CCI celebrates Predatory Loan Prevention Act law that is becoming

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September 4, 2021

Tuesday, Mar 23, 2021

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The Catholic Conference of Illinois is proud to announce that Gov. J.B. Pritzker today finalized into legislation Senate Bill 1792, creating the Predatory Loan Prevention Act, which caps the apr (APR) on predatory loans, such as for instance payday and automobile name loans, at 36%. Illinois becomes the state that is 18th cap APRs at 36per cent, combined with District of Columbia.

CCI joined up with other justice that is social teams in pressing passing of the legislation through the January lame-duck session, and celebrates the governor’s action today.

See the pr release granted by the combined teams below.

Predatory Loan Prevention Act Signed into Law

Advocates, business, community, and faith leaders celebrate 36% rate of interest limit on loans; applaud Illinois Ebony Caucus for leading equity pillar that is economic

CHICAGO (March 23, 2021)—The Predatory Loan Prevention Act (SB1792 – PLPA), finalized into legislation by Governor Pritzker today, marks a milestone that is significant economic equity in Illinois and possibly sets the stage for any other states to follow along with. Years when you look at the generating, payday loans in New Hampshire advocates—including a varied coalition of 150 nonprofits, civil liberties teams, loan providers, faith leaders, and elected officials—applaud the job and eyesight set because of the Illinois Ebony Legislative Caucus that helped result in the bill that is standard-bearing in a critical economic year for a lot of.

The PLPA establishes a 36% APR limit on customer loans in Illinois, supplying defenses against pay day loans, installment loans, and automobile title loans, making additional money in families’ pouches to pay when you look at the economy that is local produce local jobs. Illinois consumers save money than $400 million each year in payday and car name loan costs, as well as the average APR on a cash advance had been 297%. Both industry and customer advocates agree totally that the PLPA may have national implications, raising the club on state usury defenses.

“Today could be the culmination of over two decades of advocacy,” said Brent Adams, Senior Vice President of Policy & Communication at Woodstock Institute. “Thanks to your leadership regarding the Legislative Ebony Caucus, Illinois is certainly going from being home for some associated with worst abuses in the market to establishing a brand new club in consumer economic protection.”

Decreasing the racial wide range gap is a key concept associated with PLPA: because individuals surviving in communities of color pay over 2.5 times just as much per capita in charges as individuals staying in majority White communities, the cost savings through the 36% price cap will considerably gain Ebony and Brown communities. The recently released Woodstock Institute report on jobs additionally demonstrates that more jobs will undoubtedly be added as being outcome of this PLPA.

SB1792 had been championed within the legislature by Senator Jacqueline Collins (Assistant Majority Leader), Representative Sonya Harper (seat regarding the Illinois Legislative Ebony Caucus), and Senator Christopher Belt. The PLPA had broad bipartisan support, including the majority of House Republicans and many Republicans into the Senate, including Minority Leader Dan McConchie.

“For over 35 years, legalized loan sharking in Illinois has sapped huge amounts of bucks from low income and Ebony and Brown communities,” said Assistant Majority Leader Jacqueline Collins, a primary sponsor associated with the PLPA and a long-time advocate for customer economic protection. “The PLPA’s 36% price limit hits the balance that is right use of safe and affordable credit in the one hand and defense against predatory financing on the other side.”

“This is yet another, crucial action toward conquering a number of the racial inequities which have overburdened communities of color within our state for a long time,” said Illinois Rep. Sonya Harper, (D-Chicago). “The disproportionate effect of the excessive charges happens to be among the numerous facets which have added to Illinois’ racial wealth gap. We have been delighted that this legislation happens to be signed into legislation.”

The signing associated with the PLPA now starts up space for alternate loan providers such as for example Capital Good Fund. Like us,” says Capital Good Fund founder and CEO Andy Posner“ I am delighted that Governor Pritzker has taken action to protect lower-income Illinois residents and level the playing field for equitable lenders. Every time we come across the tremendous damage done to families by predatory lenders.“As a nonprofit delivering loans that act as a substitute for high-double and triple-digit interest services and products”

It provides an opportunity that is unique company, faith, and community leaders to generally share extra information on short-term loans. The PLPA advocacy team additionally developed a reference guide that will aid borrowers in evaluating their options in the years ahead. For the time being, opposition teams and predatory loan providers are generally pushing“trailer that is hostile” and loopholes. Woodstock Institute in addition to PLPA coalition members continue steadily to break the rules on such efforts, including supplying this reality sheet on a loophole being backed by high-cost installment lenders.

The Catholic Conference of Illinois, Chicago Urban League, Illinois People’s Action, Capital Good Fund, the Illinois Asset Building Group, Heartland Alliance, Illinois PIRG, New America, Citizen Action/Illinois, the American Fintech Association, and Woodstock Institute among the lead organizations advocating for passage of the PLPA are AARP.

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