Wisconsin Payday Loan Laws
Wisconsin payday loan laws have recently been launched that have eventually imposed several restrictions on lenders. For example, in order to prevent borrowers from borrowing from multiple lenders, a database has been established. Though this form of payday lending is still legal in this state, because of the introduction of the new laws, things are likely to become less horrible. However, it is very important for you to keep in mind that payday lending is still a very expensive option in the state of Washington.
Criminal Actions Are Not Permitted Against Payday Debtors
If a borrower is unable to pay off the loan on the set maturity date, it is not considered as a criminal offence in this state. It means no one can send you to jail if the check given to the lender is bounced because of non-sufficient fund in your account. Only civil lawsuits are allowed in such cases.
Restrictions On Payday Loan Stores
Payday loan stores that are physically located in this state must not be within 1500 feet of one another. Besides that, those stores are also prohibited from doing business within 150 feet of residential areas.
Maximum Amount Of Loan
Though Wisconsin payday loan laws do not specify anything regarding the maximum number of outstanding loans that an individual can have at a time, the aggregate total outstanding balance on all loans must not be more than 35% of his/her gross monthly income or $1500, whichever is less.
No Interest Can Be Charged After Due Date
If a borrower fails to repay the loan on
the set maturity date, lenders cannot charge additional interest on that loan account. The account will be in collection status, where certain collection charges might be applicable, but interest cannot be charged on it in any case. The same check cannot be presented for collections for more than two times. A maximum of $15 can be charged if the check returns due to non-sufficient fund in the debtor’s account.
No Restrictions On Basic Loan Terms
Though Wisconsin payday loan laws have tried to introduce a few provisions in an attempt to protect the rights and interests of the consumers residing in this state, nothing has been specified regarding the basic loan terms. Lenders are free to charge as much interest and other charges as they want. There are no minimum or maximum limits on the repayment period. Therefore, consumers are strongly recommended to read the terms and conditions mentioned in the loan contract thoroughly before they sign it.
Only One Time Rollover Is Permitted
If the borrower does not repay the loan on the set maturity date, the loan account may be rolled over for another month. However, it is very important to note that only6 one rollover is permitted.
You have the right to file complaints against those lenders who are not following Wisconsin payday loan laws thoroughly. The Wisconsin Department of Financial Institutions is the state authority to contact in this regard, which is located at Wisconsin Consumer Act Section, P.O. Box 8041 Madison WI 53708. You can either personally visit their office or contact them through fax at (608) 261-7200 and through phone at (608) 261-9555.
Category: Payday loans