The latest pieces of state legislation supported by the Illinois Credit Union League (ICUL) and signed by Illinois Gov. Bruce Rauner will improve credit unions’ operational environment, the league reported.
“The passage of both measures is a perfect illustration of the great credit union/ICUL collaborative approach that works so well in Illinois,” said Keith Sias, league senior vice president of governmental affairs. “Government relations is a necessary focal point of credit unions, given the ever-escalating array of compliance mandates through new statutes and regulations. Our collaborative approach has proven to be very effective advocacy that benefits all credit unions doing business in Illinois.”
HB 5755, passed unanimously by both state chambers and signed July 22, includes technical changes to the Illinois Credit Union Act.
Among the updates in the immediately effective law:
Signed into law by Rauner on Aug. 12, HB 2642 changes Illinois Labor and Storage Lien Acts effective immediately. Those acts enable garages and towing companies that provide labor and material or storage to exercise lien rights against vehicles that are collateral of the credit union. Under the existing law, the garage was not required to notify financial institutions with liens on the vehicle of the assessment and accrual of the fees.
Under the new amendments repair shops and towing companies are now required to notify any lienholder in writing at the time they begin to assess and accrue storage fees, as well as provide the rate at which fees will accrue. The lienholder must be provided the opportunity to inspect the vehicle to determine if it makes economic sense to retrieve the vehicle.
“Thanks to the concerted effort of credit unions in providing the governor’s staff with excellent examples of storage fee abuse by garages and towing companies in possession of the credit unions’ vehicular collateral” the governor signed HB 2642, noted Stephen Olson, league executive vice president/general counsel.