MADIGAN CRACKS DOWN ON UNLICENSED, PREDATORY PAYDAY LENDERS

MADIGAN CRACKS DOWN ON UNLICENSED, PREDATORY PAYDAY LENDERS

Attorney General, Department of Financial & expert Regulation do something Against on line Payday Lenders & Lead Generator Promoted by Talk Show Host Montel Williams

Chicago — Attorney General Lisa Madigan today filed five legal actions in a sweep cracking down on unlicensed, online payday lenders and that loan lead generator promoted by talk show host Montel Williams for illegally providing expensive, predatory loans that trap Illinois borrowers in exorbitant, cyclical financial obligation lots.

Madigan filed legal actions this week in Cook County Circuit Court with respect to the Illinois Department of Financial and Professional Regulation (IDFPR) against four out-of-state payday lenders being running solely online, offering payday advances racked with charges which are twice the quantity permitted under state legislation. The legal actions allege BD PDL Services LLC, Mountain Top Services I LLC, Red Leaf Ventures LLC and VIP PDL solutions LLC charged Illinois borrowers $30 for almost any $100 loaned and allowed borrowers to get loans that are multiple when.

The pay day loan Reform Act limits the fees a consumer can be charged by a payday lender to a maximum of $15.50 per $100 loaned. Payday loan providers cannot issue that loan up to a customer in the event that loan would end in their being with debt to at least one or maybe more lender that is payday a lot more than 45 consecutive days, in addition they cannot issue that loan to a customer whom already holds balances on two loans. Loan providers should also wait a week before issuing that loan to a perform consumer, once their loans are paid down.

“These online, unlicensed predatory loan providers are putting Illinois customers into unregulated, unprotected payday advances,” Madigan said. “None among these lenders that are payday complying using the customer security we fought for over ten years to place into location to keep borrowers from being caught in loans with extortionate rates of interest and charges.”

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