Payday Advance Loan in Illinois - Will the new Law Kill the Payday Loan Industry?

Payday Advance Loan in Illinois

Considering a payday advance loan in Illinois? This is the RIGHT time to get one because a law has just passed limiting the interest that a lender can charge you for that payday loan.

That's right, a payday advance Illinois is now governed by the following rules in general. payday advances can now only be charged a maximum of $15.50 per $1000 loan

total payday advances by any single borrower is pegged at $1000 or 25% of his monthly salary (or whichever is less)

payday loan borrowers can no longer have more than one loan at any given time

quick cash borrowers cannot have payday loans for over 45 days

a 56-day repayment period with NO additional charges is available for cash loan borrowers having trouble with paying their payday loan

payday advance loan borrowers are now protected from facing criminal prosecution for unpaid payday loans

if you're a military personnel, the new law prohibits the lender from contacting your commanding officer

Lenders in Illinois believe that this is the death of the payday loan industry in that state. In fact, several payday loan lenders are already laying off employees this early. However, industry estimates a loss of about 30% in lender earnings so it's still a good business for them.

On the other hand, this is GREAT news for payday advance loan lenders. The new rules not only put a cap to lender interest rates but also limits how many loans a borrower can get at any single time so this also promotes better money handling.