Payday lenders operating in Wisconsin will face new regulations, under a bill signed into law by Governor Doyle on Tueday. Doyle also used his veto pen to make some changes to the measure, with a major revision being to completely ban auto title loans in Wisconsin.
The original bill passed by the Legislature last month limited auto title loans to 50-percent of the vehicle’s value. But Carrie Templeton, the Governor’s Legislative Director, says Doyle felt that aspect of the industry represented some of the most predatory lenders in the state.
The legislation still caps the maximum payday loan a borrower can get at $1,500 or 35-percent of their monthly income and allows only one rollover for a loan. It does not include a rate cap on interest rates.
Governor Doyle made several other vetoes to the measure that he says are intended to close potential loopholes that payday lenders could abuse and directed the Department of Finanicial Institutions to develop rules for lenders.
State Representative Gordon Hintz (D-Oshkosh), one of the bill’s chief sponsors, praised the Governor for signing the bill. Hintz was a strong advocate for banning auto title loans and fought to keep it part of the legislation. He says the Governor’s vetoes should help provide the public with better protections against lenders who try to take advantage of them.
