logo

Debtconsolidationcare.com - the USA consumer forum

PaydayOne considered a installment loan in Illinois?

Date: Thu, 05/29/2008 - 19:01

Submitted by anonymous
on Thu, 05/29/2008 - 19:01

Posts: 202330 Credits: [Donate]

Total Replies: 9


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


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.


lrhall41

Submitted by tweetyturner on Thu, 05/29/2008 - 23:32

( Posts: 278 | Credits: )


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?


lrhall41

Submitted by desperatelyseekingsanity on Fri, 05/30/2008 - 09:26

( Posts: 1129 | Credits: )