(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.

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Terms Used In Illinois Compiled Statutes 765 ILCS 705/4

  • Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC

     (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.