Lots of Wisconsin talk
November 14, 2010 | Wisconsin | Comments (0)From the story:
With Republicans about to take control of the Legislature and governor’s office, payday loan stores and auto title lenders are looking to roll back limits recently placed on short-term loans.
Democrats passed a bill this year that limits payday loans to a maximum of $1,500. Democratic Gov. Jim Doyle toughened the bill, using his partial veto powers to ban loans secured by vehicle titles.
Until the Legislature acted, Wisconsin was the only state that did not regulate payday and auto title loans. The loans are typically good for two to four weeks but can be repeatedly rolled over. When they are, they can cost borrowers 500% or more in interest a year.
The restrictions on the loans take effect Jan. 1 but may not last long. Republicans took over both houses of the Legislature and the governor’s office in the Nov. 2 elections, and in the past they have viewed the industry more favorably than Democrats.
Erin Krueger, a lobbyist for the lenders, said they hope to eliminate “anti-business and anti-consumer choice” provisions in the new law. She did not detail the specific changes they want to make.
“Everything’s on the table in terms of what we’re going to discuss,” she said.
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