Times Staff Report

The Illinois Department of Financial and Professional Regulation issued an order Wednesday to stop a payday loan company from doing business in the state.

Global Payday Loan, LLC, which does business as Payday-Loans-Yes.com, was also fined $234,000 for charging Illinois customers excessive interest rates and ignoring consumer protections established in the Payday Loan Reform Act.

"It is striking, even after Governor (Rod) Blagojevich worked to enact payday loan reforms that protect Illinois consumers, internet loan operations continue to violate the act, claiming the law doesn't apply to them," said Dean Martinez, Secretary of Financial and Professional Regulation.

While investigating a consumer complaint brought against Payday-Loans-Yes.com, the IDFPR found problems with the six-day $300 loan.

The state argued the term of the loan does not give the borrower sufficient time to repay the loan. The fees on the loan exceeded the $15.50 per $100 allowed in Illinois. When calculated, the annual percentage rate on the loan was 2,190 percent.

The company also failed to provide the borrower with a statement explaining her rights to initiate an interest free repayment plan and other consumer rights under the law.

The state order requires the company to provide documents showing whether it has made loans to any other Illinois consumers.