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A Close Look at the Recent Study of the Effects of Illinois’ 36% “All-In” Interest Rate Cap on Small-Dollar Credit Availability, with Special Guest Tom Miller, Professor of Finance, Mississippi State University, and Study Co-Author
A Close Look at the Recent Study of the Effects of Illinois’ 36% “All-In” Interest Rate Cap on Small-Dollar Credit Availability, with Special Guest Tom Miller, Professor of Finance, Mississippi State University, and Study Co-Author


Using data for the last quarter of 2020 and first three quarters of 2021, the study examined the effects of the 36% rate cap imposed by the Illinois Predatory Loan Prevention Act which became effective in March 2021. The study found that the cap significantly decreased the availability of small-dollar credit in Illinois. We first discuss the types of loans affected by the rate cap, the users of such loans, and the data sets used to study the cap’s effects. We then discuss the study’s results, the authors’ response to criticism of the study, and the issues raised by a potential national rate cap.

Alan Kaplinsky, Senior Counsel in Ballard Spahr’s Consumer Financial Services Group, hosts the conversation.

Listen on Ballardspahr.com