2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 375/ - Motor Vehicle Retail Installment Sales Act.

(815 ILCS 375/1) (from Ch. 121 1/2, par. 561)
Sec. 1. 
		
		This Act may be cited as the Motor Vehicle Retail Installment Sales Act.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2) (from Ch. 121 1/2, par. 562)
Sec. 2. 
		
		For the purposes of this Act, unless the context otherwise
requires, the terms specified in the following Sections preceding Section
3 have the
meanings ascribed to them in those Sections.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.1) (from Ch. 121 1/2, par. 562.1)
Sec. 2.1. 

"Motor vehicle" means a motor vehicle as defined in the Illinois Vehicle
Code but does not include bicycles, motorcycles, motor scooters,
snowmobiles, trailers, farm equipment, and manufactured homes as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code.
(Source: P.A. 98-749, eff. 7-16-14.)
(815 ILCS 375/2.2) (from Ch. 121 1/2, par. 562.2)
Sec. 2.2. 
		
		"Retail buyer" or "buyer" means a person who buys a motor vehicle
from a retail seller, primarily for personal, family, household or
agricultural purposes in a retail installment transaction, but does not
include a buyer for use in business (not including farming or a
profession).
(Source: P.A. 76-1781.)
(815 ILCS 375/2.3) (from Ch. 121 1/2, par. 562.3)
Sec. 2.3. 
		
		"Retail seller" or "seller" means a person engaged in the
business of selling motor vehicles to retail buyers in retail installment
transactions.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.4) (from Ch. 121 1/2, par. 562.4)
Sec. 2.4. 
		
		"Retail installment transaction" means a credit sale of a motor
vehicle by a retail seller to a retail buyer for a deferred payment price
payable in one or more installments.
(Source: P.A. 76-1781.)
(815 ILCS 375/2.5) (from Ch. 121 1/2, par. 562.5)
Sec. 2.5. 
		
		"Retail Installment contract", "installment contract" or
"contract" means an instrument or instruments prescribing the terms of a
retail installment transaction and entered into in this
State.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.6) (from Ch. 121 1/2, par. 562.6)
Sec. 2.6. 
		
		"Cash sale price" means the price stated in a retail installment
contract for which the seller in good faith and in the regular course of
business would have sold to the buyer, and the buyer would have bought from
the seller, the motor vehicle if the sale had been a sale for cash. The
cash sale price may include any taxes, registration, certificate of title,
license, and cash sales prices for accessories and their installation and
for delivering, servicing, repairing or improving the motor vehicle.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/2.7) (from Ch. 121 1/2, par. 562.7)
Sec. 2.7. 
		
		"Official fees" means the taxes and fees prescribed by law that
actually are, or will be, paid to public officials for determining the
existence of, or for perfecting, releasing, or satisfying a security interest.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.8) (from Ch. 121 1/2, par. 562.8)
Sec. 2.8. 
		
		"Amount financed" means the cash sale price of the motor vehicle
plus all other charges individually itemized, which are included in the
amount financed, including the amount actually paid or to be paid by the
seller pursuant to an agreement with the buyer to discharge a security
interest,
lien interest, or lease interest on the property traded in, but which are not
a part
of the finance charge, minus the
amount of the buyer's down payment in money or goods.
(Source: P.A. 91-411, eff. 8-6-99.)
(815 ILCS 375/2.9) (from Ch. 121 1/2, par. 562.9)
Sec. 2.9. 
		
