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It’s just a bill

Thursday, May 17, 2018 - Posted by Rich Miller

* WBEZ

In 2008, a collection agency took him to court and obtained a court order known as a “judgment” allowing it to be more aggressive in pursuing him. That meant his debt began to be subject to the state-set annual interest rate of 9 percent.

Today, Majcher owes $21,821 — more than ten times what he originally spent.

“The feeling is like suicide,” Majcher said. “You end up in the situation in which comes suicidal thoughts. No exit.” (Majcher is not currently having suicidal thoughts.)

A group of Illinois lawmakers are now working on a package of legislation designed to increase state protections for debtors like Majcher. Advocates say, if passed, these bills would lift the economic fortunes of thousands of Illinoisans struggling with debt. But opponents argue that the legislation would be harmful to the low-income people it is meant to help. […]

Democratic Illinois state representatives Barbara Flynn Currie, Juliana Stratton, Will Guzzardi, and Christian Mitchell are sponsoring a package of legislation that would increase protections for debtors. Notably, HB 5487 would cut Illinois’ post-judgment interest rate for small claims from 9 percent to 2 percent. Another bill, HB 5483, would reduce the amount of time a judgment can be pursued from 27 years to five years. Other bills in the package would make it harder for creditors to take people’s wages or money from the sale of their home or vehicle, and establish a “debtor’s bill of rights.”

* Other bills…

* Illinois considers changing gun transfer rules following Waffle House shooting: The Illinois Senate on Wednesday advanced new rules about the transfer of firearms in response to the mass shooting at a Waffle House last month in Nashville, Tenn. Travis Reinking of downstate Morton has been charged with four counts of criminal homicide in the killings. Authorities have said his firearm owner’s identification card previously had been revoked and his guns transferred to his father, who returned them. The measure aims to prevent similar situations by allowing for a minimum of one year in jail for people who return firearms without first checking to see if the recipient has a valid license. There’s currently no punishment on the books.

* Gun dealer licensing compromise passes Senate: “Every gun used in the state of Illinois to kill someone starts as a legal gun,” Harmon said. “Somewhere between the manufacturer and the crime scene, someone who is pretending to be a law-abiding gun owner is not. This bill attacks that problem.”

* Illinois Rep. Says Grad Student Union Is Disrespectful To Military: State Rep. Jeanne Ives, a Republican from Wheaton, is a proud West Point grad, and not a fan of unions. So when state Rep.Will Guzzardi, a Chicago Democrat, proposed expanding grad student union benefits to include research assistants, Ives was outraged by an anti-military petition on the group’s website, and a verbal firefight ensued. Guzzardi: “Representative your political disagreements with the positions of this union have not the slightest bearing with either the merits of this legislation or the first amendments rights of employees to collectively bargain.” Ives: “This has everything to do with this legislation because these are not the people that we should be expanding benefits for.”

       

30 Comments
  1. - Been There - Thursday, May 17, 18 @ 1:47 pm:

    ====That meant his debt began to be subject to the state-set annual interest rate of 9 percent.
    Today, Majcher owes $21,821 — more than ten times what he originally spent.====
    There is something wrong with the math here. Either the debt was way way earlier than 2008 or the 9% figure is wrong or the “ten times” quote isn’t correct.


  2. - Streamwood Retiree - Thursday, May 17, 18 @ 1:59 pm:

    1.09 **10 = 2.36736367459211723401
    That’s 9 percent compounded annually.
    Compounded monthly would be 1.0075 ** 120 = 2.4513570781247931736193931334856


  3. - Downstate Rube - Thursday, May 17, 18 @ 2:14 pm:

    Did they pick this guy because he was paying his father’s bills? $21,000 is not the end of the world. Has he not paid anything since 2008. So basically, if you can welsh on a lo as n for over 5 years, you don’t have to pay it. Sounds great.


  4. - Liberally Ignorant - Thursday, May 17, 18 @ 2:19 pm:

    “expanding grad student union benefits to include research assistants, Ives was outraged by an anti-military petition on the group’s website,..”

    It appears that one of the benefits to anti-military grad assistants should be a lesson in US government. Anyone who blames the military for our nation’s lust for war doesn’t understand that it is civilian officials who make the decision to make war.
    If grad students had a clue or courage, they would be going after the US legislative and executive branches, and the voters who support war.


  5. - SaulGoodman - Thursday, May 17, 18 @ 2:34 pm:

    **$21,000 is not the end of the world. **

    LOL - must be nice to be you. But $21k is a helluva’ lot to most people.


  6. - Morty - Thursday, May 17, 18 @ 2:35 pm:

    That’s at the core of what’s wrong with bigots like Oves- it’s a right (collective bargaining) not a benefit. She, and others if her ilk don’t believe in rights for people she disagrees with.


  7. - PJ - Thursday, May 17, 18 @ 2:37 pm:

    ==Anyone who blames the military for our nation’s lust for war==

    Handle seems to be appropriate. According to the article, the petition was a pledge not to work in the military-industrial complex. Didn’t have anything to do with blaming soldiers for war-lust. Weird to assume it would.


  8. - A Jack - Thursday, May 17, 18 @ 2:41 pm:

    Ives apparently does not respect the constitution which guarantees freedom of speech. Although she did take an oath to defend that constitution and the freedoms it enshrines.


  9. - A Jack - Thursday, May 17, 18 @ 2:48 pm:

    I agree with the debtor bills. Nine percent does seem punitive. And twenty-seven years to pursue a debt seems excessive. I don’t have any debts myself, but I have seen others fall into that hole without any hope of clawing their way out.


  10. - wordslinger - Thursday, May 17, 18 @ 2:54 pm:

    –Ives: “This has everything to do with this legislation because these are not the people that we should be expanding benefits for.”–

    It would be helpful if Rep. Ives could submit a list of the Good People and the Bad People, for those of us trying to keep score at home.

