SPRINGFIELD – Assistant Majority Leader Jacqueline Y. Collins was joined by advocates and co-sponsors to urge the passage of the Pawn Broker Regulation Act on Wednesday.
“Last year I passed the Predatory Loan Prevention Act to cap absurdly high interest rates and protect consumers,” said Senator Collins (D-Chicago). “We must expand the law to cover loans from other servicers so that working people are not taken advantage of and have the opportunity to build lasting economic stability.”
Collins’ Predatory Loan Prevention Act prohibits lenders from charging more than 36% APR on consumer loans. Before the passage of this historic consumer protect law, the average APR on a payday loan in Illinois was 297% and the average APR on a title loan was 178%. Shortly after the PLPA was passed, a preliminary injunction was issued in Sangamon County which excluded pawn brokers from coverage under the law. Senate Bill 4241, the Pawn Broker Regulation Act, intends to expand the PLPA to include pawn brokers.
“Enough is enough. Illinoisans are fed up with loans that charge triple digit interest rates and prey on vulnerable families,” said State Representative Sonya M. Harper (D-Chicago), sponsor of the legislation in the Illinois House. “Fortunately, all we need to do is pass legislation that will fix this problem.”
Senate Bill 4241 awaits committee assignment.