MADIGAN CRACKS DOWN ON UNLICENSED, PREDATORY PAYDAY LENDERS

MADIGAN CRACKS DOWN ON UNLICENSED, PREDATORY PAYDAY LENDERS

Attorney General, Department of Financial & expert Regulation act Against on line Payday Lenders & Lead Generator Promoted by Talk Show Host Montel Williams

Chicago — Attorney General Lisa Madigan today filed five legal actions in a sweep cracking down on unlicensed, online payday lenders and that loan lead generator promoted by talk show host Montel Williams for illegally offering costly, predatory loans that trap Illinois borrowers in exorbitant, cyclical financial obligation lots.

Madigan filed legal actions this week in Cook County Circuit Court with respect to the Illinois Department of Financial and Professional Regulation (IDFPR) against four out-of-state payday lenders being running solely online, offering pay day loans racked with costs which can be twice as much quantity permitted under state legislation. The legal actions allege BD PDL Services LLC, Mountain Top Services we LLC, Red Leaf Ventures LLC and VIP PDL solutions LLC charged Illinois borrowers $30 for each $100 loaned and permitted borrowers to obtain numerous loans at when.

The cash advance Reform Act limits the fees a payday loan provider may charge a customer to a maximum of $15.50 per $100 loaned. Payday loan providers cannot issue that loan up to a customer in the event that loan would lead to their being with debt to 1 or higher payday lender for a lot more than 45 consecutive times, and additionally they cannot issue that loan up to a consumer whom currently holds balances on two loans. Lenders additionally needs to wait 7 days before issuing that loan up to a perform consumer, once their loans are reduced.

“These online, unlicensed predatory lenders are placing Illinois consumers into unregulated, unprotected payday advances,” Madigan said. “None of the payday lenders is complying using the customer security we fought for over 10 years to place into destination to keep borrowers from being caught in loans with extortionate rates of interest and costs.”

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