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RESOLUTION NO. R2012-27 <br /> A RESOLUTION REQUESTING THE GENERAL <br /> ASSEMBLY OF THE STATE OF ILLINOIS TO <br /> ENACT ADDITIONAL CONSUMER PROTECTION <br /> LEGISLATION REGARDING PAYDAY LOANS <br /> AND SMALL CONSUMER LOANS <br /> Whereas, the General Assembly has previously enacted legislation regulating the interest <br /> rates which may be legally charged by businesses offering payday loans and small consumer <br /> loans to persons in the State of Illinois; and <br /> Whereas, it has come to the attention of the corporate authorities of the City of Decatur <br /> that current state laws permit interest rates of up to 400%to be legally charged in certain types of <br /> payday loans; and <br /> Whereas, it is the considered opinion of the City Council of the City of Decatur that <br /> additional regulation of payday lending practices is necessary because current permitted lending <br /> practices have an unreasonable adverse effect upon the elderly, the economically disadvantaged, <br /> and other citizens of the State of Illinois; and <br /> Whereas, by reason of a recent decision of the Illinois Supreme Court (Stubbub! Inc. v. <br /> City of Chicago), there is uncertainty regarding whether home rule units of government may <br /> legally regulate interest rates on payday loans; and <br /> Whereas da loans small consumer loans and car title loans should be uniformly <br /> SPaY Y � y <br /> regulated at the state level; and <br /> Whereas, many types of loans to persons serving in the military are capped by federal law <br /> at an annual percentage rate not to exceed 36%, and it is the opinion of the City Council of the <br /> City of Decatur that such protections should be extended to other citizens in the State of Illinois; <br /> BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DECATUR, <br /> ILLINOIS: <br /> That the General Assembly of the State of Illinois enacts legislation which protects <br /> consumers throughout the State by prohibiting the following types of payday loans and small <br /> consumer loans which are currently permitted under Illinois law: <br /> "Payday loan" — a loan with a finance charge exceeding an annual <br /> percentage rate of 36% (as defined by 815 ILCS 122/1-5) and with a term that <br /> does not exceed 120 days, including any transaction conducted via any medium <br /> whatsoever, including but not limited to, paper, facsimile, <br />