Cash advance borrowers, strained by triple-figure interest levels, usually fall behind in having to pay other bills, defer investing for health care bills and get bankrupt. They are often individuals of color.
Share this tale
Share All sharing choices for: Hang tough, Illinois, and limit rates of interest on payday advances at 36%
Gov. J.B. Pritzker is anticipated to signal the Predatory Loan Prevention Act, a bill capping rates of interest on tiny loans to high-risk borrowers. But two trailer bills would water along the law that is new. Pat Nabong/Sun-Times
Six years back, a female in Downstate Springfield, Billie Aschmeller, took away a $596 short-term loan that carried a crazy high 304% annual rate of interest. Whether or not she reimbursed the mortgage into the couple of years needed by her loan provider, her total bill would meet or exceed $3,000.
Before long, though, Aschmeller dropped behind on other fundamental costs, desperately wanting to keep pace aided by the loan in order not to ever lose the name to her automobile.