Payday Lenders Continue to Expand in State

Payday loan offices, where typically low-income consumers pay a $20 fee for every $100 borrowed, continue to increase in number in the state, according to the Milwaukee Journal Sentinel.  61 new outlets opened in 2004, up 18% from the year before.  The total has increased from 17 to 399 over the past decade.  Lawmakers want to regulate the industry, limiting the number of times a loan can be rolled-over.  However, Governor Doyle vetoed a bill passed by the Republican legislature last year, and the two parties have had difficulty agreeing on a system of regulation. 

People who can't pay off the loan continue to roll the loan over, having to pay the $20 fee per $100 every time they do so.  Some people have as many as 15 payday loans at once, and there is no way to stop people from going to multiple payday loan stores at the same time, a common practice of gamblers.

Payday loan defenders, such as the industry's main lobbyist, say the industry is not a problem, and that it fills a niche, providing loans smaller than banks would ever be willing to provide.  They also say the fee is less than the fee banks charge for bouncing a check.