I was excited when I heard that state Rep. Gordon Hintz, a Democrat from Oshkosh, was introducing a bill to cap the interest on payday loans at 36.
Wisconsin has to rein in payday loan outfits
Curb their exploitation
September 10, 2009
Wisconsin’s absence of regulation has resulted in yearly interest levels of a lot more than 500%, and way t many tales of down-on-their-luck people not able to spend their loans back. That, in change, causes ever greater interest charges, which often drive people into taking out fully loans that are new. It may be a trap that is sticky.
The 36% limit in Rep. Hintz’s bill, AB 392, is founded on a law that is similar federally to safeguard people of the armed solutions, who, sadly, had been disproportionately afflicted with pay day loan rates. This seems like a limit that is reasonable everyone else.
Needless to say, that isn’t exactly what you would be had by the industry think. Make one negative remark about pay day loan practices therefore the shills turn out in force with well-polished lines, such as the ones in reaction to my present article.