State GOP Will Close PayDay Loan Loophole
Interest rates on payday loans would be capped at 36 percent under a proposal Republicans are circulating in the Wisconsin Legislature.
New regulations on the payday lending industry took effect in December, but the previous Legislature controlled by Democrats rejected a cap on interest.
Consumer advocates who supported tighter regulations on the industry had pushed for the interest rate cap, saying it was needed to prevent borrowers from getting socked with interest as high as 500 percent or more.
The new law limits the size of the loans and bars auto title loans.
Rep. Evan Wynn of Whitewater and Sen. Glenn Grothman of West Bend are proposing the interest rate cap. They are seeking co-sponsors of the proposal until May 12.
Then again, the Assembly Speaker at the time was dating a lobbyist from the industry. (Ah, memories…)