrieve the vehicle before again
becoming responsible for all liabilities. If a consumer cures
the default before the creditor takes physical possession of
the vehicle, this will not invoke the consumer's right to
reinstatement pursuant to Article 9 of the Uniform Commercial
Code. A consumer must be in default for a minimum of 5 days
before the process can begin.
(i) Privacy, storage, and destruction of data obtained by
manufacturers of electronic tracking technology or starter
interrupt technology.
(1) A manufacturer of an electronic tracking
technology or starter interrupt technology, or an
authorized recipient of such data, shall implement and
maintain reasonable security measures to protect the data
associated with a motor vehicle's electronic tracking
technology or starter interrupt technology from
unauthorized access, acquisition, destruction, use,
modification, or disclosure.

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(2) A manufacturer of electronic tracking technology
or starter interrupt technology or an authorized recipient
of such data, shall destroy, utilizing the following
procedures, all data associated with a motor vehicle's
electronic tracking technology or starter interrupt
technology. Destruction shall occur no later than one and
one-half years after the termination of the device or
termination of the optional services as permitted under
item (8) of subsection (b).
(A) Paper documents containing data associated
with a motor vehicle's electronic tracking technology
or starter interrupt technology shall be either
permanently redacted, burned, pulverized, or shredded
so that all data associated with the motor vehicle's
electronic tracking technology or starter interrupt
technology cannot practicably be read or
reconstructed.
(B) Electronic media and other non-paper media
containing data associated with a motor vehicle's
electronic tracking technology or starter interrupt
technology shall be destroyed or erased so that all
data associated with the motor vehicle's electronic
tracking technology or starter interrupt technology
cannot practicably be read or reconstructed.
(3) A manufacturer of electronic tracking technology
or starter interrupt technology, its affiliates,

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subsidiaries, agents, directors, successors and assigns,
officers and employees, as well as any recipient of
electronic tracking or starter interrupt device data, are
prohibited from selling any of the data associated with a
motor vehicle's electronic tracking technology or starter
interrupt technology except as necessary for the provision
of optional services as permitted under item (8) of
subsection (b), or, data aggregated in such a manner that
only non-identifying information can be obtained.
(j) A consumer's attempt to intentionally disable the
device shall be deemed a default and the consumer shall not be
granted the normal opportunity to restart the vehicle for 24
hours after the default.
(k) It is an unlawful practice within the meaning of this
Act for a dealer or creditor to fail to remove electronic
tracking technology or starter interrupt technology in any of
the following situations:
(1) Within 5 days after a consumer has fulfilled the
credit obligations associated with the credit sale, loan,
or lease of the motor vehicle purchase.
(2) Within 7 days after disabling the vehicle using
electronic tracking technology or starter interrupt
technology.
(3) Prior to sale or resale of a motor vehicle
originally equipped with electronic tracking technology or
starter interrupt technology to any seller, including but

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not limited to, another consumer or dealer.
(l) It is an unlawful practice within the meaning of this
Act for a dealer or creditor to use or activate starter
interrupt technology prior to a consumer defaulting for
non-payment or failure to maintain insurance. In the event that
a consumer cures the default, redeems or reinstates the
vehicle, the dealer or creditor shall, within 24 hours of
redemption or reinstatement, provide the consumer with the
ability to restart the vehicle and cease using electronic
tracking technology or starter interrupt technology. A dealer
or creditor continues to have the ability to use or activate
electronic tracking technology or starter interrupt technology
if a consumer subsequently defaults on a credit sale, loan, or
lease of a motor vehicle.