New Laws Reguarding Pay Day Loans

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New Laws Reguarding Pay Day Loans

By WEEK Producer

Story Published: Jul 23, 2008 at 6:23 PM CST

Story Updated: Jul 23, 2008 at 7:49 PM CST

Governor Rod Blagojevich asked for new rules for Illinois families seeking title loans.

Title and short term loans often come with interest rates that can exceed 300–percent.

If unpaid, they allow the lender to take the owner's car, leaving them without a way to get to work.

Under the rules filed Wednesday a title loan is now any loan with an interest rate of more than 36–percent per year.

The new rules are designed to restrict escalating costs by limiting the amount of money lent and the number of times a loan can be refinanced.

Monday, Aug 4 at 6:01 PM aingered wrote ...

Is anybody accountable for anything anymore? A man's word used to mean something. When you take out a loan, you accept the terms. Run afoul of those terms, then that's on you alone. Anybody out there who doesn't know what they are getting into with these loans would have to be a complete idiot. People use these loans because they need them. They know what they are doing. The government has not business in the private financial affairs of its citizens.

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