A new effort to crack down on the payday loan industry is part of a consumer protection initiative announced by Democrats in the Wisconsin Senate. There have been efforts in the Senate before, from Republican Glenn Grothman, and Democrat Dave Hansen , to toughen regulation of the industry. Senate Majority Leader, Judy Robson, said many people who take such payday loans can't really afford to repay them, and get trapped in a cycle of making interest payments at rates of up to 500% to 700% .
Senate Minority Leader, Republican Scott Fitzgerald, said they'll have to look the proposal over closely. "Our concern has always been, how does it curtail the private sector? And if they're really that much opposed to that whole concept, they should make the entire industry illegal in the state." Democrat Jim Sullivan of Wauwatosa said the payday loan business model counts on people getting locked into a rollover cycle, and that needs to be addressed. He also said payday lenders can be a drain on local economies. The restrictions are are part of a consumer protection agenda from Senate Democrats. Other initiatives include privacy protections for people who have their taxes professionally prepared, exempting e-mails addresses from information made available by the DNR, and restrictions on companies which sell magazine subscriptions.
