While the statute of limitations for payday loans is the same for any other debt in Illinois, other restrictions on payday loan collection apply. State law places restrictions on the collection activities of payday loan companies and provides additional protections for members of the military.
Statute of Limitations
In Illinois, the statute of limitations for debt is 10 years for debt if a written agreement is involved, which would apply to most payday loans. If the payday loan company gets a judgment against a borrower, the statute of limitations on collecting the judgment is 20 years.
Collection Restrictions
Under Illinois law, payday lenders cannot file a lawsuit against a borrower unless the loan is at least 28 days past due. If a loan is at least 35 days past due, a borrower can request a repayment plan.
Members of the Military
Payday loan companies cannot garnish the wages of a member of the military or continue collection efforts against a service member who is serving in a combat area. Payday loan companies are also forbidden by Illinois law to contact a service member's commanding officer about the debt.
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