Payday and car title loans could face new restrictions in Wisconsin.
State Representative Josh Zepnick (D-Milwaukee) says he's concerned that people facing financial troubles may turn to quick fixes, such as payday or car title loans. Zepnick says those short term loans can quickly spin out of control and wrack up huge fees, further worsening a financial problem.
Zepnick is proposing legislation that would ban title loan companies from operating in Wisconsin. The Milwaukee Democrat says those loans are too risky to allow, since you're borrowing money on an item that continues to lose value. If you fail to pay on time, Zepnick says people run the risk of losing their car as well.
Zepnick also wants to limit the size of cash advances a person can receive on their paycheck. He also wants to allow people to rollover their debt just one time.
Zepnick says we need to lending practices that primarily target people who are down on their luck.