Illinois has become the latest state to pass a law capping interest on payday loans.
Beginning in March, 2011, loans with terms of six months or less may not be priced at rates of greater than $15.50 per $100 borrowed every two weeks. The new law also requires that a payday loan borrower must be completely out of payday loan debt after 180 days paying off the loan and prohibits balloon payments.
Lenders would also have to limit loan repayments to no more than 25% of a borrowers gross monthly income and the new law forbids adding post-default interest, fees for court costs and attorney's fees to the costs of a payday loan.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
