The state Senate is facing calls to put a cap on interest rates charged by payday lenders.
A Senate Committee held a hearing in West Allis Thursday on legislation that would impose new regulations on the payday lending industry. However, Bruce Speight with WISPIRG says the measures being considered falls short of addressing the real problem, which he argues is the interest rates charged on those loans. Speight says that’s the main issue that allows lenders to drag consumers into an endless cycle of debt.
WISPIRG is among a coalition of public policy groups calling for the Legislature to impose a 36-percent interest rate cap on payday loans.
The Assembly already acted on a bill without the rate cap, and the Senate is likely to take up a similar version of the legislation. Speight says lawmakers need to side with consumers and move towards a measure that includes the cap.
The payday lending industry has said a rate cap would effectively put them out of business.
AUDIO: Andrew Beckett reports (1:13)
