Bill Text: IL HB2094 | 2023-2024 | 103rd General Assembly | Chaptered
Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that any marketing materials from a mortgage company not connected to the consumer's mortgage company must comply with specified requirements.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-07-28 - Public Act . . . . . . . . . 103-0292 [HB2094 Detail]
Download: Illinois-2023-HB2094-Chaptered.html
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| Public Act 103-0292 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Findings. The General Assembly finds that the | ||||
need to protect homeowners from unscrupulous actors seeking to | ||||
take advantage of homeowners by soliciting mortgage | ||||
refinancing through deceptive practices is warranted, | ||||
particularly following the unethical practices that led to the | ||||
2008 subprime mortgage crisis. These protections will | ||||
especially serve new homeowners not familiar with the process | ||||
and elderly homeowners who may be more susceptible to | ||||
deceptive mortgage marketing materials. In addition, they will | ||||
serve to protect the homeowners' actual mortgage companies | ||||
that have no affiliation with the solicitors and have had no | ||||
part in helping the solicitors obtain the homeowners' mortgage | ||||
information.
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Section 5. The Consumer Fraud and Deceptive Business | ||||
Practices Act is amended by changing Section 2AAA as follows:
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(815 ILCS 505/2AAA) | ||||
Sec. 2AAA. Mortgage marketing materials. | ||||
(a) No person may send marketing materials to a consumer | ||||
indicating that the person is connected to the consumer's | ||||
mortgage company, indicating that there is a problem with the | ||
consumer's mortgage, or stating that the marketing materials | ||
contain information concerning the consumer's mortgage, unless | ||
that person sending the marketing materials is actually | ||
employed by the consumer's mortgage company or an affiliate of | ||
the consumer's mortgage company. | ||
(a-5) Any marketing materials from a mortgage company not | ||
connected to the consumer's mortgage company must comply with | ||
the following requirements: | ||
(1) no language may be used to state or imply that any | ||
response by a consumer who is not an existing customer is | ||
required, imminently or otherwise, including, but not | ||
limited to, the use of the terms "urgent", "action | ||
required", "materials inspected", "time sensitive", or | ||
"important account information enclosed"; | ||
(2) the name of the solicitor's mortgage company must | ||
be prominently stated: | ||
(A) in the body of the text; | ||
(B) at the head of the letter or message in a font | ||
bigger than the body of the text; and | ||
(C) on any envelope; | ||
(3) the name of the consumer's mortgage company may | ||
not be used to state or insinuate in any way that the | ||
marketing material is from the consumer's mortgage company | ||
rather than the solicitor's mortgage company, and can only | ||
be used in the body of the text and when accompanied by | ||
clear language explaining that the solicitation is not | ||
from or affiliated with the consumer's mortgage company, | ||
and is merely a solicitation. The name of the consumer's | ||
mortgage company shall not be visible through an envelope | ||
window, appear on the envelope itself, or appear in an | ||
email subject line; and | ||
(4) the text must clearly state if the consumer's | ||
mortgage company had no part in helping the solicitor | ||
obtain the homeowner's mortgage information. | ||
(b) Any person who violates this Section commits an | ||
unlawful practice within the meaning of this Act.
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(Source: P.A. 95-508, eff. 1-1-08; 95-876, eff. 8-21-08; | ||
96-328, eff. 8-11-09.)
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