Payday Lending Bill Introduced At State Capitol

MADISON, Wis. (Midwest Communications) - Wisconsinites could only have one payday loan at a time – and it can be no higher than $600 under a bill unveiled at the State Capitol Tuesday morning. The measure also makes lenders disclose all their fees and interest rates. And while there would not be a government limit on interest, lenders would still be barred from rolling over an unpaid loan into a larger contract with higher interest payments. Critics say those rollovers have interest of up to 500 percent a year – and they often put the poor into a crushing cycle of debt.

The Assembly bill was rolled out 2 weeks after Speaker Mike Sheridan admitted dating a lobbyist for the payday loan industry and pulling back his support for a 36 percent interest limit on payday loans. Sheridan said the relationship had nothing to do with his stance on the issue. And he promised action on a tough regulating bill this session. An Assembly committee is scheduled to vote on it Wednesday.

(from WTAQ-Green Bay)