Illinois gets new law regarding unlicensed short term lending

by The state of Illinois now has a new law pertaining to short term loans for residents. Lawmakers say the bill was passed to protect consumers from predatory tactics, although many of these companies aim to provide short term lending solutions for consumers.
 The Associated Press reports that Governor Pat Quinn signed the law, requiring short term loan companies to obtain licenses from the Illinois Department of Financial and Professional Regulation (IDFPR) or face charges of committing a felony. The legislation, which will take effect on January 1, 2013, was sponsored by state Senator William Haine (D-Alton) and state Representative Greg Harris (D-Chicago), states the news source. According to ENews Park Forest, the new law also states that consumers who borrow loans from unlicensed lenders will not be required to pay back their outstanding amounts. Governor Quinn said that the bill was passed in order to bring more transparency to the short term loan industry. There are approximately 522 licensed short term lending businesses open within the state, and they will be able to continue helping individuals with alternative financial needs. If a company is found to be conducting operations without the required licenses, the IDFPR could send a cease-and-desist letter to put a halt to the illegal activity, reports the source.