Coalition Calls on Senate to Pass Meaningful Payday Reform, Oppose Senator Sullivan’s Bill (SB530)

SB530 “Falls Well Short of Meaningful Reform”, Senate Should Pass Rate Cap

Madison, WI – Today, a coalition of consumer advocacy and faith organizations has registered their opposition to SB530, Senator Sullivan’s payday lending legislation, and is calling on the state Senate to stand up for Wisconsin consumers and pass a rate cap like 15 other states and the District of Columbia have already done.  The coalition has distributed a letter to the Wisconsin State Senate.

“Consumers in Wisconsin deserve the same protections that consumers in other states have,” said Bruce Speight, WISPIRG Director.  “Trapping borrowers in debt and gouging them with predatory loan products is unacceptable in Wisconsin and a rate cap should be put in place for Wisconsin consumers.”

Members of Wisconsinites for Responsible Lending including Legal Aid Society of Milwaukee, Inc., WISPIRG, Wisconsin Council on Children and Families, Madison-area Urban Ministry, WISDOM, Community Action Coalition for South Central Wisconsin, Inc., Citizen Action of Wisconsin, Wisconsin Community Action Program Association have signed onto a letter to Senators in opposition to Senator Sullivan’s bill and urging the Senate to pass a rate cap.

“A 36% rate cap is the only truly effective means to combat the predatory practices of payday and auto title lending because it would prevent the industry from morphing its products to evade the law,” the coalition stated in their letter to senators.

A bi-bartisan coalition of 15 senators has co-sponsored legislation this session that would enact a rate cap and protect Wisconsin consumers in the same way that 15 other states have already done.

“Wisconsinites are living through hard economic times,” stated Andy Gehl.  “If they need to take out loans, the terms and features of the loans they get should provide affordability and ability to repay the debt.  Senators need to lead, eliminate abusive lending practices from this industry and pass a rate cap.”

Posted @ 8:00 a.m.