Illinois Adopts Regulations Under Predatory Loan Prevention Act

The Illinois Department of Financial and Professional Regulation (IDFPR) has adopted a series of regulations pursuant to the Illinois Predatory Loan Prevention Act (PLPA). The new regulations will require certain Illinois licensees (Consumer Installment, Sales Finance-including Retail Installment and Motor Vehicle Retail Installment-and Payday Reform) to obtain a separate, signed, consumer disclosure that the APR may not exceed 36% as part of their consumer loan agreements. The new regulations go into effect on August 1, 2022.

As we previously reported, the PLPA, which went into effect in March of 2021, imposes a 36% APR limit on loans to residents of Illinois and uses the expansive definition of APR of the Military Lending Act to include various fees and charges that might otherwise be excludable from the APR.