City of Milwaukee - File #: 000797

• File #: 000797
• Version: 0
• Type: Resolution
• Status: Passed
• File created: 9/22/2000
• In control: JUDICIARY & LEGISLATION COMMITTEE
• Final action: 10/10/2000
• Title: Resolution authorizing and directing the Intergovernmental Relations Division – Department of Administration to lobby for introduction and passage of state legislation establishing a maximum interest rate that may be charged by payday loan agencies and other businesses that make precomputed consumer loans.
• Sponsors: ALL MEMBERS OF THE COMMON COUNCIL
• Indexes: BANKS AND LENDING INSTITUTIONS, SOCIAL CONCERNS, STATE LEGISLATION

Date	Ver.	Action By	Action	Result	Tally
10/19/2000	0	MAYOR	SIGNED
10/10/2000	0	COMMON COUNCIL	ADOPTED; Minutes note: Ald. Breier, Sanchez, Hines and Pratt requested to be added as sponsors. Ald. Scherbert moved that there be unanimous consent for all members of the Common Council to be added as sponsors on this resolution. The motion prevailed.	Pass	17:0
10/2/2000	0	JUDICIARY & LEGISLATION COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Ald. Richards, Murphy and Gordon requested to be added as sponsors.	Pass	4:0
9/26/2000	0	JUDICIARY & LEGISLATION COMMITTEE	HEARING NOTICES SENT
9/22/2000	0	COMMON COUNCIL	ASSIGNED TO

Number
000797
Version
ORIGINAL
Reference

Sponsors
ALL MEMBERS OF THE COMMON COUNCIL
Title
Resolution authorizing and directing the Intergovernmental Relations Division – Department of Administration to lobby for introduction and passage of state legislation establishing a maximum interest rate that may be charged by payday loan agencies and other businesses that make precomputed consumer loans.
Analysis
This resolution authorizes and directs the Intergovernmental Relations Division – Department of Administration to lobby for introduction and passage of state legislation establishing a maximum interest rate that may be charged by payday loan agencies and other businesses that make precomputed consumer loans.
Body
Whereas, The City of Milwaukee has witnessed a recent proliferation of payday loan agencies and similar businesses that make non-traditional, short-term consumer loans; and

Whereas, While payday loan agencies and similar businesses are required to be licensed by the State of Wisconsin if they charge interest rates that exceed 18% on an annual basis (s. 138.09(1m), Wis. Stats.), there is no statutory limit on the interest rate they may charge (s. 138.09(7)(bp), Wis. Stats.); and

Whereas, According to the Wisconsin Department of Financial Institutions, payday loan businesses typically charge interest rates that compound to 350% to 500% on an annual basis; and

Whereas, Because of these high interest rates, the payday loan borrower often has difficulty repaying the loan when payday arrives, and will either take out another loan or "roll over" the loan by paying another loan fee to defer repayment for 2 additional weeks, thereby pushing the borrower deeper into debt; and

Whereas, According to a recent report by the Chicago-based Woodstock Institute, more than half of Illinois consumers with payday loans have had 11 or more loan "rollovers"; and

Whereas, The high interest rates charged by payday loan businesses and the f...