Senate Passes Payday Loan Regulations, No Rate Cap

Forbes 
April 14, 2010
Bauer, Scott

A bill set to be the first to regulate payday lending in Wisconsin passed the state Senate on April 13. The measure did not, however, include the 36 percent annual cap on interest rates supported by many advocates for the poor and a group of bipartisan lawmakers. The rate ceiling was designed to stop borrowers from being charged exorbitant interest rates that lead to a cycle of debt. The Senate rejected the cap on a 21-12 vote and passed the bill on a bipartisan vote by the same margin. The Assembly pushed through a bill in February that also omitted the rate cap. The legislative session ends on April 22, and the two houses must reach an agreement before then if a bill is to be passed this year. Gov. Jim Doyle said he supports the regulatory efforts.
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