New Law Prohibits Required EFT for Rent Payments

A new Illinois law, Public Act 103-0132, effective 6/30/23, prohibits requiring rent payment by electronic funds transfer in all new, extended or renewed residential leases:

    (765 ILCS 705/4 new)
    Sec. 4. Payment by electronic funds transfer.
    (a) As used in this Section, "electronic funds transfer"
means a transfer of funds, other than a transaction originated
by check, draft, or similar paper instrument, that is
initiated through an electronic terminal, telephone, computer,
or magnetic tape for the purpose of ordering, instructing, or
authorizing a financial institution to debit or credit a
consumer's account, including, but not limited to, through the
use of an automated clearing house system.
    (b) A landlord shall not require a tenant or prospective
tenant to remit any amount due to the landlord under a
residential lease, renewal, or extension agreement by means of
an electronic funds transfer, including, but not limited to,
an electronic funds transfer system that automatically
transfers funds on a regular, periodic, and recurring basis.
    (c) Beginning 90 days after the effective date of this
amendatory Act of the 103rd General Assembly, a landlord who
violates this Section is guilty of an unlawful practice under
the Consumer Fraud and Deceptive Business Practices Act.
    (d) This Section applies to leases or agreements executed
after the effective date of this amendatory Act of the 103rd
General Assembly.


Effective Date: 6/30/2023