Illinois Gov. Pat Quinn signed into law a bill that caps interest rates on payday loans and provides other consumer protections through increased regulation of lenders. The legislation is the culmination of efforts by a coalition of civic and labor groups, including MacArthur grantee the Woodstock Institute. The law, which goes into effect in March 2011, caps rates at $15.50 per $100 borrowed every two weeks for loans of six months and less. For loans longer than six months, rates are capped at 99 percent for amounts less than $4,000, and at 36 percent for loans more than $4,000. Previously, these loans were unregulated, resulting in a cycle of debt for some consumers and rates as high as 700 percent.
Community & Economic Development
The Foundation supports prevention of youth violence and the use of information technology to enhance governance, the social sector, and quality of life. MacArthur is exploring new ways to understand the challenges faced by cities around the world, and how to plan, manage, and govern to address them.