Payday loans in Illinois
Illinois still grants payday lender licenses under the Payday Loan Reform Act, yet since March 2021 the Predatory Loan Prevention Act limits every consumer loan to 36% APR, making typical payday pricing impossible.
- Payday lending
- Banned
- Max cost
- 36% APR
- Top amount
- None allowed
Are payday loans legal in Illinois?
Typical payday loans in Illinois are banned by the Payday Loan Reform Act and the Illinois Predatory Loan Prevention Act, so the answer is no. The state still gives licenses to payday lenders. Since March 2021, however, lenders may not charge an annual percentage rate higher than 36%, which represents the yearly cost on your unpaid balance. Loans must last between 13 and 120 days. Payments in your first month cannot go over $1,000 or 25% of your monthly gross income, whichever amount is lower.
Loans breaking the 36% cap are null and void in Illinois. The lender therefore lacks any legal right to collect the loan amount, interest, or fees. No online company can bypass this rule by serving as an agent or service provider for a lender that is exempt. Use the Division of Financial Institutions License Lookup to see whether a lender holds a license before applying. When a lender charges over 36%, send an online complaint to the Illinois Department of Financial and Professional Regulation.
- All consumer loans got a 36% APR cap in March 2021 under the Predatory Loan Prevention Act.
- If a loan violates the 36% cap, it is void, preventing the lender from collecting principal, fees, or interest.
- Rent-a-bank setups are the target of the law, which may treat a company serving as an agent for an exempt lender as the lender.
- These loans are checked through a database the state certifies. That database enforces limits like a cap on total payments: $1,000 or 25% of monthly gross income, whichever is less.
- MoneyMutual and related online payday lead generators settled with the Attorney General and IDFPR in 2021.
Illinois payday loan laws
- Law in force
- Illinois Predatory Loan Prevention Act (with the Payday Loan Reform Act)
- Cited as
- 815 ILCS 123 (Predatory Loan Prevention Act); 815 ILCS 122 (Payday Loan Reform Act)
- Fees under the law
- charges above an annual percentage rate of 36% on whatever financed amount remains unpaid
- How long a loan runs
- 13 days to 120 days
- Cooling-off gap
- The 7 calendar days that follow a borrower's more than 45 consecutive days in payday debt
- Repayment plan
- a plan with at least 4 equal installments spaced at least 13 days apart, not to exceed 90 days
- Installment lending limits
- all consumer loans, including installment loans, face a 36% annual percentage rate cap (815 ILCS 123/15-5-5)
Also checked against law.justia.com. Full statute text.
Online lenders that list Illinois
Five companies we track say they lend in Illinois: 2 online installment lenders, 2 tribal lenders and 1 loan broker.
Both lenders with a posted APR post a top APR above Illinois's 36% APR cap.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Illinois
Illinois law voids any loan violating the 36% cap and treats a company fronting for an exempt lender as the actual lender; the AG and IDFPR also reached settlements with online payday lead generators in 2021.
On the immunity claim tribal lenders make, see are tribal loans legal.
Two tribal lenders we track list Illinois as a state they lend in. One of the two publishes an APR: 325% to 725%. That lender posts a top APR above Illinois's 36% APR cap.
| Lender | Posted APR |
|---|---|
 BrightLending | 325% to 725% |
| American Web Loan | Not published |
Need cash in Illinois? Ask about cheaper routes
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Lender cases and orders in Illinois
- 2024 · US District Court, Northern District of IllinoisLendumo: The suit Gonzalez v. Niswi: a group of borrowers filed a class action against Niswi (Lendumo), LDF Holdings, and others concerning Lendumo loans. Source
- 2024 · US District Court, Northern District of IllinoisMinto Money: Fahy case Minto Development Corporation: this class action was brought under Illinois lending laws and RICO. Requests by the lender to force arbitration and to shift the case to Alaska were denied by the court. Source
- 2023 · US District Court, Northern District of IllinoisMaxLend: Slate versus A borrower sued Makes Cents, MaxLend's former lending entity; before ruling on dismissal or arbitration, the court permitted discovery regarding its tribal immunity claim. Source
- 2022 · US District Court, Northern District of IllinoisMinto Money: Hall case Minto Development Corporation: usurious loans led an Illinois borrower to take Minto Money, BEDCO and others to court. A settlement in principle was reported by the parties in January 2023. Source
Illinois and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Illinois | Banned | 36% APR | None allowed |
| Indiana | Allowed | $15.00 per $100 borrowed | The statute sets $550 as the base, which the DFI rule lifts to $825, with a rise to $880 from January 1, 2027. |
| Iowa | Allowed | $15.00 per $100 borrowed | Across the checks held from one borrower, the total cannot exceed $500. |
| Kentucky | Allowed | $15.00 per $100 borrowed | All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850). |
| Missouri | Allowed | Fees and interest can go up to 75% of the loan, and that includes renewals. | You may owe no more than $500 at once to one lender and its affiliates. |
| Wisconsin | Allowed | None in the law | interest and fees count toward the combined total due to all payday licensees, capped at whichever is smaller: 35% of gross monthly income or $1,500 |
Illinois loans with no credit check
Installment loan rates: all consumer loans, including installment loans, face a 36% annual percentage rate cap (815 ILCS 123/15-5-5).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Illinois
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the IDFPR (Illinois Department of Financial and Professional Regulation), Division of Financial Institutions, Consumer Credit Section.
- Had trouble with a lender? Report the lender.
Sources for Illinois
- Consumer loans are capped at 36% APR by the Predatory Loan Prevention Act.; Public Act 101-658 created the rate cap section, effective March 23, 2021.; Loans violating the PLPA are void and cannot be collected.ilga.gov
- The Payday Loan Reform Act now also limits payday loans to a 36% APR.; For all payday loans together, first-month payments may not exceed $1,000 or 25% of gross income for the month, whichever is less.; The minimum term for a payday loan is 13 days.ilga.gov
- The Consumer Credit Section of IDFPR regulates and licenses payday loan lenders.idfpr.illinois.gov
- IDFPR operates a license lookup tool for licensees of the Consumer Credit Section.idfpr.illinois.gov
- IDFPR's Division of Financial Institutions accepts online complaints from residents.idfpr.illinois.gov
- In November 2021 the AG and IDFPR reached a settlement with MoneyMutual, PartnerWeekly and Selling Source, which generate online payday leads; Under the settlement, these companies must stop making loans available to Illinois borrowers unless they have a license.idfprapps.illinois.gov