State bar favors payday regulation


This should be an interesting political debate. My bet would be on a compromise. Nevertheless, there are strong voices in favor of the bill to cap interest rates at 36 percent:

The State Bar of Wisconsin’s Public Interest Law Section told a jointlegislative hearing Wednesday it favors legislation to cap interest rates charged by payday loan operations.

“Wisconsin is the only state which has no regulation of payday lenders,” Fons told the committees. “Allowing 500 percent to 1000 percent annual percentage rate short-term loans causes far more financial distress than it cures.”

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One Response to “State bar favors payday regulation”

  1. jt Says:

    There should be a cap on the interest rates charged, but what about bank fees per check bounced? They should be regulated along with the payday lenders. Consumers have the responsibility to inform themselves of the terms of a payday loan before going into an agreement with a payday lender. For more info on payday loans read this article:—Cash-in-1-Hour&id=3043405

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