Legislature fails to curb pay-day loans
Usury is alive and well in Illinois.
As the Springfield legislative session wrapped up, it failed for a second year in a row to close the loophole in Illinois law that is allowing payday lenders to put hardworking families into long term loans that charge up to 700 percent APR.
At the same time the governor of Ohio just signed a bill that will take effect in 90 days and will limit pay-day loan rates in Ohio to 28 percent APR.
The payday lenders will most likely leave Ohio, and Illinois will be here to welcome them with open arms.
Two key consumer champions, State Sen. Kimberly Lightford (D-Maywood) and State Rep. Julie Hamos (D-Evanston), will be working over the upcoming months to fix the predatory lending problem that continues to fester in our state.
The Monsignor John Egan Coalition for Payday Loan Reform will work with these leaders and others who support lending rate caps.
Ohio, Oregon, New Hampshire, Arkansas, Pennsylvania and Washington DC all successfully took action in the past year to crack down on high-cost lending.
Illinois' continued inaction moves us toward becoming the national breeding ground for usury.
To prevent this from occurring, leadership from all levels of both political parties in Illinois must take a bold stand to support reasonable rate caps.
Nothing short of reasonable rate regulation will prevent the predators from coming to Illinois to roost.
Lynda DeLaforgue
Co-Director
Citizen Action/Illinois
Chicago