If you have been following our blog, you are familiar with the pitfalls associated with borrowing money from payday lenders. On the surface, this option may seem a safe one because the loans are capped at $1500 with fees or 35 percent of monthly grossed income, limited to a 90 day period and are debited from checking accounts. Problems mount when funds originally designated for repayment are allocated to purchase food, medicine, rent or other basic living expenses. Individuals required to renew their loans can be assessed administration fees in addition to paying interest rates as high as 565 percent. In Wisconsin, there is no cap on the annual interest of payday loans.
Read this article from today's Journal Sentinel to see how payday lenders get around the very laws designed to regulate them.