Illinois Compiled Statutes
Chapter 815 - BUSINESS TRANSACTIONS
815 ILCS 616/ - Educational Planning Services Consumer Protection Act.

(815 ILCS 616/1)
Sec. 1. Short title; references to Act.
(a) Short title. This Act may be cited as the Educational Planning Services Consumer Protection Act.
(b) References to Act. This Act may be referred to as the Segura Law.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/5)
Sec. 5. Findings. The General Assembly finds and declares all of the following:
(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/10)
Sec. 10. Purpose and construction. The purpose of this Act is to protect consumers who enter into agreements with educational planning service providers and to regulate educational planning service providers. This Act shall be construed as a consumer protection law for all purposes. This Act shall be liberally construed to effectuate its purpose.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/15)
Sec. 15. Definitions. As used in this Act:
"Consumer" means any person who purchases or contracts for the purchase of educational planning services.
"Educational planning services" means college and career preparatory planning services, including, but not limited to, advice regarding and assistance with college and career searches; college application preparation or submission; financial aid application planning, preparation, or submission; and scholarship searches and applications.
"Educational planning service provider" means any person or entity engaging in or holding itself out as engaging in the business of providing educational planning services in exchange for any fee or compensation or any person who solicits or acts on behalf of any person or entity engaging in or holding itself out as engaging in the business of providing educational planning services in exchange for any fee or compensation. "Educational planning service provider" does not include any of the following:
"Enrollment fee" or "set up fee" means any fee, obligation, or compensation paid or to be paid by the consumer to an educational planning service provider in consideration of or in connection with establishing a contract or other agreement with a consumer related to the provision of educational planning services.
"Maintenance fee" means any fee, obligation, or compensation paid or to be paid by the consumer on a periodic basis to an educational planning service provider in consideration for maintaining the relationship and services to be provided by the educational planning service provider in accordance with a contract with a consumer related to the provision of educational planning services.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/20)
Sec. 20. Prohibitions and requirements.
(a) It shall be unlawful for any person or entity to act as an educational planning service provider except as authorized by this Act.
(b) An educational planning service provider may not provide educational planning services to a consumer for a fee without a written contract signed and dated by both the consumer and the educational planning service provider. A contract between an educational planning service provider and a consumer for the provision of educational planning services shall disclose clearly and conspicuously all of the following:
(c) If an educational planning service provider communicates with a consumer primarily in a language other than English, then the educational planning service provider shall furnish to the consumer a translation of all the disclosures and documents required by this Act, including, but not limited to, the contract, in that other language.
(d) An educational planning service provider may not charge or receive from a consumer any enrollment fee, set up fee, up-front fee of any kind, or maintenance fee, and a consumer shall pay only for the educational planning services provided.
(e) An educational planning service provider may not do any of the following:
(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/25)
Sec. 25. Required disclosures.
(a) In any marketing or advertising communications, an education planning service provider must provide the following disclosure verbatim, both orally and in writing, with the caption:
CONSUMER NOTICE OF AVAILABILITY
OF THESE SERVICES FOR FREE
(b) An educational planning service provider must provide the following warning verbatim, both orally and in writing, with the caption "CONSUMER NOTICE AND RIGHTS FORM" in at least 28-point font and the remaining portion in at least 14-point font, to a consumer before the consumer signs a contract for the educational planning service provider's services:
CONSUMER NOTICE AND RIGHTS FORM
AVAILABILITY OF THESE SERVICES FOR FREE
YOUR RIGHT TO CANCEL
IF YOU ARE DISSATISFIED OR YOU HAVE QUESTIONS
(c) The educational planning service provider must maintain proof that it has provided to the consumer the Consumer Notice and Rights Form in accordance with subsection (b) of this Section.
