In January, Illinois lawmakers, state officials, and advocates joined Woodstock Institute and our partners for our 2nd Annual Legislative Breakfast Briefing. Attendees had the opportunity to connect with each other and receive information about this year’s consumer and small business financial protection agenda.
Presentations
Note that some bill numbers listed below are from the 103rd Illinois General Assembly. These bills will be reintroduced and given new numbers in the current session, the 104th Illinois General Assembly.
Auto Insurance
Presented by Abe Scarr, IL-PIRG
Illinois is one of only two states without the power to review excessive car insurance rates. Proposed legislation would both rectify this problem and prohibit unfair and discriminatory practices in car insurance, including the use of non-driving factors to set rates.
Small Business Lending Data
Presented by Serrater Chapman, Woodstock Institute
Woodstock Institute’s Patterns of Disparities research series explores racial and economic disparities in small business lending from years 2015 to 2017. Updated Chicago-area and Illinois data shows that lower-income areas and communities of color continue not to receive their fair share of small business credit.
Small Business Financing Transparency Act & Predatory Loan Prevention Act
Presented by Brent Adams, Woodstock Institute
The Small Business Financing Transparency Act would address predatory lending in the nonbank small business financing space by requiring nonbank lenders to register with the State of Illinois and disclose the APR on their loans.
The Predatory Loan Prevention Act capped rates on consumer loans, including payday loans, at 36% APR in Illinois. In the year after the law was passed, consumers saved over $600 million in interests and fees. New polling also shows overwhelming support for the law among both likely voters and former high-cost loan recipients.
Protecting Families in Debt
Presented by Dan Schneider, Legal Action Chicago
Many low- and moderate-income families are left to choose between paying debt and paying for basic needs. SB2220 would protect indebted families by preventing debt collectors from seizing assets and resources that are necessary for maintaining a stable standard of living.
Debt Settlement
Presented by Ricki Lowitz, Working Credit
The Debt Resolution Services Act (HB1289) would repeal existing consumer protections for customers of debt settlement (or debt relief) firms. While these companies promise to “get rid of your credit card debt,” their programs often result in further financial harm for participants – increased debt, damaged credit, and increased collection efforts by creditors.
Prescription Drug Affordability
Presented by Julia Warheit, Citizen Action/Illinois
HB1443/SB66 would create a Prescription Drug Affordability Board, which is an independent body with the power to set upper payment limits on prescriptions. The goal of this board is to generate savings for both consumers and the State and to increase access to medication.
Income Share Agreements
Presented by Myanno Miller, Woodstock Institute
Income Share Agreements (ISAs) are a type of private student loan that is made in exchange for the student’s agreement to pay the lender a specified portion of their future income for a certain length of time. Such products often come with predatory borrowing terms. Woodstock supports efforts to regulate them in the best interest of borrowers.