		"Finance charge" means the sum of all charges payable,
directly or indirectly by the buyer and imposed directly or indirectly
by the seller as an incident to or as a condition of the extension of
credit, whether payable by the buyer, the seller, or any other person on
behalf of the buyer to the seller or a third party including any of the
following types of charges:
(1) Interest, time price differential, and any amount payable under
a discount or other system of additional charges.
(2) Service, transaction, activity, or carrying charge.
(3) Loan fee, points, finder's fee, or similar charge.
(4) Fee for an appraisal, investigation, or credit report.
(5) Charges or premiums for credit life, accident, health, or loss
of income insurance, written in connection with any credit transaction
unless
(i) the insurance coverage is not required by the     creditor and this fact is clearly and conspicuously disclosed in writing to the customer; and
(ii) any customer desiring such insurance coverage     gives specific dated and separately signed affirmative written indication of such desire after receiving written disclosure to him of the cost of such insurance.
(6) Charges or premiums for insurance, written in connection with
any credit transaction, against loss of or damage to property or against
liability arising out of the ownership or use of property, unless a
clear, conspicuous, and specific statement in writing is furnished by
the creditor to the customer setting forth the cost of the insurance if
obtained from or through the creditor and stating that the customer may
choose the person through which the insurance is to be obtained.
(7) Premium or other charge for any other guarantee or insurance
protecting the creditor against the customer's default or other credit
loss.
(8) Any charge imposed by a creditor upon another creditor for
purchasing or accepting an obligation of a customer if the customer is
required to pay any part of that charge in cash, as an addition to the
obligation, or as a deduction from the proceeds of the obligation.
If itemized and disclosed to the customer, any charges of the
following types need not be included in the finance charge:
(1) Fees and charges prescribed by law which actually     are or will be paid to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to the credit transaction.
(2) The premium payable for any insurance in lieu of     perfecting any security interest otherwise required by the creditor in connection with the transaction, if the premium does not exceed the fees and charges described in subparagraph (1) of this paragraph which would otherwise be payable.
(3) Taxes not included in the cash price.
(4) License, certificate of title, and registration     fees imposed by law.
(5) Other charges as authorized by this Act.
A late payment, delinquency, default, reinstatement, or other such
charge is not a finance charge if imposed for actual unanticipated late
payment, delinquency, default or other such occurrence.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.10) (from Ch. 121 1/2, par. 562.10)
Sec. 2.10. 
		
		"Deferred payment price" means the total of (1) the cash sale
price of the motor vehicle purchased, (2) all other charges individually
itemized which are included in the amount financed but which are not a part
of the finance charge, and (3) the finance charge.
(Source: P.A. 76-1781.)
(815 ILCS 375/2.11) (from Ch. 121 1/2, par. 562.11)
Sec. 2.11. 
		
		"Sales finance agency" means a person engaged, in
whole or in part, in the business of purchasing or making loans upon the
security of retail installment contracts. The term includes, but is not
limited to, banks, trust companies, private bankers and industrial bankers
authorized to do business and to accept deposits in this State, if so
engaged.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.12) (from Ch. 121 1/2, par. 562.12)
Sec. 2.12. 
		
		"Holder" of a retail installment contract means the retail
seller of the motor vehicle under the installment contract or sales finance
agency or other assignee which purchases or makes a loan upon the security
of the retail installment contract.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.13) (from Ch. 121 1/2, par. 562.13)
Sec. 2.13. 
		
		"Annual percentage rate" means the nominal annual percentage rate
of finance charge determined in accordance with the actuarial method of
computation with an accuracy at least to the nearest 1/4 of 1%; or at the
option of the seller, by application of the United States rule so that it may
be disclosed with an accuracy at least to the nearest 1/4 of 1%.
(Source: P.A. 76-1781.)
(815 ILCS 375/2.14)
Sec. 2.14. 
		Truth-in-Lending Act. 
		"Truth-in-Lending Act" means the federal
Truth-in-Lending Act,
15 U.S.C. 1601 et seq., and Regulation Z, 12 C.F.R. Part 226.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/2.15)
Sec. 2.15. 
		Precomputed. 
		A contract is "precomputed" if the debt is
expressed as the sum of the amount financed plus the amount of the finance
charge computed in advance.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/3) (from Ch. 121 1/2, par. 563)
Sec. 3. 
		
		(a) Every retail installment contract must be in writing, dated,
signed by both the buyer and the seller, and, except as otherwise provided
in this Act, completed as to all essential provisions before it is signed
by the buyer.
(b) The printed or typed portion of the contract, other than
instructions for completion, must be in size equal to at least 8 point
type.
(c) The contract must contain printed or written in a size equal to at
least 10 point bold type:
(1) Both at the top of the contract and directly above the space
reserved for the signature of the buyer, the words "RETAIL INSTALLMENT
CONTRACT";
(2) A specific statement that liability insurance coverage for bodily
injury and property damage caused to others is not included, if that is the
case; and
(3) A notice as follows:
"Notice to the buyer.
1. Do not sign this agreement before you read it or if it contains any
blank spaces.
2. You are entitled to an exact copy of the agreement you sign.
3. Under the law you have the right, among others, to pay in advance the
full amount due and to obtain under certain conditions a partial refund of
the finance charge."
(Source: P.A. 76-1781.)
(815 ILCS 375/4) (from Ch. 121 1/2, par. 564)
Sec. 4. 
		
