PEWAUKEE, Wis. (7/14/15)--Thanks in part to the Wisconsin Credit Union League, payday lenders will not be allowed to expand their services in the state.
The league co-signed a letter to Gov. Scott Walker last week urging Walker to dispose of a provision in the state’s budget bill that would have allowed predatory lenders to offer new financial products and services.
Walker agreed to veto the provision Sunday, citing that the nearly unlimited expansion of authority for payday lenders was “overly broad and significantly [exceeded] that of any other financial institution.”
He also said it could have created regulatory ambiguity and consumer uncertainty.
“We tip our hats to Governor Walker today for standing with consumers and rejecting what would have been an overnight expansion of authority for payday lending outfits in Wisconsin,” Tom Liebe, league senior vice president of advocacy, told News Now. “We strongly agree with Governor Walker’s assertion that legislation of this nature should be addressed as separate legislation where the implications can be carefully explored in a transparent and public fashion.”
The league joined the Wisconsin Council of Life Insurers, the Wisconsin Bankers Association, Wisconsin Manufacturers and Commerce, and the Wisconsin Insurance Alliance in signing the letter.
Had the provision been approved, it would have given payday lenders:
“The league asked for the veto because of the lack of public involvement and awareness of the changes, and also to fulfill our obligation to follow the guiding principles established by our membership in support of consumers,” said Brett Thompson, league president/CEO, in a statement to News Now.