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Those looking to take out a payday advance in Illinois can run into a hard time this year. As part of a number of fresh legislation directed to solve budget shortfall troubles, the Illinois General Assembly passed on a new law in an attempt to curb cash advance and fill up a few of the perceived gaps in previous cash advance legal guidelines. A bill was also passed to be able to lessen the troublesome amount of salary theft, which is on the rise in the state. These new laws and regulations over Illinois payday loans appear to be part of a contemporary trend, as other states will also be passing laws attempting to restrain pay day cash advance.

The new cash advance law in Illinois, HB 537, gone through each houses of the legislature unanimously and reins in companies in several ways. For starters, they can be prevented from charging more than 99 percent interest. This is seen as a positive change, although cash advance interest rate is often calculated fairly deceptively. Also, cash loan sums will be set at revenue level, and equivalent payment per month payday advance payments will be needed as well. Though the changes are certainly not particularly radical, they will certainly affect both providers and consumers in various ways.

SB 3568 Seeks to Control Rising Wage Theft

Furthermore to the most recent cash advance legislation, the Illinois General Assembly also passed a new bill, SB 3568, which can make it less difficult for workers to be able to report wage theft of $3000 or less. Last year, there has been over 10000 reported cases of salary theft, and since this is a major issue that absolutely contributes to greater cash advance, the bill is expected to help get rid of predatory cycles. It is estimated at this time that employers across the state owe a lot more than $7 million. To avoid this particular number from increasing more, the bill will also ensure it is a felony for a company to owe $500 or more in back wages.

Cash Advance Alternatives in the Wake of Illinois' New Laws

In the wake of Illinois' new cash advance legislation, residents in Peoria or Chicago looking to take out a cash advance may find it more challenging, though not impossible, to do so. For those in other states, however, it would not be surprising to find new payday lending legislation cropping up across the country, so if you can be in need of a cash loan, you should look into your own state's regulations and watch out for new developments in state legislation.