Illinois Payday Loans Legislators Pass Ground Breaking Legislation
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The Illinois payday loan reform act, sponsored by Rep. Robert W. Pritchard, Linda Chapa LaVia, Patrick J. Verschoore, Thomas Holbrook and Elaine Nekritz; allows a fee of $15 per $100 loaned. This Illinois payday loan product is partnered with the Veritec state database. Illinois a payday loans providers must limit the terms of their loan for a minimum of 13 days but no more than 45 days. The maximum amount of a payday loan in Illinois is $1000 or 25% of the borrower’s gross month income whichever is the least amount, and there is a maximum of two loans and a borrower can have at the same time under Illinois law. The law further stipulates that in the matter of payments and refunds that all payments shall be credited on the account record as of the date received and when a payment is made in cash, the licensee shall give a receipt to the consumer. A receipt is not required for payment by check or money order unless requested by the consumer. When any loan contract is paid in full, the licensee shall refund any unearned finance charge.
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Refunds of unearned finance charges for installments on Illinois payday loans shall be paid to the consumer in cash, check or an Automated Clearing House (ACH) debit. The unearned finance charge that is refunded shall be calculated based on a method that is at least as favorable to the consumer as the actuarial method, as defined by the federal Truth in this incorporation by reference includes no subsequent dates or editions). This is a great feature of the current law because it provides an opportunity for borrowers to repay a loan early and not incur any additional fees or penalties for doing so, the issue to this the borrower may also receive a refund on some of the expense incurred the loan. This law is going to go a long way in helping consumers warm to the possibility utilizing Illinois payday loans providers more so than what they may have probably done so in times past.
It appears that the governor of Illinois in the state legislature has put together a pretty comprehensive package to help the consumer’s in securing fair and equitable payday loans in time of financial need. This law will only be as effective as the consumers to take advantage of it. It is very important that consumers also come to the realization that a huge portion of the responsibility of whether or not they get a fair and equitable loan rest squarely upon them. For the government can only do so much, it is the responsibility of consumers to make certain that they do their research to make sure that when they go forth to acquire a payday loan that they understand exactly what type of situation that they are introducing themselves to. A well-educated consumer is a payday lenders best customer, because payday loans are designed to be short-term therefore not as expensive as people imagine them to be. Properly executed payday loan agreements will effectively not be any more expensive than a consumer taking out a long-term lower interest loan; when you consider over the course of time as the interest compounds, a short-term loan really out performs a longer one; especially when the short term loan is paid off before time.
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So how would a consumer go about properly securing for themselves and positioning themselves to take the best possible advantage of such an opportunity? The attorney general of the state answered that question best in his press conference when he said effectively that it is the responsibility of consumers to not borrow money from payday loans unless it is of an urgent matter to do so. Too often people enter into Illinois payday loans situations and it is not absolutely necessary for them to do so. Oftentimes people are not prepared for the process and consequently they end up with loans that they really didn’t need. It can’t be stressed enough how vital it is for an individual put forth a concerted effort to take control of the process for themselves, and the best way to start doing this is to first do a self-examination of their own personal financial condition. Be fully aware of what all of your weekly and monthly expenses are as well as how much money you have coming in to you on a weekly two monthly basis. So many times there are people partaking of payday loans and have no ability to manage and budget their own finances. Consumers to find themselves in this sort of situation need to become proactive in seeking out opportunity’s that will help them to get a better handle on their own personal finances, and to better position themselves so that if they should ever have to get a loan from an Illinois payday loans provider, that they can do so with the best possible results.