New WI Regulation on Payday Loans

The Wisconsin Senate has passed a plan regulating the payday loan industry in Wisconsin. Under this legislation, the payday loan companies may not loan more than $1,500 at a time to consumers and consumers may not rollover the loan more than one time. Surprisingly, there is currently no limit on the rate of interest. The Assembly has a slightly different version of the Senate’s plan. Some critics of the plan don’t believe that it goes far enough to protect consumers from predatory lending. While others hold that such loans would not be available at all if payday loan companies cannot charge high interest rates to protect against the risk of default.