Illinois has passed comprehensive consumer protections that eliminate the worst practices of licensed payday lenders, but there remains a segment of lenders operating in the Wild West that do not comply with state law—unlicensed payday lenders. This week, Governor Quinn signed into law a measure that gives regulators stronger tools to crack down on unlicensed payday lenders. The new law takes effect on January 1, 2013.
Any borrower who seeks out a payday loan should have the assurance that the lender abides by Illinois consumer protection laws that limit the cycle of debt, promote affordability, and ensure transparency, regardless of whether the transaction occurs at a brick-and-mortar store or via a lender’s website. This new law discourages unscrupulous lenders from operating in the state and, if they do, gives regulators stronger tools to hold them accountable.