DE PERE, WI (WTAQ) — New legislation targeting predatory lending has been introduced in Wisconsin.
De Pere’s Republican State Senator Andre Jacque is heading up that bill, he says Payday Loans target the poor.
“These loans are almost designed to be too high to be repaid,” Jacque told WTAQ. “This is putting a limitation to make sure we’re not taking advantage of people on the lower end of the income scale and causing them future financial problems.”
The bill would cap interest rates for such loans to 36%, a big drop from their typical rates.
“36% is a pretty high percentage of interest, and yet the alternative is into the 500% or more,” says Jacque.
Payday loan interest rates in Wisconsin average over 400%, but they’re not the only loans targeted.
“In this case we’re talking about… any sort of consumer loans where you’re talking about exorbitant interest rates being charged and where you’re perpetuating a cycle of debt,” Jacque said.
Jacque expects the bill to come into conflict with Republican leadership in the assembly, where similar bills have failed.
