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Under Illinois law, is the grace period on a home equity line of credit (HELOC) 10 or 15 days before we can impose a late fee? – IBA Compliance Connection

IBA Compliance Connection

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Under Illinois law, is the grace period on a home equity line of credit (HELOC) 10 or 15 days before we can impose a late fee?

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Illinois law does not impose a specific “grace period” on revolving credit plans (such as HELOCs). The Illinois Financial Services Development Act authorizes financial institutions to establish grace periods, late fees, and other terms and conditions in their plan agreements with their borrowers.

For resources related to our guidance, please see:

Illinois Financial Services Development Act, 205 ILCS 675/4 (“Notwithstanding the provisions of any other laws in connection with revolving credit plans, any financial institution may, subject to the other provisions of this Section 4 offer and extend credit under a revolving credit plan to a borrower and in connection therewith may charge and collect interest and other charges . . . and may provide in the agreement governing the revolving credit plan for such other terms and conditions as the financial institution and borrower may agree upon from time to time.”)