		Every retail installment contract must contain the names of the
seller and of the buyer, the place of business of the seller, the residence
of the buyer as specified by the buyer, and a description of the motor
vehicle. The contract must clearly state and describe any security taken or
retained by the seller. No charge may be made to a buyer under an
installment contract for insurance against loss or damage caused to the
motor vehicle, for insurance against liability for personal injury or
property damage caused to others by reason of ownership or operation of the
motor vehicle, for credit life insurance, for credit health and accident
insurance or for any other kind of insurance, unless the installment
contract separately specifies for each kind of
insurance the type of coverage, the term of coverage and the separate,
identified charge made therefor.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/5) (from Ch. 121 1/2, par. 565)
Sec. 5. 
		
		Every retail installment contract shall disclose the following
items, as applicable:
(1) The cash price of the motor vehicle, using the term "cash price".
(2) The amount of the down payment itemized, as applicable, as
down payment in money, using the term "cash down payment", down payment in
property, using the term "trade-in" and the sum, using the term "total
down payment".
(3) The difference between the amounts described in subparagraphs (1)
and (2) of this paragraph, using the term "unpaid balance of cash price".
(4) All other charges, individually itemized, which are included in the
amount financed but which are not part of the finance charge.
(5) The sum of the amounts determined under subparagraphs (3) and (4) of
this paragraph, using the term "unpaid balance".
(6) Any finance charge paid separately, in cash or otherwise, directly
or indirectly to the seller or with the seller's knowledge to another
person, or withheld by the seller from the proceeds of the credit extended
and any deposit balance or any investment which the seller requires the
buyer to make, maintain, or increase in a specified amount or proportion as
a condition to the extension of credit, using as applicable, the terms
"prepaid finance charge" and "required deposit balance", and if both are
applicable, the total of such items using the term "total prepaid finance
charge and required deposit balance".
(7) The difference between the amounts determined under subparagraphs
(5) and (6) of this paragraph, using the term "amount financed".
(8) The total amount of the finance charge, with description of each
amount included, using the term "finance charge".
(9) The sum of the amounts determined under subparagraphs (1), (4), and
(8) of this paragraph, using the term "deferred payment price".
(10) The finance charge expressed as an annual percentage rate, using
the term "annual percentage rate".
(11) The number, amount, and due dates or periods of payments scheduled
to repay the indebtedness and the sum of such payments using the term,
"total of payments". If installment payments are stated in terms of a
series of scheduled amounts and if the amount of the final installment
payment does not exceed the scheduled amount of any preceding installment
payment, the maximum number of payments and the amount and date of each
payment need not be separately stated and the amount of the scheduled final
installment payment may be stated as the remaining unpaid balance. The due
date of the first installment payment may be fixed by a calendar date, by
reference to the date of the contract or by reference to the date of
delivery or installation of the goods.
(12) The amount, or method of computing the amount, of any default,
delinquency, or similar charges payable in the event of late payments.
(13) A description or identification of the type of any security
interest held or to be retained or acquired by the seller in connection
with the extension of credit, and a clear identification of the property to
which the security interest relates.
(14) A description of any penalty charge that may be imposed by the
seller or his assignee for prepayment of the principal of the obligation with an explanation of the method of
computation of such penalty and the conditions under which it may be
imposed.
(15) Identification of the method of computing any unearned portion of
the finance charge in the event of prepayment of the obligation and a
statement of the amount or method of computation of any charge that may be
deducted from the amount of any rebate of such unearned finance charge that
will be credited to the obligation or refunded to the buyer.
(16) The date on which the finance charge begins to accrue if different
from the date of the transaction.
The disclosures required to be given by this Section shall be made
clearly, conspicuously and in meaningful sequence. Where the terms "finance
charge" and "annual percentage rate" are required to be used, they shall be
printed more conspicuously than other terminology required.
A retail installment contract which complies with the federal Truth in
Lending Act, amendments thereto, and any regulations issued or which may
be issued thereunder, shall be deemed to be in compliance with the provisions
of this Section.
Notwithstanding any other provision of this Act or any other law of this
State, there is no obligation or duty to disclose to an obligor under a retail
installment contract: (i) any agreement to sell, assign, or otherwise transfer
the contract to a third party for an amount which is equal to, in excess of, or
less than the amount financed under the contract; or (ii) that the assignee of
the contract or the person who funded it may pay the seller or the person who
originated the contract all or a portion of the prepaid finance charges and
other fees or a portion of the finance charge to be paid by the buyer over the
term of the transaction or any other compensation irrespective of how the
compensation is determined.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/6) (from Ch. 121 1/2, par. 566)
Sec. 6. 
		
