Auto Title Loan Ban Expected to Affect Local Businesses

1230AM WCLO
May 24, 2010

Five of the 12 payday lending operations in Janesville, Wis., offer auto title loans and will be affected by Gov. Jim Doyle's recent ban on the products. The governor used a partial veto to remove 33 words from the bill so that it read, "No licensed lender may make a title loan." The five lenders also make payday loans, though it is unclear how the legislation will effect that portion of their business. Industry representatives were enraged by Doyle's veto that puts them out of business, but consumer advocates praised the decision. The Assembly tried to abolish the loans last month as an additional part of a measure that would regulate the number of loans a borrower could have as well as cap the loan amount to 50 percent of the car's value. However, the ban was stripped from the final version of legislation. Doyle's partial veto revived the ban. "Hardworking people in low-income jobs end up losing their cars because of the auto title industry and as a result can't go to work," he noted, adding that title loans are outlawed in most other states.
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