Column

The Time Has Now Arrived For Action

"Millions of our citizens do not now have a full measure of opportunity to achieve and to enjoy good health. Millions do not now have protection or security against the economic effects of sickness. And the time has now arrived for action to help them attain that opportunity and to help them get that protection."

These were the words of President Harry Truman when he delivered a message to Congress about the need for national health care on November 19, 1945.  Almost sixty-five years later, those words still ring true for too many Americans.

By 1949, the private corporate forces which opposed national health care were offering $3,000 prizes to those political cartoonists who best depicted the evils of “socialized medicine."  Sound familiar?

Twenty years later, on July 30, 1965, Truman stood with then-President Lyndon Johnson at the bill signing for Medicare, the first major publicly-administered health care program in the United States. Prior to Medicare, half of our seniors lived in poverty and could not get health insurance.  After the creation of the program, poverty decreased by two-thirds as seniors and disabled people enjoyed dependable health insurance.

Today, the same powerful forces want to stop health care reform efforts and, just as in 1949, they are masters at creating a climate of fear and confusion.  But ask any senior today if they “fear” being eligible for Medicare benefits and here's the answer you'll most likely hear: “Why should anyone be afraid of Medicare?”  The program offers them the peace-of-mind we all deserve: No one will drop them from insurance if they get sick, no one will deny them treatment for a pre-existing condition, and no CEO will bring home a multi-million dollar salary amassed from their premiums.

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Column

The Wild West Of Payday Lending

In the late 1970’s, as the prime interest rate rose to 21 percent, many states eliminated or relaxed regulation of consumer credit.  Some state governments modified their laws so that the rate caps fluctuated with some published market interest rate. Most states raised their caps to around 36 percent, which was a point not binding on traditional lenders. Illinois chose to eliminate rate caps altogether on small loans, setting the stage for our state to become the safe haven for predatory lenders that it is today.

The small loan lending crisis in Illinois, like the national mortgage lending crisis, is the result of a deregulated oversight system, mixed with a lethal dose of greed on the part of the lenders.

In 1999, the Msgr. John Egan Coalition for Payday Loan Reform first took on the small loan industry in Illinois.  After a protracted battle, our state finally passed the Payday Loan Reform Act (PLRA) in 2005.  PLRA was intended to reign in the most egregious practices of the payday lenders. PLRA works to end the debt cycle by restricting rollovers, limiting how many loans can be taken out simultaneously, and indexing the amount a person can borrow to their gross monthly income.

The work of the Egan Coalition continues in 2009 because lenders of small loans continue to squeeze people.  Here’s an example of predatory lending that is still taking place in Illinois.

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