Springfield, IL – Last week, a comprehensive law providing
tough new reforms in the payday loan industry took effect. According to State Senator
Dan Rutherford (R-Pontiac), the Governor also signed several laws
that will target motor fuel theft, identification card violations, and vandalism
of security, fire and life safety systems.
Senator
Rutherford explained that the Payday Loan Reform Act seeks to reign in the
excesses of the payday loan industry and impose
waiting periods to prevent back-to-back loans. Under the new law, the cost of a payday loan will be capped at $15.50 per
$100 borrowed, down from $40 or more in the past.
The “payday loan” industry
has grown by 23 percent in Illinois since last year, according
to the Illinois Department of Financial and Professional Regulation, which
tracks the lenders. Last year, those companies issued more than 1.4 million
loans worth an average of $380. Nationwide, the payday lending industry
has quadrupled.
In other news,
legislation (HB 692) creating the offense of motor vehicle fuel theft was signed
into law. The new law is responding to the spike in motor fuel theft that
occurred following the spike in fuel costs. Once HB 692 takes effect, first time
offenders will face a Class A misdemeanor for stealing up to $150 of fuel and a
Class 4 felony if the individual has already been convicted of theft, retail
theft or burglary. The new law mirrors Illinois’ retail theft laws, but it makes retail
motor fuel theft a separate offense.
Another bill (HB
1088) was signed into law last week that will give law enforcement officials
another tool to confront the growing crime of identity theft. The new law
increases the penalty for the fraudulent possession of an identification card
for the purpose of committing an identity crime. The penalty also increases from
a Class 4 felony (1-3 years) to a Class 3 felony (2-5
years).
Finally, the
Governor signed legislation (HB 2943) creating the offense of tampering with
security, fire or life safety systems. The law makes it a Class 4 felony to
knowingly damage, sabotage, destroy or temporarily or permanently cause to
malfunction, any physical or electronic security, fire, or life safety system.
Security personnel at museums and art galleries have noticed an increasing
number of incidents involving attempts to tamper with security cameras in order
for individuals to gain access to the buildings to steal items. This new law is
an attempt to address those concerns.