Those looking to take out a payday loan in Illinois might run into a difficult time this year. As part of a number of brand new legislation aimed to resolve budget failure problems, the Illinois General Assembly enacted a brand new law in an effort to curb cash advance and fill up several of the perceived gaps in previous cash advance legislation. A bill was also enacted in order to lessen the complicated amount of salary theft, which is increasing in the state. These new laws and regulations over Illinois pay day cash advance seem to be a part of a recent trend, as other states are also passing laws trying to restrain payday advances.
The completely new payday lending law in Illinois, HB 537, passed through each houses of the legislature unanimously and reins in the companies in many ways. For starters, they could be prevented from asking more than 99 percent interest. This is seen as a big difference, although cash advance interest amount is generally calculated rather deceptively. Also, cash advance amounts will possibly be set at earnings level, and equivalent payment per month cash advance payments will be needed as well. Though the changes are not particularly radical, they would certainly affect both providers and consumers in several ways.
SB 3568 Strives to Curb Increasing Wage Theft
Additionally to the most recent payday lending legal guidelines, the Illinois General Assembly furthermore passed a new bill, SB 3568, which could make it easier for workers to report paycheck theft of $3000 or less. Last year, there were over 10000 reported instances of wage theft, and since this is a major issue that definitely adds to increased payday lending, the bill is expected to help resolve predatory cycles. Statistics show at the moment that employers across the state owe a lot more than $7 million. To prevent this specific number from increasing even more, the bill may also ensure it is a felony for an employer to be able to owe $500 or more in back wages.
Payday Loan Options in the Wake of Illinois' New Laws
In the wake of Illinois' groundbreaking payday lending legislation, residents in Chicago or Peoria looking to take out a cash loan may find it more difficult, though possible, to do so. For all those in other states, however, it would not be surprising to find new cash advance legislation cropping up across the country, so if you can be in need of a payday loan, you should look into your state's laws and regulations and look out for different developments in state legislation.