The payday loan industry appears to be on the cusp of success – once again.
After being lavished by campaign contributions and pushed around by an army of lobbyists, enough lawmakers in our states are apparently going to ensure that Wisconsin remains the only state in the country that does not regulate an industry that lends money for two weeks at a time, frequently extends balances for large fees, and ends up getting up to 520% interest on his loans.
The targets are the elderly on fixed incomes and the working poor, not to mention young soldiers and sailors on leave.
But rather than stand up to an industry that prey on the most vulnerable among us, the once-proud Wisconsin legislature is going to give another pass to a special interest who can afford to hire dozens of people. powerful and fairly flashy lobbyists. money to make any honest politician squirm.
This became evident last week when Assembly Speaker Mike Sheridan, once a union leader who defended workers, said the bill to impose a 36% cap on payday loans “goes too far. “. He therefore sent the bill to an assembly committee whose members have already indicated that they do not see the need for an interest rate cap.
The industry convinced lawmakers that a cap would bankrupt them and, as a result, their former customers would write bad checks, costing them more in bank fees than payday lenders.