    I offer my thoughts and prayers that she will.


  11. - Claud Peppers - Thursday, May 17, 18 @ 2:57 pm:

    The opponents argue that the legislation would be harmful to the low-income people it is meant to help. […]

    How would this be harmful to low income people? Maybe harmful to usury and predatory lending companies.


  12. - Loan Ranger - Thursday, May 17, 18 @ 3:07 pm:

    Claud- No legitimate lender will make loan to someone if there is excessive risk that it will never be paid back. Also, as a result of Dodd-Frank banks are prohibited from making overly risky loans. This leaves low income borrowers at the peril of predatory lenders. Think payday or title loans. Not great options for consumers.


  13. - Perrid - Thursday, May 17, 18 @ 3:08 pm:

    @Claud Peppers, maybe they think lenders would be less wiling to lend money if the “rewards” were lessened? I don’t see any other way low-income people could be hurt by this.


  14. - don the legend - Thursday, May 17, 18 @ 3:10 pm:

    Per the rule of 72, at 9% (annual interest)the debt would double every 8 years.

    $2,200 debt could not grow to $22,000.00.


  15. - SSL - Thursday, May 17, 18 @ 3:13 pm:

    It will be harmful to low income individuals if lenders stop lending. Personally the 9% does seem punitive in the current environment, but if it becomes easy for someone to walk away from a loan, lenders will simply stop making those loans. Common sense should prevail and the laws changed so as to hold people accountable without penalizing them.


  16. - NoGifts - Thursday, May 17, 18 @ 3:27 pm:

    It’s been my experience that reporters, most people in fact, aren’t that good with basic math. :)


  17. - L.A. - Thursday, May 17, 18 @ 3:27 pm:

    HB 5483 and HB 5487 haven’t even passed out of Committee in the House.

    ‘A group of Illinois lawmakers are now working on a package of legislation’

    They’d better hurry up


  18. - Perrid - Thursday, May 17, 18 @ 3:36 pm:

    How long was debt accruing interest before the judgement, and at what rate? Judgement was in 2008, and as many people have pointed out 9% interest doesn’t give you 10 times as much as the principal in 10 years, even assuming no garnishment or other payments. The rate would have to be 26.17% a year.


  19. - theCardinal - Thursday, May 17, 18 @ 3:46 pm:

    Just making sure I got this straight…A guy owes someone money, he doesn’t pay it back as he should have, interest accrues on said money owed, thus he now owes more money than he originally did. Now one the most fiscally inept groups in the country is trying to resolve this mans issue (and others like him) Only in the once great state of.


  20. - Morty - Thursday, May 17, 18 @ 3:57 pm:

    -Just making sure I got this straight…

    Your compassion is overwhelming

    You do realize, that statistically speaking, medical bills are the #1 cause of bankruptcies in this country?

    Not saying it was a medical condition but how about just a smidge of compassion?

    No one is saying the guy shouldn’t pay his bill

    People are saying the bill shouldn’t be jacked up so far in excess of what the original bill was

    I hope you don’t have some overdue books at your junior high library…karma can be harsh


  21. - Morty - Thursday, May 17, 18 @ 4:00 pm:

    Btw, it was his father’s medical bills that put him underwater. I suppose the ‘smart play’ would have been to set him adrift on an ice flow…


  22. - Anonymous - Thursday, May 17, 18 @ 4:01 pm:

    Bankruptcy doesn’t erase certain debts - but it is a way out, a fresh start.


  23. - Demoralized - Thursday, May 17, 18 @ 4:36 pm:

    Rep. Ives is just an angry person. From what AI can tell she has disdain for pretty much everyone.


  24. - Da Big Bad Wolf - Thursday, May 17, 18 @ 5:05 pm:

    ==It appears that one of the benefits to anti-military grad assistants should be a lesson in US government. Anyone who blames the military for our nation’s lust for war doesn’t understand that it is civilian officials who make the decision to make war.
    If grad students had a clue or courage, they would be going after the US legislative and executive branches, and the voters who support war.==

    It appears one of the benefits of going to college is the ability to look something up. In spite of what Ives says this “petition” is a pledge called “Stem Fights the War Machine” i.e. the military industrial complex Eisenhower warned us about. Civilians making profits from war, not the military.


  25. - theCardinal - Thursday, May 17, 18 @ 5:16 pm:

    Morty why would he be respomsible for his fathers bills ? In my experience (and I have had a few) working directly with those you owe is far better than ignoring the issue or hiding from it…Companies dont want to go to collection it costs them way to much…they want a good faith effort to pay off a debt. I struggled with couple student loans but finally got it done and felt a sense of accomplishment.


  26. - @misterjayem - Thursday, May 17, 18 @ 5:19 pm:

    Can someone provide a link to the post that so outraged Ives? There is no link in the news story and I couldn’t find it.

    Thanks.

    – MrJM


  27. - Da Big Bad Wolf - Thursday, May 17, 18 @ 5:39 pm:

    From the GEO Facebook page. May 4. https://www.stemstrikesthewarmachine.org/
    https://m.facebook.com/uigeo/


  28. - Morty - Thursday, May 17, 18 @ 6:04 pm:

    theCardinal

    Just going by what was said in the article. He rang up credit card debt helping to pay his father’s medical bills


  29. - walker - Thursday, May 17, 18 @ 7:11 pm:

    Looks like BK avoidance, which might benefit lenders.


  30. - jwk - Thursday, May 17, 18 @ 8:13 pm:

    21000 not much money to me 100 is a lot of money and have seen a lot of days just 5 dollars is a godsend and i work every day there are some places in this state that just dont pay as well as other places for the same job


Sorry, comments for this post are now closed.


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