CHICAGO – State Senator Jacqueline Collins (D-Chicago) joined Gov. JB Pritzker Tuesday as he signed the Predatory Loan Prevention Act, the culmination of years of work on the part of Collins and advocates to rein in the payday loan industry.

The legislation caps payday loan rates at 36%. Illinois will join 17 states and the District of Columbia in instituting such a cap.

“I was proud to stand as chief co-sponsor to this legislation,” Collins said. “Payday loans are targeted directly at communities of color and only reinforce the dynamics that keep poor families poor. I applaud Governor Pritzker’s action today and thank the people who have called for this long-overdue new law.”

Collins has spearheaded efforts to rein in the excesses of payday loans and has called for the rate cap for years. She successfully pushed for passage of the Predatory Loan Prevention Act as part of the raft of major economic reforms the Illinois Legislative Black Caucus proposed last summer.

“Just as it is with redlining, with bias in insurance rates, and with the ongoing disparity in home lending, this is not just about financial ethics. It’s about racial justice,” Collins said. “There is a growing understanding among Illinoisans that these financial systems target people of color and entrench racial poverty. When we have honest, hard conversations, we can topple barriers.”

The legislation was Senate Bill 1792 under the 101st General Assembly.