Those searching to take out a payday advance in Illinois can run into a difficult time this year. Since part of a bunch of fresh legislation targeted to correct budget shortage problems, the Illinois General Assembly passed a brand new law in an effort to curb payday lending and fill up several of the perceived holes in previous payday lending laws. A new bill was also passed to help lessen the complicated amount of salary theft, which is growing in the state. These new regulations over Illinois cash loans appear to be part of a recently available trend, as other states are also passing laws seeking to restrain pay day cash advance.
The new cash advance law in Illinois, HB 537, passed through both houses of the legislature unanimously and reins in to lenders in several ways. For starters, they will be prevented from asking more than 99% interest. This comes as a big difference, although payday loan interest is generally calculated quite deceptively. Also, cash loan amounts will be set at revenue level, and matching monthly payment payday loan payments will be needed as well. Though the changes are not really particularly radical, they would certainly affect both providers and applicants in several ways.
SB 3568 Strives to Control Rising Wage Theft
Additionally to the most recent cash advance legal guidelines, the Illinois General Assembly also passed a new bill, SB 3568, which will make it less difficult for workers to be able to report wage theft of $3000 or less. Last year, there were over 10000 documented cases of paycheck theft, and since this is a major problem that absolutely contributes to higher payday lending, the bill is expected to help resolve predatory cycles. Statistics show at the moment that employers across the state owe a lot more than $7 million. In order to avoid this particular number from skyrocketing further, the bill will also make it a felony for a company to owe $500 or more in back income.
Cash Advance Options in the Wake of Illinois' New Laws
In the wake of Illinois' groundbreaking payday lending legislation, residents in Chicago or Peoria looking to take out a cash loan may find it more challenging, though possible, to do so. For those in other states, nevertheless, it would definitely not be surprising to locate new cash advance legislation coming up across the nation, so if you happen to be in need of assistance of a payday loan, you should look into your own state's laws and regulations and keep a watchful eye for different developments in state legislation.
