Legalized Loan Sharks Lobbied to Repeal Illinois Payday Loan Rate Cap
Shockingly, shady lenders also conduct shady lobbying campaigns
The Chicago Sun-Times reports that online lender OppFi engaged in a shadow lobbying campaign to overturn Illinois’ new Predatory Loan Prevention Act (PLPA) which caps interest rates on payday loans at 36%.
The Illinois law knocked out of business those who dealt in auto-title and personal loans, payday advances and other forms of finance whose interest rates are well into the triple digits, often 400% and higher. It caused big trouble for Chicago-based Opportunity Financial, which does business as OppFi.
While online lenders like OppFi often use a “rent-a-bank” strategy to circumvent state rate caps, the Illinois law prevents OppFi from using that tactic in Illinois.
Consumer Groups Call for FDIC Action on Predatory Lending | by Andy Spears | Feb, 2022 | Medium
Groups including Consumer Federation of America (CFA) and the National Consumer Law Center (NCLC)…
