Illinois Payday Loans

Ill. Comp. Stat. §§ 122/1-1 et seq.
Status: Legal

Payday loans are legal in the state of Illinois, pursuant to Ill. Comp. Stat. §§ 122/1-1 et seq. The number of companies offering payday loans in Illinois currently stands at 668.  The initial loan term is typically between 14 to 35 days, with the term usually determined based on the borrower’s pay cycle.  Illinois residents can borrow up to $1,000 or 25 percent of the borrower’s gross monthly income.

Payday Loan Lending Laws in Illinois

Consumer protection appears to take precedent with Illinois lending laws.  The loan time frame limits in Illinois cannot be less than 13 days, and no payday loans can be made if the borrower currently has one or more cash advance lenders for a period longer than 45 consecutive days.  A borrower cannot have more than two loans out at a time, and lenders can charge fees of $15.50 for every $100 borrowed.

Illinois statutes also allow a 45-day cooling off period between loans.  This means the state allows residents to have payday loans for up to 45 consecutive days, but if a new payday loan would put a potential borrower over 45 consecutive days, they would be considered ineligible to apply and receive further payday loans until the seventh calendar day following the closing date of the last payday loan.  The cooling off period serves primarily to give borrowers some breathing space if they decide to make use of short term loans more than once.

In addition to stiff regulations against unlicensed lenders, a state law passed in 2011 protects borrowers from unlimited rollovers and requires the loan amounts to be based on the borrower’s ability to pay back the loan, hence the $1,000 or 25 percent of the borrower’s gross monthly income specifications.  Illinois borrowers also have the option of entering into an interest-free repayment plan with the lender if the borrower has been in debt for more than 35 days.

However, a potential borrower should also take the time to understand all aspects of a cash advance loan before applying for one.

Process

To apply for a payday loan in Illinois, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Illinois are legally required to comply by the following limitations according to Ill. Comp. Stat. §§ 122/1-1 et seq.:

Maximum Loan Amount:
lesser of $1000 or 25% gross monthly income
Minimum Length of Loan:
13 days
Maximum Length of Loan:
45 days
Maximum Finance Rate & Fees:
$15.50 per $100
Finance Charge for 14-day $100 Loan:
$15.50
APR for 14-day $100 Loan:
403%
Max # Outstanding Loans at One Time:
Two
Rollovers Permitted:
None (cannot rollover)
Repayment Plan:
Yes
Collection Fees:
One $25 NSF fee (Presentment limit = 2)
Criminal Action:
Prohibited
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/21.

Regulatory Information

If you have a complaint against a Illinois Cash Advance location you can contact your state regulator below:

Regulator:
Illinois Division of Financial Institutions
Address:
Consumer Credit Section, 320 W. Washington Springfield IL 62701
Phone:
(888) 298-8089
Website:


Illinois Lenders

Below you can find Illinois payday loan lenders in the following cities:

Illinois Statistics**

The following information is key demographic data for the state of Illinois from the Census bureau.

Total Population:
12,801,539
Median Household Income:
$57,574
Poverty Rate:
13.6%
Median Gross Rent:
$907
High School Graduate or Higher:
87.9%
Bachelor's Degree or Higher:
32.3%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Safely, Borrow Responsibly

Despite the cooling off period and repayment program, potential borrowers still run the risk of getting caught in a debt cycle by being unable to pay off the loans.  While payday loans can be an effective way to address short-term financial emergencies, the responsibility of understanding the loan terms and repaying the loan rests with the borrower.  Potential users should understand the loan terms including applicable fees and repayment schedules before applying.  Borrowers should also contact the Illinois Division of Financial Institutions with any concerns or questions.

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