Illinois law puts restrictions on payday loans
St. Louis – A law that takes effect Tuesday in Illinois puts new restrictions on payday loans to prevent people from being gouged by high fees and costs.
The restrictions include limits on fees that lenders can charge, how much people can borrow and how long loans can last.
Some payday lenders fear it will hurt their business and take options away from consumers who need fast cash for emergencies such as car repairs and medical bills.
But state officials and consumer groups hope the changes will help people who can't pay off the initial loans and then face even deeper financial trouble as fees and interest mount.