Those searching to take out a payday advance in Illinois may run into a difficult time this year. As part of a bunch of fresh legislation directed to correct budget shortfall troubles, the Illinois General Assembly enacted a brand new law in an attempt to curb payday lending and fill up a few of the perceived breaks in previous payday lending legal guidelines. A bill was also passed to be able to lessen the troublesome amount of income theft, which is increasing in the state. These new rules over Illinois pay day cash advance appear to be a part of a recent trend, as other states are too passing laws seeking to be able to restrain payday advances.
The brand new payday lending law in Illinois, HB 537, gone through the two houses of the legislature unanimously and reins in the lenders in many ways. For starters, they can be prevented from asking more than 99 percent interest. This is seen as a positive change, although payday loan interest amount is often determined rather deceptively. Also, cash loan amounts will be set at income level, and matching monthly payment payday loan payments will be required as well. Though the changes are not particularly radical, they definitely will affect both companies and consumers in numerous ways.
SB 3568 Aims to Control Growing Wage Theft
In addition to the most recent payday loan lenders legislation, the Illinois General Assembly also passed a new bill, SB 3568, which can make it easier for workers to be able to report paycheck theft of $3000 or less. Last year, there were over 10000 reported cases of paycheck theft, and since this is certainly a major issue that absolutely adds to higher cash advance, the bill is predicted to help solve predatory cycles. It is estimated at present that employers across the state owe more than $7 million. In order to avoid this particular number from increasing further, the bill will also ensure it is a felony for an employer to owe $500 or more in back earnings.
Cash Advance Choices in the Wake of Illinois' New Laws
In the wake of Illinois' groundbreaking cash advance legislation, residents in Peoria or Chicago looking to take out a payday loan may find it more challenging, though not impossible, to do so. For all those in other states, however, it would not be surprising to locate new cash advance legislation cropping up across the nation, so if you can be in need of a cash advance, you should look into your state's regulations and watch out for different developments in state legislation.
