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Office of the
Illinois Attorney General
Kwame Raoul

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Consumer Protection

Financing and Credit

As consumers consider large purchases, they may choose to use financing or credit arrangement rather than pay in full. The Predatory Loan Prevention Act went into effect as of March 2021. The Act prohibits most lenders from charging more than 36% APR (annual percentage rate) on just about any type of consumer loan in Illinois. This means that whether it is taking out a payday loan or short-term installment loan, or financing the purchase of a car or furniture, a lender cannot charge more than 36% APR, inclusive of all charges and fees.

Taking out a loan can be a stressful experience, especially for a large purchase like a car or when a consumer needs the money to cover basic expenses. The resources and fact sheets provided here are meant to demystify the process and equip you with the tools to make informed decisions when choosing a lender, applying for and repaying a loan.

If you feel a lender took advantage of you by charging more than the allowable rate or any other unlawful practice, you are encouraged to report your experience by submitting a complaint to the Office of the Illinois Attorney General.

Downloadable Resources