City Councilmember Andrew Werthmann supports proposed regulations of payday loan industry, urges Eau Claire residents to submit comments and share their stories.
Wisconsin is one of only a handful of states with no cap on interest rates for payday lenders. As a result, the annual interest rate on payday loans in our state is nearly 600%. An Eau Claire resident who has to borrow $400 for an emergency car repair would end up paying $556 dollars in interest alone in just 3 months – not including the cost of additional fees.
The Consumer Financial Protection Bureau recently released proposed federal rules to rein in these abusive practices within the lending industry. These rules target the most harmful aspects of high-cost, small-dollar loans by ensuring more affordable loan structures and fairer payback periods.
“People I represent, people who feel they have nowhere else to turn are being taken advantage of,” said Councilmember Andrew Werthmann. “They are being forced into an inescapable cycle of debt by an industry that has been virtually unregulated.”
The Consumer Financial Protection Bureau is taking public comments on their proposed rules to shield consumers from further harm.
“If you can take the time to submit a comment and share your story it will help these rules be enacted.” Andrew continued, “I also believe our city should consider a moratorium on all new payday lender applications until these rules have been finalized.”
If you wish to submit your comment or support the proposed rules please visit this link:http://www.citizenactionwi.org/paydaycomment