Are there consumer protections in place regarding high-interest loans?

Yes, there are consumer protections in place in Illinois regarding high-interest loans. The Illinois Consumer Installment Loan Act (CILA) regulates the terms and conditions of high-interest loans, including the interest rate and fees that can be charged. The CILA sets a cap on the maximum interest rate a lender can charge for installment loans, which is an annual percentage rate (APR) of 391%. This maximum rate applies to all loans up to $40,000, regardless of the lender. The act also restricts the amount of fees a lender can charge and requires all lenders to provide borrowers with disclosure statements detailing the terms of the loan. Additionally, the Illinois Payday Loan Reform Act (PLRA) was enacted to protect consumers against the harmful practices of high-interest payday loans. This act sets caps on both the interest rate and fees associated with payday loans and provides consumers with other protections. Specifically, the PLRA sets a cap on the APR for payday loans at 99%, requires lenders to provide borrowers with disclosure statements, limits the amount of payday loans one person can take out at the same time, and requires lenders to provide borrowers with repayment plans if requested. Overall, Illinois has consumer protections in place to protect consumers against the fees and interest rates associated with high-interest loans. These laws are designed to ensure that lenders are transparent about the terms and conditions of the loan and to ensure that borrowers are not exposed to exorbitant fees and interest rates.

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Are there consumer protections in place regarding high-interest loans?

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