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* Dean Olsen at the SJ-R…
A massive legislative package that caps payday loan interest at 36% annually and subjects employers to human-rights complaints for denying hiring and promotions to people based on criminal history was signed into law Tuesday by Gov. JB Pritzker.
The four bills, part of the Illinois Legislative Black Caucus’ efforts to address systemic racism, also are designed to expand access to state contracts for minority-owned businesses, women and people with disabilities. And one of the bills allows a person with a felony conviction to live in federally assisted housing.
* Evan Weinberger at Bloomberg Law…
Interest rates on payday loans, which usually mature every 2 weeks, have reached as high 404% in Illinois, according to consumer advocates who backed the legislation.
The state’s new 36% rate cap also applies to installment loans, which typically are paid back with fixed payments over longer time periods. […]
Some lenders said the bill will reduce access to credit for those borrowers most in need.
“It was rushed through the legislature without substantive input from key stakeholders and an appreciation of its hurtful impact on consumers, and we are disappointed that Governor Pritzker signed this legislation into law,” Mary Jackson, the CEO of the Online Lenders Alliance, said in a statement.
Sen. Lightford specifically warned reporters yesterday against the claim that the legislation was rushed…
The whole idea of we pushed, we rushed, we pushed it through, it was done in a short period of time, it’s just absolutely not true. A lot of work, a lot of hours spent, a lot of involvement from people all across the state created what you see here today.
* CNBC…
Research conducted by the Consumer Financial Protection Bureau found that nearly 1 in 4 payday loans are reborrowed nine times or more. Plus, it takes borrowers roughly five months to pay off the loans and costs them an average of $520 in finance charges, The Pew Charitable Trusts reports. That’s on top of the amount of the original loan.
* Center Square…
Steve Brubaker from the Illinois Small Loan Association said the legislation will put people out of business.
“I’m worried about the members of our association, and number two, all their employees that have to try to find a job during COVID which is going to be awful, but also, you are taking a billion dollars away from customers,” Brubaker said.
* Suburban Democratic state Representative with a business career in a formerly Republican district…
There are significant elements that are leading the country in this pillar. It is even more dramatic than the Justice Equity pillar IMO, (though maybe not as news-attractive.) The potential impact on economic opportunity in many arenas across the state is huge.
— Mark Walker (@walktalker1) March 23, 2021
* Tribune…
The measure also aims to expand access to state contracts for businesses owned by minorities, women and people with disabilities by amending the state’s procurement code to include diversity for consideration during the request for proposal process.
Another bill increases the state’s goal for contracts awarded to businesses owned by minorities, women or people with disabilities from 20% to 30% and mandates the state’s Department of Central Management Services establish “committed diversity aspirational goals for state contracts” and “concerted outreach efforts to businesses owned by minorities, women, and persons with disabilities.”
That could be huge.
* WIFR…
Similarly, Pritzker signed into law a measure allowing people with felony convictions to live in public housing. The state’s more than 100 public housing agencies set their own rules. Sponsors said those that bar residents with criminal records contribute to homelessness and recidivism.
Another law requires state review of of the low- and moderate-income loans by banks and other lenders to improve investment in lower income communities.
Illinois’ Director of Banking on that last bit…
I am so very proud that our new state CRA includes non-bank mortgage lenders and credit unions. Making Illinois the first state in the Midwest to have a state CRA and just the second state nationally to include non-bank mortgage lenders.
6/12#twill
— Chasse Rehwinkel (@chasserehwinkel) March 23, 2021
* Back to the Sun-Times…
One bill amends the Farmer Equity Act and creates a cannabis equity commission to ensure the goals the state set as part of its legalization of cannabis are met. Critics have complained that despite earlier promises, the developing recreational marijuana industry remains white-dominated. […]
It also requires the Department of Agriculture to study the disparities associated with farm ownership and farm operations in the state. […]
Republicans had expressed concerns that the implementation of the legislation would turn the state’s contracting process into a “disaster,” as Rep. Deanne Mazzochi, R-Elmhurst, put it. […]
“For people who will say ‘oh, this is unfair, it’s unworkable, we can’t make it happen’ that is false, and if there were remedies that they had, they could have brought them to the table,” [State Rep. Carol Ammons, an Urbana Democrat] said.
