A cloudy future for attempts to cap interest rates on short term loans in Wisconsin. State Representative Gordon Hintz (D-Oshkosh) says some people are really getting ripped off with interest rates that exceed 500 percent. Hintz’s bill would cap the interest rate on the short term loans at 36-percent but Assembly Speaker Mike Sheridan is saying that is “too low.” Hintz is hoping to work out a compromise.
The Oshkosh Democrat says the current system involves loans made with no consideration of income and with unreasonable payment terms which lead to a “debt trap.”
The payday lending community says they offer a service to people with poor credit and cannot access other types of loans.
