The American Financial Services Association (AFSA) and its members who work to serve consumers in Illinois, are deeply disappointed with the governor’s decision to sign legislation that will hinder tens of thousands of Illinois consumers from accessing the credit they need during this time of economic disruption.
The 36% rate cap that policymakers and consumer advocates have claimed will protect consumers in Illinois will actually harm many of them, particularly those most in need of accessing small dollar traditional installment loans.
Small dollar loans are a lifeline for more than 60 million consumers nationwide, and access to credit is directly threatened by anti-consumer, arbitrary rate caps, like the one the governor approved today for Illinois. It is estimated that at least 30% of Illinois consumers will be cut off from access to safe, affordable credit in the state.
In the coming months AFSA and its membership will work to support efforts to fully restore consumers’ access to safe, reliable traditional installment loans in Illinois. We encourage all AFSA members to collect and share data with us on the negative effects this law is having on customers, which will be used toward that end.