Groups urge Governor to veto payday lenders measure attached to budget
\"They are all planted in the poverty areas for a reason\"
Reverend Willie Brisco with Milwaukee Inner City Congregations Allied for Hope and Fair Housing and about two dozen other advocate groups are asking for Governor Scott Walker to veto a measure attached to the state budget.
“They call it predatory lending for a reason. They are all planted in the poverty areas for a reason,” Brisco said. “They know that people have a very few choices of going through the main stream lending agencies.”
In a letter dated July 8, the advocacy groups urge Governor Scott Walker to veto the payday lender measure. Consumer advocates argue theses payday lenders will have more access to sell complex financial services and trap low-income borrowers.
In a statement by PLS Services, the company says payday lenders are trying to avoid all the bureaucracy when it comes to offering new financial products.
\"The budget provision will modernize state statutes aligning Wisconsin with other states, and streamline government by eliminating repetitive agency oversight,” said Matt Swentkofske.
However, consumer advocates insist families in Wisconsin will not benefit from these payday expansions and that any changes to the market place should be done through legislation and not a “back-door” budget process.
\"It’s a way of keeping people in debt with outrageous interest rates and collection fees and it serves to prey on those who are less fortunate. Those who are already are in poverty.\"