Payday loan provider sues to block Illinois that is new legislation

Payday loan provider sues to block Illinois that is new legislation

(Crain’s) — With last year’s landmark pay day loan reform legislation set to just simply just take impact Monday, a loan provider has sued to cease enforcement of a key an element of the measure, claiming it is unconstitutional.

Illinois Lending Corp., which includes six Chicago-area areas making payday and installment loans to customers, claims in its lawsuit, filed Monday in Cook County Circuit Court, that its company should be irreparably harmed because of the legislation’s provision barring businesses that offer pay day loans — short-term quick unsecured loans targeted at enabling strapped customers to pay for bills due before their next paycheck — from making installment loans, somewhat longer-term borrowings.

The lawsuit, that was assigned to Cook County Circuit Court Judge Carolyn Quinn, claims the prohibition violates the business’s constitutional defenses of due procedure and equal protection.

The filing associated with the suit corresponds by having a hearing planned the next day ahead of the Illinois home Executive Committee for a bill authored by committee Chairman Daniel Burke, D-Chicago, to get rid of the club on businesses keeping licenses that are dual. Read more