Cash Advance Tips

Illinois Cash Advance Loophole

An Illinois Cash Advance Law loophole allows lenders to run business as usual. In 2005, Illinois law invoke a series of lender regulations on loans under 120 days.

Lenders found a way around the laws by shifting their customers into loans exceeding 120 days.

This effectively skirted the new regulations. In fact, one of the more actively cash advance lenders, Americash, has increased the interest rates charged to customers. Since 2004, interest rates charged to borrowers has jumped from 140 percent to 279 percent.

This points to a very important point I have with government trying to legislate consumer protectionism.

It does not work!

Business owners, no matter what the industry will find ways to increase profits. That is what they do. Rather than trying to out smart businesses and legislate, they should be focusing their efforts on education those who borrow money using cash advance lenders.

Educating the consumer and helping them find ways to improve their financial condition should be their focus. Help people help themselves should be the answer to this ever increasing problem. Believe me, I know. I was there! By the end of 2006, I had created my own cash advance hell. To the tune of over $3000.

I was not able to drag myself out of my own cash advance debt until two things were done. My own personal decision to stop the insane debt cycle I had created and educating myself on financial matters. Without this decision, I would still be borrowing using cash advance lenders.

Moral of the story?
Don’t legislate – educate!!

An Illinois Cash Advance Law loophole allows cash advance
lenders to run business as usual. In 2005, Illinois law
invoke a series of lender regulations on loans under 120
days.