Illinois Implements Predatory Loan Prevention Act

The Illinois Department of Financial and Professional Regulation adopted rules to implement the Predatory Loan Prevention Act (PLPA, or the Act), which imposes a 36 percent APR cap on qualifying consumer loans.  WBK previously reported on the Act, which went into effect on March 23, 2021.  Under the Act and the implementing rules, any qualifying consumer loan with an APR in excess of the rate cap is considered null and void.  The APR is to be calculated in accordance with 32 CFR 232.4(c) as incorporated in 38 Ill. Adm. Code 215.

The effective date of the rules is August 1, 2022.