MADISON - Wisconsin state Senators are being pressured to put a cap on interest rates charged by payday lenders.
A Senate Committee held a hearing in West Allis last week on legislation that would impose new regulations on the industry. However, Bruce Speight with WISPIRG says the measures being considered falls short of addressing the real problem, which he argues is the interest rates charged on those loans.
Speight says that's the main issue that allows lenders to drag consumers into an endless cycle of debt. WISPIRG is among a coalition of public policy groups calling for the Legislature to impose a 36-percent interest rate cap on payday loans. The payday lending industry has said a rate cap would effectively put them out of business.