{"data":{"id":"us-il/815-ilcs-124-27","jurisdiction":"us-il","citation":"815 ILCS 124/27","heading":"Consumer protections.","body":"(a) A lender shall provide the following disclosures to a consumer, in a clear and conspicuous manner, at the time of extending a specific offer of a loan:\n(1) how to file a complaint with the Department;\n(2) the terms of buy-now-pay-later loans, including, without limitation, the cost, such as interest and fees, the repayment schedule, the means by which a person may dispute billing practices, whether the transaction will or will not be reported to a credit reporting agency, and other material conditions, in a clear and conspicuous manner and in a manner that complies with applicable federal regulations, including, but not limited to, Regulation Z of Title I of the Consumer Credit Protection Act;\n(3) factors considered in the underwriting process; and\n(4) any other disclosures required by the Secretary by rule.\n(b) A lender shall comply with the Gramm-Leach-Bliley Act Privacy Rule, Section 624 of the Fair Credit Reporting Act (15 U.S.C. 1681s-3), and their implementing regulations.\n(c) A lender shall resolve disputes in a manner that is fair and transparent to consumers. A lender shall create a readily available and prominently disclosed method for consumers to bring a dispute to the lender. A lender shall maintain policies and procedures for handling consumer disputes. A lender shall apply to loans the dispute rights and unauthorized charges requirements that apply to credit cards under the federal Truth in Lending Act, regardless of whether the law applies to loans or whether the lender offers a credit card within the scope of the law.\n(d) A lender shall provide refunds or credits for goods or services purchased in connection with a loan, if the consumer requests and is entitled to a refund, in a manner that is fair, transparent, and not unduly burdensome to consumers. A lender shall maintain policies and procedures to provide the refunds or credits. The policies and procedures shall be fair, transparent, and not unduly burdensome to the consumer. A lender shall disclose to consumers, in a clear and conspicuous manner, the process by which they can obtain refunds or credits for goods or services they have purchased in connection with a loan.\n(e) A lender shall not require consumers to authorize automatic payment from the consumer's accounts. If a consumer voluntarily elects to use automatic payments in relation to the loan, the lender shall not charge the consumer any amount to cancel automatic payments should the consumer request to do so.\n(f) A lender shall not require payment by a consumer by credit card.\n(g) A lender shall not attempt to debit a consumer's account if it is notified that there are insufficient funds to pay in the account or if it has reason to believe there are insufficient funds to pay in the account without seeking additional, express approval from the consumer. A lender shall present an ACH debit for payment not more than twice.\n(h) The lender's license shall be kept conspicuously posted on the mobile application, website, or other consumer interface of the lender, as well as listed in the terms and conditions of any loan offered or entered into by the lender.\n(i) A consumer shall be permitted to pay off the loan at any time. A lender may not impose, directly or indirectly, any additional fee or finance charge other than interest accrued since the consumer's last payment or the start of the loan if the consumer elects to pay off or refinance the loan before full repayment.\n(j) A lender may not accept tips, expedited payment fees, or any other fee identified by the Department by rule from consumers. Additionally, the Department may limit any fee, charge, or payment which may be charged to a consumer by a lender.\n(k) A lender shall maintain policies and procedures for underwriting buy-now-pay-later loans and follow the policies and procedures when underwriting loans under this Act.\n(l) All requirements set forth in this Section or in any rules adopted by the Department relating to servicing of a loan shall apply to a subsequent purchaser or assignee of a loan, an agent of the lender, or any other person servicing a loan.","path":["CHAPTER 815 BUSINESS TRANSACTIONS","Buy-Now-Pay-Later Loan Consumer Protection Act."],"source_url":"https://www.ilga.gov/legislation/ILCS/details?ActID=4686\u0026ChapterID=67\u0026ChapAct=FullText\u0026Print=True","current_through":"at least Public Act 104-790","vintage":"","retrieved_at":"2026-09-15T04:46:47Z","sha256":"9923525dadf07f4fac5589bf329049d2695c72c65386072d9bdff52816918092","source_id":"us-il","stale":false,"prev":"us-il/815-ilcs-124-26","next":"us-il/815-ilcs-124-27.5"},"notice":"GroundRules: Original legal text. Not legal advice."}