Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Illinois payday loan law goes into effect Tuesday

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December 05, 2005

Illinois payday loan law goes into effect Tuesday

This Illinois state law imposes more restrictions on payday loans, we wrote about Illinois payday loans before, but here are the main points again:

- Fees on loans are capped at $15.50 per $100 borrowed, down from more than $40 on many loans.
- Loan amounts are capped at $1,000 or 25 percent of customers' monthly salary, whichever is smaller.
- Borrowers can have no more than two payday loans at a time.
- Loans can be taken out for no more than 45 days, and after that time borrowers must take a seven-day cooling off period before they can borrow more.
- Borrowers who have trouble paying off their loans have 56 days to repay with no extra interest charges.
- Borrowers are protected from facing criminal prosecution for unpaid loans and from paying legal fees and court costs.
- Members of the military are protected from having their wages garnished, deployed personnel get a deferral on paying back their loans and lenders cannot contact borrowers' commanding officers.

Posted in Payday Loans at December 5, 2005 11:04 PM

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