CURP Brief: A Primer on Payday Loans in Wisconsin
Decision-makers and other citizen advocates have reframed convenient lending and other financial service practices as not only consumer issues but also as an equity issues. Public awareness of lending practices that target financially vulnerable individuals has grown in recent decades.
Although sub-prime mortgage lending practices are at the forefront the policy discussion, other sub-prime consumer lending practices particularly "convenient lending" also deserve attention on account of the direct marketing, availability and transaction frequency of these financial products. The most common financial products offered in the convenient lending industry are "payday" and "title" loans. The availability of convenient lending services are typically confined to geographic areas with high low-income populations, which is the source of ethical and equity questions concerning the governance of consumer finance practices.
Many States and local governments around the country have recognized public interests related to limiting convenient lending practices. In response, many jurisdictions have significantly addressed sub-prime financial practices with smart policy-making as to maintain a viable consumer sub-prime finance market and also limit the obvious financial harm that sub-prime lending operations often cause consumers.
Wisconsin has attempted to add stability to this industry several times in the past two decades, however the current State government has significantly loosened the convenient lending laws in a manner that allow egregious loan maximums and exorbitant interest rates.
Read more about the convenient lending industry and ways decision-makers are encouraging smart governance of the consumer finance industry in Wisconsin in this pdf brief.
Although sub-prime mortgage lending practices are at the forefront the policy discussion, other sub-prime consumer lending practices particularly "convenient lending" also deserve attention on account of the direct marketing, availability and transaction frequency of these financial products. The most common financial products offered in the convenient lending industry are "payday" and "title" loans. The availability of convenient lending services are typically confined to geographic areas with high low-income populations, which is the source of ethical and equity questions concerning the governance of consumer finance practices.
Many States and local governments around the country have recognized public interests related to limiting convenient lending practices. In response, many jurisdictions have significantly addressed sub-prime financial practices with smart policy-making as to maintain a viable consumer sub-prime finance market and also limit the obvious financial harm that sub-prime lending operations often cause consumers.
Wisconsin has attempted to add stability to this industry several times in the past two decades, however the current State government has significantly loosened the convenient lending laws in a manner that allow egregious loan maximums and exorbitant interest rates.
Read more about the convenient lending industry and ways decision-makers are encouraging smart governance of the consumer finance industry in Wisconsin in this pdf brief.
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