Payday Loans Debt Consolidation

Help With Payday Loans In Illinois – Consumers Rights And Protections

Though the state of Illinois have made certain legal provisions regarding consumers rights and protections to help with payday loans, the laws have also outlined certain responsibilities of consumers when they borrow short-term cash advances from payday lenders. For example, consumers have the responsibility to pay back their loan. You must have a clear understanding on when the payments are due and you must make the full repayment in a timely manner as agreed. Consumers have been advised not to borrow more than what they cannot afford to repay. You must also read the fine prints thoroughly before you sign. If you certain terms and conditions are not clear, you must get the clarification first. Most importantly, you must avoid the possibility of check bouncing by making sure that there is enough fund available in your checking back account on the set due date. Now, here is a brief rundown on some of the key points of the laws regarding consumers’ rights and protection.

Right To Full Disclosure

In order to help with payday loans, the laws have made it legally mandatory for the payday lenders to disclose all the terms and conditions, including interest and other charges, in the contract clearly. It is your legal right to have full disclosure in the loan agreement, especially about the annual percentage rate (APR) and the types of fees that will be applicable and in which circumstances.

Restrictions Regarding Lawsuits By Lenders

Your payday creditors cannot file a lawsuit against you until twenty-eight days have passed since the due date for the loan (or the repayment plan).

You Are Not Liable To Pay The Court Fees

The lenders cannot make you liable to pay for the court fees or lawyer’s fees that incurred during the process of debt collection through such lawsuits.

You Cannot Be Forced To Sell Of Any Personal Property To Pay Off The Loan

The laws have been designed to help with payday loans in the favor of consumers, to provide them enough protection against the predatory nature of this type of lending program. Sometimes, lenders or debt collectors try to put pressure on you to sell of some of your personal properties to pay off the debts. It is very important for you to note that such activities are completely illegal in most states in the US, including Illinois.

No Rollover Of Loan

Besides the huge interest rate, if there is anything that makes payday loans a risky venture for consumers, it is the provision of automatic rollover or renewal of loans every time the borrower fails to make the repayment in time. The state of Illinois protects its consumers from such unfair practices by putting a ban on such rollover.

When Can You Request A Repayment Plan?

You have the right to request a repayment plan if your outstanding debts are at least thirty-five days old. The lenders are strictly prohibited to charge you additional interest or fees for a repayment plan.

Overall, there are strict laws in the state of Illinois to protect its consumers from the horrors of payday debts. If you are looking out for ways to get help with payday loans, you must first have a clear understanding on what the laws have in store for you. Your awareness about your legal rights will help you make an informed decision when it comes to choosing a debt relief program, such as debt consolidation or debt settlement, to pay off payday debt.


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Posted in Payday Loan Laws, Payday Loans Debt Consolidation | 1 Comment »

One Response to “Help With Payday Loans In Illinois – Consumers Rights And Protections”

  1. Macc says:

    Very informative and interesting points. Repayment of pay day loans in a timely manner is very important. The state of Illinois have very strict rules regarding short term cash advance but they have imposed some restrictions upon the consumers also. But the whole system is very good for the consumers. The creditors has to disclose each and every point in the loan agreement, the interest rate, the time period for the payment, any other charges like penalty or late fee etc every thing should be clearly mentioned in the loan agreement. The lenders can not file a case against you before the 28 days of due date or the date of repayment plan and the consumers can not be forced to give the fee of the lawyer in the process of court proceedings. The most important thing is that the roll-over or renewal of the loan is totally restricted in the state of Illinois. The laws are very effective in this state but the awareness about all these laws is very important only then you can get the benefits from the laws made for your help.

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