Posted June 02, 2010 by Karen K. Harris
Illinois, with the passage of HB 537, was one step closer to the payday loan reform law this week.
Currently, Illinois law, payday lenders, the bay has been used to avoid consumer protection, has a toxic loophole as big as the bottom of the fissure eruption. Attempts to reform the payday lending in 2005 to limit the number of loans previously could take a year to twice the upper limit imposed on the borrower and the loan interest rate less than 120 days. Check out also installment only payday loans . Payday lenders, by simply increasing the duration of their loan to escape these restrictions.
Payday loans arePredatory
As security for the individual to use the term post-dated checks, high-interest loans. Payday loan is a growing problem in the mid-1990s the country was in the shop just a few hundred payday loan, payday loan stores in more than 20,000 by 2009 and the U.S. was established in neighboring
Many payday loan trap, measures to limit the cycle of debt that is desperately desired by consumers. Check out also instant cash advance pittsburgh pa . NPR's report more informative and enjoyablePlanet Money
Huge cost of the process and continue to roll over their loans, 60% of payday lenders' revenue, estimated to come from repeat customers rack.
May 26 (Wednesday), to close this loophole in the law,HB 537
, The only one 1 "no" was passed by both houses of the Illinois General Assembly to vote. This part of the compromise, the two state laws that provide stronger consumer protection for high-cost loans, the payday loan reform law and consumer installment loan law will be overhauled.
HB 537 was closed a loophole for it.
Illinois, to correct this mistake, you may suppress predatory lenders in the end. Consumers should encourage Governor Quinn to sign the HB 537 immediately. See Also installment loans in new jersey .
This post Hannah Weinberger - was co-authored by Divack.