Internet's first get-out-of-debt community - 136,000 members

Guest

Hi can anyone tell me if PaydayOne is considered a installment loan in Illinois? If so do they not have to follow the payday loan laws of Illinois? I read somewhere if you charge over 36% interest in Illinois you are considered a Payday. They are charging me $406 every month for my $1000 borrowed

Posted: Thu May 29, 2008 10:42 pm Subject:

For your help I am giving you the following information regarding payday loans in Illinois State: -

Posted: Thu May 29, 2008 11:32 pm Subject:

Hi guest, in Illinois the payday lender can offer both payday loan and an installment loan. The installment loan can be viewed as a more severe form of payday lending. In case of installment loan, the lender faces fewer restrictions than payday lending, where they have to abide by the pdl lending laws. Moreover, the consumer protection under Illinois PLRA (Payday Loan Reform Act) is also not available to the borrower for installment loan.

Another difference between pdl lending and installment loan is their tenure. The installment loan normally has a longer tenure of 121+ days. And if the borrower fails to repay the loan, the lender can garnish her wage and also can charge the debtor for attorney fee and other court charges.

If your loan is of longer tenure (more than 45 days) then its likely to be an installment loan and not a pdl.

Posted: Fri May 30, 2008 6:50 am Subject:

Yes, Payday One gives installement loans in Illinois. Installment loans would not be governed by the same laws as a payday loan.

Posted: Fri May 30, 2008 8:19 am Subject:

What about Cash Net?

Posted: Fri May 30, 2008 8:34 am Subject:

Question...since the PDL's are getting around the PDL laws by implementing installment loans...what protection does the consumer have since the PDL laws don't apply?

Posted: Fri May 30, 2008 8:37 am Subject:

Cash Net USA is a licensed payday loan lender in Illinois.

Posted: Fri May 30, 2008 8:41 am Subject:

There are laws that govern installment loans too . . . . They just aren't as tight as most payday loan laws because installment loans are more of a conventional loan product, and there isn't as much of the high interest crap as there is with payday loans.

Posted: Fri May 30, 2008 9:26 am Subject:

Huh, "isn't as much of the high interest crap as there is with payday loans??"

Help me understand Goudah...these PDL places are in essence replacing the typical PDL by steering people towards the installment loan. Interest rates are over 400% plus per year. By offering loans with repayment terms of more than 121 days, they thwart the very PDL laws that were designed to help us!

I am interested in learning more about what protection we consumers have when we use an installment (PDL). Can you help me?

Posted: Sun Jun 01, 2008 11:06 pm Subject:

There is Consumer Installment Loan Act (CILA) to protect consumer rights in Illinois against the predatory activities of the small-loan lenders. However, its not as stringent as the PLRA Sad

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 136,000 members

PaydayOne considered a installment loan in Illinois?

Members Area

Free Debt Counseling

Ask the community

Also See

Featured Discussions

Featured Articles

Recent Forum Discussions

Recent Blog Post