Oak Park Real Estate & Estate Planning Blog

Last month, we discussed a significant federal lawsuit against Navient , a prominent student loan company. Yet the student lender is facing more than just a federal lawsuit. According to a press release from the Office of the Attorney General of Illinois, Lisa Madigan has also sued Navient and Sallie Mae for what the office describes as “rampant student loan abuses.” Why is Madigan’s lawsuit important for consumers in Oak Park and throughout the Chicago area? In short, as the press release explains, Madigan has sought restitution for “all borrowers affected by Navient’s unlawful practices ” and has requested in her lawsuit that the lender “rescind or reform all contracts or loan agreements between Navient and any Illinois consumers affected by the company’s unlawful practices.” Madigan’s complaint emphasizes the importance of consumer protection in Illinois , and it also highlights that many Chicago-area residents are not being treated fairly when it comes to student loan...

If you are a consumer in the Chicago area, it is important to understand your rights when it comes to deceptive lending practices and the risks associated with certain types of loans. What rights do you have as a consumer? And what kinds of lending services can put consumers at risk ? Recent Report Indicates that Installment Loans May Be as Harmful as Payday Loans According to an article in the Chicago Tribune , a study conducted by Pew Charitable Trusts has warned the public that payday loans are not the only path along which deceptive lending practices can occur. Installment loans, the study suggests, also can put consumers at risk of harm. As the article explains, “as the federal government clamps down on traditional payday loans that cripple low- and moderate-income borrowers with unaffordable payments, lenders are shifting their businesses to installment loans that can be just as harsh on struggling people.” Installment loans, the article argues, similarly ...

Allegations have been levied against payday lenders across the country concerning deceptive lending practices . According to a recent article in the Chicago Tribune , debtors who may have been victims of deceptive lending practices in Illinois now may be eligible to have their balances waived. Illinois Attorney General Lisa Madigan brought a lawsuit in 2014 that made allegations against payday lenders concerning “deceptive fees and costs.” Earlier this month, an Elgin-based payday lender agreed to a settlement, which includes forgiving “$3.5 million in small-dollar, high-interest loans.” What else do you need to know about the recent abusive debt practices settlement? And will the settlement make a difference in lending practices among other payday lenders in Illinois? Details of the Lawsuit and Against All Credit Lenders All Credit Lenders is a company that opened its doors, so to speak, in 1999. While it does have a number of storefront locations in the Chicag...

Over the last decade, the financial burden of student loan debt has become a major topic for consumer advocates. With trillions of dollars in student loan debt outstanding across the country, many consumers have difficulty making student loan payments, particularly when they are dealing with private loans that do not have income-based repayment options. Who is protecting consumers in Oak Park and other parts of the U.S. when it comes to predatory student lending practices? According to a recent article from Inside Higher Ed , the Consumer Financial Protection Bureau (CFPB) has emerged not just as a general regulator of deceptive lending practices , but of student lending practices more specifically. Since its launch in 2011, the CFPB has taken a number of steps to help limit harmful lending practices when it comes to student borrowers. CFPB Offers Enforcement Role in Student Lending As the article explains, the CFPB arose out of the financial crisis with a mand...

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...