* Some dot points from Brenden Moore…
• A provision allowing those with felony convictions to live in federally-assisted housing
• The establishment of an African Descent Citizens Reparations Commission by the Illinois Central Management Services
• A new annual report from all state agencies and public higher-education institutions on race and gender that includes salary information
• A new community development loan program that will guarantee small business loans and consumer loans to borrowers of color or who reside in low-income communities
posted by Rich Miller
Wednesday, Mar 24, 21 @ 2:56 am
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So Center Square’s concern is that many predatory payday loan businesses won’t survive a cap of 36% APR? Oh the humanity.
If they need a loan to bridge their business transition to the new interest rate cap, I’d be glad to lend them money at their old 404% effective rate.
Comment by PublicServant Wednesday, Mar 24, 21 @ 6:41 am
It seems to me that criminal history is a pretty important issue to employers seeking trustworthy staff. Should banks be forced to hire convicted bank robbers just because they have served their time?
Comment by Striketoo Wednesday, Mar 24, 21 @ 7:24 am
If you’re decrying a cap of 36% on loans don’t ever try to tell me you’re a Christian.
Comment by Flyin' Elvis'-Utah Chapter Wednesday, Mar 24, 21 @ 7:28 am
- Should banks be forced to hire convicted bank robbers just because they have served their time? -
No one is forcing anyone to do anything other than hire based on merit. If someone served their punishment why should they continue to be punished for the rest of their life?
Comment by Excitable Boy Wednesday, Mar 24, 21 @ 7:55 am
I get that people need money in advance of a payday. but look around and find a credit union and not only get the money you need when you establish a relationship, but get financial advice that they offer. try to save even a wee bit of money.
Comment by Amalia Wednesday, Mar 24, 21 @ 8:26 am
- Striketoo - Wednesday, Mar 24, 21 @ 7:24 am:
Is strike three the fact that you’re unable to read a bill for comprehension?
Comment by Precinct Captain Wednesday, Mar 24, 21 @ 9:04 am
SB 1608 (101st General Assembly)
“If after reviewing such evidence the Council finds that there is or has been such discrimination against a specific group, race or sex, … .”
Is that an attempt to get around Richmond v. Croson’s ban on “set-asides” ??
Comment by Anyone Remember Wednesday, Mar 24, 21 @ 9:12 am
==Should banks be forced to hire convicted bank robbers just because they have served their time?==
Striketoo. Your drive by comments reveal so much more about you than you realize.
Comment by don the legend Wednesday, Mar 24, 21 @ 9:14 am
“ No one is forcing anyone to do anything other than hire based on merit. If someone served their punishment why should they continue to be punished for the rest of their life?”
Suppose someone attempted to assassinate then Governor Jim Thompson. That person was convicted, sentenced, served his time and released from prison. He now applies for a position on Governor Pritzker’s security detail. He is highly qualified and cannot be turned down because of his criminal history. Woke nonsense.
Comment by Striketoo Wednesday, Mar 24, 21 @ 9:25 am
==“For people who will say ‘oh, this is unfair, it’s unworkable, we can’t make it happen’ that is false, and if there were remedies that they had, they could have brought them to the table,” [State Rep. Carol Ammons, an Urbana Democrat] said.==
She may be asking people who sense of fair is equality to give up that value in favor of fairness as equity.
Comment by Blake Wednesday, Mar 24, 21 @ 9:27 am
===Suppose===
It’s too early to make a Hot Pocket in the dorm room, and how many people are playing frisbee on the quad this early too?
=== He now applies for a position on Governor Pritzker’s security detail===
Are you utterly clueless how the protection detail choices are made, or are you trolling yourself in hopes you accidentally make a winning thought?
===Woke nonsense.===
Do yourself a solid… just type “I need to own the libs” as a disclaimer, it’ll save time.
… the love of Pete…
Comment by Oswego Willy Wednesday, Mar 24, 21 @ 9:28 am
Striketoo, do you argue with just the one voice in your head or are there multiple ones?
