Predatory Loan Prevention Act (PLPA)
Illinois’s 2021 law capping all consumer loans at 36% all-in APR and voiding anything above it.
What "predatory loan prevention act (plpa)" means
The Predatory Loan Prevention Act (815 ILCS 123), effective March 2021, caps every consumer loan made to an Illinois resident at 36% APR calculated the all-in "Military APR" way — fees included. Any loan above the cap is null and void, and the lender may not collect or keep any principal, interest or charge.
The PLPA is the template several other states are copying, and it is why a triple-digit tribal loan is unenforceable in Illinois — the state with the highest tribal-loan search demand. It is a model for what a hard rate cap does to the high-cost market.