After Illinois Governor J.B. Pritzker signed SB 1792 into law, thereby limiting interest rates on various forms of credit in the state of Illinois, the Online Lenders Alliance issued the following statement:
“SB 1792 is a bad bill for residents of the state of Illinois. It was rushed through the legislature without substantive input from key stakeholders and an appreciation of its hurtful impact on consumers, and we are disappointed that Governor Pritzker signed this legislation into law.
“According to a Morning Consult survey from 2020, 73 percent ofIllinoisans believe it is important for underbanked or credit-challenged consumers to have access to credit. Furthermore, new survey data from Morning Consult released last week shows that many consumers who borrowed from a fintech company said their credit scores increased after taking out their loan. The largest net improvements were among lower- and middle-income consumers, with Black and Hispanic consumers declaring the biggest gains in their credit scores. Many of these same consumers will likely be negatively impacted by this bill.
“Now is not the time to reduce credit access. Consumers in Illinois are struggling, and elected officials should be working to ensure that all consumers have options to deal with unforeseen or irregular expenses. Sadly, this bill eliminates many of those options for those who need them most.
“This is not the end of the road; we look forward to working with leaders in Illinois on policy that accurately addresses the needs of all consumers in need of access to affordable credit.”