In Wisconsin
March 10, 2010 | Wisconsin, industry | Comments (0)The best person to decide how much short term credit I need…
March 1, 2010 | Wisconsin | Comments (0)“…choices…access to credit”
February 27, 2010 | Wisconsin, industry | Comments (0)Who can argue with that? From a piece by the Wisconsin Coalition for Consumer Choice:
Last week the Wisconsin State Assembly voted to pass Substitute Amendment 1 to Assembly Bill 447. This is payday lending regulation that places a cap on the overall loan amount for short term loans, prohibits rollovers, and bans consumers from seeking more than one short term loan at a time.
Proponents of the bill will tell you that this is a consumer protection bill, that it was drafted to protect Wisconsin consumers from an industry’s predatory loan practices. What they don’t tell you is that the bill limits choices and in reality hurts consumers who depend on access to credit via short term loans.
First, at a time when access to funds is already limited, Wisconsin does not need additional regulations restricting individual’s access to personal finances. In a consumer’s time of need, the bill limits the amount consumers can borrow. The amount arbitrarily sets a cap of $600 (including principle and interest) or 35 percent of gross income. This cap establishes Government (not the private sector) in determining who is loan worthy (at what amounts) and who is not. This “big brother” approach to consumers’ private financial decisions is unnecessary and unwanted in Wisconsin’s financial marketplace.
You could knock me over with a feather
February 20, 2010 | Wisconsin, industry | Comments (1)The payday lending industry has received editorial support from a Wisconsin newspaper. We love it. From the editorial in the Milwaukee Courier:
Where these intentions may seem admirable at first glance, what about the people and not just “poor” people who need a financial option that just takes them to their next check. Why do we need legislators to dictate consumer decisions by eliminating their choices? This is also about consumers having options and choices to make our own decisions. The payday loan procedures are quite clear when the loan is being taken.
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Are people going to be forced to go to street lenders for their emergencies? Because a regulation crackdown that eliminates these businesses will not eliminate the financial need that still exists. Are legislators saying that people who may need some financial assistance are not intelligent enough to make their own financial decisions? These businesses do not prey on people they are simply available, in fact they don’t even need to advertise their product. Instead of eliminating options, legislators should find a way to open up the door for more options. If the banks are threatened by this, then begin offering something better. Businesses don’t last unless there is a demand. Look at the need for the demand, don’t attack the option.
New regulations “misguided”
February 19, 2010 | Wisconsin, positive media coverage, regulation | Comments (0)From Wisconsin Radio Network:
Wisconsin Consumer Credit Counseling Services director Ken King says the proposals being considered at the Capitol right now amount to a restraint on trade that will actually hurt consumers. He says it takes away an option for obtaining credit for low and moderate income individuals who need a short-term loan.
King says such services can be crucial for someone who needs to borrow money to fix a car so they can get to work.
Wisconsin Senate action soon?
February 18, 2010 | Wisconsin, industry | Comments (0)The Assembly Speaker is calling on the state Senate to avoid any delays on legislation regulating payday loan providers.
The Assembly approved legislation earlier this week that limits the size of loans and stops borrowers from taking out more than one at a time. The measure also bans auto title loans and the practice of “rolling over” the balance of a loan.
Wisconsin Assembly passes bill
February 17, 2010 | Wisconsin, industry | Comments (1)A thirty-six percent rate cap amendment was rejected. What will the Senate do? From the story:
The Wisconsin Assembly approved a bill Tuesday night to regulate the payday lending industry in the state for the first time.
Supporters said the bill, approved on a 59-38 vote after hours of debate and closed-door discussions, would outlaw the industry’s most abusive practices while preserving the short-term loans for those who need them.
Critics hit the bill from two angles.
Some Republicans and industry lobbyists said the plan goes too far, hurting existing lenders and potentially eliminating payday loans as an option for customers who desperately need cash. Some Democrats and consumer advocates argued the is not strong enough because it allows lenders to continue charging high interest rates.
The Democratic-controlled Assembly voted 56-41 to kill an amendment that would have capped the interest rates lenders could charge at 36 percent.
More anti-business rhetoric
February 17, 2010 | Wisconsin, industry | Comments (0)Wisconsin’s Cap Times is notoriously anti-business, pro-regulation. But even by their low standards, this editorial is over the top. It’s more like playground name-calling than thoughtful argument.
Wow
February 16, 2010 | Wisconsin, customers, regulation | Comments (0)That’s all I can say about this letter in the Sheboygan Press from a local United Way agency head criticizing the Wisconsin legislation:
Have you gotten the feeling yet that the legislature is trying to take control of how individuals make financial decisions and that they are denying consumer choice by eliminating a viable financial option for individuals who have limited access to credit?I believe the bill infringes on consumer rights and choices, provides for the creation of an unnecessary database of personal financial
information and puts a burden on Wisconsin taxpayers and government at a time of fiscal constraints.
Floor debate today in Wisconsin
February 16, 2010 | Wisconsin, industry, regulation | Comments (0)From the story posted last night:
Payday lending legislation will reach the Assembly floor for debate tomorrow, and Assembly Bill 447 could come to a vote.The bill does put a cap — of sorts — on pay day loan interest, preventing it from accruing after a loan has reached maturity.It does not, however, place a specific interest cap.Assembly Bill 447 also allows borrowers to cancel a loan up to a full day after they take it out, an added protection.
