Payday Loan Regulations In Wisconsin

Several years ago, around a dozen of the so-called "payday loan" operations popped up in Superior.  Since Wisconsin was one of just a few states where that industry wasn't regulated, they were hoping to draw customers from all around the area and especially Minnesota.  The payday loan stores offer easy, short term loans but are known for charging outrageous interest rates (500 percent a year or more).  Yesterday, Wisconsin Governor Jim Doyle, signed a bill that puts limits on the size of the loans and where such operations can locate.  He also used his partial veto power to eliminate auto title loans entirely which Doyle says could result in people losing their cars and their ability to keep a job.  The law will take effect on December 1st and will bar loan stores from locating within 1500 feet of each other and loans would be limited to 1500 dollars or 35 percent of monthly income, whichever is less.  What effect the new regulations will have on the Superior payday loan business remains to be seen.