State Budget May Soon Pinch Payday Loan Customers

June 21, 2013
Madison Capital Times (WI)  
payday lending news

Wisconsin's proposed state budget now includes an amendment that imposes stricter deadlines on debt repayment for borrowers. Last month, the Wisconsin Joint Finance Committee voted to remove a provision that would have exempted the "rent-to-own" industry from several consumer protection laws; but the new amendment gives a victory to payday lenders. Currently, a borrower is not considered to have defaulted on a loan until 40 days after the due date, but the budget amendment would allow payday lenders to declare a loan in default after just 10 days past due. Then, the lender could report the borrower to a credit rating agency, send the loan to collections, or file a small-claims suit. Consumer advocacy groups are speaking out against the proposal.
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