More on Wisconsin bill
February 10, 2010 | Wisconsin, industry | Comments (2)From the Milwaukee Journal Sentinel:
The Assembly Financial Institutions Committee is scheduled to vote Wednesday on the bill, which would limit payday loans to $600; prevent people from rolling over loans from paycheck to paycheck; and outlaw vehicle title loans. The bill does not include a previous proposal to cap the annual interest rate on the loans at 36% – an ingredient some say is essential to protect consumers.
“The experience we’ve heard from other states is if there’s a loophole to be found, the predatory lending industry will find it,” said David Liners, executive director of WISDOM, a coalition of 140 religious congregations seeking an interest rate cap.
Comments»
Loophole? You mean like converting your company over to a LEGAL small-dollar loan company and operating under a different license? What a clown? I guess some of the bigger players like Citifinancial and some of the area banks are operating through a “Loophole?” Maybe shut them down too?
First, I am so tired of the criticism referring to deferred loans as being “Predatory”, it’s awful funny that those who have the financial means and credit worthiness to pursue other options when in crisis can say this, but the minute they hit the poor house I bet they would be our number 1 client. We are NOT predatory, we follow all laws and regulations that govern this industry and follow what our respective states state is acceptable for finance charges, APR %, and the terms of the loan, heck they even tell us how big the font on our signage and contract needs to be. Point is this, these whiners won’t know how valuable we are until they need to utilize our services. It’s too bad that so many are against giving the public more options than just big banking products.