		(a) Except as provided under subsections (b) and
(c), every retail
installment contract must provide for a schedule of
periodic installment payments from the due
date of the
first installment payment to the date of the final maturity of the
contract.
(b) Retail installment contracts may provide for balloon-note financing.
For the purpose of this Section, balloon-note financing shall mean the manner
of purchase whereby a consumer agrees to select and perform, at the
conclusion of a pre-determined schedule of installment payments made in
periodic or monthly amounts, one of the following options:
(1) satisfy the balance of the contractual amount     owing;
(2) refinance any balance owing, on the terms     previously agreed upon at the time of executing the retail installment contract; or
(3) surrender the vehicle at such time and manner     agreed upon at the time of executing the retail installment contract.
(c) Retail installment contracts may provide for deferred payment of a
down payment provided any deferred portion of a down payment is payable not
later than 10 days prior to the due date of the first regularly scheduled
payment and is not subject to a finance charge.
(d) Retail installment contracts may be precomputed or interest bearing.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/7) (from Ch. 121 1/2, par. 567)
Sec. 7. 
		
		Notwithstanding the provisions of any retail installment contract
to the contrary, the buyer may prepay the contract in full, whether by
payment in cash, extension, renewal or otherwise, at any time before
maturity, and if he does so shall receive a refund credit thereon for that
prepayment. The amount of refund credit shall represent at least as great a
proportion of the finance charge less an acquisition cost of $25, as the
sum of the periodical time balances beginning with the next payment period
bears to the sum of all the periodical time balances under the schedule of
installment payments in the contract.
In those instances where a buyer's overpayment requires the refund credit to
be given through the issuance of a negotiable instrument by the holder, no
refund credit need be made if the amount of refund credit is less than $5,
provided that a buyer may obtain a cash refund at the seller's or holder's
location.
In all other cases where the buyer's prepayment permits the refund credit to be
given to
the buyer as a credit on the buyer's account, no refund credit need be made if
the amount of refund credit is less than $1.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/8) (from Ch. 121 1/2, par. 568)
Sec. 8. 
		
		(a) A seller under a retail installment contract may require
insurance against substantial risk of loss of or damage to the motor
vehicle, protecting the seller or holder as well as the buyer, and may,
if the buyer elects, include therefor in the contract an amount not
exceeding the premiums chargeable for such insurance in accordance with
rate filings made with the Director of Insurance. No seller or holder
may require as a condition precedent to, or as a part of, a retail
installment transaction that such insurance be purchased from or through
the seller or holder, or any employee, affiliate, or associate of seller
or holder. A seller under a retail installment contract may not require
other insurance; but if the buyer voluntarily contracts therefor, the
seller may then include in the contract an amount for that other
insurance not exceeding the premiums paid or payable by the seller or
holder. In those transactions where the buyer elects to select the
insurance company, broker or agent for the purpose of obtaining
insurance required by the holder under this Section, the buyer must, on
or before the date when buyer takes possession of the motor vehicle,
furnish the holder with satisfactory evidence of insurance in a company
acceptable to the seller or holder.
(b) If the obligor fails to furnish evidence that he has procured
insurance on the property, the licensee may purchase substitute insurance that
may be substantially equivalent to or more limited than coverage the obligor is
required to maintain.  Such insurance must comply with the Collateral
Protection Act.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/9) (from Ch. 121 1/2, par. 569)
Sec. 9. 
		
		The seller may not decline existing required insurance and must
afford the buyer the privilege of purchasing any required insurance from an
insurance company authorized to do business in this State, from or through
any broker or agent selected by the buyer, if the insurance company is
approved by the holder and satisfactory evidence of binding coverage is
furnished the seller or holder.  Such approval may not be arbitrarily
or unreasonably withheld by the holder. All insurance which is purchased by
the seller or holder and for which an amount is included in a contract must
be written by an insurance company authorized to do business in the State. The holder
of a contract which includes an amount for insurance purchased by the
seller or holder must, within 30 days after the date of the contract, cause
to be sent to the buyer the policies or certificates of insurance clearly
setting forth the amount of the premium, the types of insurance, the
coverages and all the terms, exceptions, limitations, restrictions and
conditions of the insurance or, in respect to group credit life insurance
and credit accident and health insurance, a notice or statement for that
insurance clearly setting forth the name of the insurer, the identity of
the insured buyer by name or otherwise and a description of the coverage.
If, however, the holder or seller is unable to obtain insurance for the
buyer within a reasonable time, the holder or seller shall notify the buyer
by certified mail of this fact, and 10 days after this notification the
seller or holder of the contract shall cease to be liable for the insurance
except for the credit or refund to the buyer of the premiums included in
the contract.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/9.01) (from Ch. 121 1/2, par. 569.01)
Sec. 9.01. 
		
