The industry reacted by producing a unique item: a 31-day loan. That permitted them getting all over guidelines, DeLaforgue states.

The industry reacted by producing a unique item: a 31-day loan. “That permitted them getting all over guidelines,” DeLaforgue states.

And so the coalition began pressing for brand new regulations. In 2005 then-governor Rod Blagojevich signed the pay day loan Reform Act, that has been supported by both the Community Financial Services Association—a nationwide trade group for payday lenders—and the Egan coalition. It codified a number of the guidelines that were subverted, needing additional time between loans and more underwriting that is thorough. Read More