Illinois Attorney General Files Lawsuit
Due to deceptive collection practices and threatening with abusive language while attempting to collect debts for a payday loan company a Jacksonville, Florida collection agency has been sued.
Section
Payday Loans in Illinois
Payday Loan Laws in Illinois (2026)
High-cost payday loans are effectively gone in Illinois. The 2021 Predatory Loan Prevention Act caps the APR on virtually all consumer loans at 36%, using the same all-in “Military APR” math that protects service members. Any loan above 36% is null and void — so traditional payday lenders, who charged triple-digit rates, have largely closed.
| Status | Legal, but capped at 36% APR — high-cost payday effectively ended |
|---|---|
| APR cap | 36%, all-inclusive (Predatory Loan Prevention Act, 2021) |
| How it's measured | “Military APR” — includes interest and most fees |
| Loans above the cap | Null and void; lender faces civil penalties |
| Effect | Licensed payday storefronts fell from hundreds to near zero |
| Regulator | Illinois Department of Financial and Professional Regulation (IDFPR) |
| Law | Predatory Loan Prevention Act, 815 ILCS 123 (2021) |
What Illinois's 36% cap means for you
- Every consumer lender in Illinois is limited to a 36% all-in APR — interest and most fees combined.
- A loan that exceeds 36% is null and void: the lender can't collect principal or interest, and faces penalties of up to $10,000 per violation.
- The cap closed the two-week triple-digit payday loan; most storefront payday lenders left the state after 2021.
- If a lender offers you a payday loan above 36% APR, it is breaking Illinois law — report it to the IDFPR.
Problem with a lender? File a complaint
Consumer lending in Illinois is overseen by the IDFPR. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
With the 36% cap, look to a credit-union small loan or payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling. See our guide to payday loans and alternatives.
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Illinois Department of Financial and Professional Regulation (IDFPR) before borrowing. Last reviewed 2026.
Sources
Frequently asked
Are payday loans legal in Illinois?
They are legal in name, but the 2021 Predatory Loan Prevention Act caps all consumer loans at 36% APR, which made the traditional high-cost payday product unprofitable — so it has largely disappeared.
What is Illinois's payday loan interest cap?
36% APR, measured with the all-in “Military APR” method that counts interest and most fees. Any loan above 36% is null and void.
Can I still get a payday loan in Illinois?
Not the old two-week, triple-digit kind. Lenders may only offer loans within the 36% cap, so most payday storefronts have closed.
Who regulates consumer lending in Illinois?
The Illinois Department of Financial and Professional Regulation (IDFPR).
Latest Illinois coverage
Illinois
Illinois Payday Loan Reform: Mixed Results
A state study found that a 2005 law regulating Illinois payday loans saved borrowers $20.6 million in loan fees and interest charges over 18 months.
Illinois
Decatur Attorney General Speaks About Payday Loans
Each time 57-year-old Ruby Price had to take out a payday loan, it cost her dearly.