(d) The consumer shall sign and date an acknowledgment form titled "Consumer Notice and Rights Form" that states: "I, the consumer, have received from the educational planning service provider a copy of the form titled "Consumer Notice and Rights Form," and I have been provided the Illinois Student Assistance Commission's Internet website address where educational planning services are provided free of charge.". The educational planning service provider or its representative shall also sign and date the acknowledgment form, which shall include the name and address of the educational planning service provider. The acknowledgment form shall be in duplicate and shall be incorporated into the Consumer Notice and Rights Form under subsection (b) of this Section. The original acknowledgment form shall be retained by the educational planning service provider, and the duplicate copy shall be retained by the consumer.
(e) If the acknowledgment form under subsection (d) of this Section is in an electronic format, then, in addition to the other requirements of this Act, the acknowledgment form shall:
(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/30)
Sec. 30. Cancellation of contract; refund.
(a) A consumer may cancel a contract with an educational planning service provider at any time before the educational planning service provider has fully performed each service the educational planning service provider contracted to perform or represented it would perform.
(b) If a consumer cancels a contract with an educational planning service provider, then the educational planning service provider shall refund all fees and compensation, with the exception of any earned fees for services provided.
(c) At any time upon a material violation of this Act on the part of the educational planning service provider, the educational planning service provider shall refund all fees and compensation to the consumer.
(d) An educational planning service provider shall make any refund required under this Act within 5 business days after the notice of cancellation or voiding of the contract due to a violation of this Act and shall include with the refund a full statement of account showing fees received and fees refunded.
(e) Upon cancellation or voiding of the contract, all direct debit authorizations granted to the educational planning service provider by the consumer shall be considered revoked and voided.
(f) Upon the termination of the contract for any reason, the educational planning service provider shall provide timely notice that it no longer represents the consumer to any entity or agency with whom the educational planning service provider has had any prior communication on behalf of the consumer in connection with the provision of any educational planning services.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/35)
Sec. 35. Noncompliance.
(a) Any waiver by a consumer of any protection provided by or any right of the consumer under this Act:
(b) Any attempt by a person to obtain a waiver from a consumer of any protection provided by or any right or protection of the consumer or any obligation or requirement of the educational planning service provider under this Act is a violation of this Act.
(c) Any contract for educational planning services that does not comply with the applicable provisions of this Act:
(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/40)
Sec. 40. Civil remedies; injunction.
(a) A violation of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General or State's Attorney by the Consumer Fraud and Deceptive Business Practices Act shall be available to him or her for the enforcement of this Act.
(b) A consumer who suffers loss by reason of a violation of this Act may bring a civil action in accordance with the Consumer Fraud and Deceptive Business Practices Act to enforce a provision of this Act. All remedies and rights granted to a consumer by the Consumer Fraud and Deceptive Business Practices Act shall be available to the consumer bringing such an action. The remedies and rights provided for in this Act are not exclusive, but cumulative, and all other applicable claims are specifically preserved.
(c) Any contract for educational planning services made in violation of this Act shall be null and void and of no legal effect.
(d) To engage in educational planning services in violation of this Act is declared to be inimical to the public welfare and to constitute a public nuisance. The Illinois Student Assistance Commission may, in the name of the people of the State of Illinois, through the Attorney General, file a complaint for an injunction in the circuit court to enjoin such person from engaging in that unlawful business. An injunction proceeding shall be in addition to and not in lieu of penalties and remedies otherwise provided in this Act.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/45)
Sec. 45. Notice. The Illinois Student Assistance Commission must make available on its Internet website the most current disclosure of free support, and the educational planning service provider is responsible for providing to the consumer the most current disclosure of free support available on the Commission's Internet website.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/90)
Sec. 90. Rules. The Illinois Student Assistance Commission shall adopt and enforce all reasonable rules necessary or appropriate for the administration of this Act.

(Source: P.A. 102-571, eff. 1-1-22.)
 
(815 ILCS 616/900)
Sec. 900. (Amendatory provisions; text omitted).

(Source: P.A. 102-571, eff. 1-1-22; text omitted.)

Structure Illinois Compiled Statutes