WEST ALLIS, Wis. (WTAQ) - A state Senate panel will hold a public hearing next Thursday in West Allis on payday loan regulations which are different than what the Assembly passed last month. Senate Democrat Jim Sullivan of Wauwatosa is proposing a 33 percent annual interest rate for loans which are not paid back by their first deadline. Before then, lenders could set any rate they wanted.
Sullivan’s bill would limit payday advances to $900, and there would be new zoning rules for locating payday loan offices. The Assembly’s version does not set any interest limits. But the loans could be no higher than $600. Rollovers would be banned. And lenders could not demand car titles as collateral. The Assembly was passed amid controversy involving Speaker Mike Sheridan, who had dated a lobbyist for the payday loan industry. He says they’re no longer going out together.