A long day of testimony on payday loans at the Capitol Wednesday. Are the high-interest short term loans driving up poverty in Milwaukee? State Representative Jason Fields, a Milwaukee Democrat, says there’s more to it than that.
But Oshkosh Democrat, Representative Gordon Hintz, author of a bill that would restrict finance charges, says payday loans contribute to poverty.
Proponents argue that regulations are needed to protect consumers, while opponents claim it will deny consumer choice by driving the industry out of the state. State Representative Bill Kramer, a Waukesha Republican, tried to pin down Hintz on that point.
Fields and Hintz chair Assembly committees which heard hours of testimony during a joint hearing Wednesday, on legislation that would regulate the payday loan industry in Wisconsin.