Source: http://www.creditdetailer.com/center/state-laws/il-illinois
Timestamp: 2019-04-21 08:22:29+00:00

Document:
§ 1. This Act shall be known and may be cited as the "Credit Services Organizations Act".
(a) The ability to obtain and use credit has become of great importance to consumers who have a vital interest in establishing and maintaining their credit worthiness and credit standing. As a result, consumers who have experienced credit problems may seek assistance from credit service businesses which offer to improve the credit standing of such consumers. Certain advertising and business practices of some companies engaged in the business of credit services have worked a financial hardship upon the people of this State, often on those who are of limited economic means and inexperienced in credit matters.
(b) The purpose of this Act is to provide prospective consumers of credit services companies with the information necessary to make an informed decision regarding the purchase of those services and to protect the public from unfair or deceptive advertising and business practices.
(a) "Buyer" means an individual who is solicited to purchase or who purchases the services of a credit services organization.
(b) "Consumer reporting agency" has the meaning assigned by Section 603(f), Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)).
(c) "Extension of Credit" means the right to defer payment of a debt or to incur a debt and defer its payment offered or granted primarily for personal, family, or household purposes.
(iii) providing advice or assistance to a buyer with regard to either subsection (i) or (ii).
(e) "Person" means an individual, corporation, partnership, joint venture or any business entity.
[FN1] 26 U.S.C.A. § 501.
[FN2] 205 ILCS 635/1-1 et seq.
§ 4. In construing this Act consideration shall be given to the interpretations of the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.).
(1) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for or on behalf of the buyer, unless the credit services organization has, in conformity with Section 10 of this Act, obtained a surety bond issued by a surety company licensed to do business in this State. If a credit services organization is in compliance with this subsection the salespersons, agents, and representatives who sell the services of such organization shall not be required to obtain the surety bond provided for by this Act.
(2) Charge or receive any money or other valuable consideration solely for the referral of a buyer to a retail seller who will or may extend credit to the buyer if such extension of credit is in substantially the same terms as those available to the general public.
(3) Make, or advise any buyer to make, any statement that is untrue or misleading, or that should be known by the exercise of reasonable care to be untrue or misleading, with respect to a buyer's credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer has made application for an extension of credit.
(4) Make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice or course of business intended to defraud or deceive a buyer in connection with the office or sale of such services; including but not limited to: the amount or type of credit a consumer can expect to receive as a result of the performance of the services offered; the qualifications, training or experience of its personnel; or the amount of credit improvement the consumer can expect to receive as a result of the services.
(7) the name and business address of any such surety company together with the name and the number of the account.
The credit services organization shall maintain on file, for a period of 2 years after the date the statement is provided, an exact copy of the statement, signed by the buyer, acknowledging receipt of the statement.
(4) the address of the credit services organization's principal place of business and the name and address of its agent in the State authorized to receive service of process.
"You may cancel this contract, without any penalty or obligation, within three days after the date the contract is signed.
If you cancel, any payment made by you under this contract will be returned within 10 days after the date of receipt by the seller of your cancellation notice.
I hereby cancel this transaction."
(c) The credit services organization shall give to the buyer a copy of the completed contract and all other documents the credit services organization requires the buyer to sign at the time they are signed.
§ 8. Any contract for services which does not comply with applicable provisions of this article shall be void and unenforceable as contrary to public policy. Any waiver by a buyer of the provisions of this Act shall be deemed void and unenforceable by a credit services organization as contrary to public policy. Any attempt by a credit services organization to have a buyer waive rights granted by this Act shall constitute a violation of this Act.
(4) the name, numbers, and location of the surety company issuing a surety bond maintained as required by Section 10 of this Act.
(2) a notarized statement that states that there has been no litigation or unresolved complaint filed with a governmental authority of this State, any other state or the United States relating to the operation of the credit services organization.
(c) The credit services organization shall update such statement not later than the 90th day after the date on which a change in the information required in the statement occurs.
(d) Each credit services organization registering under this Section shall maintain a copy of the registration statement in their files. The credit services organization shall allow a buyer to inspect the registration statement on request.
(e) The Secretary of State may charge each credit services organization that files a registration statement a reasonable fee not to exceed $100 to cover the cost of filing.
(a) If a bond is obtained, a copy of it shall be filed with the Office of the Secretary of State.
(b) The required bond shall be in favor of the State of Illinois for the benefit of any person who is damaged by any violation of this Act. The bond shall also be in favor of any person damaged by such practices. Any person claiming against the bond for a violation of this Act may maintain an action at law against the credit services organization and against the surety. The surety shall be liable only for actual damages and not the punitive damages permitted under Section 11(b) of this Act. The aggregate liability of the surety to all persons damaged by a credit services organization's violation of this Act shall in no event exceed the amount of the bond.
(c) The bond shall be in the amount of $100,000 and shall be maintained for a period of 2 years after the date that the credit services organization ceases operations.
§ 11. Any person injured by a violation of this Act or by the credit services organization's breach of a contract entered into pursuant to Section 7 of this Act, may bring any action for recovery of actual damages. Such person may also be awarded punitive damages, reasonable attorney's fees and court costs.
§ 12. A. The Attorney General, the State's Attorney of any county, or a buyer may bring an action in a circuit court to enjoin a violation of this Act. In addition to any injunction, the Attorney General or any State's Attorney or any county, in the name of the People of the State of Illinois , may seek to recover damages pursuant to this Act.
§ 13. Any person, as defined under this Act, violating any provision of this Act except breach of contract, upon conviction for the first offense, is guilty of a Class A misdemeanor. Upon conviction of a second or subsequent offense the violator is guilty of a Class 4 felony.
§ 14. In an action under this Act the burden of proving an exemption under paragraph (d) of Section 3 is on the person claiming the exemption.
[FN1] 815 ILCS 505/1 et seq.
§ 16. This Act shall be liberally construed to effect the purposes thereof.
Current through P.A. 95-5 of the 2007 Reg. Sess.
§ 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, [FN1] the Automotive Collision Repair Act, [FN2] the Home Repair and Remodeling Act, [FN3] the Dance Studio Act, [FN4] the Physical Fitness Services Act, [FN5] the Hearing Instrument Consumer Protection Act, [FN6] the Illinois Union Label Act, [FN7] the Job Referral and Job Listing Services Consumer Protection Act, [FN8] the Travel Promotion Consumer Protection Act, [FN9] the Credit Services Organizations Act, [FN10] the Automatic Telephone Dialers Act, [FN11] the Pay-Per-Call Services Consumer Protection Act, [FN12] the Telephone Solicitations Act, [FN13] the Illinois Funeral or Burial Funds Act, [FN14] the Cemetery Care Act, [FN15] the Safe and Hygienic Bed Act, [FN16] the Pre-Need Cemetery Sales Act, [FN17] the High Risk Home Loan Act, [FN18] the Payday Loan Reform Act, [FN19] the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, [FN20] the Payday Loan Reform Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, [FN21] the Electronic Mail Act, [FN22] paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, [FN23] Article 3 of the Residential Real Property Disclosure Act, [FN24] the Automatic Contract Renewal Act, [FN25] or the Personal Information Protection Act [FN26] commits an unlawful practice within the meaning of this Act.
The information listed here is subject to change without notice. Be sure to look up the chapter and section of the law on your state's website to get the most up to date revision of the laws.
For your own sake....don't just take what we have here, do some quick research yourself!

References: § 501

§ 4

§ 8

§ 11

§ 12

§ 13

§ 14

§ 16

§ 2