Today brought some really good news for Wisconsin payday loans.
In signing the state budget on Sunday, Governor Scott Walker went ahead and nixed the payday loan provision that was quietly inserted into the budget last week along with many other last minute provisions.
It seems the Governor listened to the outcry by many different organizations in Wisconsin and did the right thing by taking this out of the state budget.
In our and many others eyes, this provision never belonged in the budget in the first place.
We are happy Mr. Walker has taken this out of the budget as it was the right thing to do and the way it got there in the first place is an interesting story.
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This is an interesting provision that would have allowed payday loan companies doing business in Wisconsin to sell insurance, do insurance quotes and even do simple tax preparations.
There was an outcry after this provision was slipped into the budget proposal at the last minute as always seems to happen with special interest driven items and many people really thought this would get through.
Thank goodness for the watchdogs out there keeping up on these things.
Soon after this was introduced opponents started squawking out facts.
Opponents reminded the governor that the report from the centers of responsible lending statistics from 2013 that showed these companies wrote 76.7 million dollars in loans and collected 22.5 million dollars in fees in Wisconsin in 2013 and the numbers have gone up since. This is just not acceptable to be giving companies with these kinds of fees any more clout.
Five other industry organizations sent a letter to Governor Walker asking him to veto this proposal.
Even more opponents
The Wisconsin Manufacturers & Commerce, The Wisconsin Council of Life Insurers, Wisconsin Insurance Alliance, and Wisconsin Credit Union League all let the governor know they strongly opposed this.
Of course, nobody can seem to figure out just who submitted this proposal and who is backing it but the Milwaukee Journal/Sentinal did report that PLS Financial Services out of Chicago was the major backer.
Wisconsin has 36 payday loan companies doing business in the state with 320 locations, and they are growing in numbers.
Why the opposition?
We have to agree with all of these watch groups and feel that these companies do nothing but prey on the poor and take advantage of them as it is and to give them more power would not be a responsible response.
Giving them the ability to prepare taxes gives them an in on people’s tax returns and makes it real easy for them to offer deals on anticipated refunds.
They will have the ability to know when someone has a refund coming and will be able to offer them money in anticipation of the refund, thus opening up the customer to the age old payday loan trap.
At the present time, 28 states allow payday loan companies to prepare tax returns. Wisconsin really does not need to be number 29 in our eyes.
This would have also allowed these companies to start writing insurance quotes, and thus allow them to charge fees for this service.
We and many others feel they collect enough fees as it is and to give them the ability to collect more would just be crazy.
We salute Governor Scott Walker for signing the budget for Wisconsin and for also doing the right thing and vetoing this proposition. Of course with anything, there was still much opposition to the budget. Watch the announcement below:
We here at Help With payday Loan Debt are hoping this sets a trend around the country to stop giving in to these special interest groups and do the right thing when it comes to dealing with payday loans and payday loan companies.
We do not need these companies getting any more services or any more opportunities to be charging more fees when their profits are borderline criminal already.
We wish Governor Walker luck in his presidential bid and we are very happy with his decisions concerning this matter.
Yeah, Scott Waker!
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