Section 110.2 Rate Cap Disclosure Notices
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Illinois Administrative Code › Title 38 FINANCIAL INSTITUTIONS › CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION › Part 110 CONSUMER INSTALLMENT LOAN ACT › Section 110.2 Rate Cap Disclosure Notices
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Section 110.2 Rate Cap Disclosure Notices
All loan contracts or agreements must include a separate
disclosure signed by the consumer that states: "A lender shall not
contract for or receive charges exceeding a 36% annual percentage rate on the
unpaid balance of the amount financed for a loan, as calculated under the Illinois
Predatory Loan Prevention Act (PLPA APR). Any loan with a PLPA APR over 36% is
null and void, such that no person or entity shall have any right to collect,
attempt to collect, receive, or retain any principal, fee, interest, or charges
related to the loan. The annual percentage rate disclosed in any loan contract
may be lower than the PLPA APR." This disclosure shall be clear and
conspicuous and shall be substantially similar to the form in Appendix C. A
lender shall provide all disclosures required by this section in English and in
the same language as the loan agreement.
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