Illinois consumers will soon enjoy new PIRG-backed protections against predatory lenders.
On Jan. 13, the Illinois General Assembly passed the Predatory Loan Prevention Act, which will institute a 36 percent interest rate cap on consumer loans, including payday and car title loans. Too often, these loans trap borrowers in cycles of debt through excessive and predatory interest rates — for example, the average annual percentage rate on a payday loan in Illinois is 297 percent.
Filed as part of the Illinois Legislative Black Caucus’ economic equity omnibus bill, the act passed with bipartisan support and was endorsed by more than 50 consumer, labor, community and civil rights organizations. Gov. J.B. Pritzker signed the bill into law on March 23.
“This legislation will ensure more Illinoisans land on their feet, not their backs, after taking out a small loan in a time of need," said Illinois PIRG State Director Abe Scarr. "We applaud Rep. Sonya Harper and Sens. Christopher Belt and Jacqueline Collins for championing consumer protection.”
Read our press release here.
Learn more about our other PIRG Consumer Watchdog campaigns here.