Payday Reform Expected To Pass House
By aaroncynic in News on May 11, 2010 7:00PM
Photo by Mark Mullis
Lynda DeLaforgue, co-director of Citizen Action Illinois celebrated the legislation, which is expected to pass the House when lawmakers come back later this month saying “We will for the first time have set rates on these unsecured loans made to the most vulnerable borrowers.” Payday loan businesses have come under fire for charging incredibly high interest rates and preying on lower income people. Predictably, one of Illinois’ biggest lenders, PLS Financial Services was displeased and are reportedly considering moving their headquarters out of state.
While the Payday loan industry might bemoan the measure, the bill itself is a more moderate compromise. According to Progress Illinois, a 99% is still high by conventional standards. In addition, limits set by the 2005 Payday Loan Act, such as charging no more than $15.50 per $100 loaned in a two week period remain the same.