January 13, 2021
For Immediate Release:
Ill. Legislature Passes Critical Protections to Halt Abusive High-Cost Loans
Today, both chambers of the Illinois General Assembly passed the Predatory Loan Prevention Act in SB1792,which would prohibit lenders in Illinois from charging more than 36% APR on consumer loans. Gov. Pritzker is expected to sign it into law.
Below are the statements of the National Association of Consumer Advocates’ Illinois Co-Chairs Angie Robertson and Steven Uhrich:
Angie Robertson, Palos Hills – “We applaud the Illinois General Assembly for coming together and taking action to enact this vital consumer protection. For too long, payday and car title lenders have been allowed to get away with charging Illinois consumers triple-digit interest rates on small dollar loans. This predatory practice has siphoned billions of dollars of wealth out of communities and trapped tens of thousands of vulnerable households in a cycle of debt. Now, during the trying times brought by COVID-19, high-interest loans can be especially destabilizing. This important legislation will help put money back in the pockets of struggling Illinois residents when they need it most.”
Steven Uhrich, Chicago – “Illinois is finally on its way to joining the 17 states and Washington, D.C. that have already capped interest rates on consumer loans at 36% or below. Predatory lending has made a significant negative impact on Illinois’s consumers and been a factor in the economic inequality plaguing our state. We welcome this new protection for consumers and hope it is a step towards building a better Illinois.”