Illinois Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Illinois's New Vehicle Buyer Protection Act covers new passenger cars, light trucks under 8,000 pounds and recreational vehicles bought or leased (for at least a year) mainly for personal, family or household use. The "statutory warranty period" is one year or 12,000 miles after delivery, whichever comes first. A reasonable number of repair attempts is presumed if, within that period, the same defect was repaired four or more times and still exists, or the vehicle was out of service for repairs 30 or more business days. If the defect cannot be fixed, the manufacturer must provide a comparable replacement vehicle or take it back and refund the full purchase price or lease cost, including collateral charges (not including taxes), minus a reasonable allowance for use.

When a licensed dealer (or a public auction company) sells a used vehicle to a consumer, it may not disclaim the implied warranty of merchantability until 15 days or 500 miles after delivery, whichever comes first; the vehicle must work for ordinary transportation and be substantially free of power train defects. The consumer must notify the seller within 2 business days after that period ends, give the seller a chance to repair, and pay half the cost of the first two repairs, up to $100 per repair. This does not apply to vehicles with over 150,000 miles, branded rebuilt or flood titles, vehicles of 8,000 pounds or more, antique or collector vehicles, or sales with an equal or better express warranty.

When a seller who is physically present at the consumer's home makes a sale of $25 or more, the consumer may cancel by notifying the seller within 3 full business days and returning any merchandise in its original condition. The seller must give a receipt or contract with a bold notice of the right and an attached "Notice of Cancellation" form in the language of the sales presentation; payments and trade-ins must be returned within 10 business days after cancellation. The Attorney General notes that for home repair contracts signed at home, seniors over 65 have up to 15 business days to cancel.

The Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505) prohibits unfair or deceptive acts in trade or commerce. Anyone who suffers actual damage from a violation can sue; the court may award actual economic damages, injunctive or other relief, and reasonable attorney's fees and costs to the prevailing party. Punitive damages are limited against vehicle dealers unless the conduct was willful with evil motive or reckless indifference. Suits must be filed within 3 years.

For repairs over $100, a shop may not begin work without the consumer's specific authorization after required disclosures. It must either give a written estimate for parts and labor and not charge more than 10% over it without the consumer's oral or written consent, or give a written price limit and not exceed it without consent. The estimate must list major parts (new or used), whether repairs are required or suggested, disassembly costs, and a promised delivery date. If unforeseen circumstances make the estimate insufficient, the shop must get consent before doing the extra work and record oral consent.

Gift certificates and gift cards (including store credit slips for returns) sold on or after January 1, 2008 may not expire earlier than 5 years after issuance and may not carry post-purchase fees; their value may not be reduced and holders may not be penalized for non-use or late redemption. Prepaid phone and technology cards and cards usable at multiple sellers are excluded.

Credit services organizations may not charge or receive payment before fully performing the agreed services unless they have obtained a surety bond, and may not make or advise untrue or misleading statements about a buyer's credit. Debt settlement providers may not charge enrollment, setup, up-front or maintenance fees, except a one-time enrollment fee of no more than $50; settlement fees may not exceed 15% of the savings and may be collected only after a creditor agrees to a settlement and it is paid.

Before starting home repair or remodeling work over $1,000, the contractor must give the customer a written contract or work order to sign stating the total cost (with parts and materials listed with reasonable particularity and any estimate charge) and the business name and address. The Attorney General says the contractor should also present and both parties should sign the Attorney General's Home Repair Consumer Rights document for work of $1,000 or more, and that you have three business days to cancel a contract signed at home (up to 15 business days for seniors over 65).

A data collector that owns or licenses personal information about an Illinois resident must notify the resident, at no charge, of a security breach in the most expedient time possible and without unreasonable delay, consistent with measures to determine the scope of the breach and restore the system. The notice must include contact information for the consumer reporting agencies and the FTC and a statement about fraud alerts and security freezes. If more than 500 Illinois residents are notified for a single breach, the Attorney General must also be notified, no later than when consumers are notified.

File a consumer complaint with the Attorney General's Consumer Protection Division, preferably through the online submission form; printable forms can also be mailed. The office offers informal dispute resolution (mediation) for consumer complaints but cannot represent individuals privately. Consumer hotlines: Chicago 1-800-386-5438, Springfield 1-800-243-0618.

1) Written notice: the presumption that the manufacturer had a reasonable number of repair attempts (4 or more repairs of the same problem, or 30 or more business days out of service, during the statutory warranty period) does not apply unless the manufacturer has received prior direct written notice from or on behalf of the consumer and has an opportunity to correct the defect. 2) Final repair attempt: no separate final-repair step is described beyond that opportunity to correct. 3) Arbitration: Illinois has no state-run lemon law arbitration program. If the manufacturer has an informal dispute program that substantially follows federal rules (16 C.F.R. Part 703), and the seller gave the consumer adequate written notice of it (for example, in the written warranty), the consumer must use it first before the refund/replacement remedy applies. A consumer dissatisfied with the decision may then sue; the decision is admissible in court, and the time the dispute was pending in the program is added to the deadline to sue. 4) Deadline: any action under the lemon law must be started within 18 months after the vehicle was originally delivered to the consumer.