SB2765

Illinois SB2765 mandates financial institutions to disclose early withdrawal penalties for certificates of deposit.

Illinois SB2765 amends the Illinois Banking Act to require financial institutions to provide clear written disclosures about early withdrawal penalties for certificates of deposit. These disclosures must be included on the CD agreement or signature card, printed in at least 12-point bold type, and appear next to any description of penalties. The disclosure must inform consumers that penalties may exceed interest earned and reduce the principal amount. For automatically renewing certificates, the disclosure must be included in the renewal notice.