Payday Loans in Illinois
Posted on Tuesday, June 15th, 2010 at 12:55 pm in Cash Loan Info by State
The state of Illinois has a number of regulations in place to protect consumers from abusing short term cash advance loans and to ensure that payday loan lenders employ fair and honest collection practices with their borrowers. While the payday loan industry is respected for providing credit to deserving individuals who may otherwise have trouble securing a loan for the cash they need, some corrupt lenders do exist as can happen with any financial institution. Payday loan laws in Illinois were established to protect both sides of payday lending – borrowers and lenders alike.
The state of Illinois caps the maximum payday loan amount at either $1,000 or 25% of a borrower’s monthly income, whichever amount is less. This protects consumers from over borrowing and needing to roll over their payday loan increasing their lender’s fees and annual percentage rate or take out another loan to pay back the first one. Limiting the cash advance loan amount to 25% of a person’s income ensures that they will be able to comfortably repay the loan on time and still have enough of their paycheck left over for the rest of their monthly expenses. The lending period allowed by Illinois payday loan laws is 15 to 45 days.
Payday loan laws in Illinois may be seeing further reform. In May 2010, the Senate passed a bill allowing payday loan lenders to extend their lending periods only if they allow borrowers to repay the loan amount in a minimum of 6 equal installments. This encourages more responsible borrowing behavior in consumers, easing the burden of repaying an instant cash loan and ends potential abuses by less honest payday loan lenders who might overcharge consumers with higher annual percentage rates for paying by installment instead of with a lump sum at the end of the month.
Payday loan laws in Illinois are designed to make payday loans easier and more accessible for consumers who need emergency cash.
Payday Loan Lenders in Illinois:
Chicago Cash Advances
875 W Fulton St
Chicago IL 60607
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