An Illinois economic justice group is frustrated that Illinois lawmakers failed to include pawnbrokers under the state law that caps interest rates on short-term loans.
The state’s predatory lending law caps interest rates for payday loan companies and similar businesses at 36 percent… but pawnbrokers went to court and got an injunction from a Sangamon County judge exempting them from the requirement.
As a result, the Woodstock Institute says pawnbrokers may charge an effective interest rate of more than 240 percent Bills to close that loophole were not called for a vote before the legislature adjourned earlier this week.
