Press Releases

FOR IMMEDIATE RELEASE                                        Carleton Lending Software 50th Anniversary Logo

For further information contact:

Joe McTigue

574.243.6040 ext. 239



Illinois 36% APR Rate Cap – What You Need To Know

Recent consumer finance legislation which has passed the Illinois state House and Senate has received national attention from lenders and finance companies. Senate Bill 1792 contains The Predatory Loan Prevention Act which significantly impacts the extension of credit in the state of Illinois. The bill was sent to Governor Pritzker on February 5, 2021 and he has 60 days to sign or veto the legislation. The Predatory Loan Prevention Act would go into effect immediately upon signature or automatically following that 60-day period. Although regulations implementing this law will undoubtedly be released, those have yet to be drafted. These rules will hopefully add more clarity to the components of the bill and how they impact consumer lending operations in Illinois. Carleton has been closely monitoring the progression of SB 1792 and has already begun implementing calculation changes in order to help our clients and partners stay ahead of this compliance challenge.    

Significant Provisions Impacting Computational Requirements:

  • Replaces existing maximum charge statutory requirements with:

    • A 36% Annual Percentage Rate limit
    • Aligns computational requirements with the MAPR for the Military Lending Act
    • The new 36% cap will extend to both Loans and Retail Installment Sales
  • Exempt institutions:
    • Federally chartered banks
    • Savings banks
    • Savings and loan associations
    • Credit Unions
  • The Act will be effective immediately upon signature by the Governor.

SB 1792 Aligns Compliance Requirements With the Military APR:

  • The Military Loan Act defines “interest” for purposes of complying with the rate cap as including:

    • Application fees
    • Points, origination fees, participation fees—all fees in the TILA finance charge
    • Any fee, premium, or charge for credit insurance
    • Any debt protection charges/fees (cancellation and suspension)
    • Any credit-related ancillary product sold in conjunction with the transaction
  • The controversy over the undefined term “credit-related ancillary product” will extend to this legislation unless subsequent rules and regulations provide specific clarity. To date, the Department of Defense has refused to define this term in relation to the MAPR calculation.

Carleton has maintained regular communication with industry professionals and trade associations to ensure we are assisting our clients implement these necessary updates. Additionally, Carleton has extensive knowledge and experience with the Military Lending Act and the associated computational requirements. We will be consulting with and implementing updates for our clients on a first come first serve basis. Submit a “Contact Us” request today to review required adjustments to your lending operation.


About Carleton, Inc.:

Carleton is the country's leading provider of financial calculation software, loan origination compliance support, and document generation software. Based in South Bend, Indiana, Carleton possesses over 50 years of leadership in this rapidly-changing regulatory industry. Carleton guarantees accuracy in all their calculations and disclosures enabling their partners to fulfill compliance requirements today and into the future. To learn more about Carleton Lending Solutions, go to or contact Joe McTigue, Client Engagement Executive at 800-433-0090 Ext. 239 or