Today, the Online Lenders Alliance sent a letter to Illinois Governor J.B. Pritzker to express concerns with Senate Bill 1792 and urge a veto on the bill. This bill creates the Predatory Loan Prevention Act and would establish a 36 percent rate cap and a Predominant Economic Interest (PEI) test.
SB 1792 was passed in expedited fashion that lacked substantive discussion and input from key stakeholders, including Illinois residents and local businesses. As a result, there was insufficient opportunity to explore the bill’s potentially unintended negative consequences, such as reducing access to credit during a pandemic, especially for the State’s most vulnerable residents.
You can read our letter in full here. The letter provides sufficient background on the harm of rate caps and outlines several key reasons as to why Governor Pritzker should veto this harmful legislation.