Tag: Illinois Attorney General

Welch, Among Contenders Mentioned for Attorney General, Rules Out Run

Monday, September 18, 2017 || By Local News Curator || @maywoodnews 

A Sept. 16 report by NBC 5’s Mary Ann Ahern lists state Rep. Emanuel “Chris” Welch (7th) as among possible contenders to replace sitting Illinois Attorney General Lisa Madigan, who announced last Friday that she would not seek reelection to what would have been a fifth term in office.

Continue reading “Welch, Among Contenders Mentioned for Attorney General, Rules Out Run”

Press Release: Attorney General Madigan Files Suit Against Chicago Area Lender For Selling Short-Term Loan Designed To Evade State Reforms

Thursday, March 27, 2014 

RELEASE DATE: March 19, 2014

Media Contact: Maura Possley || 312-814-3118 || mpossley@atg.state.il.us || @ILAttyGeneral 

Chicago – Attorney General Lisa Madigan filed suit today against a Chicago area short term lender for designing and selling a new emerging short-term loan intended to thwart important protections in Illinois law against predatory lending and trap borrowers in an inescapable cycle of debt.

Madigan filed the lawsuit late yesterday in Cook County Circuit Court against CMK Investments Inc., which operates as All Credit Lenders, selling small consumer loans and lines of credit. All Credit Lenders is based in Elgin but operates storefronts across Illinois, Wisconsin and South Carolina.

Madigan alleges All Credit Lenders is evading the state’s 36 percent interest-rate cap by offering a short-term loan product that acts like a revolving line of credit but offers none of the protections of a credit card. The lender allegedly offers these credit card-like products with advertised interest rates of 18 percent to 24 percent. Madigan alleges the company thwarts the state interest rate cap by tacking on bogus “required account protection fees.” When the extra fees are factored into the total cost of the short-term loan, theinterest rates soar to 375 percent to more than 500 percent, according to Madigan’s lawsuit.

After a borrower takes out the short-term loan, All Credit Lenders allegedly provides a payment schedule and instructs the borrower to make minimum payments, which consumers who filed complaints with Madigan’s office believed was a timeline to pay off the full debt.

Madigan’s lawsuit alleges that none of the minimum payment goes to paying down the principal of the loan. Instead, the minimum payments only cover the extra fees, which are charged to consumers on a bi-weekly basis.

“This new loan product is one of the most abusive attempts to evade the reform laws we have seen,” Madigan said. “This company provides consumers repayment schedules where not one penny of their payment goes toward paying down the principal balance, making it impossible to pay off their loan.”

The Illinois Department of Financial and Professional Regulation assisted Madigan’s office with its investigation.

“We were pleased to be able to help the Attorney General prosecute this lender,” said Manuel Flores, Acting Secretary of Financial and Professional Regulation.  “It is important that we protect every consumer from unscrupulous lenders.”

Madigan’s lawsuit is the first action her office has taken under the new federal Dodd-Frank Act. It also alleges violations of the Illinois Consumer Fraud and Deceptive Business Practice Act. The lawsuit seeks to ban the company from selling lines of credit and revolving credit in Illinois, provide restitution to all impacted consumers and assess penalties for violating the law.

Assistant Attorneys General Sarah Poulimas and Vaishali Rao are handling the case for Madigan’s Consumer Fraud Bureau. VFP

Lisa Thompson-Bennett

Government and Community Relations, Housing

Office of Illinois Attorney General, Lisa Madigan

100 West Randolph

Chicago Illinois 60601

Direct (312) 814-1176

Fax (312) 814-6288

Homeowner Help Line (866) 544-7151

www.illinoisattorneygeneral.gov

 

 

Press Release: Madigan Urges Consumers To Protect Against Identity Theft In Wake Of Data Breaches

The following release was issued by Attorney General Lisa Madigan’s office: 

Chicago – Attorney General Lisa Madigan today alerted consumers to several steps they can take to protect themselves against identity theft and unauthorized charges in the wake of data breaches reported by Target and Neiman Marcus stores nationwide.

Madigan is urging consumers to immediately take several steps to protect their bank and credit card accounts:

  • You can cancel your old debit or credit card and obtain new cards.
  • You can contact your bank to change your debit card PIN numbers and passwords, if you have ever used a debit card to shop at a Target store.
  • You can check your bank and credit card accounts daily online and your billing statements every month. Contest unauthorized charges immediately over the phone and in writing.
  • Any consumer who has ever shopped at a U.S. Target store can sign up for free credit monitoring being offered by the company in response to its massive data breach. Visit creditmonitoring.target.com to sign up. Consumers must sign up by April 23. You will be provided a copy of your credit report, daily credit monitoring and access to personalized assistance from a fraud resolution agent. But understand, you will not see unauthorized charges through the monitoring, but will see if new accounts are opened in your name or a change of address for an account has been requested.
  • You can set up an alert on your account to receive notification when your credit or debit card is used over and above a certain dollar figure. This is called “Setting Transaction Alerts.”
  • Beware of callers who claim to be with your card issuing bank. These calls may be a scam. Consumers should contact their bank first at the toll-free number on the back of your card before you disclose any personal information.

Madigan and Connecticut Attorney General George Jepsen are leading an investigation into both breaches of customers’ personal financial information.

“The magnitude of the Target breach is a wakeup call to all shoppers to be vigilant about activity on your credit and debit cards—because it’s not a matter of if but when you are going to be a victim of identity theft or a security breach,” Madigan said. “This is why I created our identity theft hotline in 2006. My office can provide you with resources on how to best protect your personal and financial information and how to clean up and restore your credit if you have been victimized. Please visit our website for further information or call my office for assistance.”

Last month, Target first reported a data breach affecting 40 million customers during November and December 2013. Stolen information included credit and debit card data, customer names and PIN numbers. Last week, Target further revealed that names, mailing addresses, phone numbers and email addresses for up to an additional 70 million people nationwide were also compromised.

Media reports have additionally indicated the department store chain Neiman Marcus sustained a recent data breach, which Madigan’soffice is investigating.

Consumers with questions regarding Target’s breach are encouraged to visit target.com/databreach or to contact Target directly at(866) 852-8680.

Consumers can also contact Madigan’s Identity Theft Hotline at 1 (866) 999-5630. The hotline is staffed with identity theft experts who can help victims report the crime to local law enforcement and financial institutions, work to repair their credit and prevent future theft. Hotline operators can also assist callers who want to take proactive steps to prevent their personal information from being stolen. VFP