July 27, 2007
I have several of my clients who, against my advice, have gone ahead and signed loan agreements with various providers of this sort of advances. I am following this with great interest.
A new suits has been filed against a loan outfit alleging usurious rates in violation of Illinois Statute.
The Plaintiff states that he wishes to assert a class action claim against the Defendant for alleged violations of the Illinois Interest Act, 815 ILCS 205/1 et seq.. He claims that the Defendant has engaged in a series of transactions in which it and its principals and employees have convinced him and other similarly situated persons to enter into a number of loans charging unlawful, usurious rates of interest. These loans allegedly charged interest between five and ten times the statutory maximum.
The Plaintiff argues that the minimum 45% interest per annum charged in the promissory notes violates the Illinois Interest Act, 815 ILCS 205/4, setting a statutory maximum allowable interest rate of 9% per annum. Under that statute, the Plaintiff contends, the Defendant is liable to him and to other similarly situated persons for twice the total of all interest, discount and charges determined by the loan contractor or paid by them, along with attorneys’ fees and costs.