We continue steadily to see wealth stripped from communities across Illinois by dangerous and abusive lending options and techniques. These lending options and solutions вЂ“ including payday and automobile name loan providers, money exchanges, unregulated paid-tax preparers, loan companies, and much more вЂ“ donate to the economic insecurity of Illinois families and communities. While usually marketed in an effort to weather a monetary storm or to allow it to be to the following paycheck, predatory loans trap individuals in a cycle of financial obligation that may just just take years to recuperate from.
Predatory items disproportionately strip wide range from communities of color, which plays a part in the growing racial wide range divide. To construct racial equity, we ought to advocate for strong customer defenses, and start to create policies that develop monetary protection. It is time our policymakers place a conclusion to lending that is abusive and predatory economic solutions that trap families in a period of financial obligation and then leave communities economically insecure. (more…)