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Title: GOP seeks to repeal limits on payday lenders, auto title loans
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URL Source: http://www.jsonline.com/news/statepolitics/121731299.html
Published: May 13, 2011
Author: Jason Stein and Patrick Marley
Post Date: 2011-05-13 12:34:38 by Skip Intro
Keywords: None
Views: 1728
Comments: 4
Madison — Loans secured with auto titles would again be legal in Wisconsin under a proposal adopted Thursday by the Legislature's budget committee that also rolls back other restrictions on payday loans. The Joint Finance Committee voted without debate 11-5 to add the proposal to the state budget, with all Republicans except Sen. Glenn Grothman (R-West Bend) voting for the proposal and all Democrats voting against it. Democrats passed a bill last year that limits payday loans to a maximum of $1,500. Democratic Gov. Jim Doyle toughened the bill, using his partial veto powers to ban loans secured by vehicle titles. The committee's action would end that ban on auto title loans. Senate President Mike Ellis (R-Neenah), who has been pushing for tighter regulations on payday loans, said he was surprised by the committee's action. "The biggest legal thieves we've got in Wisconsin are payday lenders," Ellis said. Ellis said the measure should be debated on its merits. "We fought for years to keep extraneous policy out of the budget," he said. "Apparently that only works when it chooses to satisfy the people writing it." Rep. Robin Vos (R-Rochester), the committee's co-chairman, offered the motion on payday and title loans. He said the changes would largely bring back the original bill as passed by the Legislature last year before it was reshaped by Doyle's vetoes. "You can make a case that it was done wrongly the first time. We're correcting his error and actually adding some better provisions in," Vos said. Grothman, a longtime critic of the payday loan industry and the lone Republican to vote against the measure in committee, declined to comment on his vote. He said he didn't know enough about the changes. Until the Legislature acted last year, Wisconsin was the only state that did not regulate payday and auto title loans. Payday loans are typically good for two to four weeks and have annualized interest rates of 500% or more. The industry is large and fought the 2010 legislation hard, spending $669,000 on lobbying that year. In 2009, there were 527 short-term lender locations in the state, and they lent $600.534;million, state records show. Under the bill Doyle signed a year ago, lenders cannot issue loans secured with vehicles. At the time, Doyle said he considered such loans predatory because low-income people risked losing their cars if they couldn't pay off their loans, which in turn made it more difficult for them to get to work. The 2010 law limits loans to $1,500 or 35% of monthly income, whichever is less. Once the loan comes due, no additional interest can be charged. Republicans on the Joint Finance Committee voted to change that so payday lenders could charge 33% a year on loans that had come due.
Poster Comment: Hey, if you can't screw the little guy then where's the fun in being a Republican?
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#1. To: Skip Intro (#0)
Even the old Mafia loan sharks back in the glory days of the mafia did not charge that much vig.....
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
People who rip off poor people as badly as those loan sharks do have plenty of spread around money to try to get the political influence to protect their scam. This industry should be put out of business.
Just recently, a legal battle has emerged over efforts to get a payday loan interest cap on the ballot in Missouri; two lawsuits have been filed against the possible measure. You can see it here: Lawsuits start over would-be Missouri payday advance cap. The bill proposes a rate limit like numerous other states have, capping all interest on all loans at 36 percent.
Per month?
Republicans on the Joint Finance Committee voted to change that so payday lenders could charge 33% a year on loans that had come due.
#2. To: Skip Intro (#0)
#3. To: Skip Intro (#0)
#4. To: KellyD (#3)
The bill proposes a rate limit like numerous other states have, capping all interest on all loans at 36 percent.
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