The state Senate has passed payday lending regulations. The bill’s author, Wauwatosa Democrat Jim Sullivan, said it will offer an array of protections, including where payday lenders may be located and limits on the size of loans to $1500 or 35 percent of monthly income.
But the billn (SB 530) includes no rate cap. West Bend Republican Glenn Grothman argued for that, and said it would drive the industry out of Wisconsin. “There are a variety of businesses or industries or whatever you call it that have been considered things that ought to have been shut down for three thousand years,” said Grothman. “It is light regulation, it is a light touch, but maybe its better than nothing,” said Beloit Democrat Judy Robson. “Well it better be better than nothing, because Wisconsin is the only state that doesn’t regulate payday loans.”
Senators passed the bill on a bipartisan 21-12 vote. A similar but not identical measure earlier passed the Assembly. Both chambers will have to agree by the end of the session in order for a bill to go to Governor Jim Doyle.
Bob Hague (:60 MP3) AUDIO: Bob Hague reports (:60 MP3)