CHICAGO (WBBM) — The Payday Grinch, wearing a t-shirt proclaiming, “I love the payday loan reform act loophole,” joined Lt. Gov. Pat Quinn and members of the Msgr. John Egan Campaign for Payday Loan Reform outside a payday loan store at the corner of State and Superior streets in Chicago today.
WBBM’s Debra Dale reports.
They’re warning holiday shoppers against borrowing money from payday lenders to buy holiday presents. And they want to warn consumers about payday lenders that are using a loophole to side-step consumer protection laws.
The Payday Loan Reform Act of 2005 offers protection to consumers who take out payday loans with terms of 120 days or less. But some lenders are now offering loans with terms of longer than 120 days to circumvent the law and stick borrowers with triple-digit annual interest rates.
Lt. Governor Quinn says, “We want to make sure everyone is aware of these unconscionable hidden interest rates, so the Payday Loan Grinch won’t end up stealing anyone’s holidays.