Business

Business briefs

Posted July 31, 2007 11:00 pm

Daily Herald Staff

Lending reforms saved $20 million

CHICAGO -- The Payday Loan Reform Act, signed into law in 2005, has helped borrowers in Illinois save about $20 million in loan fees and interest charges, according to a report by the Illinois Department of Financial and Professional Regulation. The report found the average finance charge for a loan under the new law was $15.36 per $100 borrowed. That comes to an annual percentage rate of 350 percent for a 16-day loan. In 2002, the agency's survey found the average cost was 525 percent. Comparing the two rates, the state estimates short-term borrowers seeking advances on their paychecks have saved $20.5 million in finance charges since the law was enacted.

New home starts down 24 percent

ELGIN -- A Metrostudy report released Tuesday estimates new Chicago-area housing starts in the second quarter fell 24 percent. Closings fell nearly 40 percent. And existing housing inventory rose slightly, by 2.3 percent. The manager of Metrostudy's Elgin-based regional office, Chris Huecksteadt, predicted an upturn sometime in 2008.

Baxter declares quarterly dividend

DEERFIELD -- Baxter International Inc. Tuesday declared a quarterly dividend of 16.75 cents per share of Baxter common stock. This payment represents a continuation of the current rate. Earlier this year, Baxter instituted a quarterly schedule for payment of dividends and increased the annual dividend rate for 2007. This quarterly dividend is payable on Oct. 1 to shareholders of record as of Sept. 10.

Northwest Airlines hits turbulence

MINNEAPOLIS -- Northwest Airlines is out of bankruptcy and making money, but it's already running into those familiar airline headaches: Fuel costs and staffing issues. The nation's fifth-largest airline canceled 73 of 1,417 flights scheduled Tuesday, according to FlightStats.com, as its struggle to find enough pilots continued. Oil futures, which set a record high of more than $78 a barrel, were another headwind. Northwest, which emerged from bankruptcy protection May 31, earned $273 million during its second quarter before accounting boosts related to its reorganization.

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