Comment by don the legend Wednesday, Mar 24, 21 @ 9:30 am
@Striketoo,
You created an imaginary scenario to support your argument. I have a real life one for you. Someone is convicted of selling drugs over 20 years ago, served their punishment, and has been a law abiding citizen ever since. This person was recently denied a job as a janitor only because of the prior conviction. Is that fair?
Comment by Steve Polite Wednesday, Mar 24, 21 @ 9:41 am
“It was rushed through the legislature without substantive input from key stakeholders and an appreciation of its hurtful impact on consumers…”
I think the CEO meant “its hurtful impact on our members’ bottom lines” because the only thing negatively impacting consumers are the predatory loans and high interest rates that keep their customers in a cycle of debt and poverty. This new law will help their customers save money.
Comment by Steve Polite Wednesday, Mar 24, 21 @ 9:55 am
@Striketoo - Go get a Krispy Cream, but keep an eye on that guy behind the counter. Ya never know.
Comment by PublicServant Wednesday, Mar 24, 21 @ 9:59 am
Striketoo… read the bill:
“(A) Unless otherwise authorized by law, it is a civil rights violation for any employer, employment agency or labor organization to use a conviction record…unless:
(1) there is a substantial relationship between one or more of the previous criminal offenses and the employment sought or held; or”
**Woke nonsense.**
What is nonsense is that you are making nonsensical arguments, with hypothetical arguments, that are already addressed in the new law.
Comment by SaulGoodman Wednesday, Mar 24, 21 @ 10:07 am
@striketoo
Take your base, that pitch clearly hit you in the head.
Comment by Commisar Gritty Wednesday, Mar 24, 21 @ 10:09 am
Imagine @striketoo has retreated to his/her Facebook safe space, where an identical posting would get lots of likes, rather than the facts-logic strafing with which such nonsense is greeted on the CapFax boards.
Comment by Moe Berg Wednesday, Mar 24, 21 @ 10:20 am
OK, let’s move along.
Comment by Rich Miller Wednesday, Mar 24, 21 @ 10:25 am
It’s a sad day when we’re supposed to be happy about an annual loan interest rate of 36%.
Postal Banking is what is needed.
Comment by TinyDancer(FKASue) Wednesday, Mar 24, 21 @ 10:31 am
That there exist people complaining about a 36% interest rate cap makes me think we need more sermons about usury in American churches.
Comment by hisgirlfriday Wednesday, Mar 24, 21 @ 10:58 am
==Steve Brubaker from the Illinois Small Loan Association said the legislation will put people out of business.==
If your business relies on exploiting the poor with usurious interest rates, maybe you should do something else.
Comment by Pot calling kettle Wednesday, Mar 24, 21 @ 11:21 am
So a former felon is ineligible to seek public office under the Election Code, but a private employer has to hire such a person? Only in Illinois.
Comment by Practical Politics Wednesday, Mar 24, 21 @ 11:25 am
As an employer if I decide I do not want to hire a convicted felon I believe I should have the right to do that. Maybe its the wrong decision and bad for my business. But that should be my call. Convicted felons should not be a protected class.
Comment by Count Floyd Wednesday, Mar 24, 21 @ 11:29 am
No more checking of criminal backgrounds? When will the next Candace Wanzo incident occur at the State?
Comment by Looking back Wednesday, Mar 24, 21 @ 12:32 pm
@Practical Politics. A former felon is not barred from running for all offices in this state. I believe person which a felony record may run for all the constitutional office in the state as well as US Congress Senate or President. Local mayors and school boards may have a problem
Comment by DuPage Saint Wednesday, Mar 24, 21 @ 12:49 pm
May have spoken to soon. Can run for office but have to have rights restored. Think I am right about federal office though
Comment by DuPage Saint Wednesday, Mar 24, 21 @ 12:52 pm
Federal law prohibits insured financial institutions from hiring persons with criminal convictions involving a breach of trust without prior approval of the FDIC.
Comment by Career Bureaucrat Wednesday, Mar 24, 21 @ 4:22 pm