Pay
day loans are very
popular in Illinois
which is a state
of United States
of America. Illinois
Gov Blagojevich
signed a landmark
Payday Loan Reform
Act on June 9, 2005
that for the first
time will regulate
the payday loan
industry in Illinois
and strengthen protection
to consumers. He
made sure payday
lending was legal
and would remain
in the state. Illinois
is the only state
with a cap on payday
loans but no cap
on longer-term loans.
According to Illinois
Payday Loans reform
law all payday lenders
must be licensed.
The
Payday Loan Reform
Act provides consumer
protection which
is as follows:
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.
This
Act Also:
Extends special
protections to members
of the military,
including a ban
on garnishing wages,
deferral of collections
for deployed personnel.
