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Collins to push for lower check cashing rates at currency exchanges

collins 012418Joins activists to protest Rauner rate hike proposal

CHICAGO – In response to a move yesterday by the Rauner administration’s Department of Financial and Professional Regulation (IDFPR) to impose a double-digit increase in fee caps for check cashing at Illinois currency exchanges, State Sen. Jacqueline Collins joined activists in Chicago today to call for a rejection of the proposal.

Speaking at the headquarters of The Woodstock Institute, Collins also announced legislation that would cut check cashing rates and expand consumer protections for customers.

“It makes difficult jobs with long hours even harder when these families see their paycheck taken away by fees and penalties,” Collins said. “Hard-working families from low-income areas and communities of color often depend on currency exchanges for an alternative means of check-cashing. What Governor Rauner and IDFPR are proposing would only make this state of affairs worse for low-income families.”

Industry representatives requested a rate cap increase to the state rules-making committee at its Feb. 13 meeting. Collins’ legislation, The Check Cashing Fairness Act, would:

  • cap the rate on printed payroll checks at the current rates: 1.4 percent + $1 for checks of $100 or less and at 2.25 percent for checks of $100.01 or greater.
  • cut and cap the rate on government checks at 1.5 percent.
  • cut and cap the rate on public assistance checks at .5 percent.
  • mandate IDFPR to consider the impact of future rate changes on protected classes of citizens and all consumers.

The legislation has been drafted and will be filed as the Illinois Senate convenes next week.

Sen. Jacqueline Y. Collins

16th District

Years served:
2003 - Present

Committee assignments: Financial Institutions (Chairperson); Insurance; Transportation; Committee of the Whole; Higher Education; Commerce and Economic Development; Public Health.

Biography: Full-time state legislator. Born December 10th in McComb, Mississippi. Studied journalism at Northwestern University; MA from Harvard's John F. Kennedy School of Government; MA in Human Services Administration from Spertus College; MA in Theological Studies from Harvard Divinity School, June 2003. Former Emmy Award-nominated news editor at CBS-TV in Chicago, and 2001 Legislative Fellow with United States Senator Hillary Rodham Clinton.