101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
Introduced , by Rep. Mary Edly-Allen
SYNOPSIS AS INTRODUCED:
Amends the Payday Loan Reform Act. Provides that the finance charge
for a payday loan shall not exceed an annual percentage rate of 39%.
A BILL FOR
|HB5341||LRB101 18979 JLS 68438 b|
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Payday Loan Reform Act is amended by
changing Section 2-5 as follows:
(815 ILCS 122/2-5)
(a) Without affecting the right of a consumer to prepay at
any time without cost or penalty, no payday loan may have a
minimum term of less than 13 days.
Notwithstanding any other
provision of this Act, the finance charge for a payday loan,
including an installment payday loan, shall not exceed an
annual percentage rate of 39%.
(b) Except for an installment payday loan as defined in
no payday loan may be made to a consumer if the
loan would result in the consumer being indebted to one or more
payday lenders for a period in excess of 45 consecutive days.
Except as provided under subsection (c) of this Section and
Section 2-40, if a consumer has or has had loans outstanding
for a period in excess of 45 consecutive days, no payday lender
may offer or make a loan to the consumer for at least 7
calendar days after the date on which the outstanding balance
of all payday loans made during the 45 consecutive day period