Illinois passes landmark bill to prevent predatory lending

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Aaron Colonnese
Creative Associate

Author: Aaron Colonnese

Creative Associate

 

Started on staff: 2020
B.A., Brown University

Aaron writes and designs materials with the Creative Team for The Public Interest Network for U.S. PIRG. Aaron lives in Arlington, Massachusetts, and spends his spare time playing drums and going for long walks.

Illinois is on the verge of enacting crucial protections for consumers against predatory loans.

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.

“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. Harper and Sens. Belt and Collins for championing consumer protection, and we urge Gov. Pritzker to sign the Predatory Loan Prevention Act into law.”

Read our press release here.

Learn more about our other PIRG Consumer Watchdog campaigns here.

Photo: Payday loan interest rates in Illinois average nearly 300 percent — a debt trap that the Predatory Loan Prevention Act seeks to end. Credit: Tony Webster via Flickr, CC BY 2.0

Aaron Colonnese
Creative Associate

Author: Aaron Colonnese

Creative Associate

 

Started on staff: 2020
B.A., Brown University

Aaron writes and designs materials with the Creative Team for The Public Interest Network for U.S. PIRG. Aaron lives in Arlington, Massachusetts, and spends his spare time playing drums and going for long walks.