2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 140/ - Credit Card Issuance Act.

(815 ILCS 140/0.01) (from Ch. 17, par. 6000)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the
Credit Card Issuance Act.
(Source: P.A. 86-1324.)
(815 ILCS 140/1) (from Ch. 17, par. 6001)
Sec. 1. As used in this Act:
(a) "Credit card" has the meaning set forth in
Section 17-0.5 of the Criminal Code of 2012, but does not
include "debit card" as defined in that Section, which can also be
used to obtain money, goods, services and anything else of value on
credit, nor shall it include any negotiable instrument as defined in the
Uniform Commercial Code, as now or hereafter amended;
(b) "Merchant credit
card agreement" means a written agreement between a seller of goods,
services or both, and the issuer of a credit card to any  other party,
pursuant to which the seller is obligated to accept credit cards; and
(c)
"Credit card transaction" means a purchase and sale of goods, services or
both, in which a seller, pursuant to a merchant credit card agreement, is
obligated to accept a credit card and does accept the credit card in
connection with such purchase and sale.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)
(815 ILCS 140/1a) (from Ch. 17, par. 6002)
Sec. 1a. 
		
		No person may be denied a credit card, upon proper
application therefor, solely on account of unlawful discrimination, as defined
and prohibited in Section 4-103 of the Illinois Human Rights Act.
No question requesting any information
concerning an applicant's marital status shall appear on any credit card
application except in connection with an application for a joint
account.
(Source: P.A. 81-1216.)
(815 ILCS 140/1b) (from Ch. 17, par. 6003)
Sec. 1b. 
All credit card applications shall contain the following
words verbatim:
a.  No applicant may be denied a credit card on account of  race,
color, religion, national origin, ancestry, age (between 40 and 70), sex,
marital status, physical or mental disability unrelated to the ability to
pay or unfavorable discharge from military service.
b.  The applicant may request the reason for rejection of his or her
application for a credit card.
c.  No person need reapply for a credit card solely because of a
change in marital status unless the change in marital status has caused
a deterioration in the person's financial position.
d.  A person may hold a credit card in any name permitted by law that
he or she regularly uses and is generally known by, so long as no fraud
is intended thereby.
(Source: P.A. 99-143, eff. 7-27-15.)
(815 ILCS 140/1c) (from Ch. 17, par. 6004)
Sec. 1c. 
		
		Notwithstanding the provisions of Sections 1a and 1b, credit
card applications which conform to the requirements of the Federal Equal
Credit Opportunity Act, amendments thereto, and any regulations issued or
which may be issued thereunder shall be deemed to be in compliance with this Act.
(Source: P.A. 80-898.)
(815 ILCS 140/2) (from Ch. 17, par. 6005)
Sec. 2. 
		
		Except to the extent provided in a merchant credit card agreement, a
seller shall not be liable to the issuer of a credit card, or to any other
party to a merchant credit card agreement or that party's agent or
representative, for loss or damage to the issuer or other party resulting
from a failure of the holder or user of the credit card to pay any
obligation arising from a credit card transaction, provided that the seller
has fully performed its obligation under the merchant credit card agreement
and has not breached any of its obligations to the purchaser in the credit
card transaction.
(Source: P.A. 76-1333.)
(815 ILCS 140/3) (from Ch. 17, par. 6006)
Sec. 3. 
		
		In every case where an applicant for a credit card is
rejected by a credit card issuer, the applicant, upon request, shall be
informed of the reasons for such rejection.
Failure to comply with this section is a civil rights violation under Section
4-103 of the Illinois Human Rights Act.
(Source: P.A. 81-1216.)
(815 ILCS 140/4) (from Ch. 17, par. 6007)
Sec. 4. 
		
		A credit card issuer shall, when requested, consider the financial
status of a married couple when making a determination as to whether to
issue a credit card.
A credit card issuer shall, upon request by an applicant, consider such
person's financial status when making a determination as to whether to
issue such person a credit card as an individual.
(Source: P.A. 78-839.)
(815 ILCS 140/5) (from Ch. 17, par. 6008)
Sec. 5. 
		
