The Illinois Predatory Loan Prevention Act (PLPA) takes effect on August 1, 2022. Several key components of the Act are as follows:
Below is a sample of the form that must be provided:
DISCLOSURE OF 36% RATE CAP
A retailer shall not contract for or receive charges exceeding a 36% annual percentage rate on the unpaid balance of the amount financed for a retail installment contract, as calculated under the Illinois Predatory Loan Prevention Act (PLPA APR).
Any retail installment contract with a PLPA APR over 36% is null and void, such that no person or entity shall have any right to collect, attempt to collect, receive, or retain any principal, fee, interest, or charges related to the retail installment contract.
The annual percentage rate disclosed in any retail installment contract may be lower than the PLPA APR.
Co-Borrower Signature (If Applicable)
Chicago Automobile Trade Association18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181
Copyright © Chicago Automobile Trade Association.