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OLA Sends Letter in Opposition to IL Rate Cap Legislation

By January 26, 2021April 27th, 2024No Comments

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.