Payday loans are short-term loans with extremely high interest rates that amount to advances on a borrower’s next paycheck. Supporters say they are often the only source of credit available for many low-income people who need quick cash to pay for unexpected expenses.
After years of no regulation in Wisconsin, the industry has enjoyed rapid growth. In 2008, there were 530 stores in Wisconsin that gave out 1.2 million loans totaling $723 million, lawmakers say.
The new bill would ban lenders from giving customers loans that are guaranteed by their personal vehicles, which can be seized if they do not pay them off.
Payday loans would also be limited to $600 or 35 percent of a borrower’s two-week income, whichever is less, and the $600 cap would include the interest that could be charged.
source here.
