Illinois to cap interest rates on short-term consumer loans

Man paying bills
Man paying bills

Illinois Governor Pat Quinn

signed a law capping interest rates on consumer installment loans -- paid over a period of time and with interest rates sometimes exceeding 1,000% -- and increasing the amount of time for people to pay.

"Many consumers who take out short-term loans are doing so as a last resort to pay their bills and provide for their families," Quinn said in a public statement. "It is all too easy for lenders to take advantage of them by raising interest rates and setting very short repayment periods."