March 2016 Legislative Update

IABG advocates for policy solutions that close the racial wealth gap, expand savings opportunities, and protect Illinoisans from predatory financial practices. Here’s an updated on what we are working on in Springfield this legislative session:

SB2804: The Wage Assignment & Consumer Protections Bill

SB2804, sponsored by Senator Daniel Biss, addresses a debt collection practice called wage assignments. Wage assignments are a way that non-traditional lenders, such as payday lenders, access a borrower’s wages when they default on a loan. Unlike a wage garnishment, a wage assignment does not go through the courts. Instead, the lender sends a notice directly to the borrower, letting them know that they will be taking a portion of their wages.

The Wage Assignment & Consumer Protections Bill will create a clearer wage assignment notice in Illinois – ensuring that borrowers know their rights under federal law to stop a wage assignment at any time, and for any reason.

Take Action: We are working to build a coalition of Illinois organizations supporting these changes. If your organization is able to sign-on in support, please sign-on online or send us an email with your organization’s name.

SB2465: Prison Debt Reform

Illinois law allows the State to sue formerly incarcerated individuals – forcing people to pay for their own incarceration.

SB2465 will end unfair lawsuits by repealing the provision allowing the Department of Corrections to seek reimbursement for the cost of a person’s incarceration. Check out our fact sheet to learn more. You can also read more about the bill in the Chicago Tribune.

Take Action: If your organization would like to sign-on in support, sign-on online.

SB2236: Student Loans as a Barrier to Employment

Many Illinoisans are struggling to pay off their student loans. Yet, current Illinois law makes it harder for Illinoisans to maintain their employment if they default on student loan debts.

IABG is supporting SB2236, sponsored by Senator Scott Bennett. The bill prevents a person from losing their professional license when they default on a student loan guaranteed by the Illinois Student Assistance Commission.

Defending Consumer Protections:

IABG continues to track legislation that aims to strip families and communities of wealth, weaken existing small dollar lending laws, and make it hard for Illinoisans to build and maintain strong financial footing.

 

If you have questions about any of our legislative advocacy this session or would like to get more engaged, send us an email!

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