Munoz protects consumers from large final payments on payday loans

Senator MunozSPRINGFIELD – To protect individuals who take out a payday loan, Assistant Majority Leader Tony Munoz (D-Chicago) is leading efforts to ensure that the final payment on a loan is not significantly higher than the previous payment.

“Consumers shouldn’t be overwhelmed by the final payment on a loan,” Munoz said. “They should be able to budget throughout the life of a loan without any surprises.”

Senate Bill 1758, which was approved by the Senate executive Committee on Wednesday, caps the amount for a final payment on a loan to 5 percent more than the previously scheduled payment.

The plan clarifies the meaning of “substantially equal installments” in a previous law enacted to help consumers budget effectively to pay back loans. It also makes sure that the entire principal on a loan is not due on the last payment.

The measure heads to the full Senate for consideration.

Sen. Antonio Munoz

1st District
Assistant Majority Leader

Years served: 1999 - Present

Committee assignments: Assignments;  Executive Appointments (Chairperson); Executive; Insurance; Veterans Affairs; Energy and Public Utilities.

Biography: Born Feb. 18, 1964, in Chicago; served in U.S. Army with the 82nd Airborne Division; City of Chicago-Mayor's License Commission, Local Liquor Control Section (1990); Dept. of Aviation; Mayor's Office of Budget & Management; member of Fraternal Order of Police; married (wife, Patricia), has three children.

Associated Representatives:
Theresa Mah
Aaron M. Ortiz