In Wisconsin, a new law that is set to regulate the payday lending industry has been passed by the legislature. Regulations, passed by both houses of Wisconsin congress, are supposed to become law soon. These bills have encountered one hitch before they become law. Governor Doyle has yet to sign the bill. What kind of restrictions will this new set of laws entail, and will they become law?
Resource for this article: New Wisconsin payday lending law - Still not signed
Restrictions on the Wisconsin payday loan industry
Several types of lenders would be subject to new regulation under the Wisconsin bills. No payday loan store would be able to operate within 1,500 feet of another payday loan store. No payday loan store could open up or operate within 150 feet of any residential area. The loans that lenders can offer will also be restricted. The amount of a payday loan would be capped – no more than 35 percent of an individual’s monthly income, or $ 1,500. Auto title loans would be restricted to only half of the value of the vehicle.
Governor Doyle has not yet signed payday loan bill
The payday loan bill is still waiting for a signature from Wisconsin Governor Doyle. There are several bills from this latest legislative session that are still awaiting the Governor’s say. The way Wisconsin law is written, an unsigned bill can still become law. Even if the Governor does not take action on the bill, and it will become law after Thursday. If a law is passed during normal legislative session, then not acted on by the Governor, it automatically becomes law.
Many bills still awaiting governor’s signature
There are almost 50 bills other than the Wisconsin payday lending law waiting for a signature from Governor Doyle. Some of these bills are relatively uncontroversial, such as the prescription drug regulatory bill – others, such as the raw milk bill, are still garnering debate. If the legislature wants to take action on any of these bills that are vetoed, they will have to convene a special session.
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