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Policy initiatives History of Public Policy Advocacy at Metropolitan Family Services For the past 150 years, Metropolitan's board of directors and staff have acted on their belief that strong public policy advocacy goes hand in hand with strong direct service to provide an environment where individuals, families and communities can thrive. Focus has changed over time from an early emphasis on creating a Mothers' Compensation program and establishing a social security system to the current emphasis on regulation of predatory lending products and modernization of custody and guardianship laws. Yet whether the issue is welfare reform, domestic violence, child support enforcement, utility assistance, affordable housing or elder abuse, Metropolitan Family Services makes a difference. Social Policy Issues for 2007 – 2008 Payday Loan Reform Payday loans are short-term loans with high interest costs secured by a borrower's post-dated check, bank account or paycheck. In 2000, the Social Policy Department began working on this issue because staff members were concerned about the many clients who were having trouble repaying the loans. With strong advocacy input from Metropolitan and other organizations the Payday Loan Reform Act was passed in 2005, with the compromise that the law would only cover loans of 120 days or less. Payday loan companies responded by providing an alternative product called installment loans, which have repayment loan terms of 121 days or more. Legislation to cover all payday loans, regardless of the length of the loan terms, has been proposed. VOTE FOR SB1468 — Make sure that the Payday Loan Reform Act Covers All Payday Lending Auto Title Loans Regulation Auto title loans are short-term loans, typically with triple-digit interest annual rates, secured by a title to a used car. If the borrower cannot repay the loan, the lender may repossess the car. Frequently, the loan is for much less than the value of the car, which means that the borrower loses much in assets when the lender repossesses the car. Losing access to a car makes it impossible for many borrowers to keep jobs and go to grocery stores, doctors and schools - necessities of life for many low-income families. UPDATE April 2007: As the result of advocacy around the problem of auto title loans, public hearings will be conducted this summer by state Sen. William Delgado and state Rep. Mike Boland to determine the scope of the problem and to identify ideas for ways to regulate the industry. In 2006, the state of Iowa passed legislation to regulate the industry. Consumer Federation of America press release, "Latest Predatory Lenders Drive Borrowers Into Debt With High-Cost Loans Secured by Cars" Egan Campaign for Payday Reform Sheet Supporting Interest Rate Limits for Auto Title Lending Illinois Predatory Lending Database Pilot Program Communities in Chicago and elsewhere in the United States have been hit hard by high foreclosure rates, many the result of sub prime loans. Congress began holding hearings on the issue in early 2007. However, Illinois responded to these problems in 2005 by passing anti-predatory lending legislation which required mortgage borrowers with low credit ratings to get financial counseling before proceeding with the mortgage. The program was piloted in five Chicago zip codes that have high mortgage foreclosure rates. The decision to target those communities led to accusations of redlining. In response Governor Rod Blagojevich put the Predatory Lending Database Pilot Program on hold. The Governor's new plan mandates financial counseling by HUD-certified counselors for 1) all Cook County first-time homeowners and 2) owners refinancing their primary residence who are applying for loans with any one of the following provisions:
UPDATE APRIL 2007: All those wishing to comment on the plan should submit comments to Craig Cellini, Rules Administrator, IDFPR, 320 W. Washington St., Springfield, IL 62786 by June 8, 2007. This comment period will be followed by a second comment period that ends August 10, 2007. The Governor's plan was published in the Illinois Register April 6, 2007. Governor's Notice about HB4050 Chicago Tribune column by Dawn Turner Trice, "Foreclosure Remedies Must Include Lenders" Chicago Sun-Times article by Celeste Busk, "It's Baaaack! HB4050" Illinois Earned Income Tax Credit Expansion The Earned Income Tax Credit rewards the work of low-income working taxpayers by allowing them to apply for refunds from the federal government. The Illinois EITC is a supplement to the federal EITC. Legislation supported by Metropolitan Family Services will expand the Illinois EITC in the following ways:
UPDATE April 2007: SB12 passed the Senate unanimously and is now in the House Rules committee. Help Working Families: Grow the Illinois EITC Learn more about Fact sheets about your legislative district* Metropolitan Family Services is pleased to share current information on the social-economic status of individuals living in Illinois' legislative districts. Information in these fact sheets was compiled specifically for each legislative district in Illinois directly from information from state agencies and the 2000 U.S. Census. The 2003 Legislative District Fact Sheets include:
The Illinois Marriage and Dissolution of Marriage Act (IMDMA) Many family law, child welfare and poverty law attorneys agree that the IMDMA is confusing, causing a morass of conflicting case law and considerable emotional and financial hardship for parents and children. What they don't agree on is how the Act should be changed. Legislation proposed by the Illinois State Bar Association was shelved in early 2007 due to the failure of the Illinois State Bar Association and the Chicago Bar Association to come to agreement about a bill. Another bill drafted by the Chicago Council of Lawyers with help from the Legal Aid Bureau and the Social Policy Department and sponsored by state Rep. Julie Hamos was held (was not introduced into Committee). UPDATE April 2007: Letters from the Illinois State Bar Association and the Chicago Council of Lawyers to state Rep. John Fritchey, chair of the House Judiciary Civil Committee, asking the Illinois General Assembly to undertake a thorough and comprehensive review of the Illinois Marriage and Dissolution of Marriage Act.
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