We know that the Military Lending Act (MLA) does not preempt state laws that provide service members with greater protections. Are there any such laws in Illinois?

Yes, there are several Illinois laws that provide military members greater protections than the federal Military Lending Act that should be on your radar. For example, the Illinois Human Rights Act has made military status a protected class, providing broader protection than its counterpart federal law.

In addition, the Illinois Service Member Civil Relief Act limits interest rates charged to active military personnel on obligations entered into “prior to a service member’s period of military service” to 6%. This law also permits military service members to petition the court for relief from all civil default judgments against them in cases where their military service materially affected their ability to defend their case.

For resources related to our guidance, please see:

Illinois Human Rights Act, 775 ILCS 5/4-102 (With regard to loans, “it shall be a civil rights violation for any financial institution, on the grounds of unlawful discrimination, to: . . . [d]eny any person any of the services normally offered by such an institution.”)

Illinois Human Rights Act, 775 ILCS 5/1-103 (“‘Unlawful discrimination’ means discrimination against a person because of his or her . . . military status . . . or unfavorable discharge from military service as those terms are defined in this Section.”)

Illinois Service Member Civil Relief Act, 330 ILCS 63/40 (“Interest or finance charges collected or charged to a service member who has entered military service, or the spouse of that service member, in connection with an obligation entered into on or after the date of August 22, 2005, but prior to the date that the service member entered military service, shall be subject to Section 4.05 of the Interest Act.”)

Illinois Service Member Civil Relief Act, 330 ILCS 63/60 (“Relief from a final order or judgment entered by default against a service member who has entered military service is subject to Section 2-1401.1 of the Code of Civil Procedure.”)

Illinois Interest Act, 815 ILCS 205/4.05 (“Notwithstanding any contrary provision of State law, but subject to the federal Servicemembers Civil Relief Act, no creditor in connection with an obligation entered into on or after the effective date of this amendatory Act of the 94th General Assembly, but prior to a service member's period of military service, shall charge or collect from a service member who has entered military service, or the spouse of that service member, interest or finance charges exceeding 6% per annum during the period of military service.”)

Illinois Code of Civil Procedure, 735 ILCS 5/2-1401.1 (“Relief from and vacation of final orders and judgments after 30 days from the entry thereof entered by default against a service member that has entered military service may be had upon petition as provided in this Section.”)