Wisconsin Passes Payday Lending Regulations
Wisconsin legislators tackled a variety of business issues, including lending practices employed by the payday loan industry. After years of fruitless discussion, they decided regulation was overdue.
The new payday lending law:
• Limits loans to the lesser of $1,500 or 35 percent of the applicant’s gross monthly income.
• Allows loans to roll over just once per customer.
• Establishes a database to prevent people from simultaneously taking multiple loans from multiple lenders.
• Prevents lenders from locating within 1,500 feet of each other and within 150 feet of certain residential areas.
Using Wisconsin’s controversial “partial veto” power, Gov. Jim Doyle modified the bill’s language to prohibit car title loans and forbid charging interest on loans after their maturity date.
“I have partially vetoed the bill to strengthen consumer protection,” Doyle said in a prepared statement to state senators.