Bill Text: IL SB1135 | 2011-2012 | 97th General Assembly | Amended
Bill Title: Amends the Retail Installment Sales Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB1135 Detail]
Download: Illinois-2011-SB1135-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 1135
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1135 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Consumer Contract Plain Language Act.
| ||||||
6 | Section 5. Definitions. As used in this Act: | ||||||
7 | "Consumer" means an individual who borrows, buys, or leases | ||||||
8 | services or products under a consumer contract.
| ||||||
9 | "Consumer contract" or "contract" means a written | ||||||
10 | agreement between a consumer and a party, acting in the usual | ||||||
11 | course of business, for products or services made or performed | ||||||
12 | for primarily personal, family, or household purposes. A | ||||||
13 | "consumer contract" includes, but is not limited to, standard | ||||||
14 | form contracts, consumer agreements, forms, or terms.
| ||||||
15 | "Covered entity" means a person who utilizes consumer | ||||||
16 | contracts in the usual course of business.
|
| |||||||
| |||||||
1 | "Transaction" means a business transaction that occurs | ||||||
2 | between a consumer and a covered entity for the exchange of | ||||||
3 | products or services through the use of a consumer contract.
| ||||||
4 | Section 10. Scope and construction. | ||||||
5 | (a) This Act applies to all consumer contracts, except that | ||||||
6 | this Act does not apply to format or language required by State | ||||||
7 | or federal law or regulation. | ||||||
8 | (b) This Act is to be liberally construed to further its | ||||||
9 | purposes, which are to ensure that consumer contracts are | ||||||
10 | written in a simple format and plain language and to protect | ||||||
11 | consumers against unfair or deceptive form contracts.
| ||||||
12 | Section 15. Plain language. A contract entered into on or | ||||||
13 | after the effective date of this Act shall be written in a | ||||||
14 | simple, clear, understandable, and easily readable manner. In | ||||||
15 | determining whether a contract as a whole has been written in a | ||||||
16 | simple, clear, understandable, and easily readable manner, a | ||||||
17 | court, the Attorney General, or proper regulatory agency, shall | ||||||
18 | apply the provisions of Section 20.
| ||||||
19 | Section 20. Requirements for contracts. | ||||||
20 | (a) For a contract to be simple, clear, understandable, and | ||||||
21 | easily readable, it must be written in plain language. A | ||||||
22 | contract is written in plain language if: | ||||||
23 | (1) it is written in a clear and coherent manner using |
| |||||||
| |||||||
1 | words with common and everyday meanings;
use of technical | ||||||
2 | terms or words of art is not, however, in and of itself a | ||||||
3 | violation of this Act; | ||||||
4 | (2) it is appropriately divided and captioned by its | ||||||
5 | various sections;
| ||||||
6 | (3) it uses type of readable size and no less than | ||||||
7 | 10-point font;
| ||||||
8 | (4) it uses layout and spacing that separate the lines, | ||||||
9 | paragraphs, and sections of the contract from each other | ||||||
10 | and from the borders of the paper or medium upon which it | ||||||
11 | is displayed;
| ||||||
12 | (5) it uses simple and active verb forms;
| ||||||
13 | (6) it uses ink that contrasts with the paper or medium | ||||||
14 | upon which it is displayed;
| ||||||
15 | (7) it does not contain a provision that permits the | ||||||
16 | unilateral modification of the contract by the covered | ||||||
17 | entity to the disadvantage of the consumer without explicit | ||||||
18 | consumer consent after the execution of the contract; | ||||||
19 | (8) it uses a table of contents or alphabetical index | ||||||
20 | and definitional glossary for all contracts with more than | ||||||
21 | 2,000 words;
and | ||||||
22 | (9) conditions and exceptions to the main promise of | ||||||
23 | the contract are given prominence equal to that given to | ||||||
24 | the main promise and are in at least 10-point bold type. | ||||||
25 | (b) A contract may not be simple, clear, understandable, or | ||||||
26 | easily readable if it contains one or more the following:
|
| |||||||
| |||||||
1 | (1) cross references that are confusing;
| ||||||
2 | (2) references to terms not included in the consumer | ||||||
3 | contract that are necessary to understand its material | ||||||
4 | provisions;
| ||||||
5 | (3) sentences that are of greater length than | ||||||
6 | necessary;
| ||||||
7 | (4) sentences that contain double negatives and | ||||||
8 | exceptions to exceptions;
| ||||||
9 | (5) sentences and sections that are in a confusing or | ||||||
10 | illogical order;
| ||||||
11 | (6) the use of words with obsolete meanings or words | ||||||
12 | that differ in their legal meaning from their common, | ||||||
13 | ordinary meaning;
and | ||||||
14 | (7) frequent use of Old English and Middle English | ||||||
15 | words and Latin and French phrases.
| ||||||
16 | Section 25. Content of contracts. A covered entity shall | ||||||
17 | include a clear and conspicuous description of the terms of the | ||||||
18 | contract, including the total cost of all fees and other | ||||||
19 | charges or waiver of rights in connection with the transaction, | ||||||
20 | in English and in the language in which the transaction was | ||||||
21 | conducted. No consumer contract may contain a waiver of any | ||||||
22 | rights granted under this Act.
| ||||||
23 | Section 30. Enforcement. The Illinois Attorney General may | ||||||
24 | bring an action to enforce this Act and to obtain injunctive |
| |||||||
| |||||||
1 | relief in any court of competent jurisdiction not later than 5 | ||||||
2 | years after the date of the violation. Any person or | ||||||
3 | organization, whether or not a party to a covered contract, and | ||||||
4 | any law enforcement official may bring an action to enjoin the | ||||||
5 | use of a contract that violates this Act.
| ||||||
6 | Section 35. Safe harbor. There shall be no liability under | ||||||
7 | Section 40 if any of the following occurs: | ||||||
8 | (1) the consumer wrote the contract or the part of it | ||||||
9 | that violates this Act; or
| ||||||
10 | (2) the creditor, seller, or lessor made a good faith | ||||||
11 | and reasonable effort to comply with this Act.
| ||||||
12 | Section 40. Penalties. A person who knowingly violates the | ||||||
13 | requirements of Section 20 shall be liable to the consumer for | ||||||
14 | the following: | ||||||
15 | (1) compensation in an amount equal to the value of any | ||||||
16 | actual loss caused by the violation of this Act;
| ||||||
17 | (2) statutory damages of the lesser of $1000 or the | ||||||
18 | total amount of the contract;
| ||||||
19 | (3) court costs;
| ||||||
20 | (4) reasonable attorney's fees; and
| ||||||
21 | (5) any equitable and other relief ordered by the | ||||||
22 | court.
| ||||||
23 | Section 97. Severability. The provisions of this Act are |
| |||||||
| |||||||
1 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
|