Illinois

The state of Illinois takes strong measures to protect payday borrowers from unscrupulous actions of payday lenders. This means that any consumer taking out an Illinois cash advance payday loan can feel confident that the state prohibits specific actions that lenders might otherwise try and that the borrower has a means of handling any emergency without worrying that they will end up unable to repay the loan.

Illinois Laws:
The first consideration when looking at the laws of Illinois payday loans is the price cap. In Illinois, lenders are limited to interest charges of $15.50 per $100 borrowed plus a limit of $15.50 in other finance charges. This means that lenders are not allowed to charge more than a total of $131 per $100 borrowed in interest and other fees.

Another monetary limitation set on Chicago payday loans is the collection charges. A payday lender can never charge more than $25 collection fee on a one time basis if you do not repay the loan. In Illinois, lenders are limited to a total of two collection fee charges if the loan is not paid on time.

Payday loans in Chicago go a step further than many other states and also set a maximum loan amount payday lenders can offer. A cash advance loan Illinois can never exceed 25 percent of a borrower’s income. If a borrower’s income is more than $4000, the state limits the loan to $1000 instead of 25 percent. This means that lenders will never give more than $1000 in payday loans.

Rollover loans are prohibited in Illinois. This means that no payday cash advance Illinois will allow borrowers to roll the debt into the next two weeks after taking out the loan. Instead, an Illinois payday cash advance requires that the lender offer other options for repayment of the loan.

Payday loans in Illinois do not only apply to the lender. Borrowers are also required to follow the Chicago cash advance laws that prohibit borrowers from taking out more than two payday loans at the same time.

Repayment of Loans:
The best situation for any cash advance in Chicago that you might take out is repaying the full amount at the time the loan is due. The reason this is important is due to the fact that if you do not repay on time, the interest rate continues charging and you’ll end up paying high amounts in fees when the loan is finally repaid.

If you find that your situation does not allow repayment on the due date, payday loans Illinois must follow the state laws. The lender must offer a repayment plan in Illinois to follow the laws of the state.

Warning:
While a cash advance Illinois does have laws, long term loans do not follow the same laws and do not have any cap on the loan. This means that payday loans Chicago might try offering a loan for a term slightly longer than the payday loan terms for a higher interest rate.

Even if you take out a cash advance Chicago loan that is a short payday loan, consumers should always read the contract to ensure the lender is complying with the state laws. Furthermore, consumers should use caution before taking out the loan because the Illinois interest on payday loans is capped at 403 percent, making it a high interest loan. Never take out a loan you are unable to repay in full at the time of the due date.