Payday loans, designed as short term solutions to your temporary financial challenges, are subjected to tough regulations on state and federal level. The rising numbers on non-repaid loans have forced the powers that be look deeper into the problems, and since 2010 a good number of adjustments to legislation was adopted. As a rule, these legislations touch the percentage, the maximum loan amount, repayment terms and other aspects to protect the customers from handcuffing contract terms and draconian repayment amounts.
The state of Wisconsin is not an exception. Thus, Wisconsin payday loan laws implies plenty of restrictions and special conditions for lending businesses. So let’s have a closer look at the state of affairs.
Wisconsin direct payday lenders are required to provide potential borrowers with comprehensive information on the process of borrowing and written in plain, easy to understand language. Thus, the businesses are forced to indicate the short-term purpose of the loan. The notice should also include that the contract may imply the different repayment terms in case of the late payment. ‘Repaying the due contracts and refinancing the loans may lead to financial cabbala’ – that’s a quote from some Wisconsin payday website, and it represents another requirement – the state forces lenders to indicate the possibility of bankruptcy through payday loans.
The companies dealing with short term loans are obliged to provide comprehensive educational materials on responsible borrowing and materials, featuring a detailed description on how the service works.
Any loan offer must contain an itemized list of repayment fees, indicating the core numbers of the loan (loan amount, APR rate, the amount of repayment per each $100 borrowed and etc.). The borrower must have ability to get/save a copy of the contract.
The borrower is allowed to cancel the loan if it is appeared to be not useful, but no later than the next business day. In this case no penalty fees should be applied.
WI payday loan regulation enables you to get up to $1,500 within a payday loan, which is one of the highest amounts allowed in the country. In addition, the customers cannot borrow the amounts that exceed 35% of monthly income. As for the repayment limits, the state doesn’t require the agencies to follow particular guidelines. No exceptions are possible within payday offers; however, you may be offered an alternative option under a different title. Read the contract carefully before signing it, request the clarifications in case the repayment terms are unclear.
Wisconsin payday loan license forbids the businesses to occupy the areas within 1,500 feet from another cash loan shops. In addition, the businesses are prohibited from operating closer than 150 feet from any residential buildings.