PEWAUKEE, Wis.—The Wisconsin Credit Union League has joined with other Wisconsin financial industry trade groups in a letter urging Governor Scott Walker to veto a motion to expand the types of financial products and services payday lenders can provide.
The motion was included in the 24-page wrap-up–#999 Motion–of the state Budget Bill.
Co-signed by the League and the Wisconsin Council of Life Insurers, the Wisconsin Bankers Association, Wisconsin Manufacturers & Commerce and the Wisconsin Insurance Alliance, the letter notes that the provisions, as currently drafted, give payday lenders:
- Unlimited authority. Payday lenders could engage in any business they wish as long as they obtain a license, if necessary. For example, news reports have noted that payday lenders could operate a casino.
- An unleveled playing field. Financial institutions must adhere to requirements in Wisconsin Administrative Code, which provide consumers carefully crafted protections. Payday lenders would not be subject to these important consumer safeguards.
- A pass on public scrutiny. This provision was never subject to public hearing or open stakeholder and consumer input. Including such expanded authority for a single entity is a policy – not fiscal or budgetary – issue that deserves sufficient time for thoughtful consideration and scrutiny.
“The League’s opposition is consistent with its legislative guiding principle of shielding consumers—and credit union members in particular—from predatory lending practices,” said Tom Liebe, Senior Vice President of Advocacy for The League.