ILLINOIS BANK ON INITIATIVE SIGNED INTO LAW, IDENTIFIES CERTIFIED FINANCIAL PRODUCTS FOR RESIDENTS

Illinois Governor JB Pritzker recently signed into law the Illinois Bank On Initiative which sets up a way for residents to identify and better utilize Certified Financial Products. Photo Credit: Provided by Representative Debbie Meyers-Martin
Illinois Governor JB Pritzker recently signed into law the Illinois Bank On Initiative which sets up a way for residents to identify and better utilize Certified Financial Products. Photo Credit: Provided by Representative Debbie Meyers-Martin

Illinois Bank On Initiative Signed Into Law, Identifies Certified Financial Products For Residents

BY KATHERINE NEWMAN

Illinois Governor JB Pritzker recently signed into law the Illinois Bank On Initiative which was designed to increase the use of Certified Financial Products and reduce reliance on alternative financial products. The initiative will be administered by Illinois State Comptroller Susana Mendoza, and require her office to maintain a list of Certified Financial Products and associated financial institutions.

The legislation was sponsored by State Representative Debbie Meyers-Martin who represents the 38th district of Illinois.

“We have people who are not aware of the sound financial services and or resources banks in Illinois provide,” Meyers-Martin said. “That lack of awareness causes people to be susceptible to scams or predatory loans, which only have long term consequences for them and their loved ones. I’m grateful to Governor Pritzker for signing this into law.”

The Illinois Bank On Initiative, otherwise known as Senate Bill 1332, will reduce the number of people in Illinois who don’t utilize banks, credit unions, or any other financial institutions that could otherwise help them, according to Meyers-Martin.

Through this new law, the Comptrollers office will be required to maintain a list of Certified Financial Products, associated financial institutions, and the minimum requirements of Certified Financial Products on the Comptroller’s website. In addition to providing information online, the Comptroller’s office will be tasked with declaring financial products as Certified Financial Products and developing an outreach strategy to create clear access to Certified Financial Products, according to Senate Bill 1332.

“My office offers workshops all over the state that advise people on how to get their finances in order, but many Illinoisans lack access to the basic tools they need to do that,” said Mendoza. “Many of us take for granted being able to cash a check at our bank, open a savings account to plan for our family’s future or secure a loan at a reasonable interest rate. But thousands of Illinoisans don’t have these options, and they pay for it in inordinate fees and sky-high interest rates. This legislation will help them break that cycle and offer a second chance to those with troubled financial histories to get back on the right track.”

Lastly, the bill creates a 13 member commission to advise the Comptroller on how to implement and promote the Illinois Bank On Initiative. Four members of the commission will be elected officials, three will represent financial institutions, another four will represent community and social service groups, and the last two will be federal or state financial regulators, according to Senate Bill 1332.

“This bill will help residents make better financial decisions,” Meyers-Martin said. “Now that this bill has been signed by the Governor, we can now start putting countless Illinoisans on a path to fiscal stability.”

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