Wisconsin Legislators Take Another Crack at Payday Loan Law

Historical archive, first published 2005 — payday-lending laws and rates have changed since. Preserved for the record.

Madison, WI — Lawmakers will make another attempt to beef up regulation of Wisconsin's growing payday loan industry, a state official said Thursday.

A Republican bill that would have imposed limits on payday lending was vetoed last year by Gov. Jim Doyle, who contended the legislation was too weak. But state Rep. Jean Hundertmark (R-Clintonville), chairwoman of the Assembly's Committee on Financial Institutions, said she hopes to craft a new bill that will win the governor's signature.

Some of those concerned that payday lenders take advantage of needy consumers suggested the state impose a fee cap or interest-rate limit on loans. They'd also like to restrict the number of times a loan can be extended, or rolled over, by paying another fee.

Kathryn Carlson, executive assistant for the Department of Financial Institutions, said the state should consider setting up an electronic monitoring system to enforce limits on the number of loans any consumer could have at one time. She said that because payday loans, which in theory are short-term loans to tide people over until their next payday, are being rolled over for months by many customers, they need more regulation than they now get from the state.