On March 21st, Illinois will have a new payday loan law. The law stems from HB 537 (House bill). There is some confusion out there b/c there will be two products. One is a single payment product. This has a pricing of $15.50 / $100 and the borrower can only be in debt for 45 […]
Category Archives: Illinois
Illinois Gov. signs payday loan bill
Gov. Pat Quinn signed into law a bill that will cap rates for installment loans in Illinois. The new law caps loans under $4k to 99% and over $4k at 36%. The way Illinois works, a law goes into effect 9 months after it’s signed. This would make this bill “live” on April 21, 2011. […]
Posted in Illinois
Cheklist article about installment lending
Just read a new Cheklist magazine article titled “Installment Lending: The Next Step“. It has some good information about Illinois, Wisconsin, CFPA, class action lawsuits and Internet lending. Bob Wolfberg of PLS Financial makes a good point. “Unfortunately, our story relates to the old saying, a truth takes longer to explain than a lie. Our […]
Posted in Illinois
Illinois has new payday loan laws
It’s official. Illinois has a new consumer loan laws. The House voted 108-1-1 to pass House Bill 537. The governor has 90 days to sign it, so we should be looking at this bill becoming effective in about one year (between April 1 – May 1, 2010.) We have 3 products today: PLRA 14-day product […]
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Payday reform bill on verge of passing statehouse
This comes from Crain’s Chicago. “Compromise legislation to overhaul two state laws—the Consumer Installment Loan Act and the Payday Loan Reform Act—cleared the state Senate last week on a 58-1 vote and is pending in the House. Representatives of both consumer groups and lenders, which have battled for three years to close what critics have […]
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Quiet in Illinois
HB 537 has until tomorrow to pass. This bill will cap rates on installment loans to 99% among other things. This bill is not supported by the CFSA or ISLA in Illinois. If the bill passes, all cash advance lenders will have to start offering payday loans, which are regulated to allow. Loan Terms: Maximum […]
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Illinois bill has until May 7th to pass
Senate bill 655 has until May 7th to pass. Illinois currently has two models for the cash advance industry. The first model is offering payday loans and has a state database. The other model is offering installment loans. This bill will cap rates on loans greater than 121 days to 99%. Practically everyone, including the […]
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Thought provoking article on Illinois
This article titled “Americash Takes Its Cash-Strapped Customers To Court” totally bashes cash advance lenders in Illinois. It’s main gripe is that most lenders are offering loans greater than 120, so they do not fall under some prohibitive payday loan laws. This article attacks Americash, who is a big player in Illinois, for taking borrowers […]
Posted in Illinois
Illinois payday loan industry clashes
The HB 537. What’s interesting about this bill is that it puts 2 groups on opposing sides. CFSA is supporting the bill that would cap non-payday installment loans to 99% APR, while ISLA (Illinois Small Loan Association) is against it. The last time these two organization butted heads, the CFSA won and payday loan […]
Posted in Illinois
Atleast $70k fraudulent Internet loans
“A temporary employee for AT&T was arrested today on charges she stole personal information on 2,100 co-workers and then pocketed more than $70,000 by taking out short-term payday loans in the names of 130 of them.”That’s pretty scary. I wonder what the lenders could have done differently. Didn’t they realize that all the money was […]
Also posted in fraud, Internet Lending
