Posted on Monday, 17th May 2010 by Emily Smith
The new payday loan legislation that was handed to Wisconsin Governor Jim Doyle to sign faced some last-minute scrutiny that resulted in a few changes, Bloomberg reports.
The legislation that was voted on by the state Assembly and Senate allowed lenders to provide auto title loans, but restricted the industry from issuing more than one per customer for no more than 50 percent of the car’s value. Doyle used his partial veto power to ban payday lenders from providing auto title loans altogether, according to Bloomberg.
Doyle eliminated the definition of a payday loan as being 90 days in length, saying that lenders could avoid regulations by offering loans for a 91 day term, Bloomberg reports. The Governor also removed a portion that allows lenders to set up repayment programs for borrowers once each year, which Doyle believes should be available to consumers more frequently, Bloomberg said.
The new laws are scheduled to go into effect on December 1, 2010, Bloomberg reports.
The new Wisconsin payday loan legislation is the first such regulatory rule ever enacted in the state.
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Tags: Governor, Wisconsin Governor
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