The state Senate version (SB 530)of payday loan reform does not include a curb on auto title lending which is found in the Assembly bill. An Assembly author of the bill Gordon Hintz (D-Oshkosh) is concerned this will prompt payday lenders to focus on vehicle titles, which he says has happened in other states. He claims auto title lending is one of the “worst forms” because taking someone’s cars also affects their ability to get to work.
“We (Assembly legislators) went as far as actually banning that practice, I’m not saying we have to go that far but we see if it’s going to be meaningful reform having to include title,” he says.
Some advocates of reforming the industry have said without certain provisions, such as an interest rate cap, lawmakers might as well not pass anything at all. Hintz disagrees noting that currently Wisconsin has no regulations whatsoever, “a lot of the consumers groups are letting the perfect be the enemy of the good.”
The Oshkosh Democrat says it is paramount that lawmakers reconcile the two bills and this session, which ends next week.
Brian Moon reports (:67)