Earlier this fall, the Daily Herald editorial board reminded Illinois' congressional delegation of their own culpability in the financial market's meltdown, pushing them to take leadership "in fixing the lack of oversight that contributed to this mess." Today, those lawmakers faced another major test in how far they'll go to protect consumers from the predatory and unscrupulous practices of the financial services industry. Not surprisingly, Republican members of Illinois' delegation -- as well as one local Democrat -- overwhelmingly failed the test.

In a final roll call of 223-202 today, House passed the sweeping package (H.R. 4173) of financial reforms -- to streamline regulation of financial markets and banks, heighten oversight on risky hedge funds and derivatives, and create the watchdog Consumer Financial Protection Agency (CFPA). Joined by Democratic Rep. Debbie Halvorson, Illinois Republicans voted unanimously against the bill.

Regular readers know that getting the bill to the floor was a long slog. Up until the end of negotiations, some members of Congress -- including Illinois' own Rep. Melissa Bean -- aided the banking industry's relentless efforts to hobble the package. And just last night, Rep. Walt Minnick (D-ID) made an eleventh-hour attempt see that the CFPA was scrapped all together. That amendment failed narrowly, along with an attempt by Rep. Jim Marshall (D-GA) to revive Illinois Sen. Dick Durbin's mortgage modification proposal.

Despite being weakened, consumer advocates like Attorney General Lisa Madigan pushed hard for the reforms -- and the creation of a CFPA in particular -- to give consumers a fighting chance against industry abuses.

While the House victory is a step in the right direction, the legislation still faces an uphill battle in the Senate, where a significantly different bill is expected to emerge.

In the meantime, folks over at the Central Illinois Organizing Project (CIOP) are taking matters into their own hands. In an ongoing campaign, the coalition is pushing back against the payday loan industry and pressuring bailed-out banks to stop extending cheap money to predatory outfits who jack up interest rates on struggling consumers in return. On Saturday in Springfield, CIOP is holding a rally calling on Bank of America to pull the payday lender's line of credit. Over at Huffington Post, George Goehl, executive director of National People's Action has the details on the campaign:

On Black Friday, the Rev. Charlotte Dotts and fifty people from the Central Illinois Organizing Project (CIOP), a faith-based organization, shut down the Bloomington office of payday lender Advance America while calling on the company to lower its interest rates to 10 percent. They currently run as high as 400 percent, meaning the average $300 loan ends up costing borrowers $900 [...]

Where does Advance America get their financing? For starters, they received a $270 million line of credit from Bank of America. The same Bank of America that needed $45 billion from the Troubled Assets Relief Program. Yes, taxpayers helped save a bank that finances a payday lender who makes loans with interest rates of up to 400%.