Payday Loans Decline As Lenders Exploit Loophole Local News
“That would have been a good law,” says Bob Anderson, a consumer protection attorney for Legal Action Wisconsin who lobbied for payday loan reform in the 2009-2010 legislative session, when Democrats controlled the government. Legislative Assembly.
May any law passed be a great triumph over the payday loan lobbyists who have invaded the Capitol and flooded the Democratic campaign’s coffers with contributions, in a case starting a romantic relationship with the then Speaker of the Assembly, Mike Sheridan. The Janesville representative admitted to dating a payday loan industry lobbyist.
“There was clearly an influence of the salary lobby on the Democrats, but they still passed a law,” recalls Anderson.
The law they passed was not that strong and initially included the 90 day definition for payday loans.
However, Doyle, using his partial veto power, eliminated the 90-day definition because he recognized the loophole it created. He also used his veto pen to ban auto title lending – short-term, high-interest loans secured by putting his car at risk – which Republicans also canceled the following year.
According to Anderson, Republicans justified the changes by believing that they were simply rescinding Doyle’s vetoes so that the law reflected “the original intention of the legislature.”