Payday Lenders lose first round in court

Written by Monsignor John Egan Campaign for Payday Loan Reform on March 21, 2011 - 9:43pm

On Friday, March 18th, Circuit Court Judge Carolyn Quinn ruled that Illinois Lending Corporation (plaintiff) did not meet the standards for issuing a Temporary Restraining Order (TRO).

Dory Rand, President of Woodstock Institute, paraphrased the court's ruling: "The plaintiff did not show irreparable injury would result from surrender of a PLRA or CILA license and there was no showing of a likelihood of success on the merits of ILC's legal claims. The legislature enacted the law to protect consumers from unscrupulous lenders, although not all lenders covered by the statute are presumed to be unscrupulous. For the safety and welfare of the public, the market may not operate unimpeded. Granting a TRO here would undermine the standards where plaintiff is on record as supporting the bill and waited until last minute to file."

The case is set for status April 13th at 9:30am to discuss whether there are factual disputes and a need for an evidentiary hearing or just a hearing on legal arguments for preliminary injunction. Parties are to file briefs and all supporting documents by April 22nd. A hearing is set for April 29th at 1:30pm and parties should be prepared to go until finished that evening, if necessary. We encourage all Egan Coalition members to attend the April 29th hearing. We would like to pack the courtroom. We will send updates as the hearing date approaches, but for now pencil in April 29th.

Read more: Payday lenders challenge provisions of landmark consumer protection law set to take effect March 21