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.

May 12, 2010

Woodstock Institute and Americans for Financial Reform (AFR) reached out to key Senators on Tuesday to express their support for interstate lending reform, which would ensure that out-of-state lenders could no longer supersede state interest rate limits that apply to local banks, credit unions, and other lenders.

May 5, 2010

As debate begins on the Senate financial reform bill, the strong consumer protections contained in the Restoring American Financial Stability Act (S. 3217) will surely come under assault from special interests and their armies of lobbyists—and not all of them are from big banks.

April 12, 2010

High-cost credit, extended with no consideration of a borrower's ability to pay it back, has stripped billions in wealth from Chicago region communities since the beginning of the economic crisis.  While lending reform is still being debated in Washington, policymakers in Springfield have finally recognized that at least one form of high-cost credit - payday installment lending - cannot continue to operate in Illinois without a basic set of ground rules. The Monsignor John Egan Campaign for Payday Loan Reform agrees and publicly supports one proposal, Senate Bill 655, which will finally put an end to predatory payday installment loans with rates that too often top 1,000 percent.

April 5, 2010
By Adam DosterApril 5, 2010 Consumer advocates are inches away from closing a loophole in the Illinois Payday Loan Reform Act (PLRA) that lenders have perniciously exploited since the law went into effect five years ago.  They are mobilizing around a bill (SB 655) that would place common-sense...
March 19, 2010
By Adam DosterMarch 19, 2010 The prolonged battle to close a loophole in Illinois' payday lending reform law is reaching a critical juncture. In the past week, 11 Senate Democrats have joined State Sen. Kim Lightford (D-Maywood) as co-sponsors of SB 655, which would regulate small-dollar consumer...
March 18, 2010

If you live in Illinois, call your State Senator and tell them to support the Consumer Installment Loan Reform Act (SB655 Amendment #1) today.

December 22, 2009

Last week, the Monsignor John Egan Campaign for Payday Loan Reform and Woodstock Institute called for much-needed consumer protections for the currently unregulated payday installment loan industry at a press conference in downtown Chicago.  These new consumer protections, included in a recent proposal by Senator Kimberly Lightford (D-Maywood), would ensure reasonable fees in an industry that has operated for years outside the consumer protections established in the 2005 Payday Loan Reform Act.

March 19, 2009
Tom Feltner and Sarah Duda    This report analyzes detailed, loan level data and describes the terms and conditions, borrower demographics, and default characteristics of loans made by consumer installment lenders in Illinois.
July 25, 2007

Credit unions can offer sustainable, affordable short term credit at a fraction of the cost of traditional payday lenders, says a recent report by Marva Williams, until recently Woodstock Institute senior vice president.

May 24, 2007
Marva Williams This report summarizes an 18-month evaluation of the affordable payday loan alternative products offered by six community development credit unions. In addition to describing loan activity, the report identifies the financial and operational factors that account for the program's...