Update: Payday loan bill would limit the amount people could borrow | Local News
MARY SPICUZZA | | 608-252-6122
The state would limit how much people could borrow and prevent them from taking more than one payday loan at a time under a bill unveiled today by Assembly Democrats.
The compromise bill would ban “rollovers” or borrowers refinancing payday loans with the proceeds of new loans, limit loans to a maximum of $ 600 (or 35% of a person’s fortnightly income), and ban payday loans. Auto title loans that use a borrower’s vehicle to secure funds. But the bill would not cap the interest rate lenders could charge on loans, unlike previous legislation which would have capped them at 36%.
“What you are seeing today is really a compromise, representing a set of diverse opinions on a very controversial issue,” said Representative Donna Seidel, D-Wausau, who oversaw the working group for AB 447, during of a morning press conference.
Task force members present at the event said the provisions of the compromise bill and the timing of its introduction were unrelated to the recent recognition by Assembly Speaker Mike Sheridan, D-Janesville , that he had dated a lobbyist for payday lenders.
“Really, despite all the news and things you’ve heard, we broke our ass on this bill,” said Rep. Jason Fields, D-Milwaukee. “And so it’s a little disrespectful to me, in light of the current drama, to think that we haven’t worked hard on this.”