Yingling-Supported Loan Rate Cap Legislation Passes House and Senate

02/05/2021
SPRINGFIELD, Ill. – As the COVID-19 pandemic continues to put an economic strain on working families, state Rep. Sam Yingling, D-Grayslake, helped pass legislation that would impose an annual percentage rate cap (APR) on all consumer loans.

“With many residents facing difficulties paying their bills, the last thing they need is to be tricked into taking out a predatory loan that worsens their economic situation,” said Yingling. “We must not allow lenders to take advantage of the situation by gouging consumers, and this bill is a good step in ensuring fairness in the loan industry.”

Yingling voted in support of Senate Bill 1792, known as the Predatory Loan Prevention Act, which caps APR for many loans at 36%. This cap will apply to all consumer loans, which includes payday loans and motor vehicle retail installment loans. This new cap will cause massive decreases to some loans’ APR, which according to the Illinois Attorney General’s Office are as high as 400%.

During his time in the General Assembly, Yingling has worked to protect consumers from unscrupulous practices. Recently, Yingling voted to cap insulin costs to $100 a month to prevent pharmaceutical companies from taking advantage of those who need the drug to survive. He has also worked to raise awareness in his district about price gouging related to the COVID-19 pandemic and has held numerous seminars aimed at helping consumers spot fraudulent practices.

“From reducing property taxes to capping loan rates, one of my top priorities is working to keep money in the pockets of my constituents,” said Yingling. “I look forward to continuing to work to help residents save money and crack down on those looking to take advantage of hard-working people for their own gain.”

Senate Bill 1792 has passed both the House and Senate and is waiting on the Governor’s signature.