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Illinois Imposes Strict 36% Usury Cap For A Range Of Consumer Finance Products And Providers - Finance and Banking

To print this article, all you need is to be registered or login on Mondaq.com. On March 23, 2021, Illinois Governor JB Pritzker signed into law Senate Bill 1792, enacting the Predatory Loan Prevention Act (PLPA) and capping interest at an all-in 36% APR (similar to the Military Lending Act s MAPR) for a variety of consumer financing, effective immediately. The PLPA uses an expansive definition of interest for the usury cap s purposes, applies to a wide array of businesses, and voids any contract that exceeds the rate cap. Companies providing consumer financing in Illinois and secondary market purchasers should review their business practices

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