The Assembly Speaker is calling on the state Senate to avoid any delays on legislation regulating payday loan providers.
The Assembly approved legislation earlier this week that limits the size of loans and stops borrowers from taking out more than one at a time. The measure also bans auto title loans and the practice of “rolling over” the balance of a loan.
Assembly Speaker Mike Sheridan (D-Janesville) is calling on the Senate to act quickly on the bill, which he says is too important not to get passed this session. He points to the large growth of the industry over the last 14 years as the result of the lack of regulation.
A Senate version of the bill includes a cap on interest rates, which lawmakers in the Assembly rejected. Sheridan believes their version does enough to put a stop to predatory practices within the industry.
The Janesville Democrat says they can always increase the regulations later, if the Assembly bill fails to help control the industry. He says if regulations don’t work, they can always just “throw ’em out.”
As of 2008, there were nearly 530 payday lenders operating in the state.
AUDIO: Andrew Beckett reports (:59)