Illinois short term lender moves to block new law

An Illinois short term lending leader is suing the state government to halt the execution of a new bill that is supposed to become law on Monday. Illinois Lending, which operates six lending centers in the Chicago area, says that the bill is unconstitutional and that the business will suffer long-term damage because of the law, according to Crain's Chicago Business. According to the source, the plaintiffs' attorney claims the law fails to give the industry equal protection and significantly affects its members' ability to provide to consumers in need of short-term financial assistance. "There is no evidence that consumers have been injured where both (installment and payday) loan products are offered in the same place of business," the lawsuit reads, according to Crain's. Illinois Lending states that it issued more than 7,000 installment loans last year and more than 700 short term loans. The company believes that the new law will keep it from holding dual licenses and prevent consumers from having choices. One of Illinois Lending's main competitors, First Cash, sold its operations ahead of the new law.