Statute of Limitations for Payday Loans in Illinois

There is a statute of limitation regarding debts which applies in many states. In Illinois the laws that apply for payday loans are the same as the laws that apply for other kinds of debts. However there are many other limitations on payday loans regarding payday loan collections.


As mentioned above there are other kinds of limitations that apply on payday loans. State Laws have been enacted to control the collection activities of companies that provide payday loans.


The aim was to provide additional protection for military members. This is because members of the Armed Forces were susceptible victims of predatory practices.

Act of Limitations

In Illinois the limitation period for a debt is 10 years. However there must be a written agreement of the debt. This law would also apply for payday loans.

A payday loan company can also get a judgment against a borrower. If the company is successful then there is a limitation period in which they can get the judgment enforced. The limitation period is 20 years.

Collection Limitations

There are certain restrictions regarding the collection activities of payday loans. In Illinois payday lenders can only file for a lawsuit in one scenario. This is that the loan must have been due for the past 28 days.

If payment has been due since 35 days there are other options available. The borrower can appeal for a repayment plan from the lender. It will be up to the lender to accept the proposal.

Military Personnel

There are further restrictions against companies which offer payday loans. Companies are forbidden to contact military personnel who are currently fighting. Even of the loan is due companies cannot contact the military members.

The laws have been enforced to protect members of the Armed Forces. They should not be bothered when they are fighting for the safety of the country. This means that the company cannot contact the commanding officer of the military member either.

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