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
