One of the fastest-growing industries in the state, pay loan stores are becoming a cause for concern for Illinois lawmakers.
Paydays provide short-term loans, usually two weeks to a month.
Borrowers write post-dated checks against their next paycheck or offer their car titles up as security. Interest or fees on the loan typically runs about 20 percent. Just take out another one. The typical Illinois borrower rolls over his loan 13 times and pays an overall rate as high as 573 percent, according to the Illinois Public Interest Research Group s Campaign for Payday Loan Reform. Payday lenders counter that they provide a valuable service, providing funding to people unable or unwilling to obtain the money from a bank or credit card.