Information Release. Historic legislation to avoid loans that are predatory Illinois General Assembly

Contact

Historic legislation to avoid predatory loans passes Illinois General Assembly

The Illinois General Assembly passed the Predatory Loan Prevention Act today, that may implement a 36 per cent rate of interest limit on consumer loans, including payday and car name loans. The legislation, SB1792, which passed by having a Alabama personal loan uses bipartisan vote in both chambers, ended up being filed within the Illinois Legislative Ebony Caucus’ economic equity omnibus bill, and had been sponsored by Rep. Sonya Harper and Sen. Chris Belt. Senator Jacqueline Collins, seat associated with the Senate banking institutions, spearheaded the broad coalition that supported the measure.

In Illinois, the common apr (APR) on an online payday loan is 297 %, while the normal APR on a car name loan is 179 %. Federal legislation currently protects active-duty military with a 36 % APR limit. This bill would expand the exact same protection to Illinois veterans and all sorts of other customers. Seventeen states as well as the District of Columbia have actually 36 per cent caps or reduced.

A coalition in excess of 50 customer, faith, work, community and civil liberties companies, along side finance institutions, Secretary of State Jesse White, Treasurer Michael Frerichs, Cook County Board President Toni Preckwinkle, an additionally the workplaces associated with the Illinois Treasurer and Secretary of State, offer the legislation (complete list at bottom).

In reaction, advocates from Woodstock Institute, Heartland Alliance, Illinois PIRG, Capital Good Fund, and AARP Illinois made the statements that are following

“Today could be the culmination of two decades of work by customer advocates. Bővebben