LWVWI urges Senate to cap payday loan interest rates

The Wisconsin Senate will vote on a payday lending bill that lacks a cap on interest rates on Tuesday, April 13.

The League of Women Voters of Wisconsin does not support the current form of the bill and has fifteen senators backing them, according to a statement released by the LWVWI. They need at least two more.

A study conducted by the League found interest rates and charges for small loans were excessive in Milwaukee County in 2006 and 2007.

“Without a cap on interest rates, some people in our state are paying over 300% APR interest,” the League wrote in its statement.  “To make matters worse, these loans result in an estimated $168.6 million leaving the state’s economy each year to enrich the out-of-state-owners of the payday lenders.”

The Assembly has a similar payday lending bill, and it too lacks a cap on interest rates.

The LWVWI is urging Wisconsin residents to contact their state Senator or Representative and urge them to support a payday lending bill with an interest rate cap.

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