Illinois

Currently Illinois has no laws regulating payday loan practices. However, in 1999 there were two bills introduced to the Illinois legislature in hopes limiting the amount of rollovers on payday loans.

The SB1275 bill, which was sponsored by State Sen. Patrick O’Malley, would force payday lenders to openly disclose their loan rates and allow customers to repay their debts in partial payments. The Illinois bill would also prohibit payday loan stores from being established near casinos, race tracks, or college campuses.

Unfortunately the Illinois bill failed on the senate floor. Mainly because of the strong lobbying presence of the payday loan industry.

Illinois is just one of thirteen states that does not regulate payday loans. Thirty-eight states and two territories currently have laws that limit interest rates. Eleven states have laws that prohibit customers from refinancing or rolling over their payday loan. Currently payday loan lenders in Illinois charge an average annual percent rate (APR) of 521%. Also in Illinois, there are no limits on extensions. A customer can roll over a loan as many times as they want.