What’s this person talking about?
March 29, 2010 | Wisconsin, industry, regulation | Comments (2)From a letter in a Wisconsin newspaper:
The payday loan industry is the only part of our financial system that is unregulated.
We are, of course, regulated in 34 states.
NO!
March 24, 2010 | Wisconsin, industry, regulation | Comments (0)I took this headline as a pop quiz.
Wisconsin and Illinois
March 22, 2010 | Illinois, Wisconsin | Comments (0)Discussed over at PDLindustrynews.com
Wisconsin update:
March 20, 2010 | Wisconsin, industry | Comments (0)Wisconsin state Senators are being pressured to put a cap on interest rates charged by payday lenders. A Senate Committee held a hearing in West Allis last week on legislation that would impose new regulations on the industry. However, Bruce Speight with WISPIRG says the measures being considered falls short of addressing the real problem, which he argues is the interest rates charged on those loans.
Nothing’s but a complete ban is enough for WISPIRG.
Wrestling in Wisconsin
March 19, 2010 | Wisconsin, industry | Comments (0)From today’s Milwaukee Journal-Sentinel:
The bill the Assembly passed would ban auto title loans; limit payday loans to a maximum of $600 or 35% of biweekly income, whichever was less; bar people from rolling over a loan from paycheck to paycheck; and allow borrowers to rescind a loan the next day.
A bill by Sen. Jim Sullivan (D-Wauwatosa) would limit payday loans to $900 and tighten zoning regulations to limit where the lenders can locate. It would allow borrowers to renew loans just once.
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.
