Wisconsin has a new payday law

The Wisconsin Senate passed a new bill in the 11th hour.  Here are the details.

The new law would restrict where payday loan stores could locate and limit their loans to $1,500 or 35% of monthly income, whichever is less. Borrowers would be able to renew those loans just once. Auto title loans would be limited to half the value of a vehicle.

Title lenders would be required to notify borrowers before seizing their vehicles; could charge borrowers only “reasonable” storage fees if they repossessed their vehicles; and give borrowers cash back if they sold their vehicles for more than the amount of the loan.

The bill does not include a state database, like Veritec.  This is a good thing.

Two things I’m curious about:

  1. Only one rollover is permitted, but can the borrower pay off in full and reborrow?  I did not see a cool off period.
  2. Regarding title loans, how is the value of the car determined?

by admin

Bookmark the permalink.

Both comments and trackbacks are currently closed.