		Credit life insurance and credit accident and health insurance
issued in connection with a retail installment contract or retail charge
agreement and any charge therefor made to the buyer, must comply with
Article IX 1/2 of the "Illinois Insurance Code", approved June 29, 1937, as
now or hereafter amended, and all lawful requirements of the Director of
Insurance related thereto.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/9.02) (from Ch. 121 1/2, par. 569.02)
Sec. 9.02. 
		
		In any situation in which a person has purchased a  motor
vehicle under an installment sales contract and has purchased
credit life
or credit disability insurance with such contract, the
installment sales
contract must include a notice containing the following
information:
(1) IF YOU HAVE PURCHASED EITHER CREDIT LIFE OR CREDIT DISABILITY
INSURANCE, OR BOTH, TO GUARANTEE PAYMENTS BEING MADE IN CASE OF YOUR DEATH
OR DISABILITY, ON YOUR VEHICLE PURCHASED UNDER AN INSTALLMENT SALES
CONTRACT, YOU MAY BE ENTITLED TO A PARTIAL REFUND OF YOUR PREMIUM IF YOU
PAY OFF YOUR INSTALLMENT LOAN EARLY.
(2) IN CASE OF EARLY COMPLETE PAYMENT OF YOUR LOAN, YOU
SHOULD CONTACT THE SELLER OF YOUR CREDIT LIFE OR CREDIT DISABILITY
INSURANCE TO SEE IF A REFUND IS DUE.  IF YOUR VEHICLE DEALER FINANCED YOUR
LOAN, THE SELLER OF YOUR CREDIT LIFE OR CREDIT DISABILITY INSURANCE IS YOUR
VEHICLE DEALER.
The above provisions shall be in large block print at least 1/8" in height.
The notice form shall also be captioned:  "NOTICE OF POSSIBLE REFUND OF
CREDIT LIFE OR DISABILITY INSURANCE PREMIUM."
The willful failure to provide such a notice shall subject the
insurance seller to liability to the purchaser for 3 times the amount of
refund due or $100, whichever is greater.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/9.03)
Sec. 9.03. 
		Disclosure of consideration paid to seller. 
		Consideration or
another thing of value may be paid to or retained by the seller or holder or an
affiliate
of the seller or holder in connection with any insurance, debt cancellation
contract, or
other such product purchased pursuant to the retail installment sales contract
made or held by the seller or holder
and all or a portion of the consideration may be included in the amount
charged to the obligor, so long as the seller discloses to the obligor that
the seller, holder, or any of their affiliates may receive something of value
in connection
with the purchase.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/10) (from Ch. 121 1/2, par. 570)
Sec. 10. 
		
		If any insurance for which an amount is included in the
contract is cancelled, any unearned insurance refund exceeding one dollar
received or receivable by the holder or, if the amount included for
insurance in the contract exceeds the premiums paid or payable by the
holder, any unearned portion of the amount so included exceeding
one dollar shall be credited on the final maturing installments of the
contract except to the extent those amounts are applied toward payment for
similar insurance protecting the interests of the buyer and the holder or
either of them.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/11) (from Ch. 121 1/2, par. 571)
Sec. 11. 
		Delinquency charges. 
		A retail installment contract may provide
for a
delinquency and collection charge, on each installment in default for a
period of not
less than 10 days, in an amount not exceeding 5% of the installment on
installments in excess of $200 or $10 on installments
of $200 or less.
Only one delinquency and collection charge may be collected on any
installment regardless of the period during which it
remains
in default. In addition, a retail installment contract may provide for the
payment by the buyer of reasonable attorney's fees incurred in the
collection or
enforcement of the contract. Any clause or provision of any retail
installment contract entered into after December 31, 1973, to the contrary
notwithstanding with respect to attorney's fees incurred in the collection
or enforcement of such contract, the court in its discretion may award
attorney's fees to either party as the interests of justice may require.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
Sec. 11.1. (a) A seller in a retail installment contract may add a "documentary
fee" for processing documents and performing services related to closing of a
sale.  The maximum amount that may be charged by a seller for a documentary fee
is the base documentary fee beginning January 1, 2008 until January 1, 2020, of $150, which shall be
subject to an annual rate adjustment equal to the percentage of change in the
Bureau of Labor Statistics Consumer Price Index.  Every retail installment
contract under this Act shall contain or be accompanied by a notice containing
the following information:
"DOCUMENTARY FEE.  A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.  A
DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR
HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING OF A SALE.
THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 2008, WAS $150.  THE MAXIMUM
AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE
OF $150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE
PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX.
THIS NOTICE IS REQUIRED BY LAW."
(b) A seller in a retail installment contract may add a "documentary
fee" for processing documents and performing services related to closing of a
sale.  The maximum amount that may be charged by a seller for a documentary fee
is the base documentary fee beginning January 1, 2020, of $300, which shall be
subject to an annual rate adjustment equal to the percentage of change in the
Bureau of Labor Statistics Consumer Price Index.  Every retail installment
contract under this Act shall contain or be accompanied by a notice containing
the following information:
"DOCUMENTARY FEE.  A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.  A
DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR
HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING OF A SALE.
THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 2020, WAS $300.  THE MAXIMUM
AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE
OF $300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE
PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX.
THIS NOTICE IS REQUIRED BY LAW."
(Source: P.A. 101-31, eff. 6-28-19.)
(815 ILCS 375/11.2)
Sec. 11.2. 
		Final installment. 
		Fifteen days after the final installment is
due as originally scheduled or deferred, the holder may compute and charge
interest on any balance remaining unpaid, including unpaid default or deferment
charges, at the annual percentage rate stated in the retail installment
contract until fully paid or reduced to judgment.  At the time the final
installment is due, the holder shall give notice to the buyer stating any
amounts unpaid.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/12) (from Ch. 121 1/2, par. 572)
Sec. 12. 
		
