OUR QUAD CITIES / Staff
Some Illinois state lawmakers have a plan to crack down on predatory lenders.
They introduced a bill to protect small businesses from aggressive lending practices.
It would create standards that require lenders to determine the borrower’s ability to repay their loans.
Chicago’s city treasurer says too many small businesses turn to lenders and suffer disastrous consequences.
“Small businesses raise their hand and said you know what choice do we have we have no disclosure there’s no regulations there we find out afterwards what the true cost of these loans are,” said Kurt Summers, the Chicago City Treasurer.
The bill would be the first of its kind in the country.
It would also require lenders to clearly disclose the annual percentage rate of their loans, fees and the total amount of money borrowers must repay.