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New law to protect consumers from payday loans Protecting
consumers against unscrupulous payday loan lenders is the aim of a
new law that took effect Dec. 6.
Payday loans become a problem when consumers cannot repay after
borrowing a substantial amount against their paychecks. Instead,
consumers renew the loan and pay additional fees.
House Bill 1100:
- Limits the interest that can be charged for each loan to
$15.50 per $100.
- Sets a cap on total loan amounts to $1,000 or 25 percent of
a customer's monthly salary, whichever is less.
- Prevents borrowers from having more than two payday loans at
a time.
- Provides that payday borrowers cannot have payday loans for
more than 45 days. Once they have reached the 45-day limit, they
must have at least a seven-day loan-free period.
- Creates a new 56-day repayment period with no additional
interest charges, for borrowers who have trouble repaying their
loans.
- Protects borrowers from paying attorney fees and court
costs.
- Extends a special protection to members of the military,
including a ban on garnishing wages, deferral of collections for
deployed personnel and a prohibition on contacting a borrower's
commanding officer.
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 Coordinated efforts will help keep Illinoisans warm this winter
Illinois business, government and charitable groups are working
together to help Illinois citizens stay warm this winter.
The Keep Warm
Illinois campaign is a comprehensive effort to inform and
prepare residents -- especially senior citizens, families with small
children and people with disabilities -- for an anticipated home
heating crisis triggered by record-high energy prices.
The campaign's efforts -- including clothing drives, workshops on
energy saving, Winter Assistance Days and statewide warming centers
-- are coordinated by the governor's Office of Emergency Energy
Assistance, the Illinois Department on Aging, the Department of
Healthcare and Family Services, the Department of Human Services,
the Department of Commerce and Economic Opportunity, and the
Illinois Emergency Management Agency.
The United Way of Illinois and the Chicagoland Chamber of
Commerce have also pledged to identify and assist other businesses
and social service organizations willing to commit resources to the
Keep Warm Illinois campaign's energy conservation and assistance
efforts.
[From
Sen. Bill Brady] |
