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 legislation passed.

It’s no secret, in Illinois, that most lenders are offering installment loans greater than 121 days.  After the payday loan reform act (PLRA) was passed in 2005 the majority of payday lenders stopped giving out payday loans and opted for an installment product.   The PLRA law limited borrowers to one loan and no renewals.

This situation is unique compared w/ other states that are fighting legislation, but the CFSA is going to have their hands full.  ISLA is no hump.  It has members like privately held, PLS Financial, which had $219M in revenues in 2009 and publicly held, The Cash Store with $150M in sales.

You can read more about this legislation in Progress Illinois.

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