Wisconsin Payday Advance Lending to Face Regulation
The payday cash advance lending industry should provide more information to borrowers than they currently do, Rep. Andy Jorgensen (D-Fort Atkinson) said this week.
Jorgensen said he was introducing a bill that would require such lenders to be more up front about the costs that borrowers face with no fax payday loans. The bill would mandate that lenders disclose the total fees and costs of a loan, as well as the annual percentage rate to be paid, and provide applicants with state-written materials about the payday loan industry.
Payday lenders would also have to file with the state Department of Financial Institutions annual reports detailing the frequency of rollovers, defaults and costs incurred with payday loans. Under the bill, lenders who don’t follow the disclosure or reporting rules would face a $200 fine for each offense.
“Unfortunately, what may seem like easy money to folks in a tight spot all too often ends up putting them in much more difficult financial situation,” Jorgensen said in a statement.
Jorgensen said the only current requirement is that faxless payday loan lenders register with the state Department of Financial Institutions if they intend to charge an annual percentage rate that’s more than 18%. The department said it now has 495 payday lending locations registered, up 12% from last year.