Payday Auto Title Loans – Ending in Wisconsin

Payday Loans Regulated in Wisconsin
Payday Title Loans Banned!

On May 18, 2010 Governor Doyle approved the Senate Bill 530 as Wisconsin Act 405 regulating payday lenders. He exercised his partial veto authority on the bill, prior to signing it into law. Payday Auto Title Loans will be banned and the regulations of unsecured payday loans will be tightened. The provisions take effect December 1, 2010.

The new payday lending law:

– Limits loans to the lesser of $1,500.00 or 35 percent of the applicant’s gross income

– Allows loans to roll over just once per customer

– Allows the customer to rescind the loan until the close of business the next day

– Allows customers to repay an outstanding balance in four equal payments coinciding with the customer’s pay schedule

– Creates a new license specifically for payday lenders and gives the Department of Financial Institutions (DFI) regulatory powers

– Requires an annual report from DFI to the Legislature regarding payday loan transactions

– Establishes a database to prevent people from simultaneously taking multiple loans from multiple lenders – Only 1 payday loan at a time.

– Prevents lenders from locating within 1,500 feet of each other and within 150 feet of certain residential areas

Using Wisconsin’s controversial partial veto power, Governor Jim Doyle modified the bill’s language to prohibit payday car title loans and forbid charging interest on loans after their maturity date. The Governor said he made these changes to strengthen consumer protection. Hopefully these changes will give the consumer more rights when dealing with the many payday lending stores.

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