Andy Gehl and Bruce Speight: Protect Consumers With Payday Rate Cap

Madison Capital Times
March 30, 2010
Gehl, Andy; Speight, Bruce

Legal Aid Society of Milwaukee lawyer Andy Gehl and WISPIRG director Bruce Speight are calling upon the Wisconsin Senate to make a critical move in an effort to regulate predatory lending practices in the state. They support the enforcement of a 36 percent cap on interest rates for the payday lending industry, saying it is the only effective means to protect consumers from a business often leading to cyclical debt traps. Two bills currently under Senate consideration -- AB 447 and SB 530 -- do not impose rate caps; and Gehl and Speight say bills similar to these passed in other states have failed to regulate the payday and car-title industries in the best interest of the consumer. Under these minimally restrictive bills, lenders would be able to reinvent their products and continue operating. Gehl and Speight highlight the efficacy of strict regulation in other states and assert that consumers in Wisconsin deserve the same kind of protection. Fifteen senators have already demonstrated support for a 36 percent cap in Wisconsin, and Gehl and Speight are calling on those senators to follow through on their commitment.
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