Illinois Imposes 36% MAPR Rate Cap On Consumer Loans; Takes Aim At Fintech-Bank Partnerships And Secondary Market Transactions

On March 23, 2021, the Predatory Loan Prevention Act (the “PLPA”) was signed into law by Illinois Governor J.B. Pritzker. The PLPA imposes a 36% military annual percentage rate (“MAPR”) cap on all loans made to Illinois consumers. It applies to all consumer loans made or renewed on or after the effective date of the PLPA, and is effective immediately. Failure to comply with the interest rate cap may result in the consumer loan becoming null and void. The PLPA was part of a legislative package...
By: Goodwin

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