As lawmakers consider legislation that sets limits on the size of payday loans and prohibits borrowers from taking out multiple loans at the same time, Governor Jim Doyle is offering his support to the effort.
Doyle says it’s clear the industry needs more oversight and “anything is better than having nothing.” He says lawmakers have clearly worked hard on the bill, and he hopes either it or a stronger version makes its way to his desk.
The bill does not include a cap on interest rates, which Doyle says would provide some extra protection. However, he says it does prevent borrowers from rolling over their loans, which he sees as a major source of the financial troubles tied to the industry.
The Governor says paying $10 dollars on a short term loan of $200 seems like a high interest rate, but it only becomes a real issue when a borrower can’t pay it back in time so they have to take out an even higher loan. He says that leads to the cycle of debt that’s a big part of the problem and prohibiting rollovers will help to end that concern.
A legislative committee advanced the bill Wednesday on a party line vote. It’s not clear when the bill may get a vote in the full Assembly.
AUDIO: Andrew Beckett reports (:57)
