New regulations on the payday lending industry in Wisconsin are misguided, according to critics who are involved in an extensive lobbying campaign to kill the measure.
Wisconsin Consumer Credit Counseling Services director Ken King says the proposals being considered at the Capitol right now amount to a restraint on trade that will actually hurt consumers. He says it takes away an option for obtaining credit for low and moderate income individuals who need a short-term loan.
King says such services can be crucial for someone who needs to borrow money to fix a car so they can get to work.
The Assembly passed legislation this week that would limit payday loans to $600 and prevents people from rolling over what they owe into a new loan. There’s a plan in the state Senate as well that would impose a cap on interest rates, which currently can exceed 500-percent.
AUDIO: John Colbert reports (:35)