Wisconsin Governor Jim Doyle Passes Bill Regulating Payday Cash Advance Loans

By: Brent M. Barnhart
Wisconsin Passes New Legislation Attempting to Restrict Payday Cash Advance Loans

The winds of change are blowing in Wisconsin in regards to payday loan laws within the state. Governor Jim Doyle has signed legislation to put some limitations on lending practices, although nothing too dramatic compared to other areas of the country. The legislation on Wisconsin payday cash advance loans has been pending for quite some time and further perpetuates the growing prominence of loan regulations in the United States. Is now the best time to act in the midst of more loan legislation throughout the country? Let’s take a look at what Wisconsin’s new legislation entails.

Wisconsin’s regulations see cash advance loans restricted to either 35% of one’s monthly income or $1,500, whichever is less. Also, appropriate loans are now restricted to a single rollover period. Doyle’s new legislation regulates not only loans themselves, but also where they can be acquired. Wisconsin cash advance lenders are no long permitted to be within 1,500 feet of one another. Additionally, such lenders must also keep their distance from certain residential areas. As mentioned earlier, these regulations aren’t exactly traumatic, although they are significant for those seeking loans in the state.

But perhaps what is most significant is the abolition of title loans in the state of Wisconsin. Title loans are loans in which the lender uses the borrower’s car title as collateral in exchange for the loan. These loans typically have obscenely high interest rates and don’t do much to favor the borrower in the long-term. In this sense, government regulation is a positive in regards to the borrowing market. These recent Wisconsin payday loan regulations are seen by many as an attempt to help quell the state’s economic woes, and with the state’s recent drop in unemployment, it seems that Doyle may be leading his state in the right direction.

Doyle’s legislation is pretty cut and dry, but what does it mean for those outside of Wisconsin? Perhaps it’s a sign to act now in regards to acquiring a payday cash advance? As mentioned earlier, Wisconsin’s regulations are relatively tame in relation to states such as Georgia which have outlawed payday cash advance loans, altogether. Regardless, the growing presence of loan regulations from state to state should be a rather clear indication to potential borrowers to act now rather than later.