The latest payday loan news for Wisconsin is pretty much business as usual for one of seven states that charge the highest interest rates in the payday loan industry.
There are new payday loan laws that will be kicking in during June of 2016 but unfortunately they will not address interest rate amounts charged per state by these companies.
This puts Wisconsin tied with South Dakota for the number two spot on the list of states that charge the highest interest rates for their payday loans.
Wisconsin and six other states are the only ones in America who do not put a cap on the rates payday loan companies may charge their customers on short-term loans.
All seven states are at the top of the list in rates charged.
Idaho tops the list at 582% followed by Wisconsin and North Dakota tied at 565% with Nevada at 521%, Delaware at 517% and Utah at 474%.
Need help with payday loan debt in Wisconsin or any other state?
Will New Laws Help?
Yes, they will help in some situations and some states but they do not go nearly far enough to protect the borrowers!
Let’s take a look at what’s coming.
In a move to make payday loans a bit more affordable for the poor and less likely to trap them in debt congress has passed some new laws that will make it part of the lender’s responsibility to make sure they check out potential customers abilities to pay back these loans similar to how banks must do this when making approvals.
The Consumer Financial Protection Bureau’s proposal that led the way to these new laws also included limiting more than one loan at a time and also restricting how many times a person would be able to roll over a loan.
It also included limiting how many times a loan company can try to take money out of the borrowers bank accounts.
Google has taken it even a step further and is banning all paid ads.
The way these loans should be set up, according to experts, is short-term one-time loans that are paid back in a set amount of days in full with no extensions whatsoever and if this were the case nationwide we would not have anyone trapped in payday loan debt for months at a time.
Currently, these companies will allow multiple loans and multiple rollovers as this is what leads to huge profits for them.
A rollover is when a borrower just pays the interest on the average two-week loan and then refinances the loan for another 2 week period.
At current interest rates, even in states like Colorado at 129%, Oregon at 156% and Maine at 217% who have the lowest interest rates on the list, the amount of interest paid on extended loans creates huge profits for the loan companies and huge heart aches for the poor.
This is what is called being caught in the payday loan trap and the only winners here are the loan companies themselves.
The new laws hitting the books in June are a start in getting these loans to be more user-friendly and less costly, but they are still not enough.
In our opinion, payday loans should have their interest rates capped and the lenders should only allow one loan at a time with no extensions.
These companies should also be limited to one withdrawal per loan from a member’s bank account and that withdrawal should be for the loan total in full.
If Congress would just make these simple changes thousands of people a week would be saved from getting taken to the cleaners and back by these guys.
We would love to Lend A Hand And help!
If you are having problems with payday loan debt in any state fill out our form or call us toll-free at 1.877.280.5100 for a free no-obligation quote on how we can get rid of your payday loan debt!
We hope to report some payday loan news in the future that includes facts like interest rates that are affordable when using short-term loans.
As they are now the payday loan companies to get rich off the backs of the poor and underprivileged. and we will keep doing our part in helping them get out from under these loans!
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