Democrats Vow to Limit Payday Advance Industry in Wisconsin
Democrats who control the state Senate promised today to put new limits fast payday advance lenders, which they called a growing industry that preys on the poor by charging interest rates that can amount to 500% or more.
Senate Majority Leader Judy Robson (D-Beloit) said curbs they are considering include limits on how often Wisconsin payday loans can be rewritten or “rolled over” and a possible cap of $600 on the amount that is borrowed.
Robson said she knew of one person whose $500, supposedly cheap payday loan ended up costing a total of $2,500.
Payday loan lenders “prey on the vulnerable” and locks them into a “cycle of poverty,” added Sen. Jim Sullivan (D-Wauwatosa).
Robson and Sen. Jon Erpenbach (D-Middleton) said they would also pass through the Senate changes that would let cell phones, small business phones and fax numbers be added to the popular “no call” list, which has more than 1.1 million lines registered.
Sen. Mark Miller (D-Monona) also promised to push a bill prohibiting magazine publishers from sending renewal notices earlier than six months before a subscription expires and Sen. Pat Kreitlow (D-Chippewa Falls), but it was the cash loan statements that casued the most stir.
SOURCE: The Milwaukee Journal Sentinel