State Senator Sara Feigenholtz presents Senate Bill 3550.

Feigenholtz seeks to modernize oversight of financial institutions

State oversight authorities could soon have clarity in order to hold financial institutions accountable for deceptive practices under legislation sponsored by State Senator Sara Feigenholtz.

“Throughout my career, I have prioritized strengthening corporate and consumer transparency,” said Feigenholtz (D-Chicago). “Taking on the financial sector is the next step to continue fostering a fair and equitable business environment in Chicago and throughout the state.”

Feigenholtz’s measure seeks to modernize the law regulating entities like credit unions, currency exchanges, pawnbrokers, collection agencies and payday lenders in Illinois. The legislation would provide the Division of Financial Institutions at the Department of Financial and Professional Regulation with more substantial enforcement authority so the agency can investigate complaints against the entities it licenses.

“For people who have struggled with high-interest loans, false credit repair advertising and debt collection harassment, a strong method for investigating exploitative financial practices is essential,” Feigenholtz said. “Now, we can give this agency the tools it needs to protect financially vulnerable consumers in the future.”

Senate Bill 3550 passed the Senate Financial Institutions Committee last week and heads to the full Senate for consideration.