Another year passed without the General Assembly closing the most significant loophole in the 2005 Payday Loan Reform Act. That means many strapped borrowers looking for some flexibility before the holidays will be exposed to small-dollar consumer installment loans (CILA) that carry a big risk of long-term debt.

In front of a Chicago Americash outlet today, members of the Egan Coalition for Payday Loan Reform and the "Payday Loan Grinch" warned holiday shoppers about the dangers of taking out unregulated installment loans. The coalition also formally endorsed Amendment 1 to SB 655, introduced by State Sen. Kim Lightford (D-Maywood), which is the newest iteration of a CILA reform bill that was killed last session. "This is the only legislation," said Citizen Action/Illinois' Lynda DeLaforgue, "that will stop 700-percent long-term interest rate loans in our state." Watch this video, in which coalition members and two candidates for the Illinois House -- Patrick Keenan-Devlin (D-18) and Rudy Lozano (D-23) -- explain the bill's importance:

As currently written, this version would still cap interest rates on installment loans at 99 percent APR. But unlike State Rep. Julie Hamos' (D-Wilmette) bill last session, SB 655 ensures that Illinois residents would not be required to submit a social security card when applying for the loans, the justification given by some of the nine House Executive Committee members for voting "Present."

The coalition is pushing for the Senate to approve Lightford's bill by the end of February. The House would then take up their own measure. Citizen Action says it is are working to craft that bill with Deputy Majority Leader Rep. Lou Lang (D-Chicago).