A New Way on
Predatory Lending Reform:
We Can Protect our Neighbors and Defend our Communities
Patrick Keenan-Devlin took on payday loan sharks and pushed for tough laws to keep them from preying on people in need. He’s not afraid to stand up to the powerful special interests to fight for what’s right.
William McNary
Citizen Action/Illinois Co-Executive Director
Citizen Action/Illinois is the state’s largest public interest organization, fighting for Illinoisans on issues as varied as utility rates, health care reform, and ethics.
Predatory lenders are taking advantage of tough economic times to prey on hardworking Illinois residents. Too many Illinoisans, living paycheck to paycheck, are locked into never-ending debt with triple-digit interest rate payday and payday-like installment loans. The lack of a functioning regulatory framework for these loans attracts unscrupulous sub-prime lenders to Illinois. Trapped in a vicious cycle of debt, our neighbors are left out in the cold and our communities are torn apart.
If you drive down Dodge Avenue in Evanston, payday and installment lending storefronts line the street. These establishments offer long-term loans with interest rates ranging from 100% to 700% APR. They target vulnerable populations, including senior citizens on fixed incomes. I have met many seniors who have taken out payday and payday-like installment loans to pay their utility, medical, and car expenses. Since, often, their only source of income is Social Security, these high-interest loans have trapped them into a long-term debt cycle, and they can end up paying ten times the original principal of the loan. This is usury in Illinois, and it is just not right. We must protect vulnerable citizens from these unscrupulous practices, and protect our neighborhoods from the ravages that result from personal bankruptcies.
I will fight to ensure that laws are enacted to establish reasonable finance charges and fees – ensuring that key consumer protections are applied to small, longer-term loans.