Debate continues over Wisconsin payday loan changes

WEST ALLIS, Wis. (WPR)  Bills that would try to better protect consumers from the payday loan industry in Wisconsin are provoking a wide range of opinions. That makes it unclear what -- if anything -- will become law this spring.

The state Assembly has approved one measure that cracks down on payday loan companies. The Senate is still looking at whether to pass that bill, or a separate one that some people say isn't as tough. 

At a public hearing in West Allis Thursday (3/18), Amy Johnson of the Lutheran Office for Public Policy said the Assembly bill is better.

But Marvin Walker of the Wisconsin Coalition for Consumer Choice says both bills would go too far and dry up loans from payday lenders.

But the Legal Aid Society of Milwaukee says neither payday loan bill goes far enough. Attorney Andrew Gale says one of the biggest changes that's needed is to put an interest rate cap of 36-percent on payday loans.

Given the competing points of view, state legislators will soon have to decide if a compromise is the best route, or to possibly start over on the lawmaking process next year. 

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Information from Wisconsin Public Radio, www.wpr.org