88% of Illinois voters support consumer loan rate cap of 36% APR or lower; Support even higher among former payday loan borrowers
For Immediate Release:
February 3, 2025
Contact
Rob Mayo
hello@woodstockinst.org
CHICAGO – Monday, Woodstock Institute and Lake Research Partners released new polling data that shows overwhelming consumer support for the 36% rate cap implemented by the Predatory Loan Prevention Act of 2021 (PLPA). In fact, 80% of respondents indicated support for Illinois to adopt a rate cap lower than 36%.
“95% of former payday loan recipients support a rate cap of 36% or lower, providing further evidence that triple-digit interest loans exist to exploit rather than help cash-strapped borrowers,” said Horacio Méndez, President and CEO of Woodstock Institute. “Advocates, lawmakers, and responsible lenders nationwide can use this poll to push for sensible lending laws that put consumers first.”
“The people that the payday lenders profess to serve, their borrowers, oppose the industry’s predatory internet rates more than most people,” said Brent Adams, Senior Vice President of Policy and Advocacy at Woodstock Institute. “When it comes to the wellbeing of payday loan borrowers, the borrowers themselves are in a better position to evaluate what’s best for them than the payday lenders.”
95% of Illinoisans who took out a payday or auto title loan before the PLPA support a cap on interest rates of 36% or lower. Among the same group who applied for a loan after the rate cap went into effect, eight in ten were able to borrow at least some money, including nearly four in ten who were able to borrow the full amount they wanted. Two thirds of those who applied for credit received it.
“It’s very clear from these findings that Illinois voters strongly support the cap on interest rates – ideally, they would like the cap to be lower,” said David Mermin, Partner at Lake Research Partners. “It’s also clear that those who previously received high-interest loans are finding other ways to borrow when they need it, and do not pine for the days of predatory lending in Illinois.”
The data uncovered in this poll counters the high-interest lenders predictions of doom and gloom and demonstrates continued access to credit since the implementation of the PLPA.
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The poll was conducted by live telephone and text-to-online interviews and reached a total of 500 Illinois likely voters and 200 additional adults in Illinois who report having taken out a payday or auto title loan since 2019. The poll was conducted June 27 – July 10, 2024. The margin of error is +/-4.4% for the likely voter sample and +/-5.9% for the high-interest loan recipient sample.
