A Win For Payday Lending Borrowers, says PaydayRate
March 2, 2010 -New York, New York – The Wisconsin Assembly finally approved a long standing bill that is set to regulate and transform the payday lending industry in the state of Wisconsin. This bill was approved with a vote of 59 to 38 after being locked away behind closed doors after numerous hours of debating and discussion. This vote is crucial for people who take advantage of payday loans which are short term loans that a borrower must payback with his or her next paycheck.
Those who are unable to pay back the loan which creates a cycle of debt for many people. These loans are commonly used by people who are unable to receive typical loans or come from low income families. With the passing of this bill, payday lending will still be available but without the abusive practices that companies in the payday lending industry are accustomed to practicing.
Many Republicans were not in agreement with the bill as they believed that the bill placed too many restrictions on payday lending. This would then effect people who need payday loans greatly as well as the lenders themselves. Payday lenders will still be able to charge high interest rates but they will not be able to enforce outrageous interest percentage rates. Recently, an amendment was shut down after a 56 to 41 vote in the assembly that would have placed a cap on the interest rates to charge at the most 36 percent.
Payday lending in Wisconsin has rapidly grown throughout the years with 530 payday lending stores. In 2008, these lenders gave out $723 million alone in Wisconsin. The supporters of the bill claim that these changes will be beneficial and control borrower’s habits as they will only be able to take out one loan at a time with a maximum take out or $600, which includes interest. There will be no rollovers since this practice creates the cycle of debt as the interest rates rise.
Josh Jackson, Spokesperson for PaydayRate says, “The passing of this bill is a victory for every victim of payday lending debt in Wisconsin.“
About PaydayRate: PaydayRate is the leading online payday industry watchdogs. At PaydayRate, the payday watchdogs have made learning about Payday Loans fast and easy. Nobody makes it simpler, to understand the pros and cons of emergency payday lending. PaydayRate allows visitors to do their research before deciding on a payday loan. In addition, PaydayRate allows Visitors to share their experiences with companies on its educational forum.
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