		No provision in a retail installment contract under which, in the
absence of the buyer's default, the holder may, arbitrarily and without
reasonable cause, accelerate the maturity of any part or all of the amount
owing thereunder is enforceable.
No provision in a retail installment contract relieving the seller from
liability for any remedies provided by law which the buyer
may have against the
seller is enforceable.
No provision in a retail installment contract purporting to waive any of
the provisions of this Act is enforceable.
(Source: P.A. 83-345.)
(815 ILCS 375/13) (from Ch. 121 1/2, par. 573)
Sec. 13. 
		
		The seller shall deliver to the buyer a copy of the retail
installment contract signed by the seller. Any acknowledgment by the buyer
of delivery of a copy of the contract must be printed or written in a size
equal to at least 10 point bold type and, if contained in the contract,
must appear directly above the legend required above the buyer's signature
by Section 3. The buyer's written acknowledgment of
delivery of a copy of the contract conforming to the requirements of this
Act is conclusive proof of the delivery and of compliance with
this
Section in any action by or against an assignee of the contract without
knowledge to the contrary when he purchases the contract. Until the seller
delivers a copy of the contract to him or her, a buyer who has
not received delivery of the motor vehicle has the
right to cancel his agreement and to receive a refund of all payments made
and a return of all goods traded in to the seller on account of or in
contemplation of the contract, or, if those goods cannot be returned, the
value thereof. However, this Section does not apply when the merchandise
has been specially ordered or custom made to the specifications of the
purchaser and evidence of such order is provided by the seller.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/14) (from Ch. 121 1/2, par. 574)
Sec. 14. 
		
		Notwithstanding Sections 4 and 5 and paragraph (a) of Section 3 of
this Act, if delivery of the motor vehicle is not made at the time of the
execution of the retail installment contract and the contract so provides,
the identifying number or marks of the motor vehicle or similar information
and the due date of the first installment may be inserted by the seller in
the seller's counterpart of the contract after it has been signed by the
buyer.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/15) (from Ch. 121 1/2, par. 575)
Sec. 15. 
		
		The seller or holder of a retail installment contract must
give the buyer a written receipt for any payment made in cash. Upon the
buyer's written request the holder of a retail installment contract shall
give or forward to the buyer a written statement of the amounts of payments
and the total amount unpaid under the contract. Upon written request, a
buyer is entitled to such a statement once every 6 months without charge.
The holder may require payment of a reasonable charge not exceeding $10 for
each additional statement furnished.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/16) (from Ch. 121 1/2, par. 576)
Sec. 16. 
		
