Woodstock Institute applauds the passage of the Dodd-Frank financial reform bill, which represents the most dramatic and pro-consumer overhaul of the financial system in 70 years. The bill, which President Obama is expected to sign soon, will stabilize the financial system, prevent the need for future bailouts, and create a new Consumer Financial Protection Bureau (CFPB) to guard against unfair and deceptive products and practices.

Thanks to your support, House and Senate conferees have passed a strong financial reform bill (read the summary and full text) that will protect consumers and introduce transparency to the financial system. The bill now goes to the full House and Senate for consideration. These reforms are major steps towards preventing another crisis and creating a sustainable financial system where all consumers can safely borrow and save for a brighter future.

In a crackdown on 700 percent interest rate payday loans, Governor Quinn signed HB 537, capping rates and closing the legal loophole that has allowed some payday loan companies in Illinos to operate almost completely unregulated.  Starting in March 2011, the law caps rates for nearly every short-term credit product in the state, prevents the cycle of debt caused by frequent refinancing, and gives regulators the tools necessary to identify potentially predatory lending practices before they become widespread.

As unemployment continues to remain high, we must look for ways to allow small businesses to expand and create jobs. Small businesses are engines for job creation—they create 80 percent of new jobs—but the recession has taken a toll on small business owners’ ability to access the credit they need to expand their businesses. A number of initiatives have the potential to increase small business lending to sound borrowers.

After Le-Eunice L'Minggio paid a $1,200 down payment and got a financing plan approved for a $8,000 car from Thrifty Car Sales in Melrose Park, IL, she thought that was the end of negotiations on her loan terms. However, USA Today reports, she got a strange call a few days later. The dealership’s finance manager told her she would have to lie to the finance company about her financial situation in order to get a loan. L’Minggio refused and returned her car, but couldn’t get her down payment back. She went to court and won $13,200 in damages, but when her lawyer went to collect, the dealership was out of business.

While strong financial reform bills have passed the House and the Senate, the fight for meaningful reform is not over. This Thursday, House and Senate conferees are slated to start negotiations on the final version of the bill.

We need your help to make sure that the consumer financial protection agency that emerges from the conference is strong and independent, covers all financial products, and sets rules that are a floor, not a ceiling.