Payday Loan Bill Passes Legislature
Wisconsin will soon join all 49 other states in regulating payday loans. Majority Democrats in both houses struck a last-minute compromise that was approved on the final day of this year’s legislative session.
The Assembly took the final action Thursday night, passing the bill 72 to 25 and sending it to Governor Jim Doyle – who has said he would sign almost anything because it’s better than nothing. The payday loan industry fought any changes, and they spent almost $750,000 on their lobbying effort.
The bill would limit payday advances to $1,500 or 35 percent of a person’s monthly income, whichever is less. Borrowers could only renew the loans once, thus keeping interest charges down. And there would be restrictions on where payday loan shops can operate. The bill also regulates auto title loans. They would be limited to half the value of a vehicle – and borrowers would have to be notified if their cars are about to be seized for getting behind on the loans.
Source: Whbl.com