		An agreement by a buyer that he will not assert against the
assignee or the holder of a retail installment contract executed by the
buyer any claim or defense which he may have against the seller and the
rights of a holder in due course of any negotiable note executed in
connection with a retail installment contract are enforceable by an
assignee or holder who takes his assignment or indorsement for value in
good faith and without notice of a claim or defense unless:
(a) the assignee or holder is an affiliate of the seller. "Affiliate"
includes a parent or subsidiary corporation, any person holding substantial
common ownership of stock of the assignee and the seller and any person
having the common ownership of the legal or commercial entities of assignee
and seller;
(b) the assignee or the holder has actual knowledge or has received
notice before the contract or note is acquired (1) of repetitive complaints
of a substantial nature by other buyers to any governmental agency that the
seller has failed or refused to perform his agreements with such buyers and
(2) of the failure of the seller to perform his agreements with such buyers
within a reasonable time after the governmental agency has determined that
the complaints are well-founded and has notified seller thereof, and the
assignee, if known; or
(c) the assignee or the holder has actual knowledge or has received
notice from its course of dealing with the seller or from its own records
of substantial complaints by other buyers that the seller has failed or
refused to perform his agreements with such buyers within a reasonable time
after such complaints are made.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/17) (from Ch. 121 1/2, par. 577)
Sec. 17. 
		
		All defenses available against a holder in due course of a
negotiable instrument under subsection (2) of Section 3-305 of the Uniform
Commercial Code are available to a buyer under a retail installment
contract notwithstanding any agreement to the contrary.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/17.1)
Sec. 17.1. 
		Seller may not keep keys. 
		For contracts entered into after
January 1, 1998, unless
otherwise provided for in the retail installment sales contract, a seller or
holder cannot take or retain possession of the keys (or copy thereof) to a
motor vehicle purchased under a retail installment sales contract.
(Source: P.A. 90-437, eff. 1-1-98.)
(815 ILCS 375/18) (from Ch. 121 1/2, par. 578)
Sec. 18. 
		
		Each person, other than a seller or holder, who signs a retail
installment contract may be held liable only to the extent that he actually
receives the motor vehicle described or identified in the contract, except that
a parent or spouse or any other person listed as an owner of the motor vehicle
on the Certificate of Title issued for the motor vehicle who co-signs such
retail installment contract may be held liable to the full extent of the
deferred payment price notwithstanding such parent or spouse or any other
person listed as an owner  has not actually received the motor vehicle
described or identified in the contract and except to the extent such person
other than a seller or holder, signs in the capacity of a guarantor of
collection.
The obligation of such guarantor is secondary, and not primary.  The
obligation arises only after the seller or holder has diligently taken all
ordinary legal means to collect the debt from the primary obligor, but has not
received full payment from such primary obligor or obligors, or after the
primary obligor has become insolvent, or service of summons cannot be obtained
on the primary obligor, or it is otherwise apparent that it is useless to
proceed against the primary obligor.
No provisions in a retail installment contract obligating such guarantor
are valid unless:
(1) there appears below the signature space provided     for such guarantor the following:
"I hereby guarantee the collection of the above     described amount upon failure of the seller named herein to collect said amount from the buyer named herein."; and
(2) the guarantor, in addition to signing the retail     installment contract, signs a separate instrument in the following form:
"EXPLANATION OF GUARANTOR'S OBLIGATION
You ........... (name of guarantor) by signing the     retail installment contract and this document are agreeing that you will pay $......... (total deferred payment price) for the purchase of ........... (description of goods or services) purchased by ............ (name of buyer) from ........... (name of seller).
Your obligation arises only after the seller or     holder has attempted through the use of the court system to collect this amount from  the buyer.
If the seller cannot collect this amount from the     buyer, you will be obligated to pay even though you are not entitled to any of the goods or services furnished.  The seller is entitled to sue you in court for the payment of the amount due."
The instrument must be printed, typed, or otherwise reproduced in a size
and style equal to at least 8 point bold type, may contain no other matter
(except a union printing label) than above set forth and must bear the
signature of the co-signer and no other person.  The seller must give the
co-signer a copy of the retail installment contract and a copy of the
co-signer statement.
(Source: P.A. 91-357, eff. 7-29-99.)
(815 ILCS 375/19) (from Ch. 121 1/2, par. 579)
Sec. 19. 
		
		The holder of a contract, upon request by the buyer, may extend
the scheduled due date of all or any part of any installment or
installments, or renew or restate the unpaid time balance of the contract,
the amounts and due dates of the installments, and may collect for that
extension, renewal or restatement a refinance charge computed as follows:
If the unpaid time balance of the contract is extended, renewed or
restated, the holder may compute the refinance charge on an amount
determined by adding to the unpaid balance the cost to the holder for
insurance and official fees incidental to the refinancing, and accrued
delinquency and collection charges and deducting any refund credit which
may be due the buyer for prepayment under Section 7 of this Act at the
rate of finance charge applicable to the age of the motor vehicle at the
time of refinancing.
(Source: P.A. 76-1781.)
(815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
Sec. 20. 
		
