Door County Style

Doyle’s Partial Veto of Payday Lenders Bill Torpedoes the Auto Title Loan Industry

Posted on 20. May, 2010 by Stephen Kastner in News

Proof positive that the pen is mightier than the sword…  Gov. Jim Doyle is proud to say he has used his partial veto power to wipe out the auto title loan industry in Wisconsin.

On Tuesday, Doyle signed a bill, approved by lawmakers last month, that regulates payday lenders for the first time in the history of the state of Wisconsin. But, he used his powerful veto pen to rewrite the measure in a way that he says further strengthens consumer protections. Doyle’s changes eliminated the Legislature’s compromise on auto title loans and prohibits them in Wisconsin after the law goes into effect in December.

The governor says auto title loans encompass, “some of the worst predatory lending practices,” and says they put families at risk of losing their vehicles.

But, when Doyle dropped the last 33 words of the auto title loan compromise, he also eliminated a definition of payday lending and directed the Department of Financial Institutions to propose rules to make sure lenders can’t skirt the law.

Steve Jacobs, owner of Universal Lenders of Wisconsin, with offices in Sturgeon Bay asks, “Did you know that the changes that Jim Doyle made to the payday law also stopped all financial institutions (except banks) from using cars as collateral? As we know, banks don’t lend money to people with bad credit or don’t do small loans. This is where loan companies fill the niche – not title loan and payday lenders but, legitimate finance companies.”

“Everyone starts out with good credit and then they may go to bad credit. But on their way, they pass through ‘medium’ credit and that is where loan companies help people get loans and start to repair some of their credit. Now, loan companies cannot take cars as collateral, which means higher interest rates, shorter term loans (higher payments). I can take a boat, snowmobile, mobile home, etc. for collateral, but not a car! He just made it more expensive for the average Joe.”

For a local lender’s perspective on this topic, please contact Steve Jacobs at 920.746.8393 or stevej@920LOANNOW.com. Jacobs owns Universal Lenders of Wisconsin and has offices located in DePere, Brookfield and Sturgeon Bay.

Universal Lenders of Wisconsin offers real loans – helping those who need it the most get out of the Payday loan cycle. Universal Lenders is the alternative to payday loans that lawmakers have been looking for. Payday loans are notorious for taking advantage of their customers by charging mind-blowing interest rates, huge fees and encouraging a recurring cycle of keeping borrowers in debt – all without any focus on improving an individual’s credit rating. Universal Lender’s mission is to help borrowers by offering lower interest rates and to guide customers toward a better credit rating.

For more information, visit www.wisloannow.com, or call 920.746.8393.

Tags: auto title loan, payday lending, Universal Lenders of Wisconsin