Illinois HB3455 amends the Consumer Installment Loan Act and Predatory Loan Prevention Act to regulate loan terms, interest rates, and disclosure.

Illinois HB3455 modifies the Consumer Installment Loan Act by setting a maximum loan amount of $40,000 and limiting the annual percentage rate to 36% plus the Federal Funds Rate. It prohibits penalties for loan prepayment and requires licensees to offer borrowers a credit education program or seminar at no cost. The Predatory Loan Prevention Act is amended to mandate reporting borrower payment performance to consumer reporting agencies starting January 1, 2026. The bill also updates the calculation of the annual percentage rate to align with the federal Truth in Lending Act.

Illinois HB3455 amends the Consumer Installment Loan Act and Predatory Loan Prevention Act to regulate loan terms, interest rates, and disclosure.

Illinois HB3455 modifies the Consumer Installment Loan Act by setting a maximum loan amount of $40,000 and limiting the annual percentage rate to 36% plus the Federal Funds Rate. It prohibits penalties for loan prepayment and requires licensees to offer borrowers a credit education program or seminar at no cost. The Predatory Loan Prevention Act is amended to mandate reporting borrower payment performance to consumer reporting agencies starting January 1, 2026. The bill also updates the calculation of the annual percentage rate to align with the federal Truth in Lending Act.