Bill Would Put Tight Limits on Payday Lenders
MADISON, Wis. (AP) -- Payday lenders could not loan customers more than $600 at a time and would have to disclose all fees and interest rates under a revised Assembly bill.
The proposal unveiled Tuesday seeks to rein in the payday lending industry after years of virtually unchecked growth in Wisconsin. It comes less than two weeks after Assembly Speaker Mike Sheridan admitted dating a lobbyist for the industry.
The plan would not put any cap on the annual interest rates that lenders could charge on loans, unlike a previous bill that would have limited them to 36 percent.
But lenders would be barred from "rolling over" a customer's outstanding loan into a new, larger loan, a practice that critics say traps the poor in a crushing debt cycle.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
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