CHICAGO - Illinois is getting tougher on car title lenders who charge sky-high interest rates.
New rules, announced Wednesday, affect an industry that has gone largely unchecked by consumer protections. Borrowers fell behind on payments and saw their cars towed away.
The state tried in 2001 to set rules for title loans up to 60 days. But the industry changed loan terms to 61 days or longer to avoid the consumer protections.
The new rules would restrict loans to $4,000 and prevent them from being refinanced more than twice. The “60-day” language was removed.