Brent Adams, Senior Vice President of Policy and Advocacy at Woodstock Institute, writes about predatory “rent-a-bank” lenders in Illinois:

“They’re here. The poltergeists of consumer lending: predatory “rent-a-bank” lenders.

While we have seen tremendous progress in protecting consumers since Illinois adopted a 36% interest rate cap in 2021, we now face this next challenge. These predatory lenders are operating here with high-cost loans that far exceed Illinois’s rate cap. Illinois is among the majority of states in the U.S. whose consumers are vulnerable to these high-cost loans.

I learned about this from Vera, a mother of two young boys, who received a loan online with an annual percentage rate of 159.51% from a notorious rent-a-bank lender based in Chicago partnered with a bank in Utah.

But how is this possible?”