If you lend in Illinois, the new title loan rules go into effect on April 1st. Here are some relevant points with regards to the new laws. Some of this is systems based while other parts is operational. The loan must be computed at simple interest and must be fully amortized. The maximum loan amount […]
Category Archives: Illinois
Fast Cash Loans Settles $2.5M Class Action Suit
Local news 5 broke the story regarding a $2.5M settlement by a payday lender, Pacific Financial Holding dba Fast Cash Loans. What’s remarkable is that the plantiff’s attoneys got 10,000 people to participate. I don’t know a lot about class action law suits, but each person will probably get $200 and the attorney’s will split […]
Also posted in Class Action, Washington
Everybody is regulating payday loans
If it’s not one government body, it’s another. The city of Springfield, Illinois passed an ordinance to require a minimum distance between payday loan stores. I don’t think this stuff works, except for creating less competition among lenders, which ultimately is bad for the consumer.
Posted in Illinois
Illinois Attorney General Goes after Payday Collection Agency
We run a business and are willing to pay for results. This case is the exception. AG, Lisa Madigan, has filed a lawsuit against a Jacksonville, FL collections company. Now, there are two sides to every story, but threatening a debtor with jail time and losing custody of their children is a line we cannot […]
Posted in Illinois
Payday Loan Reform Back in Illinois News
Republican Joan Krupa has nine days left in her term. She was beat by Democrat Aaron Schock in this year’s election. Ms. Krupa has introduced one single bill that has no chance of advancing. The bill wants to cap payday loan rates at 36%. Considering the fact that she will be out of Illinois politics […]
Also posted in Legislation
Mortgages, scape goats and the payday lender
People just believe what they want to believe. Having been part of the PDL industry for quite awhile, I’ll say that the payday loan product has absolutely nothing to do with the mortgage crisis. In the end, most of the people that consumer groups “look out for” don’t want to pay anyone back, if they […]
Also posted in national
Payday lenders are filling the huge credit gap
I wish everyone could borrow at 8% interest, but unfortunately, this is driven by our credit systems. The way things work is that you’re essentially placed in a risk group of similar borrowers. In this large group, the people that pay end up paying for the people that don’t pay. This is the single hardest […]
Posted in Illinois
Limits on payday lenders rejected
In Sprinfield, Illinois there will not be a restriction on payday lending stores. The city council rejected a measure that would require payday loan stores to be atleast 1500 feet from one another. Here is the full story. Putting these types of restrictions is justa bad idea all the way around, but especially for the […]
Also posted in Zoning
Opinion on capping rates at 36%
The Progress Illinois blog wrote a very thorough article on the current landscape of the sub-sub prime lending in Illinois. Below is the comment I left on their site. Here is the biggest problem in the industry. The people that pay have to pay for the people that don’t pay. There’s always two sides to […]
Also posted in rant
Payday loan bill bad for consumers
Bonnie Schoenberg wrote this story in today’s Daily Herald. I think her point is that more options are better than fewer options. You can get rid of payday lenders, but that would just benifit banks and credit card companies. The demand doesn’t go away. The payday issue is so polarized that people are failing to […]
Also posted in national
