CCI celebrates Predatory Loan Prevention Act law that is becoming

CCI celebrates Predatory Loan Prevention Act law that is becoming

Tuesday, Mar 23, 2021

First Page News

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 percentage that is annual (APR) on predatory loans, such as for instance payday and automobile name loans, at 36%. Illinois becomes the eighteenth state to cap APRs at 36per cent, together with the District of Columbia.

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

Browse the news release given by the teams below.

Predatory Loan Prevention Act Signed into Law

Advocates, company, community, and faith leaders celebrate 36% rate of interest limit on loans; applaud Illinois Black 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 significant milestone for economic equity in Illinois and possibly sets the stage for any other states to follow along with. Years when you look at the making, advocates—including a varied coalition of 150 nonprofits, civil rights groups, loan providers, faith leaders, and elected officials—applaud the task and eyesight set by the Illinois Black Legislative Caucus that helped result in the bill that is standard-bearing in a vital economic 12 months for countless.

The PLPA establishes a 36% APR cap on customer loans in Illinois, supplying defenses against pay day loans, installment loans, and automobile name loans, making more cash in families’ pouches to pay into the regional economy and produce local jobs. Illinois customers save money than $400 million each year in payday and car name loan costs, and also the APR that is average a cash advance had been 297%. Both industry and customer advocates agree totally that the PLPA may have nationwide implications, increasing the bar on state protections that are usury.

“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 of this Legislative Ebony Caucus, Illinois is certainly going from being home for some regarding the worst abuses in the market to setting a unique club in customer economic protection.”

Decreasing the racial wealth space is just a key concept of this PLPA: because individuals staying in communities of color pay over 2.5 times the maximum amount of per capita in costs as individuals residing in bulk White communities, the cost savings through the 36% price limit will somewhat benefit Ebony and Brown communities. The recently released Woodstock Institute report on jobs also demonstrates that more jobs will soon be added as being outcome associated with the PLPA.

SB1792 had been championed when you look at the legislature by Senator Jacqueline Collins (Assistant Majority Leader), Representative Sonya Harper (seat for the Illinois Legislative Ebony Caucus), and Senator Christopher Belt. The PLPA had broad bipartisan help, including almost all House Republicans and many Republicans within 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 for the PLPA and a long-time advocate for cash loan payday Arizona customer economic security. “The PLPA’s 36% price limit strikes the right balance between usage of safe and affordable credit regarding the one hand and defense against predatory financing on the other side.”

“This is yet another, essential action toward overcoming a few of the racial inequities which have overburdened communities of color inside our state for many years,” 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 thrilled that this legislation happens to be finalized into legislation.”

The signing associated with PLPA now opens up room for alternate loan providers such as for instance 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 harm 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 offers an unique chance for company, faith, and community leaders to share with you more details on short-term loans. The PLPA advocacy team also developed a reference guide that can help borrowers in considering their choices moving forward. In the meantime, opposition teams and predatory loan providers seem to be pushing“trailer that is hostile” and loopholes. Woodstock Institute as well as the PLPA coalition users continue steadily to break the rules on such efforts, including supplying this known reality sheet for a loophole being backed by high-cost installment loan providers.

Among the list of lead businesses advocating for passage through of the PLPA are AARP, the Catholic Conference of Illinois, Chicago Urban League, Illinois People’s Action, Capital Good Fund, the Illinois resource Building Group, Heartland Alliance, Illinois PIRG, brand new America, Citizen Action/Illinois, the United states Fintech Association, and Woodstock Institute.

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