January 13, 2021
Today the NPA learned of a bill that was passed last night by the Illinois Legislature which includes an Article 15 entitled “Predatory Loan Prevention Act”. “The Act” caps the interest at 36%APR and applies to any person or entity that offers or makes a loan to a consumer in Illinois, except banks, savings banks, savings and loan associations, credit unions, and insurance companies.
The NPA’s Team GRC is communicating with the Illinois Pawnbrokers Association and its President Kelly Swisher to evaluate the extent to which this bill was intended to include pawn transactions in its scope. Although we would like to think of this restrictive interest rate cap initiative as isolated to one state, that would not be wise.
We expect to see federal rate cap legislation filed early in the 117th U.S. Congress, and everyone needs to be watching bills filed in your respective state legislatures.
NPA Team GRC