Illinois regulator issues proposed Predatory Loan Prevention Act regulations; lawsuits filed to block implementation of Act s database reporting requirement and for declaration Act does not apply to pawn transactions | Ballard Spahr LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
click to enlarge Unsplash / The New York Public Library Among the flurry of bills passed in the five-day January lame duck session in Springfield was the Predatory Loan Prevention Act, a measure that would cap interest rates for consumer loans under $40,000 such as payday loans, installment loans, and auto title loans at 36 percent. These types of loans often trap consumers in cycles of debt, exacerbate bad credit, lead to bankruptcy, and deepen the racial wealth gap. Some 40 percent of borrowers ultimately default on repaying such loans. The new regulation was in a package of bills advanced by the Legislative Black Caucus as part of its four pillars of racial justice reforms in economic policy, criminal justice, education, and health care.
Federal Activities:
On January 22, in response to President Biden’s COVID-19 Economic Relief Executive Order, the U.S. Department of the Treasury announced that it would create an online tool to assist households in obtaining stimulus payments. For more information, click
On January 20, the Biden administration issued a
memorandum to federal agencies and executive departments that places a regulatory freeze on reviewing new or pending rules. One rule recently finalized and currently pending is the Office of the Comptroller of the Currency’s rule on access to banking services provided by national banks, federal savings associations, and federal branches and agencies of foreign bank organizations. For more information, click