Illinois Passes Pay Day Loan Reform Act
Historical archive, first published 2005 — payday-lending laws and rates have changed since. Preserved for the record.
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.