Payday lenders have been in the sights of state lawmakers for some time now, and there’s a showdown in the Assembly today on legislation to put new controls on the industry.
Legislators are scheduled to act on a bill that would limit loans to $600, prohibit rollovers, and keep borrowers from taking out multiple loans at the same time. However, the measure does not limit interest rates, which state Representative Chris Sinicki (D-Milwaukee) says is disappointing.
The Milwaukee Democrat says some of the outfits charge 500-percent or more, which takes advantage of people in desperate situations who need cash fast.
Sinicki hopes to introduce an amendment that would put a 36-percent cap on interest rates. That proposal was originally in the legislation, but was dropped as part of the current compromise.
In the state Senate, legislation is being drafted for a 33-percent limit. Governor Doyle has expressed support for an interest rate cap, but also has admitted it may not be politically feasible.
AUDIO: John Colbert reports (:38)