Payday loans are one of the fasting growing businesses in Illinois.  Often they are set-up in low-income communities where families live from one pay check to another.  This is an easy lure for communities that may want to build their wealth with a short-term loan.  Often the loans are made with the intention of pay off within a thirty day period.  Interest is compounded daily, usually with an extremely high rate, sometimes as high as 333%.  This creates the cycle of payoff and an opportunity to takes out a new loan. (Often with limits on how many loans you can take out over a period of time.) Instead of building wealth, these loan company often push the already low-income families into financial ruins.  SB 1167, which goes into effect on June 1, 2008, will protect borrowers from risky loan products, such as interest-only loans, and the predatory practices of many subprime lenders, such as offering borrowers loans they can’t afford.