Cal. Civ. Code § 4
Payment by electronic funds transfer
Operative Text
Payment by electronic funds transfer. (a) As used in this Section, "electronic funds transfer" means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account, including, but not limited to, through the use of an automated clearing house system. (b) A landlord shall not require a tenant or prospective tenant to remit any amount due to the landlord under a residential lease, renewal, or extension agreement by means of an electronic funds transfer, including, but not limited to, an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis. (c) Beginning 90 days after the effective date of this amendatory Act of the 103rd General Assembly, a landlord who violates this Section is guilty of an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. (d) This Section applies to leases or agreements executed after the effective date of this amendatory Act of the 103rd General Assembly.
Under 765 Ill. Comp. Stat. 705 § 4, landlords in Illinois are prohibited from requiring tenants or prospective tenants to pay any amount owed under a residential lease, renewal, or extension agreement exclusively through electronic funds transfer — including automatic recurring transfers such as ACH payments. The rule defines electronic funds transfer broadly to cover payments initiated via electronic terminal, telephone, computer, or magnetic tape, while excluding traditional paper instruments like checks. Violations of this provision are treated as unlawful practices under the Illinois Consumer Fraud and Deceptive Business Practices Act, with enforcement applying to leases and agreements executed after the law's effective date.
Plain English — not legal advice.
Property owners and managers operating under 765 Ill. Comp. Stat. 705 § 4 generally ensure that their lease agreements, renewals, and extensions offer tenants at least one payment method that is not an electronic funds transfer — such as check, money order, or another paper-based instrument. Compliant operators review any lease templates or payment portal policies to confirm that electronic payment is presented as an option rather than a mandate. Because the provision applies to agreements executed after the law's effective date, operators typically audit newly drafted leases to remove any language that could be read as requiring EFT-only payment.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 765 Ill. Comp. Stat. 705 § 4, tenants and prospective tenants have the right to refuse a landlord's demand that rent or other lease-related amounts be paid solely through electronic funds transfer, including automatic recurring bank transfers. If a landlord insists on EFT-only payment in a lease executed after the law's effective date, that conduct may constitute an unlawful practice under the Illinois Consumer Fraud and Deceptive Business Practices Act. Tenants who believe this provision has been violated can explore options such as filing a complaint with the Illinois Attorney General's Consumer Protection Division or consulting a tenant-rights organization for guidance on available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.