Illinois Payday Loan Industry Continues to Flourish
By J.J. CameronPayday Loan Writer
With payday loan restrictions being shot down in Illinois, the cash advance industry continues to make money in the state.
Illinois Attorney General Lisa Madigan and Thomas James, senior assistant attorney general in the office's consumer fraud bureau, spoke to community leaders gathered at the Peoria County Courthouse. Their main concern? Overall predatory lending.
"When people come to you seeking advice on financing a car or a mortgage, you can give them advice so they don't end up defrauded and getting into loans they can't afford," she said.
Minorities and women especially are targeted by these faxless payday loan lenders. One document distributed by Madigan defines predatory lending as "making a loan that the borrower does not need, does not want or cannot afford. The primary benefit of the loan always goes to the lender, not the borrower."
Practices included within this predatory field include:
- Auto financing by dealers that charge interest rates much higher than a person would get from a bank or credit union.
- Payday loans - such as no fax needed payday loans - with extremely high interest rates.
- Mortgage practices including use of high fees and deceptive paperwork to disguise the true amount of the loan, as well as interest-only loans, balloon payments, some adjustable rate mortgages, prepayment penalties, and the newest scheme, option payments.
We'll keep you apprised of devolpment regarding these mortgages and other cash loan changes in the state.
