Payday loan bill up for state Assembly vote
MADISON - More details will be released today about a bill to regulate Wisconsin's pay-day loan shops. The Assembly Financial Institutions Committee is expected to vote on the measure tomorrow.
It does not include an interest limit on pay-day loans - which are meant to be paid back with the person's next paycheck. But many loans are rolled over, and critics say the interest often snowballs to up to 500-percent a year as a result. The new bill would limit pay-day loans to 600-dollars, and a state data-base would be created to make sure borrowers don't get more than one loan at a time.
Yesterday, a Milwaukee social justice group said the proposed regulations fall short of what's needed. The Inner-City Congregation said the pay-day loan industry would most likely find loopholes in the measure. Wisconsin had 542 pay-day loan centers as of last year - up from just 17 in 1995.