(Crain’s) вЂ” With last yearвЂ™s landmark pay day loan reform legislation set to simply simply take impact Monday, a lender has sued to end enforcement of the key an element of the measure, claiming it is unconstitutional.
Illinois Lending Corp., which includes six Chicago-area areas making payday and installment loans to consumers, claims with its lawsuit, filed Monday in Cook County Circuit Court, that its company is likely to be irreparably harmed by the legislation’s provision barring organizations that provide payday advances вЂ” short-term quick unsecured loans directed at allowing strapped customers to cover bills due before their next paycheck вЂ” from making installment loans, somewhat longer-term borrowings.
The lawsuit, that was assigned to Cook County Circuit Court Judge Carolyn Quinn, states the prohibition violates the business’s constitutional defenses of due procedure and protection that is equal.
The filing for the suit corresponds by having a hearing planned tomorrow prior to the Illinois home Executive Committee on a bill authored by committee Chairman Daniel Burke, D-Chicago, to get rid of the club on organizations keeping double licenses.
Customer advocates are involved the lawsuit while the action that is legislative at risk the compromise they reached this past year with a lot of the customer finance industry after 36 months of negotiations….