IABG advocates for policies that close the racial wealth gap and expand savings opportunities. Illinois’ regular legislative session ended on May 31, and we saw progress on many of our policy priorities that impact Illinoisans with low incomes.

IABG Priorities

• SB2804, the Wage Assignment & Consumer Protections Bill: SB2804 strengthens consumer protections for payday loan borrowers in a process called wage assignment. It passed out of the House & the Senate, and now goes to the Governor for his signature.
• SB2465, Ending Unjust Lawsuits Against Formerly Incarcerated People: SB2465 ends unjust lawsuits by preventing the Department of Corrections from seeking reimbursement for the cost of a person’s incarceration. It also passed out of the House & Senate, and is on its way to the Governor.
• HB4446, Ban the Box in Higher Education: HB4446 increases educational opportunities for people with criminal records by “banning the box” in the admissions process to higher education institutions. It passed out of the House, but we faced significant opposition and were unable to move it forward in the Senate. We will be working on advancing it over the summer.

Bills IABG Supported

• SB2236, Student Debt & Professional Licensure: SB2236 prevents professional licenses from being revoked because of student loan debt (for loans provided/guaranteed by the Illinois Student Assistance Commission). It passed out of the Senate, but has not yet passed the House. We hope to see SB2236 advance in the summer.
• SB2340, Child Support for Families receiving TANF: SB2340 provides more support for families receiving TANF by requiring that the first $100 of child support (1 child) or $200 (2 or more children) goes to the family. It passed the House & Senate, and is on its way to the Governor.
• HB4633, Unclaimed Property Reforms: HB4633 ensures that insurance companies work to pay out life insurance benefits when a loved one passes away. Given that life insurance is often the only method for many low-income individuals of leaving an inheritance , the legislation could have a big impact on Illinois families. The bill was pushed by Treasurer Frerichs, passed the House and the Senate and is on its way to the Governor.

We also worked diligently in Springfield to defend existing consumer protections. In particular, we advocated against a number of bills that would harm consumers purchasing used cars.

Heartland Alliance Priorities

IABG is a project of Heartland Alliance for Human Needs & Human Rights. Our policy team at Heartland Alliance championed a number of bills that affect low-income Illinoisans.

• SB3007, Survivor Support & Trafficking Prevention Act: SB3007 provides survivors of human trafficking, torture, and other serious crimes with access to critical benefits while they are waiting for visas. It passed the House & Senate, and is heading to the Governor!
• HB1288, the Domestic Workers’ Bill of Rights: HB1288 implements basic worker protections for domestic workers. It also passed the House & Senate, and goes to the Governor for his signature.

Our team also worked to pass several bills that expand employment opportunities for individuals with criminal records, including:

• Bills expanding opportunities for employment in park districts (SB3005) and schools (HB4360)
• A bill creating opportunities for individuals with criminal records to get their health care licenses (SB42)

The Budget Impasse

We are now in the 12th month without a state budget. Once again, elected officials failed to pass a budget before the end of the legislative session – meaning we now lack a budget for both FY2016 and FY2017.

We continue to participate in the Responsible Budget Coalition, calling for a fully-funded, responsible budget with adequate revenue. Read more about the devastating consequences of the budget impasse.

Shape our Priorities for Next Year!

We want to hear from you about what issues and policy solutions we should be prioritizing. Fill out a brief survey to help us develop our policy priorities for the 2017 legislative session.

Today the Consumer Financial Protection Bureau (CFPB) released proposed rules aimed at addressing some of the worst abuses of the payday lending and auto title lending industries. While we commend the CFPB for taking this important step, we believe that the rules can and should be strengthened in order to make the loans safer and less costly.

An Overview of the Proposed Rules

The rules, which apply to payday loans, auto title loans, deposit advance products, and certain high-cost installment loans, emphasize the need to make loan payments more affordable and make an effort to prevent borrowers from being trapped in a cycle of debt. This includes:

• Determining a Customer’s Ability to Pay: The CFPB found that 4 out of every 5 borrowers are unable to pay back a payday or auto title loan without having to borrow again. Thus the CFPB is proposing a “full-payment test” which would require some lenders to determine whether the borrower can afford the full amount of each payment when it’s due and still cover their basic living expenses and other financial obligations.
• Penalty Fee Protection: When a lender attempts to collect on a loan directly from a borrower’s bank account, the borrower can incur bank penalty fees if there are insufficient funds in the account. A CFPB study over an 18-month period found that half of online payday and payday installment borrowers racked up penalty fees. Thus the CFPB is proposing that lenders be required to give consumers written notice before attempting to debit the consumer’s account. After two straight unsuccessful attempts, the lender would be prohibited from debiting the account again unless the lender gets a new and specific authorization from the borrower to debit the account.

Next Steps:

The CFPB is asking for comments on the proposed rules by September 14th. We believe that, if strengthened, these rules have the potential to rein in some of the most abusive lending practices that we see in Illinois.

Please join us for an IABG partner webinar to review the proposed rules in depth and discuss our response and strategy for submitting comments. The webinar will take place on Tuesday, June 21, at 2pm CST. Register Now.

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