Illinois caps rates at 36%, adopts state-level CRA

 

Source: Kevin Wack, American Banker

The anti-predatory-lending law with a 36% rate cap, which takes effect immediately, applies across all consumer loan categories. Auto title loans in Illinois currently have an average annual percentage rate of 179%, and payday loans have an average APR of 297%, according to the governor’s office.

The Illinois community reinvestment law (CRA) is designed to incentivize additional safe lending into low-income and moderate-income communities, and applies to credit unions and nonbank mortgage lenders.

 

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