Woodstock Institute Issues Refund Challenge to Illinois Lenders

Consumer Advocacy Group Highlights Action by Oportun, Calls on Others to Follow Suit

Consumer finance advocates at the Woodstock Institute are applauding an action by installment lender Oportun that retroactively honors a 36% rate cap on interest for loans in Illinois. The group is now calling on other lenders to follow suit and offer customers refunds. The move comes as the state operates under the Predatory Loan Prevention Act (PLPA), signed into law in Illinois in March of this year.

Pritzker Signs Predatory Loan Prevention Act | by Andy Spears | Medium

“Woodstock strongly believes in calling attention to both good and bad actions by financial service providers. We applaud Oportun’s move, which puts more money in the pockets of Illinois consumers at a critical time” said Horacio Mendez, President & CEO of Woodstock Institute. “Combined with their recent decision to dismiss all pending debt collection lawsuits, we are hopeful that this represents a new day for Oportun and their clients.”

Beginning October 29 of this year, Oportun, one of the nation’s leading installment lenders, began voluntarily giving refunds and credits to Illinois consumers who received loans from Oportun before Illinois’s 36% rate cap became law. The rate cap, implemented by the Predatory Loan Prevention Act (PLPA), took effect on March 23, 2021, but it applies only to loans made on or after that…