The Illinois Predatory Loan Prevention Act (PLPA) takes effect on August 1, 2022. Several key components of the Act are as follows:

1. All retail installment contracts or agreements must include a “separate disclosure” signed by the consumer substantially similar to the form provided herein. While “separate disclosure” is not defined, we recommend that the disclosure be made on a separate form.
2. The disclosure must be “clear and conspicuous.” While “clear and conspicuous” is not defined herein, other regulatory acts require that a “clear and conspicuous” disclosure be in at least 10-point type. We recommend that this disclosure be made accordingly.
3. The disclosure must be in English and in the same language as the retail installment agreement.
4. The PLPA APR is based on the expansive definition of APR of the Military Lending Act. As such, it includes all fees and charges [including Doc fees], including charges and fees for single premium credit insurance and other ancillary products sold in connection with a credit transaction, which might otherwise be excludable from the APR.

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.

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   Borrower Signature

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   Co-Borrower Signature (If Applicable)