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Woodstock Institute released new polling data that shows
overwhelming consumer support for the 36% rate cap implemented
by the Predatory Loan Prevention Act (PLPA) of 2021.
“Ninety-five percent of former payday loan recipients support a
rate cap of 36% or lower, providing further evidence that
triple-digit interest loans exist to exploit rather than help
cash-strapped borrowers,” said Horacio Mendez, president and CEO
of Woodstock Institute.
According to the poll, 80% of respondents indicated support for
Illinois to adopt a rate cap lower than 36%.
“In the year after the PLPA was passed, we found that consumers
had saved over $600 million in loans, loan fees and interest,”
said Mendez.
David Mermin with Lake Research Partners, who assisted with the
polling, said they also contacted Illinoisans who took out
high-interest loans before the law was implemented to find out
the effects it had on their household budgets.
“They started to cut back on necessities such as food, medical
care and prescription drugs, being unable to pay rent, mortgage
or other bills on time, and having to take money out of
long-term savings,” said Mermin. “It’s also clear that those who
previously received high-interest loans are finding other ways
to borrow when they need it, and do not pine for the days of
predatory lending in Illinois.”
Lawmakers initially intended the law to include pawn shops, but
they weren’t specifically mentioned in the act. The Illinois
Pawnbrokers Association then won an injunction in Sangamon
County Court in Springfield to prevent the law from applying to
them.
The poll was conducted by live telephone and text-to-online
interviews and reached a total of 500 Illinois likely voters and
200 additional adults in Illinois who report having taken out a
payday or auto title loan since 2019.
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