		No credit card issuer shall require a person to reapply
for credit solely because of a change in marital status.  Nothing in
this section shall prevent a credit card issuer from requiring notification
of any name change.
(Source: P.A. 79-600.)
(815 ILCS 140/6) (from Ch. 17, par. 6009)
Sec. 6. 
		Disclosure to applicants.
(a) Except as provided in Section 25 of
the Retail Installment Sales Act, relating to sellers or holders under a
retail charge agreement and in subsection (c), a credit card
issuer shall disclose, either on an application
for a credit card or on literature accompanying the application, on or with
any credit card account solicitation, and on each periodic billing
statement mailed to a card
holder, the following:
(1) the annual percentage rate or rates of interest     applicable to the account, or if the rate is variable, that fact, and the rate as of a specified date or the index from which the rate is determined;
(2) the annualized membership and/or participation     fee or charge, if any;
(3) the grace period, which is defined as the period     within which any credit extended under such credit plan must be repaid to avoid incurring an interest charge represented in terms of an annual percentage rate of interest, and if no such period is offered such fact shall be clearly stated;
(4) transaction fees, if assessed, for the use of the     credit card account, including, but not limited to a late payment charge, minimum finance charge and over the limit charge.
The term "solicitation" means written material mailed or any other
solicitation in a written form which constitutes an application for, or
a written offer which allows a person to open a credit card account without
completing an application.
Information required to be disclosed under item (2) of subsection
(a) of this Section may be disclosed on literature accompanying the
periodic billing statement.
(b) (Blank)
(c) No application, literature accompanying the application, account
solicitation, periodic billing statement or literature
accompanying the periodic billing statement sent by or on behalf of an
issuer to residents
of this State with respect to charge cards shall be
required to set forth the information specified in items (1) and (3) of
subsection (a) of this Section.  As used in this subsection, the term
"charge card" means any card, plate or other credit device pursuant to
which the charge card issuer extends credit which is not subject to a
finance charge and with which the charge card holder cannot automatically
access credit that is repayable in installments.
(Source: P.A. 88-546.)
(815 ILCS 140/7) (from Ch. 17, par. 6010)
Sec. 7. 
		(Repealed).
(Source: Repealed by P.A. 88-546.)
(815 ILCS 140/7.1) (from Ch. 17, par. 6010.1)
Sec. 7.1. 
		Certain credit card transaction form required.
(a) Any person, firm, partnership, association or corporation which
issues forms used for credit card transactions between the credit card
holder and seller, shall only issue such credit card forms, except for such
forms utilized for a special purpose incidental but related to the actual
purchase and sale agreement including but not limited to shipping, delivery
or installment of purchased merchandise or special orders, which:
(1) are carbonless; or
(2) are carbonized backed forms that may be retained     for recordkeeping purposes of the seller, the seller's agent or sub-contractor, the issuer or the customer; or
(3) after the transaction is complete, do not render     a separate piece of paper, carbon or otherwise, which readily identifies the cardholder by complete name or account number, other than those necessary for use by the seller, the seller's agent or sub-contractor, credit card holder and issuer to complete the credit card transaction; or
(4) has a perforated or split carbon, half of which     is disposable, and upon completion of the transaction the disposable portion of the carbon renders only half of the cardholder's name and account number.
(b) Any person, firm, partnership, association or corporation which
accepts credit cards used for credit card transactions between the credit
card holder and seller, shall only use credit card forms, except for such
forms utilized for a special purpose incidental but related to the actual
purchase and sale agreement including but not limited to shipping, delivery
or installment of purchased merchandise or special orders, which:
(1) are carbonless; or
(2) are carbonized backed forms that may be retained     for recordkeeping purposes of the seller, the seller's agent or sub-contractor, the issuer or the customer; or
(3) after the transaction is complete, do not render     a separate piece of paper, carbon or otherwise, which readily identifies the cardholder by  complete name or account number, other than those necessary for use by the seller, the seller's agent or sub-contractor, credit card holder and issuer to complete the credit card transaction; or
(4) has a perforated or split carbon, half of which     is disposable, and upon completion of the transaction the disposable portion of the carbon renders only half of the cardholder's name and account number.
No person, firm, partnership, association or     corporation which accepts credit cards for the transaction of business shall be deemed to have violated the provisions of this subsection, if such person, firm, partnership, association or corporation shows by a preponderance of evidence that the violation was not intentional and resulted from bona fide error made notwithstanding the maintenance of procedures reasonably adopted to avoid such error.
(c) A violation of subsection (a) of this Section is a business
offense punishable by a fine of not less than $750 nor more than $1,000.  A
violation of subsection (b) of this Section constitutes a business offense
punishable by a fine of $501, if a first offense by a person; and punishable
by a fine of not less than $501, nor more than $1,000 if such offense is a
second or subsequent offense by such person.
(Source: P.A. 86-781.)
(815 ILCS 140/7.2)
Sec. 7.2. No credit card issuer shall issue, provide, assign or deliver
in any way a credit card account to and in the name of any person under the age
of 21 unless the person has submitted a written application and the credit card issuer has:
(1) financial information that the person has an     independent ability to make the required minimum periodic payments on the proposed extension of credit; or
(2) financial information that a cosigner, guarantor,     or joint applicant who is at least 21 years old has an independent ability to make the required minimum periodic payments on the proposed extension of credit, and a signed agreement of the cosigner, guarantor, or joint applicant to be either jointly liable for any debt on the account or secondarily liable for any debt on the account incurred by the person before the person has attained the age of 21.
Upon delivery of a credit card account to and in the name of any person under
the age of
18, the credit card issuer shall also include a pamphlet which details the
responsible use of a credit card, an explanation of applicable
credit limits, payment requirements and the penalties for the misuse and
fraudulent use of a credit card.
This Section does not apply to a supplementary card issued to a person under
the age of 21 that allows that person to access a credit card account in the
name of a person over the age of 21 if the person over the age of 21 requested
orally or in writing that the supplementary card be issued to the person under
the age of 21.
(Source: P.A. 96-1193, eff. 7-22-10.)
(815 ILCS 140/8) (from Ch. 17, par. 6011)
Sec. 8. 
		
		The Attorney General of this State may bring an action in the
name of the State against any person to restrain and prevent any violation
of this Act and to enforce and collect any penalty provided hereunder.
In the enforcement of this Act, the Attorney General may
accept an assurance of discontinuance of any act or practice deemed in
violation of this Act from any person engaging in, or who has engaged in,
that act or practice. Failure to perform the terms of any such assurance
constitutes prima facie proof of a violation of this Act.
(Source: P.A. 86-781.)
(815 ILCS 140/9) (from Ch. 17, par. 6012)
Sec. 9. 
		Penalties.
(a) Any credit card issuer who knowingly violates this Act is guilty of a
Class A misdemeanor.
(b) No credit card issuer who violates this Act, except as a result of an
accident or bona fide error of computation, may recover interest, annualized
membership fee or participation fee or charge, late payment charges, minimum
finance charges and over the limit charges in connection with any credit card
issued.
(c) A credit card issuer who complies with or is exempt from the
applicable disclosure requirements of the Truth in Lending Act and the
regulations promulgated under that Act shall be deemed to be in compliance with
or exempt from all of the provisions of subsection (a) of Section 6 of this
Act.
(Source: P.A. 88-569; eff. 8-5-94.)