		Unless otherwise limited by this Act, the parties shall have
the rights and remedies provided in Article 9 of the Uniform Commercial
Code with respect to default and disposition and redemption of collateral.  If
the holder of a retail installment contract repossesses a motor vehicle that
was used as collateral, the holder shall be subject to the requirements of and
shall transfer the certificate of title pursuant to Section 3-114 of the
Illinois Vehicle Code.
(Source: P.A. 90-343, eff. 8-8-97; 90-437, eff. 1-1-98; 90-655, eff. 7-30-98;
90-665, eff. 1-1-99.)
(815 ILCS 375/21) (from Ch. 121 1/2, par. 581)
Sec. 21. 
The finance charge on any motor vehicle retail installment contract shall be no more than the maximum rate permissible under the Predatory Loan Prevention Act.
(Source: P.A. 101-658, eff. 3-23-21.)
(815 ILCS 375/22) (from Ch. 121 1/2, par. 582)
Sec. 22. 
		
		No retail seller whose sales are regulated under this Act may
advertise to the public on price tags, on signs, in public media, or in any
other manner that indicates or implies that the finance charge, finance or
interest rates he charges are in any way "recommended", "approved", or
"set" by the State government or by this Act.
(Source: P.A. 76-1781.)
(815 ILCS 375/22.1) (from Ch. 121 1/2, par. 582.1)
Sec. 22.1. 
		
		(a) This Section applies to any advertisement to aid, promote, or assist
directly or indirectly any motor vehicle installment sale, or other
extension of credit subject to the provisions of this Act.
(b) If any advertisement to which this Section applies states the rate
of a finance charge, the advertisement must state the rate of that charge
expressed as an annual percentage rate.
(c) If any advertisement to which this Section applies states the amount
of the down payment, if any, the amount of any installment payment, the
dollar amount of any finance charge, or the number of installments or the
period of repayment, then the advertisement must state all of the following
items:
(1) The cash price.
(2) The down payment, if any.
(3) The number, amount, and due dates or period of payments scheduled to
repay the indebtedness if the credit is extended.
(4) The rate of the finance charge expressed as an annual percentage
rate.
An advertisement which complies with the federal Truth in Lending Act,
amendments thereto, and any regulations issued or which may be issued thereunder,
shall be deemed to be in compliance with the provisions of this Section.
(Source: P.A. 82-169.)
(815 ILCS 375/23) (from Ch. 121 1/2, par. 583)
Sec. 23. 
		
		The Attorney General or the State's Attorney of any county in this
State may bring an action in the name of the State against any person to
restrain and prevent any violation of this Act. In the enforcement of this
Act the Attorney General or the State's Attorney 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: Laws 1967, p. 2163.)
(815 ILCS 375/24) (from Ch. 121 1/2, par. 584)
Sec. 24. 
		
		(a) Any person who knowingly violates this Act is guilty of a Class
A misdemeanor.
(b) No person who violates this Act, except as a result of an accident
or bona fide error of computation, may recover any unpaid finance charge,
delinquency or collection charge, or refinance charge in connection
with the related retail installment contract.
(Source: P.A. 90-343, eff. 8-8-97.)
(815 ILCS 375/25) (from Ch. 121 1/2, par. 585)
Sec. 25. 
		
		If any provision of this Act or the application thereof to any
person or circumstances is held invalid, the invalidity shall not affect
other provisions or applications of the Act which can be effected without
the invalid provisions or application, and to this end the provisions of
this Act are severable.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/26) (from Ch. 121 1/2, par. 586)
Sec. 26. 
		
		This act does not apply to any contract entered into before
January 1, 1968. Contracts entered into before January 1, 1968, and the
rights, duties and interests flowing from them, remain valid thereafter and
may be satisfied, completed, consummated and enforced as required or
permitted by the Retail Installment Sales Act, approved June 17, 1957, as
amended.
(Source: Laws 1967, p. 2163.)
(815 ILCS 375/26.1)
Sec. 26.1. Rulemaking authority. The Secretary of Financial and Professional Regulation and his or her designees shall have authority to adopt and enforce reasonable rules, directions, orders, decisions, and findings necessary to execute and enforce this Act and protect consumers in this State. The Secretary's authority to adopt rules shall include, but not be limited to: licensing, examination, supervision, and enforcement.
(Source: P.A. 101-658, eff. 3-23-21.)