What You Need to Know About the Illinois Credit Agreements Act

The Illinois Credit Agreements Act (“ICAA”) is a state law that provides protection to consumers against unfair credit practices. Under the ICAA, creditors are required to provide certain information to consumers before they enter into any agreement. This includes disclosing the total cost of credit, the annual percentage rate (APR), and other details about the agreement. Understanding your rights under this law can help you make informed decisions when entering into credit agreements.

Understanding Your Rights Under ICAA

The ICAA gives consumers certain rights when entering into a credit agreement in Illinois. It requires that creditors provide a written statement setting forth all of the terms and conditions of any loan or finance charge before an agreement is signed by both parties. This statement must include the following information:

  • The total amount financed;
  • Any fees included in the amount financed;
  • A breakdown of how much interest will be charged on each payment;
  • The annual percentage rate (APR); and
  • A description of any late fees or other penalties that may be imposed if payments are not made on time.

In addition, creditors must also disclose whether there is a prepayment penalty for paying off your loan early or refinancing it and if so, what it is. They must also provide information about any consumer protections that may apply to your loan such as the federal Truth in Lending Act or state consumer protection laws. Finally, creditors must inform borrowers about their right to cancel within five business days after signing an agreement without penalty or liability.

Creditors who violate these provisions may be subject to civil liability for damages caused by their actions as well as other penalties such as having their license revoked or being required to pay restitution to affected customers.

Illinois Consumer Fraud Protection Laws

In addition to providing protection under ICAA, Illinois has enacted additional consumer fraud protection laws which give consumers additional rights when dealing with creditors. These laws protect consumers against deceptive practices such as false advertising and misleading statements made by a creditor during negotiations for a loan or refinancing agreement. They also prohibit certain unfair debt collection practices such as harassing phone calls and threats of legal action against people who are unable to pay back their loans.


The Illinois Credit Agreements Act provides important protections for consumers when they enter into credit agreements in Illinois, including requiring lenders to disclose key details about their products before they sign an agreement with borrowers. Additionally, there are several consumer fraud protection laws in place which further protect borrowers from unfair debt collection practices and deceptive marketing tactics by lenders. Understanding your rights under these laws can help ensure that you get fair treatment from creditors when negotiating your loan terms and repayment schedule. Knowing what protections you have can allow you to make more informed decisions concerning credit agreements in order for you take advantage of favorable financing options while avoiding potential pitfalls associated with them.

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