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Koehler passes measure protecting renters

koehler 050217SPRINGFIELD – Legislation protecting consumers from deceptive leases passed the Illinois Senate today. Senate bill 885 would protect renters from “rent-to-own” schemes that are often fraught with deceptive terms and conditions that can be costly to consumers.

In a survey of housing counselors around the state conducted by Housing Action Illinois, only 12% of counselors reported that they felt that people considering rent-to-own homeownership opportunities well understand the differences between rent-to-own and homeownership with a mortgage.

The new legislation would seek to address that lack of understanding by creating the Installment Sales Contract Act. Among the new protections is a requirement that a payment schedule is to be given to the buyer prior to closing, a prohibition on prepayment penalties and a requirement for a written contract with information about ballooning payments.

State Senator Dave Koehler (D-Peoria), the legislation’s sponsor, issued the following statement following the passage of SB 885:

“Consumers should have as much information as possible when making one of the most important decisions of their lives. The deceptive practices often found in ‘rent-to-own’ contracts set renters up for a rude awakening. That is why we crafted legislation that seeks to bring more transparency and information to the process.”

The measure now moves on to the House of Representatives.

Sen. David Koehler


Assistant Majority Leader
46th District

Years served:
Appointed December 2006; Elected 2008 - Present

Committee assignments: Agriculture; Education; Environment and Conservation (Vice-Chairperson); Labor; Local Government; Transportation; Subcommittee on Capital.

Biography: Born and raised in South Dakota, moved to Peoria in 1978; B.A., Yankton College, 1971; M.A. in divinity, United Theological Seminary, 1974; staff member, National Farm Worker Ministry; community organizer and program manager, Peoria Friendship House; executive director, Peoria Area Labor Management Council; president, Labor Management Cooperative Health Programs Inc.; Peoria County Board member, 1982-88; Peoria City Council member, 1989-97 (mayor pro tem, 1993-94); first elected to Senate in 2006; married with three daughters, a son-in-law and two granddaughters.

Associated Representatives:
Jehan Gordon-Booth
Michael D. Unes