On Tuesday night, state assembly passed a bill to regulate the payday loan industry. This bill would be consisted on the size of loan $600, it will restrict the borrowers from taking more than one loan at the same time, and restricts rollovers. Auto title loans will also be banned by this bill.

Donna Seidel (D-Wausau), who is the state representative, states the bill should deliver a firm message to the lenders of payday that their days are now over for predatory lending in the state. Further she states, this bill will also end the days of Wisconsin that is being considered the “Wild West” of payday loans.

This bill will eliminate the option of last resource for families that are facing tough time, said by Assembly Republication Leader Jeff Fitzgerald (R-Horican). Further he states that this is a bad timing as already unemployment rate is rising and majority of residents will face difficulty in getting loan anywhere else. Fitzgerald states that this is not considered as the best deal for those who borrow money from payday loans, but this is the only resource from which they can go to borrow money.

The amendments that will have the capped interest rates on loan at 36% have been rejected by the lawmakers. According to the state representative, Andy Jorgensen (D-Fort Atkinson), restricting borrowers from rolling over their loans will help in ending the chain of debt that is created by the industry.

Another version of the bill now headed to the state that does not contains a cap on interest rates.

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