Legal Question in Credit and Debt Law in Illinois

Is a 651.79% annual percent rate legal?

Back in 01/05 i had gotten a cash advance from one of those payday loans places. I had defaulted on the loan and had just now recieved awage garnishment warning. I tried to make payment arragements but they are still charging me the 651.79% APR till the entire debt is payed off. The loan was for $350.00 and i now owe over $2300.00. Is that legal? Is there anything i can do to lower my balance?


Asked on 7/07/06, 11:46 am

1 Answer from Attorneys
Kevin Plachta The Law Office of Kevin F. Plachta

Re: Is a 651.79% annual percent rate legal?

You need to read the loan document you signed. In Illinois once judgment is entered there is a 9 percent per year interest that most creditors add to the amount owed. This is by Illinois statute. In your case the judgment should be at 9 percent but you need to read the loan docs and if needed you need to file a motion to have the interest rate reduced.

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Answered on 7/17/06, 8:00 pm


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