Illinois: Payday Lenders Bypassed Regulation by Lengthening the word associated with the Loans They Provided

Illinois: Payday Lenders Bypassed Regulation by Lengthening the word associated with the Loans They Provided

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  • 2000: Illinois Passed Law To Rein In Payday Lenders With Law Regulating Loans With Terms Significantly Less Than 1 month; Payday Lenders Bypassed the statutory law By Expanding The Size Of The Loan To 31 Days.

    “In 2000, Governor Ryan finalized a legislation built to rein when you look at the increase that is rapid temporary payday advances. At that time the common period of a pay day loan was 14 to 28 times (one or two pay durations). As soon as the statutory legislation ended up being implemented in 2001, the guidelines just placed on loans of 1 month or less. The payday lending industry responded by expanding the size of the loan to 31 days or longer to circumvent a legislation which had attempted to protect customers. Continue reading “Illinois: Payday Lenders Bypassed Regulation by Lengthening the word associated with the Loans They Provided”