The ordinance also precludes home-repair contractors from receiving payments directly from lenders, a practice that leaves homeowners unable to withhold payment for substandard or nonexistent work. It also authorizes the Department of Consumer Services to take action against contractors who engage in consumer fraud, unfair competition or deceptive practices. This is especially geared toward practices that may result in foreclosure. They will not work in the City of Chicago and they will not do business with the City of Chicago. With the passage of today's ordinance, the first of its kind in the country, the Mayor has completed a legislative package aimed at redressing foreclosures and abandonment, which often breed crime, create health and safety hazards and reduce property values.
People pour their entire lives into their homes.
Every homeowner and every home is important, and we will fight to make sure they are protected. The Council also passed another ordinance introduced by Mayor Daley that supports a special loan fund, composed primarily of money from the private sector, to replace loans originated by predatory lenders. The City also will launch a campaign to educate homeowners about the dangers of predatory lending and consumer fraud, refer callers to agencies that can assist them, and tell them how to report violators. Predatory lenders are a subset of the sub-prime loan industry, which assesses higher interest rates for riskier loans. Predatory lenders frequently target the elderly, minorities and people with limited incomes and access to credit.