Canadian payday loan company

FEATURED LETTER

The Chicago Sun-Times' feature on the financial pitfalls of payday loans in Illinois illustrated the human cost of an endless cycle of debt but failed to sound a legislative alarm on an essentially unregulated industry ["The 'wild, wild West' in loans," metro story, Aug. 15].

It should be no surprise that working families with a temporary cash shortage will turn to high-cost, short-term loans when they simply have no other options. What should surprise anyone is that legalized loan-sharking operates unchecked in nearly every disadvantaged community in the state.

Woodstock Institute, a public policy and advocacy organization dedicated to expanding safe and sound financial products in underserved communities, has proposed real changes for how payday lenders are regulated -- holding them responsible to common standards shared by the mainstream financial services industry.

Woodstock has proposed fairly priced loans to protect consumers from inescapable debt and a repayment plan for borrowers in default with no hope of reconciliation short of bankruptcy. There is precedent for these changes. In 2001, lllinois passed regulations to curb abuses in payday lending but they remain outmoded and cover only a fraction of all payday loans made in Illinois. While these recommendations have drawn considerable support from both neighborhood organizations and representatives of the payday loan industry, we have seen little indication that lawmakers and other officials in Springfield will throw their hats in the circle of real reform.

Surely, Illinois families deserve regulated, safe and sound lending instead of the wild, wild west in loans?

Marva Williams,

senior vice president,

Woodstock Institute

LETTERS TO THE EDITOR

Challenge payday lenders

I want to commend the Sun-Times for its powerful report on the damage caused by predatory payday lenders. I was privileged to be part of the campaign against payday lending organized by the late Rev. John Egan. We should honor his memory and protect poor working families in our community by passing the 36 percent cap on the lending rates. If this reasonable regulation forces any of these businesses to close, good riddance!

Communities facing the onslaught of these lenders should remember that the opening of a new payday loan establishment requires a special hearing. I sponsored and the City Council passed an ordinance that made a payday loan store a special use, and I encourage citizens to challenge the proliferation of these businesses. Citizens in crisis should remember that they can get a much better and safer deal from a credit union or even a credit card company.

Payday lending robs working people and must be regulated for their protection.

Ald. Toni Preckwinkle (4th)

In support of payday lenders

I am sure that I will be one of very few people with no connection whatsoever with the payday loan companies who is willing to speak out in support of them. This country was founded on the principles of free enterprise, and if a company provides a service that a consumer is willing to pay for -- no matter how high the rates -- then congratulations to that organization!

If a borrower were creditworthy, he would not have to go to a payday loan company. Payday loan companies experience greater default rates than traditional lending institutions, so they must charge higher interest rates to accommodate the shortfall.

The law of economic utilization is based on the theory of what someone is willing to pay for a commodity at a particular time. If I were in the desert and very thirsty, I would pay $100 for a can of Diet Coke because that is what that product would be worth to me at that particular moment. It is the same theory for payday loans: If you need it, you'll pay for it, no matter what the price! And the government should not have the right to deny anyone that option.

It is also impossible to feel sorry for payday loan user John Gray, who has filed bankruptcy twice to avoid paying off his loans, when the reporter describes the 56-inch TV and 5-foot-high speakers from Rent-A-Center sitting in the man's living room. Before we totally castigate the payday loan companies, maybe we should look at the lifestyle and spending habits of the borrowers.

Kathy Posner, Near North Side

Windfall for schools

Not so fast on raising those property taxes for schools. Now that the $40 million annual waste and corruption of the Chicago Hired Truck Program has been uncovered, the ripoff of taxpayers' money can more wisely and effectively be spent on the school board shortfall of $40 million. So, they can end the talk of raising property taxes to fund the $40 million gap. And now Mayor Daley can look like a hero because he solved the problem in an instant with all the extra cash the city has. Surely, he could do good by redirecting a cool $40 million from the city budget that obviously was "pork" in the line items of the city budget when paid out to various cronies, dubious grandmas, mobsters and God knows who else.

Let's not let taxpayers forget that each year there's a $40 million windfall of discretionary spending money in the budget we can put to good and proper causes. Clearly, the mayor cannot have earmarked the $40 million for anything more important than kids, teachers, schools, families and the integrity of Chicago's intellectual well-being. If we look even deeper into the waste and corruption of this city's spending, then surely other taxpayer monies can go toward other altruistic causes. Isn't it great, "the City That Works?"

Jim Deloye, Uptown

Permits, please

Somebody should ask the mayor if we can see the permits his friends got for the demolition of Meigs Field, desecrating Soldier Field and building Millennium Park. Or are we to assume the permit fees went directly into his campaign fund?

Len Kmiecek, Oak Lawn

Where's Hastert's plan?

I've always heard that the Republican Party was the party of individual responsibility, but I was never quite sure what that meant until I heard U.S. House Speaker J. Dennis Hastert say that Gov. Blagojevich ought to be held personally liable if anyone gets sick or dies after ordering drugs from Canadian pharmacies through the governor's new Internet site.

Now, if only the speaker will assume personal responsibility for the health of those unable to pay the higher prices drug companies charge people for living in America.

Gary Klass, Normal

Laney's wrong

[There is] an error in an Aug. 9, commentary, "Huge school bureaucracy cheats taxpayers, students." Mary Laney stated there are six separate school districts in Highland Park, each with its own superintendent, secretaries and staff members. There is only one public school district for kindergarten through eighth-grade students in Highland Park. This district also serves Highwood and the children of military families at Fort Sheridan.

The only elementary school district in Highland Park, North Shore School District 112, is the result of a consolidation election 11 years ago. A 1993 election merged three districts -- consisting of former Districts 111, 107 and 108 -- into District 112. North Shore School District 112 now consists of 11 schools serving 4,500 students, all under one superintendent.

This consolidation is an example of communities joining together to benefit from the efficiencies of a larger school district. Students benefit from greater program variety, diversity and educational equity. Taxpayers benefit from the pooling of resources and economies of scale. With one elementary district, Highland Park and Highwood should not have been included as an example of towns with "too many districts."

It should also be noted that a separate district serves Highland Park high school students, but that District 113 operates both Highland Park High School and Deerfield High School, and includes the communities of Highland Park, Highwood, Deerfield, Bannockburn and much of Riverwoods.

Maureen Hager, superintendent,

North Shore School District 112,

Highland Park

Basketball embarrassment

As an American who served in the Marines in the Korean War, I am totally embarrassed by our Olympic basketball team, which marched in the opening day parade of countries. They had hats turned up sideways, backwards and just disgraced our country.

The Olympic Committee must make the commitment to send the true amateur athlete. Professional athletes are millionaires who don't care that they are representing our country.

Don Goeppner Sr.,

Morgan Park

Untiring recognition

U.S. cyclist Tyler Hamilton's winning the gold in Athens gave a whole new meaning to "pedal to the medal."

Geoff Kelly, Near North Side

MY TWO CENTS