Consumer Lending Reform
Woodstock Institute identifies the negative effects of high-cost consumer credit and works to end the worst practices among payday lenders, installment lenders, and other consumer lenders.
By Herb Weisbaum
Checking accounts—and the debit cards that come with them—should be a simple and straightforward way to handle routine financial transactions. And yet, many people simply don't understand the overdraft policies at their bank or credit union.
Chicago – Today, Governor Pat Quinn signed HB 5622, legislation instituting strong consumer protections for Illinois workers who receive their wages on payroll cards. Sponsored by Sen. Kwame Raoul and Rep. Art Turner, and championed by Attorney General Lisa Madigan, the bill passed with bi-partisan support during the spring legislative session and, with the Governor’s signature, will now become law. Woodstock Institute and its partners in the Illinois Asset Building Group advocated for the expansion of consumer protections for payroll cards.
The government wants to make it easier for parents with flawed credit to take out loans to pay for their children’s college education. Currently the U.S. Department of Education rejects Parent PLUS loan applicants with debt payment delinquencies of 90 days or more within the past five years. A proposal would cut the period under scrutiny to two years and allow for almost $2,100 in bad debt, according to a department document released in May. In either case, applicants can be rejected for other problems, including a default, bankruptcy, or foreclosure during the past five years.
The spring Illinois legislative session just came to an end. Here are highlights of what happened in Springfield on issues affecting wealth-building opportunities for Illinoisans:
Last year, thousands of consumers filed complaints with the Consumer Financial Protection Bureau (CFPB) regarding financial products. In Illinois, complaints from consumers focused on mortgage services, banking services, credit cards, and other critical services.
Westwood College, a for-profit university, attracts students with a promise of a law enforcement career upon graduation.
You may have heard about the Consumer Financial Protection Bureau (CFPB), but what can it do for you and your constituents?
After decades of work by advocates across the country, national policymakers are — at long last — poised to take action on payday loans.
Nearly a year ago, Woodstock launched our online data portal in order to deliver meaningful data on the Chicago six county region for our community partners in a user-friendly way.
The Consumer Financial Protection Bureau (CFPB) is in the “late stages” of making a rule to regulate payday lenders. It is critical to let them know that the rule should not include loopholes that lenders can exploit to make expensive, unregulated loans.
The Consumer Financial Protection Bureau (CFPB) made allegations last week that one of the nation’s largest for-profit colleges, ITT Educational Services, is pushing students into high-cost student loans that are built to fail. This is the CFPB’s first enforcement action against a for-profit college.
Every year Woodstock Institute staff and dozens of allies from Illinois go to Washington, DC, in the spring to galvanize the community reinvestment movement, learn about the latest developments, and visit our elected officials and regulators. 2014 is no different.
In an attempt to tackle the private student loan crisis, Senator Dick Durbin (D-Ill.) introduced the Student Loan Borrowers' Bill of Rights at a press conference in Chicago on December 3, that would provide basic protections for students flirting with default on their loans. The bill is co-sponsored by Senators Elizabeth Warren (D-Mass.) and Barbara Boxer (D-Calif.).
A recent report from the UK-based Community Finance Solutions at the University of Salford and Woodstock Institute calls for the United Kingdom (UK) to adopt a banking disclosure act similar to laws in the United States (US).
I recently read an eye-opening book entitled “Scarcity: Why Having So Little Matters So Much,” by Sendhil Mullainathan and Eldar Shafir. It’s about how scarcity of time, money, food, and sleep affects our brains, creating a tunnel vision.
The Consumer Financial Protection Bureau (CFPB) announced last week that it will begin collecting consumer complaints on payday loans.