Wisconsin Gets its New Payday Loan Law

Governor Uses His Veto Ban to Strengthen Bill at Signing

by Jonah Huang, age 19

We at the Simpson Street Free Press have been following the payday lending issue for some time. Payday lending services are knows to take advantage of the customers and often force people into a cycle of accumulating debt.

Recently, however, Governor Jim Doyle has signed a bill that significantly weakens predatory lending in Wisconsin. Previously, lenders were able to force borrowers into putting up their cars as collateral. Using his veto powers, Governor Doyle has now banned that practice.

The governor used the veto pen to beef up the bill in several other ways. The new law removes accumulating interest from unresolved loans after their due date. It also gives the state Department of Financial Institutions regulatory powers over the lending industry, limits where and how many lending services can locate, and caps the maximum amount of money a person can borrow: either $1,500 or 35 percent of the borrower’s monthly income.

Until this bill, Wisconsin was one of the few states that had not enacted measures to restrict questionable payday lending practices. The new law takes effect in December 2010.

[Sources; madison.com; Milwaukee Journal Sentinel]

In these days of austerity and also reatilve stress about getting debt, some people balk against the idea of having a credit card in order to make purchase of merchandise or even pay for a holiday, preferring, instead only to rely on the particular tried and trusted way of making repayment raw cash. However, in case you have the cash there to make the purchase completely, then, paradoxically, this is the best time for you to use the card for several good reasons. – QayyumIn these days of austerity and also reatilve stress about getting debt, some people balk against the idea of having a credit card in order to make purchase of merchandise or even pay for a holiday, preferring, instead only to rely on the particular tried and trusted way of making repayment raw cash. However, in case you have the cash there to make the purchase completely, then, paradoxically, this is the best time for you to use the card for several good reasons. (2012-09-04 04:15)
If time is money you've made me a weeaihtlr woman. – AvariIf time is money you've made me a weeaihtlr woman. (2016-04-27 16:00)
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