The Illinois Court of Appeals has upheld dismissal of a class action against Yocum’s bank client. Plaintiff filed a putative seven-count class action lawsuit in Cook County, Illinois alleging that the bank charged improper interest using a 360-day year. At the heart of the litigation was a dispute regarding the calculation of interest rates for commercial loans. The Court concluded that use of a 360-day year for purposes of computing interest on a commercial loan did not violate the Illinois Interest Act, nor did it violate the terms of the promissory note.
The decision was very helpful to commercial lenders who were facing numerous class action lawsuits asserting claims under the Interest Act. The court’s decision represented the first time the Illinois appellate courts found that the Interest Act did not apply to commercial loans.