Illinois Passes Pay Day Loan Reform Act
By Roman ParchowskyPayday Loan Writer
Last month Illinois Gov. Rod Blagojevich signed a bill regulating predatory lenders into law.
The state’s Pay Day Loan Reform Act established loan limits based on income and outstanding debt. Borrowers will be limited to receiving instant payday loans of $1,000, or 25 percent of their gross monthly income.
The legislation also limits time for repayment to 45 days and interest to 15 percent per $100 borrowed. Previously, lenders could charge up to 1000% interest!
Additionally, consumers would be limited to two loans statewide at any given time.
February 15th, 2006 at 2:08 pm
[…] Streator, Illinois — Ginny McCauley, a Streator, Illinois woman, was on hand last month as Gov. Rod Blagojevich signed legislation that put stricter limits on the Illinois payday loan industry (House Bill 1100). […]
April 3rd, 2006 at 1:58 pm
[…] All four stores discarded disclosure statements that stores must give consumers under the 2005 Payday Loan Reform Act, the Illinois Department of Financial and Professional Regulations alleged. […]
April 6th, 2006 at 8:49 am
[…] Before these rules were in place, payday loans were only regulated by the Consumer Installment Loan Act, a relatively permissive law. The act, for example, does not mandate verifying Social Security numbers before accepting a loan application, while the Payday Loan Reform Act does. […]
May 6th, 2006 at 4:11 pm
[…] State Rep. David Miller, D-Calumet City, said Gov. Rod Blagojevich signed a bill in June 2005 regulating payday loan companies. The bill, sponsored by Miller, aims to protect customers from the payday loan industry. […]