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Well I've been trying to figure out the difference between a installment loan & a payday loan...from what I'm finding i'm pretty scared....looks like in Illinois this is how the pdl's get around the pdl laws ...let me know what you guys make of this...

...from reading this Americash nor All Credit Lenders do not have titles securing my loans, and the loans were for $1500.00 according to this law states no more than $400.00 should have been borrowed to me...also the Americash did not make me wait 15 days to rollover ...they rolled it over the same day.[/img]

I have said this before in other posts. The definition of a "Payday Loan" per the Payday Loan Reform Act (PDLRA) is any loan: 1) at a rate over 36%, that 2) is for a term of 120 days or less, and 3) uses a post-dated check, electronic withdrawal, or wage assignment as security for the loan.

I've seen these places doing "installment loans" that are for 150 days, just so they don't fit the legal definition of a payday loan.

When the PDLRA went into effect on 12/1/06, the state was cracking down on these places for doing their 150-day loans, and the state called it "subterfuge for the purpose of avoiding the new laws." The state started fining places like Americash who were using the Consumer Installment Loan Act as their basis, when the state believed they should follow the PDLRA laws.

After the state cracked down last January - April 2006, all these payday stores got their lobby together down in Springfield and sued the state Department of Financial Institutions. Their basis was that the state was not interpretting the new laws exactly as they were written. A judge in Springfield sided with the payday stores, ruled in their favor, and succesfully ended the state's crack-down on "installment loans" for the time being.

Sub: #1 posted on Sun, 01/28/2007 - 08:20

DebtCruncher DebtCruncher
(Posts: 2293 | Credits: )

Okay well then I guess the only thing I have to fight these people on is the fact since they did not hold any titles of mine and the loans were more than $400 they were breaking the law, and Americash did not wait the 15 days to Rollover. Is this enough to fight them? Or am I breaking the law, I just can't pay them right now.

Sub: #2 posted on Mon, 01/29/2007 - 01:43

candiceann2003 candiceann2003

(Posts: 139 | Credits: )

Is their a grace period to cancel an installment loan if you feel it was misrepresented

Sub: #3 posted on Fri, 09/26/2008 - 06:13


How long have you had the installment loan. You should check your documents to see if there something in them that state returning the funds without any charge. I believe it's usually 24 hours in most cases.

Sub: #4 posted on Fri, 09/26/2008 - 06:43

PinkLady PinkLady
(Posts: 1720 | Credits: )

Legally, once you sign the contract and receive loan proceeds, it becomes binding. There is no law in IL that gives you a right to cancel an installment loan.

How do you feel it was misrepresented? All lenders must comply with the Truth-in-Lending Act. If they didn't give you fair disclosure of the apr or finance charge, then they broke the law and yes, you could optionally void that loan. If, however, they did comply with TILA, then you'll have a hard time proving any misrepresentation.

Sub: #5 posted on Fri, 09/26/2008 - 17:01

DebtCruncher DebtCruncher
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Sub: #6 posted on Sun, 10/26/2008 - 17:21


If they are licensed, than yes.

Sub: #7 posted on Sun, 10/26/2008 - 17:51

DebtCruncher DebtCruncher
(Posts: 2293 | Credits: )

how can you tell the difference between a payday loan license and installment loan license.or are they the same.

Sub: #8 posted on Mon, 03/07/2011 - 17:06


in an installment when a payment is made does all of the payment go to interest or just some of it to interest and some to principle.

Sub: #9 posted on Mon, 03/07/2011 - 17:23


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