Wisconsin is the latest state to propose a 36% cap on loans. Currently, Wisconsin does not cap rates. The average rate is about $20 per $100, roughly an APR of 521% for a 14 day period. A 36% cap is $1.38 per $100. You do the math.
With all this being said, I think congressman is a bit disingenuous:
“Wisconsin is the only state that does not set a rate cap for licensed lenders, said the plan’s author, Rep. Gordon Hintz, D-Oshkosh.”
It’s one thing to not have a cap. It’s another thing to make it 36%. That’s just putting people out of business.
Wisconsin does not have a ton of stores. As of 2008, there were 530 store fronts.
You can read the full article in the Chicago Tribune. To read the response from the Wisconsin Deferred Deposit Association, head over to Payday Pundit.
