State fines two local money-lending stores for violations
Department accuses companies of improper interest, loans too large for borrower income
DIXON – Two Dixon money-lending companies were fined by the Illinois Department of Financial and Professional Regulation in March, the department said Tuesday in a news release.
Cottonwood Financial Illinois LLC was fined $1,200 for three violations. An IDFPR examiner found signed loan documents at Cottonwood with blank areas. Loan documents should have no blank areas before they are signed, IDFPR spokeswoman Sue Hofer said.
The company at 224 N. Galena Ave. also improperly figured interest calculations on loans, Hofer said. An IDFPR examiner also found that the company repossessed one or multiple items without sending a final statement to the borrower telling them that they no longer owe money, she said.
Great Lakes Specialty Finance Inc., 214 Keul Road, was fined $2,025 for several violations.
The company did not return original loan documents to customers after loans were paid off, Hofer said. The payday loan store was supposed to cancel or return the documents to the customer once the loan was paid off, Hofer said.
The cash store also improperly put data into a computer and made loans that were too large for the borrower, considering the borrower’s monthly income, she said. The store either made an installment payday loan that exceeded 22.5 percent of the borrower’s monthly income or made a non-installment payday loan that exceeded 25 percent of the borrower’s monthly income, Hofer said.